Starhill Global Reit posts 2.3% rise in H1 FY21/22 DPU to S$0.0178

STARHILL Global Reit P40U on Tuesday (Jan 25) posted a distribution per unit (DPU) of S$0.0178 for the first half of the fiscal year FY2021/22 ended Dec 31, 2021, up 2.3 per cent from a DPU of S$0.0174 in the corresponding year-ago period.

This excludes the release of S$3.1 million or S$0.0014 per unit from the Reit's FY19/20 deferred distributable income for the H1 FY20/21 distribution.

Including the effects of the deferred amount, DPU was down 5.3 per cent from S$0.0188 on a year-on-year basis.

Unitholders can expect to receive their H1 FY21/22 DPU on Mar 23, with the record date on Feb 4.

Net property income for H1 was up 7.2 per cent to S$69.6 million, from S$65 million in the year-ago period, while gross revenue rose 2.9 per cent to S$91 million, from S$88.4 million.

The group attributed the improved figures mainly to lower rental assistance to eligible tenants, including allowance for rental arrears and rebates for the Reit's Australia properties which totalled to S$3.4 million in the period under review.

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There was also a cessation of rental rebates in Malaysia following the completion of asset enhancement works at The Starhill in December 2021. These were partially offset by the weaker contributions from the Reit's retail Wisma Atria property.

Income to be distributed to unitholders was down 4.1 per cent year on year to S$39.7 million, from S$41.4 million previously. Starhill Global Reit said some S$2.9 million of income available for distribution in H1 has been retained for working capital requirements, versus S$4.9 million in the year-ago period.

There was also a one-off adjustment to reflect the timing difference of Singapore property tax refunds in the previous corresponding H1 period, as well as a full period of distribution to the perpetual securities holders in the half year under review.

The Reit's Singapore portfolio - comprising interests in Wisma Atria and Ngee Ann City - contributed 61.6 per cent of total revenue in H1 FY21/22, and had an actual occupancy of 99.5 per cent as at Dec 31, 2021.

The Singapore office portfolio had a committed occupancy rate of 94.7 per cent, while actual occupancy stood at 90.4 per cent as at end-2021.

Meanwhile, the Reit's Australia portfolio constituted 24.1 per cent of revenue in H1, and had booked actual occupancy of 95.3 per cent as at end-2021. The Malaysia portfolio contributed 11.7 per cent of total revenue.

The remainder of Starhill Global Reit's portfolio comprises a property in Chengdu, China, and 2 properties located in central Tokyo, Japan.

As at end-December, the Reit's gearing stood at 36.1 per cent. The group has no further refinancing requirements in FY21/22, and has sufficient long-term committed and undrawn revolving credit facility lines to cover the remaining debts that will mature in FY22/23.

Commenting on the results, Ho Sing, chief executive of Starhill Global Reit's manager, said: "As many countries transition towards being Covid-19 endemic, we continue to enhance our portfolio so that we will be better positioned for growth.

"In 2022, we are cautiously optimistic that consumer sentiment will improve, even as new strains of Covid-19 continue to disrupt and prolong a full recovery."

Units of Starhill Global Reit ended Tuesday unchanged at S$0.635 prior to the results announcement.