Starhill Global Reit posts 2.2% rise in H1 FY22/23 DPU

STARHILL Global Reit : P40U 0% posted a distribution per unit (DPU) that was 2.2 per cent higher at S$0.0182 for the first half of FY2022/2023 ended Dec 31, 2022, compared with S$0.0178 in the corresponding year-ago period.

The gross revenue of the real estate investment trust (Reit) rose 4.1 per cent on the year to S$94.7 million, from S$91 million in H1 FY21/22, the Reit said in a Friday (Jan 27) bourse filing.

Net property income (NPI) was up 6.7 per cent year on year at S$74.3 million, from the year-ago period’s S$69.6 million.

The manager attributed the NPI increase for the half-year to the completion of asset-enhancement works at The Starhill, lower rental assistance and higher rental contribution from its Singapore office. This was partially offset by lower rental contribution from its retail Wisma Atria property, and net movement in foreign currencies, it added.

Income available for distribution was up 2.2 per cent to S$43.6 million, on the back of higher NPI and lower net finance costs, and partially offset by higher income taxes and lower management fees paid or payable in units. Income for distribution to unitholders was S$40.9 million, up 3 per cent on the year.

For working capital requirements, the manager will retain S$2.6 million of income available for distribution for H1, it said.

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The Reit will continue with its distribution reinvestment plan. Unitholders can expect to receive their H1 FY21/22 DPU on Mar 23, with the record date at 5 pm on Feb 6.

Starhill Global Reit also gave the update that, as at Dec 31, 2022, its portfolio occupancy was stable at 97.1 per cent. Its office portfolio occupancy rose to 95.5 per cent in H1 FY22/23, from 91.5 per cent in H1 FY21/22; the Wisma Atria retail property also recorded higher tenant sales and shopper traffic, following eased Covid-19 restrictions.

It continues to upgrade existing assets and has introduced new-to-market brands in its malls. It also entered into a sale-and-purchase agreement to divest Daikanyama in Japan on Dec 30, 2022, with the transaction expected to be completed early this year. As at end-December, the Reit’s gearing stood at 36.3 per cent, with about 84 per cent of debts on a fixed or hedged basis. The average debt maturity profile “remains healthy” at three years, and it “has sufficient long-term committed and undrawn revolving credit-facility lines to cover the remaining debts maturing in FY22/23 and FY23/24”.

Francis Yeoh, chairman of Starhill Global Reit’s manager, said: “The Asia-Pacific retail market is expected to benefit from the further recovery of international travel, despite an uncertain economic climate resulting from global inflation.”

The manager’s chief executive officer, Ho Sing, added: “We have been vigilant over the past three years by strengthening our balance sheet and rejuvenating our portfolio.”

Units of the Reit were up 0.9 per cent or S$0.005 to S$0.59 on Friday, before the results were announced.