Starhill Global Reit posts lower DPU of 1.13 cents
Singapore
STARHILL Global Real Estate Investment Trust (SGReit) has registered a decline in gross revenue, net property income, distributable income and distribution per unit (DPU) for the first quarter ended Sept 30.
The decline in revenue and net property income was mainly due to lower income, as a result of the planned asset enhancement of Starhill Gallery in Malaysia, SGReit's manager YTL Starhill Global Reit Management said in a statement on Tuesday.
SGReit saw its revenue for the quarter decline 7.8 per cent from S$52 million to S$48 million, while net property income of S$36.9 million was 8.7 per cent lower than S$40.4 million for the corresponding period a year ago.
The decline in revenue and net property income will be largely mitigated by the manager receiving part of its base management fees in units.
Distributable income to unitholders was down 1.6 per cent at S$24.7 million from S$25.1 million for the year-ago period. Also, DPU was 1.7 per cent lower at 1.13 Singapore cents, compared to 1.15 cents for the corresponding period a year ago.
DPU will be paid out on Nov 29.
Chairman of YTL Starhill Global Francis Yeoh said: "Trade uncertainties and geopolitical tensions continue to impact global economic growth, with signs of synchronised slowdown across a majority of the countries in the world... The recently concluded new master tenancy agreements for Malaysia properties with their long tenures and built-in periodic rental step-ups will provide income certainty and growth amid uncertain macroeconomic conditions."
YTL Starhill Global chief executive Ho Sing said the Singapore portfolio performed well on the back of higher occupancies.
The Singapore retail portfolio's occupancy improved to 99.7 per cent as at Sept 30. On a committed basis, the Singapore retail portfolio achieved full occupancy as at Sept 30. Retail tenant sales for Wisma Atria continued to grow at 12.7 per cent year-on-year while footfall traffic rose 2.8 per cent year-on-year in the first quarter. Meanwhile, occupancy rate for the Singapore office portfolio was stable at 93.6 per cent as at Sept 30, compared to 93.2 per cent as at June 30.
Wisma Atria has an existing unutilised plot ratio amounting to approximately 100,000 square feet of gross floor area. SGReit's manager said it is exploring options to potentially unlock the value of the space, in view of the upcoming new Orchard MRT Station serving the new Thomson-East Coast line.
SGReit's gearing level stood at 36.2 per cent, and hedged about 90 per cent of its borrowings as at Sept 30.
SGReit units ended one cent, or 1.35 per cent, higher at S$0.75 on Tuesday.
