Starhill Global Reit posts lower DPU due to income retention, distribution deferment

STARHILL Global Reit on Tuesday posted a distribution per unit (DPU) of 0.7 Singapore cent for its second half ended June 30, down from the 2.2 cents paid out a year ago.

Income to be distributed to unitholders fell 68 per cent to S$15.4 million, after about S$3.8 million of income available for distribution was retained for working capital needs and S$7.7 million of distributable income for the current period was deferred, as allowed under Covid-19 relief measures announced by the Inland Revenue Authority of Singapore.

Gross revenue fell 18.5 per cent to S$84.1 million, while net property income fell 27 per cent to S$58 million.

This was partly due to rental assistance of S$14.9 million given to eligible tenants, including allowance for rental arrears to cushion the impact of the Covid-19 pandemic in the fourth quarter, as well as lower contributions from Starhill Gallery in Kuala Lumpur, where a rental rebate was extended to the master tenant during the renovation period of the mall.

Its total portfolio occupancy was 96.2 per cent as at end-June 2020, with a retail portfolio occupancy of 97.4 per cent.

To help tenants through the business disruption due to the Covid-19 pandemic, the Reit has so far given out total rental rebates to eligible tenants, including an allowance for rental arrears and rebates for its Australian tenants, of S$32.2 million in FY20.

This also includes about S$15.2 million of property tax rebates for its eligible tenants and estimated cash grants for eligible small and medium-sized enterprises, both funded by the Singapore government, it said.

Unitholders can expect to receive their DPU on Aug 28.