Starhill Global Reit Q1 DPU dips 4.2%

STARHILL Global Reit on Tuesday reported a 4.2 per cent drop in distribution per unit (DPU) to 1.15 Singapore cents for the first quarter ended Sept 30.

This was mainly due to lower net property income which dipped 2.3 per cent to S$40.4 million from a year ago on the back of lower contributions from the retail portfolio in Singapore and the depreciation of the Australian dollar.

Gross revenue dipped 1.8 per cent to S$52 million, while income available for distribution fell 1.9 per cent to S$26.2 million for the quarter.

Representing an annualised distribution yield of 6.56 per cent, unitholders can expect to receive their first-quarter DPU on Nov 29.

Performance in Q1 has been led by its office portfolio in Singapore whereby committed occupancy has recovered from 83.5 per cent as at Sept 30, 2017 to 95.3 per cent as at Sept 30, 2018.

The Singapore portfolio, comprising interests in Wisma Atria and Ngee Ann City on Orchard Road, contributed 61.4 per cent of total revenue in Q1.

Its Australia portfolio, comprising Myer Centre Adelaide in Adelaide, South Australia, the David Jones Building and adjoining Plaza Arcade in Perth, Western Australia, contributed 23 per cent of total revenue.

Starhill noted that Uniqlo has successfully opened its first store in Perth at Plaza Arcade with shoppers queuing to get in during its opening ceremony, affirming the popularity and demand by international brands for prime city centre retail space in Australia.

Its Malaysia portfolio, comprising Starhill Gallery and interest in Lot 10 along Bukit Bintang in Kuala Lumpur, contributed 13.4 per cent of total revenue in Q1.

The balance of its portfolio, which comprises a property in Chengdu, China and two properties located in central Tokyo, contributed 2.2 per cent of total revenue.

Tan Sri Dato' (Dr) Francis Yeoh, chairman of YTL Starhill Global, said: "While the global retail industry is experiencing structural changes as a result of changing consumer preferences which present new challenges, we believe there are new opportunities for progressive retailers as well as innovative and forward-thinking landlords."

He added that Starhill will continue to assess potential asset enhancement and acquisition opportunities for its portfolio.