Starhill Global Reit Q2 DPU flat at 1.13 Singapore cents
Singapore
STARHILL Global Real Estate Investment Trust's (SGREIT) distribution per unit for the second quarter ended Dec 31, 2019 was flat at 1.13 Singapore cents.
Revenue for the second quarter fell 4.5 per cent year on year to S$48.74 million, while net property income was 5.9 per cent lower at S$37.17 million, mainly due to the rental rebate extended to the master tenant during the asset enhancement period of Starhill Gallery in Malaysia, it said. The income disruption resulting from the planned asset enhancement will be largely mitigated by the Reit's manager receiving part of its base management fees in units.
Stripping out Starhill Gallery, revenue and net property income dipped 0.4 per cent and 0.6 per cent respectively, it added.
Meanwhile, income available for distribution was flat at S$25.16 million. The distribution is payable Feb 28.
Its Singapore properties contributed about 65 per cent of total revenue in 2Q FY19/20, more or less flat from the corresponding quarter a year ago. Net property income from Singapore totalled S$25 million, or 0.5 per cent lower, owing to lower contributions from the office portfolio; this was partially offset by higher contributions from Wisma Atria.
Its properties in Australia contributed 22.5 per cent of total revenue, or S$11 million, which was down 3.4 per cent. Net property income out of Australia was 4.8 per cent lower at S$6.5 million, weighed down by the depreciation of the Australian dollar vis-a-vis the Singapore dollar and lower contributions from Myer Centre Adelaide.
For the six-month period ended Dec 31, 2019, gross revenue slid 6.2 per cent year on year to S$96.72 million, while net property income fell 7.3 per cent to S$74.07 million. Income available for distribution dipped 1.7 per cent to S$50.49 million.
Ho Sing, chief executive officer of YTL Starhill Global, said: "Wisma Atria (retail) achieved full occupancy as at Dec 31, 2019 as we welcome new tenants. Wisma Atria also saw its tenant sales rising 13 per cent in the quarter."
SGREIT's gearing level stood at 36.3 per cent as at Dec 31, 2019.
Units in SGREIT closed at half a cent lower on Wednesday at 71 Singapore cents.
