Starhill Global Reit Q3 DPU up 5%; revenue dips 0.4%

STARHILL Global Reit on Thursday reported a distribution per unit of 1.27 Singapore cents for its third quarter ended Sept 30, 2014. This was 5 per cent higher than its DPU of 1.21 Singapore cents a year ago.

Net property income rose 4.1 per cent to S$39.6 million, thanks to lower operating expenses, positive rental reversions for the Singapore portfolio, and David Jones Building in Perth, Australia.

This was partially offset by lower contributions from Renhe Spring Zongbei in China's Chengdu, loss of income contribution from Japan divestment Holon L in March 2014, and net foreign currency movements.

Gross revenue dipped a marginal 0.4 per cent to S$48.6 million, mainly due to lower contributions from China and Japan.

The poorer performance of its Chengdu property comes amid a contraction of the high end and luxury retail segment, as a result of the Chinese government's austerity drive, as well as increased competition from new and upcoming retail developments in the city, it said.