Starhill Global Reit sees strong recovery in sales and shopper traffic

IN THE current earnings season to-date, 23 S-Reits and property trusts have released their financial results or business updates for period ending Jun 30. Another 15 trusts are expected to announce between Aug 1 to Aug 12.

Last week, 14 S-Reits and property trusts unveiled half year or first quarter financial results ending Jun 30 while another 4 released quarterly business updates. Starhill Global Reit : P40U 0% (SGReit) also announced its full year earnings last week.

SGReit reported full year net property income (NPI) of S$144.7 million, increasing 7.4 per cent from last year. As a result, income available for distribution grew 1.8 per cent on a full year basis to S$89.8 million. The Reit manager will retain S$1.9 million of the H2 FY21/22 income available for distribution for working capital requirements.

The Reit manager noted that its Singapore portfolio, comprising interests in Wisma Atria and Ngee Ann City, continue to contribute the bulk of total revenue at 59.9 per cent of total revenue in H2 FY21/22. During the period, Wisma Atria and Ngee Ann City saw significant improvements in tenant sales and shopper traffic with the arrival of international tourists, as well as increased domestic consumption following the relaxation of Covid-19 safe management measures.

For H2 FY21/22, tenant sales and shopper traffic improved 43.6 per cent and 32.1 per cent year on year, respectively. The Reit also noted that tenant sales in Q4 FY21/22 at Wisma Atria even surpassed pre-pandemic sales by 4.8 per cent over the corresponding period in Q4 FY18/19.

As of Jun 30, 2022, the gearing ratio of SGReit is maintained at 36.2 per cent with about 93 per cent of its debts on a fixed or hedged basis. The Reit believes that its prudent capital management approach has allowed it to buffer pressures brought about by global inflation concerns and rising interest rates. It remains cautiously optimistic that the Asia-Pacific retail and commercial real estate markets will continue to grow. SGX RESEARCH

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The writer is a research analyst at SGX. For more research and information on Singapore’s Reit sector, visit sgx.com/research-education/sectors for the monthly S-Reits & Property Trusts Chartbook. Source: SGX Research S-Reits & Property Trusts Chartbook.