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Starhill Global Reit's Q1 DPU dips on asset enhancements, tenant movements

STARHILL Global Reit on Friday posted a 0.8 per cent dip in distribution per unit (DPU) to 1.3 Singapore cents for its first quarter ended Sept 30, 2016, down 0.01 cent from a year ago.

Gross revenue dipped 2.7 per cent to S$55.3 million, while net property income (NPI) fell 1.7 per cent to S$42.9 million, hurt by lower contributions from its Australia, China and Japan properties.

Australia revenue makes up about a fifth of its total revenue. NPI fell 13.2 per cent from a year ago due to an overall decline in occupancies which was largely attributed to unfilled vacancies at Myer Centre Adelaide office and Plaza Arcade's lease terminations leading up to the planned enhancement works.

The trust's East Asian portfolio of Renhe Spring Zongbei in Chengdu, China and four Japan properties in central Tokyo, which contributed 2.7 per cent of the total revenue, also saw NPI fall 68.7 per cent largely due to lower contribution from Renhe Spring Zongbei and depreciation of the Chinese yuan against the Singapore dollar, as well as loss of contribution from the divestment of Roppongi Terzo in January 2016.

The asset redevelopment at Plaza Arcade in Australia and the tenant transition for Renhe Spring Zongbei will impact the trust's revenue until completion, the trust added.