Starhill Global Reit bumps up H2 DPU to 2.07 Singapore cents

RETAIL landlord Starhill Global Reit (SGReit) on Thursday announced a distribution per unit (DPU) of 2.07 Singapore cents for the second half, including the amount deferred from the previous financial year under Covid-19 relief measures.

Distributable income was up by 67.3 per cent year on year to S$44.9 million for the six months to June 30, helped by an adjustment to reflect property tax refunds in Singapore, as well as a one-off capital allowance claim in the year-ago period.

Net property income grew by 20.2 per cent to S$69.8 million, which was attributed to lower rental assistance for tenants and a strengthening of the Australian dollar.

Gross revenue increased by 10.5 per cent to S$92.9 million on higher rental income.

The latest payout takes the full-year DPU to 3.95 cents, against 2.96 cents the year prior. If the deferment in distribution had not happened, DPU for the latest financial year would have been 3.60 cents, against 3.31 cents for the previous year.

The books close on Aug 6, with payment to be made on Sept 24.

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For the full year, distributable income was higher by 14 per cent, at S$88.2 million. Net property income increased by 2 per cent to S$134.7 million, while gross revenue was up by 0.3 per cent to S$181.3 million.

Ho Sing, chief executive of the manager, said in a statement that "shopper traffic and tenants' sales gained momentum between January and May 2021", but warned that the positive trend is now on hold on the back of worsening Covid-19 outbreaks in operating markets.

SGReit's commercial portfolio comprises three properties in Australia; there are two properties each in Singapore, Malaysia and Japan, and a retail property in China.

The portfolio had a weighted average lease expiry by net lettable area of 7.9 years as at end-June, with committed occupancy of 96.3 per cent.

Gearing stood at 36.1 per cent, while average debt maturity stood at 3.3 years.

Separately, the manager will form a combined nominating and remuneration committee, to be chaired by independent director Tan Woon Hum, with effect from Aug 1.

SGReit units closed at S$0.605, up by half a cent or 0.83 per cent, before the results.