Retail and commercial landlord Starhill Global REIT (SG-REIT) (SGX:P40U) posts a 28 percent increase in DPU for its 1Q 2013 to 1.37 cents. This comes on the back of healthy revenue and Net Property Income (NPI) - overall revenue went up 16.5 percent to S$53.6 million while NPI is up 12.3 percent to S$41.9 million.
|Starhill Global REIT's NPI is up 25.3 percent thanks to full occupancy and positive rental reversions from retail and office units in Singapore/|
SG-REIT has attributed the numbers to a strong performance by its Singapore properties. NPI for Singapore its portfolio up 25.3 percent driven by full occupancy and positive rental reversions from its retail and office units. SG-REIT currently has 2 properties in Singapore, namely Wisma Atria and Ngee Ann City - both located in the heart of Orchard Road.
SG-REIT's overseas portfolio in Malaysia and Australia have fared not too bad either with properties such as the David Jones Building in Perth reporting full occupancy on a long term lease with David Jones Department Store which will only expire in 2032. Till then, the property is slated for upward revisions in rents once every three years.
However its properties in China and Japan see a 1Q 2013 decline in Net Property Income (NPI) of 13 percent and 38 percent respectively. This is due to a combination of fiercer competition in the high end retail segment, generally weaker economic conditions and a devaluation of the yen against the Singapore dollar.
Units of SG-REIT closed the trading week slightly higher by about half a percentage point at S$0.965.