Singapore-listed office and retail spaces landlord Starhill Global REIT has announced a distribution of 1.30 Singapore cents for its 1Q FY16/17, a decline of 0.8% from the 1.31 cents achieved in the corresponding period of the previous financial year.
Gross revenue for the quarter declined 2.7% year-on-year to SGD55.3 million (USD39.66 million), while net property income slipped by 1.7% to SGD42.9 million.
Subsequently distributable income for the period came in at SGD28.4 million, 0.8% lower from the SGD28.6 million reported in 1Q 2015.
The REIT recorded lower contributions from its properties in Australia, China, and Japan for the financial period, despite seeing better results in Singapore and Malaysia during the period.
“As part of our efforts to mitigate the challenges of the high-end retail market in China, we have secured a new long-term tenant, Markor International Home Furnishings, which is one of the largest furniture retailers in China”, said Ho Sing, CEO of the REIT’s manager, in a statement on 28 October.
He added that the REIT has also undertaken redevelopment works at Plaza Arcade in Perth, in the effort to achieve yield accretion for unitholders.
Starhill Global REIT’s aggregate portfolio occupancy as at 30 September 2016 was at 93.8%, down from the 95.1% in the previous quarter.
“We will continue to focus on growing the REIT and building value for our unitholders through organic growth, creative asset enhancement initiatives, mall repositioning and prudent capital management”, said Tan Sri Dato’ (Dr) Francis Yeoh, Chairman of the REIT’s manager.
Units of Starhill Global REIT finished the trading day about 0.6% lower from its previous close on the Singapore Exchange to end at SGD0.81.