Starhill Global REIT's Ngee Ann City property. (Photo: REITsWeek)

Starhill Global REIT has reported lower revenue and distribution figures for its 2Q FY 17/18, but ongoing asset enhancement works at its properties in Australia and Malaysia are expected to bolster earnings in the coming quarters.

The mixed commercial REIT recorded a distribution per unit (DPU) of 1.17 Singapore cents for the quarter, a fall of 7.1% year-on-year from the 1.26 cents achieved in the corresponding period of 2Q FY16/17.

Gross revenue for the period came in at SGD52.5 million (USD40 million), a decrease of 3.0%, while net property income was recorded at SGD40.5 million, a fall of 2.2% over 2Q FY 16/17.

Besides disruption of income from the ongoing asset enhancement initiative (AEI) at Plaza Arcade in Perth, Starhill Global REIT has also pointed to weaker contributions from its office properties, and lower revenue at Myer Centre Adelaide as reasons for the declining figures.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.