Starhill Global REIT reels from impact of Malaysia property closure

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Starhill Global REIT has reported in a distribution per unit (DPU) of 1.13 Singapore cents for its 2Q FY19/20.

This is unchanged from the corresponding period of the previous FY.

The REIT’s revenue for the period is SGD48.7 million, declining by 4.5% year-on-year.

Correspondingly, net property income decreased by 5.9% to SGD37.2 million.

Starhill Global REIT attributes the declines to rent rebates extended to the master tenant of Starhill Gallery in Malaysia during its asset enhancement period.

Excluding Starhill Gallery, revenue and NPI for the REIT would have declined more moderately by 0.4% and 0.6% respectively over the same period.

But there is a bright spark in the REIT’s Singapore retail portfolio.

The segment recorded higher revenue and NPI year-on-year in 2Q FY19/20.

The retail component of Wisma Atria achieved full occupancy as at 31 December 2019 given the addition of new tenants.

The mall also saw tenant sales rising 13% year-on-year.

However, overall NPI for the Singapore portfolio is down by 0.5% year-on-year to SGD25.0 million.

This is mainly due to lower contributions from the office segment.

The REIT’s Australia NPI is also down given depreciation of the AUD, and lower contributions from Myer Centre Adelaide.

But its China and Japan properties saw a 2.3% rise in NPI.

Starhill Global REIT’s latest gearing is at 36.3%.

The REIT was last done on the Singapore Exchange at SGD0.71.

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