Friday, July 27, 2012

Starhill Global Reit posts 3.8% rise in Q2 DPU

Business Times: Wed, Jul 25

STARHILL Global Real Estate Investment Trust (SGReit), which counts Wisma Atria and Ngee Ann City in its portfolio, reported a 3.8 per cent year-on-year rise in distribution per unit (DPU) to 1.08 cents for the second quarter.

This works out to an annualised distribution yield of 6.53 per cent, based on SGReit's closing price of 66.5 cents per unit on June 30.

The higher DPU was despite ongoing redevelopment work at Wisma Atria.

YTL Starhill Global Reit Management, SGReit's manager, said the books closure date is on Aug 1, and unitholders can expect to receive their Q2 DPU on Aug 28.

SGReit's distributable income for the quarter was $23.31 million, an increase of 2 per cent from the same period last year, while net property income was up 4.4 per cent at $37.14 million.

Gross revenue inched up 4.8 per cent year on year to $46.36 million, buoyed by rental contributions from Wisma Atria and increased occupancy in the office properties.

SGReit's Singapore portfolio contributed 62.8 per cent of total revenue, or $29.1 million in Q2. Occupancy levels for Wisma Atria and Ngee Ann City offices rose to 99.0 per cent and 98.0 per cent respectively as at June 30.

Demand for retail space in Wisma Atria has benefited from the asset redevelopment, with occupancy at 99.5 per cent and positive rental reversions of about 33 per cent achieved for leases committed between July 2011 and June 2012, since the start of the asset redevelopment.

Its Malaysia portfolio, comprising Starhill Gallery and interest in Lot 10 along Bukit Bintang in Kuala Lumpur, contributed 16.7 per cent of total revenue, or $7.7 million.

Renhe Spring Zongbei in Chengdu contributed 8.2 per cent while the David Jones Building in Perth contributed 8.0 per cent to total revenue.

SGReit's Japan portfolio, which comprises seven properties located in central Tokyo, achieved a 12.5 per cent increase in turnover to $2.0 million.

YTL Starhill Global said Asia continues to exhibit its resilience despite global economic headwinds in the second quarter, but warns that the risk of further deterioration in the global conditions remains.

Against this backdrop, SGReit said its portfolio of long-term leases and master leases with built-in-step-up rent reviews and short-term leases will provide income stability and growth for its unitholders.

The asset redevelopment of Wisma Atria has been substantially completed in this quarter with all the Orchard Road fronting tenants opened for business.

Its Renhe Spring Zongbei property has embarked on a series of tenancy works since Q1 and the enhanced tenant mix and retail offerings are expected to be in place by Q3 this year.

SGReit closed trading yesterday a cent higher at 69.5 cents.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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