Starhill Global REIT reports fiscal 3Q net property income fell, missing Daiwa forecast

Starhill Global REIT mall Wisma AtriaStarhill Global REIT mall Wisma Atria.

Starhill Global REIT reported Thursday its fiscal third quarter net property income slipped 1.8 percent on-year to S$39.6 million amid a weaker performance from Singapore retail and a weaker Australian dollar. The results missed a forecast from Daiwa.

Gross revenue for the quarter ended 31 March was S$51.3 million, down 0.9 percent on-year, the REIT said in a filing to SGX.

The distribution per unit (DPU) was 1.10 Singapore cents for the quarter, up 0.9 percent form 1.09 Singapore cents in the year-earlier period, it said.

Daiwa had forecast net property income of S$41.5 million on revenue of S$53 million, with a DPU of 1.19 Singapore cents.

“The higher contributions year-on-year from Myer Centre Adelaide, Plaza Arcade and Ngee Ann City Property (Office) were offset by lower contributions from the retail portfolio in Singapore and the depreciation of the Australian dollar against the Singapore dollar,” Starhill Global REIT said.

But it added that the portfolio occupancy increased to 95.7 percent by end-March as the occupancy at Myer Centre Adelaide (Office) more than doubled.

Based on the S$0.73 end-March closing price for the unit, the annualized distribution yield was 6.11 percent, the REIT said.

In its outlook, the REIT said that Singapore’s retail segment was seeing increasing vacancy as more supply was progressively added, while in the office sector, supply outside the central business district could cap rental growth.

Starhill Global REIT’s portfolio of 10 properties includes 74.23 percent of Singapore’s Wisma Atria property and 27.23 percent of the Ngee Ann City Property, as well as properties in Australia, Malaysia, China and Japan.

 

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