Starhill Global REIT reported fiscal 4Q net property income slipped, missing Daiwa forecast

Starhill Global REIT mall Wisma AtriaStarhill Global REIT mall Wisma Atria. Note: Photo taken pre-Covid

Starhill Global REIT reported Tuesday its fiscal fourth quarter net property income slipped 0.4 percent on-year to S$39.9 million on lower contributions from the Singapore retail portfolio. The results missed a forecast from Daiwa.

The results were also hurt by the depreciation of the Australian dollar and the Malaysian ringgit against the Singapore dollar and higher operating expenses, partly offset by higher contributions from the office portfolio and the Myer Centre Adelaide property, the REIT said.

Gross revenue for the quarter ended 30 June edged up 0.4 percent on-year to S$51.9 million, the REIT said in a filing to SGX after the market close.

The distribution per unit (DPU) for the quarter was 1.10 Singapore cents, up 0.9 percent from 1.09 Singapore cents in the year-ago quarter, the filing said.

Daiwa had forecast net property income of S$42.9 million on revenue of S$55 million, with a DPU of 1.17 Singapore cents.

Actual occupancy for the portfolio rose to 96.3 percent by end-June as the occupancy of the Wisma Atria retail property improved to 99.6 percent from 91.7 percent at end-March, Starhill Global REIT said.

Committed occupancy for the office portfolio improved to 91.2 percent at end-June from 88.8 percent at end-March, the filing said.

“Singapore retail occupancy continues to be resilient,”  Ho Sing, CEO of YTL Starhill Global REIT Management, the REIT’s manager, said in the statement. “Limited retail supply along Orchard Road and retailers’ preference for prime space ensure prime units remain highly sought-after.”

The Singapore portfolio, including interests in the Wisma Atria and Ngee Ann City properties on the tony Orchard Road shopping belt, contributed 61.4 percent of total revenue, or S$31.8 million, in the quarter, the filing said.

The Australia portfolio contributed 22.1 percent of revenue, while the Malaysia properties contributed 14.2 percent, the REIT said, adding the property in Chengdu, China, and two Tokyo properties contributed 2.3 percent of revenue.

For the full fiscal year, Starhill Global REIT reported net property income of S$159.4 million, down 1.7 percent on-year, on gross revenue of S$206.2 million, down 1.3 percent on-year. The full-year DPU was 4.48 Singapore cents, down 1.5 percent from 4.55 Singapore cents in the previous fiscal year, the filing said.

Starhill Global REIT’s portfolio includes 10 properties in six Asia-Pacific cities, the filing said.

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