Payout Climbs At Starhill Global

StarhillLogoStarhill Global REIT (SGX: P40U) said revenue in the second quarter rose 6% to $49.1 million. Net property income (NPI) in the quarter was $39.1 million, which is an increase of 5.2% over last year. This was mainly due to the strong contribution from Singapore assets and a full-quarter contribution from the recently-acquired Plaza Arcade in Australia.

Income to be distributed to unit holders in the second quarter was S$25.6 million – 22.1% higher than the S$21.0 million pay out last year. Distribution per unit (DPU) for the period was 1.19 cents, which is 10.2% higher than the 1.08 cents a year ago. On an annualised basis, the distribution yield is at 5.53% based on the current share price of S$0.86.

The Singapore portfolio, which comprises of interests in Wisma Atria and Ngee Ann City on Orchard Road, contributed 63.7% of total revenue, or S$31.3 million. The portfolio’s NPI for the quarter grew 6.9% year-on-year to S$24.3 million. The improvement was due to high occupancy and positive rental reversions for the retail units.

The gearing ratio stands at 30.3% as of 30 June 2013. The average interest payable is at 3.03%. Starhill Global also received a corporate rating upgrade to ‘BBB+’ from ‘BBB’ by Standard & Poor’s in July 2013.

The net asset value is at $0.97.

The overall portfolio’s occupancy rate stands at 99.6%, compared to 99.4% six months ago. The weighted average lease term by gross rent is 5.5 years.

Mr Ho Sing, CEO of YTL Starhill Global, said, “Our Singapore portfolio has benefited from high occupancy and positive rental reversions from both retail and office in 2Q 2013. We are also pleased that our recent acquisition of Plaza Arcade has proven to be a valuable addition to our portfolio as NPI for the Australia portfolio grew 32.7% y-o-y in 2Q 2013.

He added: “Looking ahead, the new rental rate from master tenant, Toshin, at Ngee Ann City Retail, continued repositioning of Wisma Atria mall and the 7.2% rental uplift from the Malaysia portfolio master leases with effect from 28 June 2013, will complement SGREIT’s income in 2H 2013.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.