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3 Things That Investors Should Know About Starhill Global Real Estate Investment Trust

Starhill Global Real Estate Investment Trust (SGX: P40U) is a REIT that focuses on investing in retail and commercial properties in the Asia Pacific region.

Its current portfolio comprises 12 properties in five countries, namely, Australia, China, Japan, Malaysia, and Singapore. The bulk of Starhill Global REIT’s assets (68%) reside in Singapore while Australia and Malaysia collectively account for another 29% of the REIT’s assets.

Starhill Global REIT caught my attention as its current unit price is just 5.5% higher than a 52-week low. After some research on the REIT, here are three important things about the REIT investors should know:

1. Its latest quarterly results

The table below shows the results from Starhill Global REIT for the quarter ended 30 September 2016:

Starhill Global REIT quarterly results
Source: Starhill Global REIT’s quarterly results presentation

We can see that the REIT’s performance had fallen in its last quarter – there were low single-digit declines across the board.

The weaker performance was driven primarily by a poorer showing from the REIT’s assets in Australia, China, and Japan that more than offset a stronger turnout in Singapore and Malaysia.

2. A track record of growth

In the following chart, you can see how the REIT’s asset value, net property income, and income available for distribution have changed over the past decade:

Starhill Global REIT track record of growth
Source: Starhill Global REIT fact sheet

What’s worth noting is that the REIT grew its net property income and income available for distribution in nearly every single year. What’s more, those two financial figures had stepped up at very respectable annual rates of 10.5% and 8.7%, respectively.

3. A track record of per unit growth

We’ve seen growth in Starhill Global REIT’s net property income and income available for distribution. But, the REIT has also managed to increase its distributions on a per unit basis over the years.

This is shown in the chart below:

Starhill Global REIT DPU growth
Source: Starhill Global REIT’s investor fact sheet

Starhill Global REIT has managed to grow its DPU at a compound annual growth rate (CAGR) of 6.7% since its fiscal year ended 31 December 2006 (the REIT changed its fiscal year end from 31 December to 30 June in 2014).

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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 Lawrence Nga doesn’t own shares in any companies mentioned.