Despite that, OCBC is still recommending investors to “buy” on the REIT, with a fair value of 53 cents.
A sharp fall in retail footfall and subsequent rental rebates have battered Starhill Global REIT (SGREIT), with OCBC Investment Research analysts warning of a “tough and winding road ahead” in a July 29 note.
The REIT’s 2HF2020 results missed OCBC’s expectations with gross revenue and net profit income (NPI) falling 18.5% and 27.0% y-o-y to $84.1 million and $58.0 million respectively. Distribution per unit (DPU) dipped 68.2% to 70 cents.
