Wong and Tan also like the REIT for several reasons such as its Singapore-focused portfolio with its high exposure to master and anchor leases. These leases help shield the REIT’s higher operating expenses including utility costs, the analysts note.
Analysts are mixed over Starhill Global REIT (SGX:P40U
) ’s outlook after the REIT reported a distribution per unit (DPU) of 1.8 cents for the 1HFY2025, 1.1% higher y-o-y. Gross revenue for the period increased by 1.7% y-o-y to $96.3 million thanks to higher contributions from the REIT’s properties in Singapore and Perth as well as the appreciation of the Malaysian ringgit against the Singapore dollar (SGD). However, the increases were partly offset by weaker contributions from Myer Centre Adelaide and higher operating expenses for the REIT’s properties in Australia.
In their Jan 27 report, DBS Group Research analysts Geraldine Wong and Derek Tan say they continue to like the REIT as it is one of the higher yielding REITs within the Singapore REITs (S-REITs) sector, as well as its conservative leverage ratio of 36%. The analysts have kept a “buy” call on Starhill Global REIT with an unchanged target price of 68 cents. Their target price implies a forward FY2025 yield of 7.4% based on the REIT’s last-traded price of 50 cents as at their report.
