SINGAPORE (Oct 27): YTL Starhill Global REIT Management announced that Starhill Global REIT (SGREIT) 1Q18 DPU dropped 7.7% to 1.2 cents from 1.3 cents in 1Q17.
Gross revenue for the first quarter ended September also dropped 4.1% to $53.0 million compared to $55.3 million last year.
The decrease in gross revenue was mainly due to a one-off $1.9 million pre-termination rental compensation for a retail lease at Wisma Atria Property recorded in the corresponding quarter which has been filled up, lower contributions from offices and the overseas properties except for David Jones Building and Myer Centre Adelaide as well as the depreciation of MYR against SGD.
However, this was offset by higher retail revenue from Australia including positive rent reversion from long-term leases, the appreciation of the Australian dollar against the Singapore dollar and lower expenses for the China operation.
As a result, net property income (NPI) dropped 3.5% to $41.4 million from $42.9 million in 1Q17.
Excluding the one-off rental compensation, gross revenue for the trust would have decreased by 0.6%, while NPI would have increased by 0.9%.
Approximately 39% of total gross revenue for the three months ended 30 September 2017 were contributed by the overseas properties.
Finance expenses were 10.9% higher at $10.5 million compared to $9.50 million in 1Q17, mainly due to write off of remaining upfront borrowing costs following the repayment of loans and interest cost incurred on the 10-year $70 million Series 004 MTN during the current quarter.
As at Sept 30, cash and cash equivalents stood at $69.9 million.
Francis Yeoh, chairman of YTL Starhill Global says, “Notwithstanding the improved economic outlook, we remain cautious on the sustainability of the economic growth and the structural changes to consumer preferences. We will continue to recalibrate our portfolio and sieve out opportunities, with the aim of creating long-term value for our Unitholders.”
Units in Starhill Global REIT closed 1 cent lower at 77 cents on Friday.
