SINGAPORE (Apr 28): The manager of Starhill Global Real Estate Investment Trust (SGREIT) has announced a distributable income of $24.0 million for 3QFY19/20 ended March, a decline of 4.1% compared to $25.0 million in the corresponding quarter last year.
Following SGREIT’s change of its distribution frequency to semi-annual distributions, there is no proposed distribution declared for 3QFY19/20. The next distribution will be for the six-month period from January 1 to June 30.
Gross revenue also fell 8.9% to $46.7 million, compared to the $51.3 million in the corresponding quarter last year. The decline is mainly due to the rental assistance extended to tenants in Singapore, Malaysia, and China, to help them tide over the impact of the Covid-19 pandemic. This is partially offset by the REIT Manager receiving part of its base management fee in units. The depreciation of the Australian dollar against the Singapore dollar also contributed to the decline in revenue.
Operating expenses fell 1.7% at $11.5 million, compared to the $11.7 million reported in the corresponding quarter last year.
Net property income also fell 11.1% to $35.2 million, compared to the $39.6 million y-o-y, due to the rental rebates amounting to approximately $13.7 million extended to eligible tenants.
Cash and cash equivalents stood at $81.4 million as at March 31, 2020.
In its outlook, the REIT says the COVID-19 pandemic is expected to have an adverse impact on its financial performance, distributable income, and cashflow for the remaining period of the financial year ending June 30.
“Following many years of having a cautious investment approach, SGREIT is ready to move forward should any opportunities arise with the full support from its sponsor, YTL Group,” says Francis Yeoh, chairman of the manager.
Ho Sing, the CEO of the manager, says the REIT is “undertaking measures to maintain financial flexibility until there is more visibility on the pandemic”.
“These measures include delaying non-essential capital expenditures for SGREIT, saving costs as well as reducing 10% of base management fees payable by SGREIT for the next three months effective from April 2020”, he says.
“Given the fluidity of the COVID-19 pandemic, the situation is dynamic and would deteriorate further if it continues for a prolonged period. We will continue to monitor the situation closely and proactively manage our long-term cash flow and our properties,” Ho adds.
Units of Starhill Global REIT closed 0.5 cents higher, or 1.064% up, at 47.5 cents on Tuesday.
