Starhill Global REIT has reported a 0.6% dip y-o-y in gross revenue of $46.4 million for the 3QFY2020/2021 ended March.
Net property income (NPI), however, increased 0.6% y-o-y at $35.4 million. The stable NPI was mainly due to lower rental assistance given to tenants affected by Covid-19, lower operating expenses and the appreciation of the AUD. The figure was partly offset by the weaker performance of the REIT’s portfolio in Singapore.
In its business update for the 3QFY2020/2021, the REIT announced that its maiden distribution reinvestment plan has been successfully launched for the distributions per unit (DPUs) in the 1HFY2020/2021.
As at March 31, the REIT reported a retail portfolio occupancy of 97.0% with a weighted average lease expiry (WALE) of 8.2 years by net lettable area (NLA) or 5.4 years by gross rent.
The REIT will see 5.1% in expiring retail leases by gross rents as at end-March as well.
Master leases and anchor leases make up some 51.9% of gross rent as at March 31.
According to the update, tenants’ sales and shopper traffic at Wisma Atria has continued to improve to 83.4% and 74.2% of pre-circuit breaker levels respectively during the 3QFY2020/2021.
The figures were boosted by phase 3 of re-openings in December, as well as the gradual return of works.
However, tenants’ sales continue to be impacted by the lack of tourists due to border restrictions.
Starhill Global REIT has a gearing of 35.9% and a weighted average debt maturity of 3.1 years. The REIT has also affirmed its “BBB” credit rating with stable outlook by Fitch Ratings.
Rental assistance for eligible tenants affected by the Covid-19 pandemic, which includes net allowance for rental arrears and rebates for its Australia properties came up to some $9.7 million for the year-to-date in FY2020/2021.
The REIT currently has a diversified portfolio with properties in Singapore, Malaysia, Australia, China and Japan.
Of the countries, 63.2% of gross revenue comes from its Singapore portfolio, 24.5% from Australia, 9.9% from Malaysia and 2.4% from its properties in China and Japan.
In Singapore, interior upgrading works have commenced for Wisma Atria. The works are expected to be completed by the end of the year.
The renovation is part of the REIT’s overall strategy to “modernize and rejuvenate” the malls to remain relevant for shoppers.
Common facilities such as the atrium space, lift lobbies and toilets will be upgraded in two phases. The mall will remain operational during the renovations.
This is estimated to cost the REIT some $15 million, funded by internal resources and borrowings.
Asset enhancement works at The Starhill in Malaysia is currently in progress and is expected to be completed by December 2021.
Units in Starhill Global REIT closed flat at 56 cents on April 26.
