SINGAPORE (Jan 29): The manager of Starhill Global REIT (SGREIT) has reported a 2Q18 distribution per unit (DPU) of 1.17 cents, 7.1% lower than the 1.26 cents in the 2Q18, bringing 1H17 DPU to 2.37 cents.
Revenue for 2Q18 was $52.5 million, 3.0% lesser than $54.1 million recorded in the previous year, mainly due to weaker contributions from offices, disruption of income from ongoing asset redevelopment works at Plaza Arcade in Perth and lower revenue at Myer Centre Adelaide.
SGREIT’s Singapore portfolio, comprising interests in Wisma Atria and Ngee Ann City on Orchard Road, reported NPI for 2Q18 decreased by 2.6% y-o-y to $25.7 million, mainly due to lower occupancies in Singapore offices and higher expenses.
NPI for its Australian portfolio came in 12.4% lower at $7.3 million while NPI for the REIT’s Malaysian properties -- comprising Starhill Gallery and interest in Lot 10 along Bukit Bintang in Kuala Lumpur -- increased 0.8% y-o-y to $6.7 million.
Meanwhile, NPI for China and Japan properties $0.8 million, an increase of 988.5% from the previous year. This was due to lower expenses for China property, following the conversion of the departmental store model to a single tenancy model.
Group net property income (NPI) for 2Q18 stood at $40.5 million, 2.2% lower than $41.4 million a year ago.
Income to be distributed to unitholders was $25.5 million, 7.1% lower than the corresponding quarter mainly due to lower NPI including the effects of straight-line rental adjustments, and higher withholding taxes.
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 SGREIT closed at 78 cents on Monday.
