Starhill Global REIT P40U has reported a distribution per unit (DPU) of 1.98 cents for the 2HFY2022/2023 ended June 30, 2.0% lower than the DPU of 2.02 cents in the same period the year before.
This brings the REIT’s DPU for the FY2022/2023 to 3.80 cents, unchanged on a y-o-y basis.
2HFY2022/2023 gross revenue fell by 2.5% y-o-y to $93.0 million while net property income (NPI) fell by 2.0% y-o-y to $73.6 million.
The lower NPI was mainly due to net movement in foreign currencies and the divestment of Daikanyama and partly offset by higher contributions from the REIT’s properties in Singapore.
Gross revenue for the FY2022/2023 rose by 0.7% y-o-y to $187.8 million while full-year NPI increased by 2.2% y-o-y to $147.8 million due to the completion of asset enhancement works at The Starhill, lower rental assistance and higher contributions from the REIT’s Singapore properties. This was partially offset by the divestment of Daikanyama and net movement in foreign currencies.
Distributable income for the 2HFY2022/2023 fell by 1.3% y-o-y to $44.7 million while FY2022/2023 distributable income rose by 0.7% y-o-y to $85.6 million.
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Unitholders will be paid on Aug 29.
According to the REIT manager, the REIT’s distribution plan, which was established in October 2020, will be suspended from the 2HFY2022/2023 onwards, with unitholders receiving their distributions in cash.
As at June 30, the REIT’s actual portfolio occupancy stood at 96.8% while its committed portfolio occupancy stood at 97.7%. Its weighted average lease expiry (WALE) stood at 6.5 years by net lettable area (NLA).
Around 50% of the REIT’s portfolio by NLA had attained green certifications as well as at June 30.
The REIT’s gearing as at June 30 stood at 36.7%. Portfolio valuation fell by 4.3% y-o-y to $2.8 billion mainly due to the downward revaluation of Wisma Atria in Singapore and the REIT’s Australian properties. The divestment of Daikanyama as well as net movement in foreign currencies also contributed to the lower valuation. Excluding the effects of the divestment, the group’s portfolio valuation would have dropped by 3.9% y-o-y.
Cash and cash equivalents as at June 30 stood at $68.3 million.
“Starhill Global REIT has benefited from the Covid-19 pandemic recovery as we have seen a strong improvement in occupancy and shopper traffic for the portfolio. However, the global macro environment has become more uncertain in recent times as geopolitical tensions and inflationary pressures threaten to derail economic growth,” says Tan Sri Francis Yeoh, chairman of the manager.
“Notwithstanding, our disciplined and proactive execution during the pandemic coupled with our quality portfolio has enabled us to emerge from the pandemic with renewed strength. We will continue to rejuvenate our portfolio with further enhancement initiatives while keeping a close watch for any opportunities as value emerges in the marketplace,” he adds.
“FY2022/2023 has been a year of rejuvenation. We have completed two major asset enhancement initiatives in Wisma Atria Property and The Starhill when opportunity cost was low during the pandemic. These initiatives ultimately boosted underlying portfolio occupancy and supported valuation of the assets. We continue to cross sell our portfolio and recently brought our valued tenant in Perth, UNIQLO, to Myer Centre Adelaide. The divestment of a Japanese property allows us to sharpen our focus and enables us to reallocate capital. Our financial standing remains healthy with stable leverage and interest coverage ratios despite higher borrowing costs and weaker foreign currencies,” says Ho Sing, CEO of the manager.
Units in Starhill Global REIT closed 0.5 cents higher or 0.98% up at 51.5 cents on July 27.
