Starhill Global – BT

Starhill Global Reit’s Q2 DPU increases 14.3%

STARHILL Global Real Estate Investment Trust said yesterday that its second-quarter distribution per unit climbed 14.3 per cent, buoyed by its Malaysian and Australian purchases. The DPU of 1.04 cents compares with 0.91 cents a year ago.

Q2 income available for distribution rose 26.8 per cent year on year to $22.8 million, while net property income was up 23.4 per cent year on year at $35.6 million.

Gross revenue was up 18.9 per cent at $44.24 million.

‘Our acquisitions of Starhill Gallery and Lot 10 in Kuala Lumpur, Malaysia and David Jones Building in Perth, Australia last year have been key contributors to the growth,’ said Francis Yeoh, executive chairman of YTL Starhill Global, which manages the Reit.

Starhill Global Reit’s Singapore portfolio, comprising interests in Wisma Atria and Ngee Ann City on Orchard Road, contributed 62 per cent, or $27.5 million of total revenue.

Starhill Global Reit said that while the take-up rate for office space in Singapore has been healthy, overall rental rates have declined as new and renewed office leases were secured at rental rates which are below the peak levels achieved in 2007.

However, its Malaysia portfolio contributed 17.3 per cent, or $7.7 million, of Q2 revenue. The David Jones Building in Perth contributed 8.3 per cent or $3.7 million to total revenue.

Starhill Global Reit said that the global economic growth will continue to be led by Asia for the rest of this year. As the ongoing debt crisis in Europe and the United States continue to weigh down the economic growth of these advanced economies, IMF projects that Asia’s gross domestic product will expand by 8.4 per cent this year.

Against this backdrop, it is proceeding with the redevelopment of the Wisma Atria property, which is expected to be completed in the third quarter next year.

Its retail properties in Malaysia and Australia have master leases or long-term leases with built-in step-up rents.

‘These will contribute to the stability and sustainability of the income while ensuring organic growth for Starhill Global Reit,’ it said.

Starhill Global Reit closed trading yesterday at 65.5 cents, up half a cent.