StarHill Global – BT

Starhill Global Reit Q3 DPU up 5%

STARHILL Global Real Estate Investment Trust (Reit) yesterday released stellar results buoyed by recent overseas acquisitions.

The trust announced a 5.8 per cent rise in distributable income to $19.4 million for its third quarter ended Sept 30, 2010, up from $18.4 million a year ago.

Distribution per unit (DPU) was one cent – 5 per cent higher than for the previous corresponding period, when it was 0.95 of a cent.

YTL Starhill Global Reit, the manager of the trust, said the latest distribution represents a yield of 6.84 per cent on an annualised basis.

Net property income leapt 37 per cent year-on-year to $35.8 million from $26.1 million, and gross revenue followed suit with a jump of 38.7 per cent to $45.5 million from $32.6 million, which the manager attributed to the ‘contributions from the recently acquired Starhill Gallery and Lot 10 in Malaysia, and the David Jones Building in Australia’.

Francis Yeoh, executive chairman of YTL Starhill Global, said: ‘Our endeavours to grow Starhill Global Reit and create value for our stakeholders have led us to complete three quality acquisitions in 1H 2010 and diversify geographically into the best one-third retail stretch in two key cities – Perth, Australia and Kuala Lumpur, Malaysia.’

Starhill Global Reit’s portfolio includes 13 prime properties across five countries, valued around $2.6 billion.

YTL Starhill Global’s chief executive officer Ho Sing said: ‘With the inclusion of the Malaysian properties, retail contributed 87 per cent of our portfolio’s 3Q 2010 revenue, up from 84 per cent in the previous quarter. This increase provides our portfolio with a stronger revenue mix supported by the relatively robust retail sector.’

Starhill Global Reit’s local portfolio, which consists of stakes in Wisma Atria and Ngee Ann City on Orchard Road, contributed 60.8 per cent of total revenue, or $27.5 million in Q3 2010.

In all, the portfolio’s net property income for Singapore in the third quarter of this year was $21.1 million, 5.6 per cent lower than in Q3 2009 – mostly due to the office sector.

The counter ended trading yesterday at 61 cents, up half a cent.