StarHill Global – BT

Starhill Global’s Q1 DPU rises to record 1.07 cents

STARHILL Global Reit’s Australian and Malaysian buys last year helped buoy first-quarter income distribution to unitholders.

Income available for distribution grew 27.9 per cent to $24 million. Of this, $20.8 million is for distribution to unitholders, a rise of 13.1 per cent. Another $2.4 million goes to convertible preferred unit (CPU) holders.

Distribution per unit (DPU) to unitholders was a record 1.07 cents, up 12.6 per cent from 0.95 cents last year.

DPU to CPU holders was 1.36 cents.

In January 2010, Starhill Global acquired David Jones Building in Perth. It then added Starhill Gallery and Lot 10 in Kuala Lumpur to its retail portfolio in June 2010.

Starhill Global’s gross revenue and net property income for its first quarter increased 21.9 per cent and 27.2 per cent to $45.8 million and $37.1 million, respectively.

The group said the higher revenue from its properties in Australia, Malaysia and China helped offset dips from Singapore and Japan.

Revenue from its Singapore properties still made up a significant proportion of its portfolio at 60 per cent or $27.6 million.

However, net property income from Wisma Atria and Ngee Ann City edged down 2.4 per cent to $22 million as new and renewed office leases were secured at rates below 2007 peak levels.

In contrast, Starhill Global’s Renhe Spring Zongbei property in Chengdu, China recorded a 27.9 per cent rise in net property income year on year to $3.2 million.

David Jones’ and Starhill Global’s Malaysian malls contributed $2.9 million and $7.6 million, respectively, to net property income.

The Reit’s gearing level was ‘prudent’ at 30.2 per cent, said YTL Starhill Global, the Reit’s manager. It has outstanding debts of $804.4 million with a weighted debt maturity profile of about 2.9 years.

Starhill Global ended half a cent up at 63 cents yesterday.