Starhill Global REIT reported a 2.2% rise in distributions per unit (DPU) to 1.82 cents for the six months to Dec 31, 2022, its 1HFY2023 (the REIT has a June year-end). Committed occupancy stood at a 97.1% as at Dec 31, 2022, while weighted average lease expiry is relatively long 6.8 years by net lettable area.
Gearing remained manageable at 36.3% as interest cover including perpetual securities distributions was 3.3x. Some 84% of SG REIT’s interest rates are hedged.
On Dec 30, 2022, SGREIT entered into a sale and purchase agreement to divest Daikanyama for JPY1,877.7 million ($18.9 million ), which is expected to be completed in early 2023. This translates to a 39.1% and 2.9% premium over its latest valuation and acquisition price respectively. The transacted price translates to a yield of 2.77%. The net proceeds will be used to repay the Yen borrowings and/or for working capital purposes.
In 1HFY2023, around 38.4% of SG REIT’s revenue is from master retail leases in Singapore and Malaysia. Office portfolio contributed another 14.6% of revenue.
