Starhill Global REIT (Starhill REIT) has reported a distribution per unit (DPU) of 1.78 cents in 1HFY21/22, up 2.3% y-o-y.
Including FY19/20’s deferred distributable income of $3.1 million or 0.14 cents per unit released for the 1HFY20/21 distribution, DPU would have declined by 5.3%, according to the REIT.
Revenue for 1HFY21/22 rose by 2.9% over the previous corresponding period to $9 million, while net property income (NPI) grew by 7.2% to $69.6 million.
Starhill REIT attributes the increase in revenue and NPI to the lower rental assistance for eligible tenants of the group including allowance for rental arrears and rebates for its Australia properties.
It also attributes the higher figure to the cessation of rental rebates in Malaysia following the completion of asset enhancement works at The Starhill in December 2021, partially offset by the weaker contributions from the Wisma Atria Property.
Income available for distribution for 1HFY21/22 was $42.7 million, declining by 1.3% y-o-y mainly due to the one-off adjustment to reflect the timing difference of Singapore property tax refunds in the previous corresponding period as well as full period of distribution to the perpetual securities holders in 1HFY21/22. This was partially offset by higher NPI and lower finance costs.
As at end-December 2021, the weighted average portfolio lease expiry by gross rent stood at 5 years, while retail leases expiring in the financial year ending June 30 comprised 6.7% of gross retail rent.
Starhill REIT’s portfolio occupancy remains resilient at 96.9% as at Dec 31, 2021, with retail portfolio occupancy of 97.9%.
The REIT’s gearing stood at 36.1% as at end-December. It has also entered into a facility agreement for a five and a half year unsecured term loan of $60 million last month, which will be used in the first quarter of 2022 to partly refinance an existing outstanding term loan of $115 million ahead of its maturity in September 2022.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
Units in Starhill REIT closed flat at 63.5 cents on Jan 25.
Photo: Samuel Isaac Chua/The Edge Singapore
