Starhill Global REIT (SG REIT)

SG REIT reports 2.2% rise in DPU in 1HFY2023, occupancy of 97.1%, gearing of 36.3% and ICR of 3.3x

Gross revenue also grew, mainly due to lower rental assistance to tenants of the portfolio and lower expenses.

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Starhill Global REIT is riding a recovery but there may be bumps ahead.

Distributions under the Series 002 Perpetual Securities shall be payable semi-annually in arrear on June 15 and Dec 15 annually.

For the full year ended June, DPU came in at 2.96 cents, a 33.9% decline from the 4.48 cents in FY18/19.

With DPU uncertain, yield may not be the best indicator of value for REITs. As at March 31, the net asset values of most REITs stayed relatively stable. Hence P/NAV has been used in an attempt to identify undervalued REITs.

The manager of Starhill Global Real Estate Investment Trust (SGREIT) has announced it will be utilising the tax transparency extension extended by the Ministry of Finance, and the Inland Revenue Authority of Singapore (IRAS).

Starhill Global REIT is a “laggard among retail REIT peers in terms of valuation,” says RHB analyst Vijay Natarajan.

Retail sales were struggling even before “circuit breaker” measures were implemented on April 7.