Starhill Global REIT - OCBC Investment 2022-11-08: Outlook Dampened By Higher Interest Rates & FX

Starhill Global REIT - Outlook Dampened By Higher Interest Rates & FX

Published:
STARHILL GLOBAL REIT (SGX:P40U) | SGinvestors.ioSTARHILL GLOBAL REIT (SGX:P40U)
  • Starhill Global REIT (SGX:P40U)'s 1QFY23 (Jul to Sep 2022) net property income (NPI) grew 8.4% y-o-y to S$37.2m.
  • Continued rebound in tenants’ sales at Wisma Atria (Retail), while overall portfolio occupancy increased slightly to 95.8%.
  • - Read this at SGinvestors.io -

Starhill Global REIT's 1QFY23 results above our expectations

  • Starhill Global REIT provided a business update for its 1QFY23 performance. Gross revenue and NPI rose 6.2% and 8.4% y-o-y to S$47.6m and S$37.2m, respectively, with the latter forming 24.5% of our initial FY23 forecast.
  • Growth was driven largely by lower rental rebates provided to tenants, coupled with the completion of asset enhancement works at The Starhill property in Malaysia, but partially offset by lower contribution from Wisma Atria (Retail) and depreciation of the AUD and MYR against the S$.

Continued recovery in tenants’ sales at Wisma Atria (Retail); overall portfolio occupancy increased to 95.8%

  • - Read this at SGinvestors.io -
  • No rental reversion figures were disclosed, but we believe this was likely still insipid given ongoing challenges faced by retailers on the cost and manpower front. According to data from CBRE Research, prime Orchard Road rents in Singapore rose 0.7% q-o-q in 3Q22, the first increase since 3Q18.
  • Starhill Global REIT’s overall portfolio occupancy rose 0.4 percentage points (ppt) q-o-q to 95.8%, and the increase was broad-based across its geographies.

Slight increase in gearing ratio to 36.5% with proportion of borrowings hedged lower at 84%

  • Read more at SGinvestors.io.




Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.




OCBC Research Team OCBC Investment Research | https://www.iocbc.com/ 2022-11-08



Read also OCBC's most recent report:
2024-01-30 Starhill Global REIT - Steady Gait.

Previous report by OCBC:
2023-11-02 Starhill Global REIT - Relatively Stable Metrics.

Price targets by other brokers at Starhill Global REIT Target Prices.

Listing of research reports at Starhill Global REIT Analyst Reports.

Relevant links:
Starhill Global REIT Share Price History,
Starhill Global REIT Announcements,
Starhill Global REIT Dividends & Corporate Actions,
Starhill Global REIT News Articles





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