Starhill Global REIT - OCBC Investment 2024-07-31: Treading Water

• Starhill Global REIT (SGX:P40U) reported a 1.1% and 0.8% y-o-y increase in FY24 gross revenue and NPI to S$189.9m and S$149m, respectively. Improved contributions from Singapore properties and Myer Centre Adelaide helped to offset FX headwinds and loss of income from the divestment of Daikanyama in Japan.
• - Read this at SGinvestors.io -

Starhill Global REIT’s FY24 results met our expectations

• See Starhill Global REIT's distribution. Starhill Global REIT has declared a DPU of 1.85 Singapore cents for 2HFY24, to be paid out on 24 Sep 2024. This brings the full year distribution to 3.63 Singapore cents per unit, down 4.5% y-o-y and translating to a distribution yield of 7.4% based on Starhill Global REIT share price last traded at S$0.49 as at 29 Jul 2024.
• - Read this at SGinvestors.io -

Mixed set of operating metrics

• Starhill Global REIT’s overall portfolio committed occupancy slipped 0.3 percentage points (ppt) from 98.0% as at 31 Mar 2024 to 97.7% as at 30 Jun 2024, due to a 0.8 ppt and 0.3 ppt dip in occupancy for its Singapore and Australia portfolios, respectively. In FY24, Tenant sales and shopper traffic for Wisma Atria (retail) improved 2.8% and 8.2% y-o-y, respectively.
• In 2HFY24, tenant sales slipped 2.3% y-o-y while shopper traffic grew 10.7% y-o-y, which was attributed to tenant movements as Starhill Global REIT continues to reposition its offerings.
• Management noted that shopper traffic was lower q-o-q in 4QFY24 given that most high-profile concerts took place in the first quarter of the calendar year, but is optimistic that it will pick up again in 1QFY25 on the back of the Singapore Grand Prix.

Gearing improved

• Read more at SGinvestors.io.

Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-07-31 SGinvestors.io

---