Starhill Global REIT Strengthens Portfolio with Asset Enhancements and Lease Renewals

The transaction is not expected to have a material impact on the Reit&rsquo s gearing

 

STARHILL Global Reit&rsquo s manager announced on Friday (Aug 23) that the real estate investment trust (Reit) has obtained a S$50 million loan from UOB.

 

The Reit&rsquo s trustee entered into an agreement with the bank for a five-year unsecured sustainability-linked revolving credit facility. It will be available for drawing from Dec 31, 2024.

 

In a bourse filing, the Reit&rsquo s manager said that the loan will be used to finance general corporate funding requirements, including capital expenditure to attain green certification for the trust&rsquo s portfolio of companies.

 

It added that the transaction is not expected to have a material impact on the gearing of the Reit.

 

Starhill Global REIT' s distribution per Unit (DPU) to unitholder for 2HFY23/24 for the six months to June 30 was 1.85 cents. On an annual basis, DPU for FY2024 decreased 4.5% y-o-y to 3.63 cents.

 

Gross revenue for FY2024 rose by 1.1% y-o-y to $189.8 million, and net property income (NPI) rose 0.8% y-o-y to $149.0 million. Higher contributions from the Singapore Properties and Myer Centre Adelaide (Retail), were partially offset by loss of income from the Japan divestment, as well as net movement in foreign currencies. Gross revenue for 2HFY2-24 rose by 2.3% y-o-y to $95.2 million. while NPI for 2HFY2024 was at $74.5 million, 1.3% higher y-o-y. The y-o-y NPI increase in the second half mainly attributed to the Singapore Properties, partially offset by net movement in foreign currencies.

 

Income available for distribution for FY2024 and 2HFY2024 was $84.7 million and $42.8 million respectively, a decrease of 4.8% and 5.7% y-o-y respectively. SG REIT' s manager will retain about $0.9 million of income available for distribution for working capital requirements.

 

The portfolio' s committed occupancy remained stable at 97.7% as at June 30 with the Singapore Properties&rsquo committed occupancy at 99.2%. At Wisma Atria Property (Retail), tenant sales and shopper traffic in FY2024 increased 2.8% and 8.2% y-o-y respectively, following the completion of basement interior upgrading works and active tenant remixing. The rise in shopper traffic could also be attributed to the influx of tourists due to a series of high-profile concerts, and the mutual 30-day visafree travel between China and Singapore.

 

The portfolio' s committed occupancy remained stable at 97.7% as at June 30 with the Singapore Properties&rsquo committed occupancy at 99.2%. At Wisma Atria Property (Retail), tenant sales and shopper traffic in FY23/24 increased 2.8% and 8.2% y-o-y respectively, following the completion of basement interior upgrading works and active tenant remixing. The rise in shopper traffic could also be attributed to the influx of tourists due to a series of high-profile concerts, and the mutual 30-day visafree travel between China and Singapore.

 

Net revaluation loss of $16.5 million in FY2024 mainly attributed to the Australia Properties (expansion of capitalisation rates and softening of rents) although Wisma Atria also experienced a 1.3% decline in valuation as at end-June. Additionally, a net foreign currency translation loss was due mainly to a weaker JPY and RM.