Starhill Global Reit reports higher Q3 payout

SINGAPORE - Starhill Global Real Estate Investment Trust (SGReit) reported that its third-quarter income to be distributed to unitholders rose by 5 per cent to $27.3 million.

Distribution per unit (DPU) for the three months to Sept 30 was also 5 per cent higher at 1.27 cents,.

On an annualised basis, the latest distribution represents a yield of 6.38 per cent based on the unit's closing price of 79 cents at the end of the quarter.

Revenue eased by 0.4 per cent to $48.6 million, mainly due to lower contributions from China and Japan. This was partially offset by the rest of the portfolio.

Net property income (NPI) increased 4.1 per cent to $39.6 million, mainly due to the lower operating expenses incurred, positive rental reversions for the Singapore portfolio and David Jones Building in Perth, Australia. This was partially offset by lower revenue from Renhe Spring Zongbei in Chengdu, China, loss of income contribution from Japan divestment in March and net foreign currency movements.

The Singapore portfolio, comprising interests in Wisma Atria and Ngee Ann City, contributed 67.1 per cent of total revenue, with NPI rising by 3.8 per cent to $26 million, led by positive rental reversions for both the retail and office units.

Revenue from Ngee Ann City Retail gained 0.6 per cent while NPI increased 0.8 per cent.

Wisma Atria Retail revenue inched up 0.1 per cent and its NPI grew by 6.2 per cent on the back of lower operating expenses.

Wisma Atria Retail achieved positive rental reversions of 6.7 per cent for leases committed during the quarter.

Shopper traffic increased by 6.3 per cent year on year and 5.2 per cent from the previous quarter to 6.8 million.

For the nine months to Sept 30, shopper traffic was 4 per cent higher. Tenant sales at Wisma Atria decreased 8.7 per cent, reflecting the ongoing repositioning of the mall in which some 8 per cent of the mall's net lettable area underwent tenant transitions and renovations, coupled with a decline in tourist arrivals and softer retail sentiments during the quarter.

The Singapore office portfolio maintained high occupancy, achieving 8.8 per cent positive rental reversion for leases committed in 3Q 2014, on the back of healthy leasing demand and limited upcoming supply of office space in Orchard Road.