Starhill Global Reit rides on strong occupancy to achieve higher distributable income

Starhill Global Real Estate Investment Trust has reported a 22.1 per cent rise to $25.6 million in income to be distributed to uinitholders in the second quarter.

This was achieved on the back of a 5.2 per cent rise in net property income to $39.1 million for the three months to June 30, mainly due to the strong contribution from the Singapore portfolio and full quarterly contributions from the recently-acquired Plaza Arcade.

Distribution per unit amounted to 1.19 cents, based on an enlarged unit capital, 10.2 per cent higher than the 1.08 cents achieved for the previous corresponding period last year.

On an annualised basis, the latest distribution represents a yield of 5.64 per cent.

Unitholders can expect to receive their payout on Aug 23.

Its Singapore portfolio, comprising interests in Wisma Atria and Ngee Ann City, contributed 63.7 per cent of total revenue.

The Singapore portfolio's net property income grew by 6.9 per cent to $24.3 million. The improvement was underpinned by high occupancy as prime space on Orchard Road continued to be a springboard for new-to-market retailers, coupled with positive rental reversions for the retail units.

Revenue from Ngee Ann City Retail gained 10.1 per cent, largely attributable to the 10 per cent rent increase for the period of June 2011 to June 2013 from the completed rent review in the first quarter of this year.

During the quarter, Toshin's base rent was increased by 6.7 per cent for the renewal of its master lease over the next 12 years. This was effective from June 8 and incorporates a rent review every three years.