Starhill Global Reit's DPU flat in Q1

Charmaine Ng XT: Ngee Ann City (left) and Wisma Atria malls in Orchard Road.
Charmaine Ng XT: Ngee Ann City (left) and Wisma Atria malls in Orchard Road. PHOTO: YTL STARHILL GLOBAL REIT MANAGEMENT

SINGAPORE - Steady returns from its properties in Singapore and Malaysia despite the economic slowdown helped Starhill Global Reit keep distribution per unit (DPU) stable in the first quarter.

The reit's DPU for the three months ended Sept 30 was 1.30 cents, from 1.31 cents a year ago.

Revenue for the quarter declined 2.7 per cent over the previous corresponding period to $55.3 million, while net property income eased 1.7 per cent to $42.9 million.

The higher contributions from properties in Singapore and Malaysia mitigated lower contributions from Australia, China and Japan, the company said yesterday.

The reit's Singapore portfolio, comprising interests in Wisma Atria and Ngee Ann City on Orchard Road, contributed 63.4 per cent of total revenue in the quarter, or $35 million.

Net property income for the Singapore portfolio was lifted by higher rent from the master tenant at Ngee Ann City Property with effect from June, and the recognition of $1.9 million pre-termination rental compensation for a lease at Wisma Atria Property which has been filled up.

Retail sales at Wisma Atria rose 4 per cent over the preceding year,and committed occupancy improved from the last quarter to 99.5 per cent as at Sept 30 as a number of tenants including Joe and the Juice and Vivre Activewear started operating during the quarter.

Shopper traffic at Wisma Atria rose 6.6 per cent year-on-year, due in part to the progressive re-opening of Isetan's strata owned retail space, while tenant sales declined 5.4 per cent.

Ngee Ann City retail revenue was up 4.9 per cent over the same quarter a year ago, while net property income rose 5.7 per cent largely attributable to the increase in base rent from the Toshin master lease at Ngee Ann City Property.

Unitholders can expect to receive their first quarter DPU on Nov 29.