SINGAPORE - Starhill Global Reit has posted first-quarter distribution per unit (DPU) of 1.2 Singapore cents, down 7.7 per cent from 1.3 Singapore cents in the same period a year earlier.

Income available for distribution in the three months to Sept 30 was S$26.7 million, down 9.3 per cent.

Gross revenue dipped 4.1 per cent to S$53 million due to a one-off S$1.9 million pre-termination rental compensation for a retail lease at Wisma (which has been filled up), as well as lower contributions from offices and the overseas properties except for David Jones Building and Myer Centre Adelaide.

Starhill's interests in Wisma Atria and Ngee Ann City in Orchard Road contributed 61.1 per cent of total revenue, or S$32.4 million.

Net property income fell 3.5 per cent to S$41.4 million, but would have risen by 0.9 per cent if the one-off pre-termination rental compensation at Wisma Atria had been excluded.

The performance was driven by higher retail revenue from Australia, including positive rent reversion from long-term leases, the appreciation of the Australian dollar against the Singdollar and lower expenses for the China operations, the Reit said.

These offset weaker office occupancies, disruption of income from ongoing asset redevelopment work at Plaza Arcade, Perth, and lower contribution from the Malaysia portfolio due to the weaker ringgit.

Earnings per unit, which includes a gain in the fair value of derivative instruments of S$1.4 million, was 1.2 Singapore cents in the third quarter, up from 1.15 Singapore cents a year earlier.

Net asset value per unit was 0.92 Singapore cents as at Sept 30, unchanged from June 30.

Overall portfolio occupancy was 93.4 per cent as at Sept 30, down from 95.5 per cent as at June 30. Although overall retail occupancy was 98.1 per cent as at Sept 30, Singapore office occupancy fell to 83.5 per cent from 92.9 per cent as at June 30.

"We are currently finalising terms with new prospective tenants for approximately a third of the vacant (Singapore office) spaces," the Reit said.

The counter closed down one cent or 1.28 per cent to 77 Singapore cents before earnings were announced.