STARHILL Global Reit posted a distribution per unit (DPU) of S$0.0185 in the second half ended Jun 30, 2024, down 6.6 per cent from the same period a year before.
The manager on Monday (Jul 29) attributed the drop in DPU to weaker foreign currencies, higher net finance costs and taxes, as well as a one-off leasing commission fee for its master lease with Toshin Development Singapore at Ngee Ann City.
Income available for distribution for the half-year period stood at S$42.8 million, a drop of 5.7 per cent from S$45.4 million in the year-ago period.
Gross revenue rose 2.3 per cent to S$95.2 million from S$93 million previously.
Net property income (NPI) was up 1.3 per cent at S$74.5 million, versus S$73.6 million in H2 2023.
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For the full year, DPU was 4.5 per cent lower at S$0.0363. Full-year NPI rose 0.8 per cent to S$149 million, mainly due to higher contributions from the Reit’s Singapore properties and Myer Centre Adelaide in Australia. Gross revenue was up 1.1 per cent year on year to S$189.8 million for FY2024.
The manager will retain about S$0.9 million of income available for distribution for the second half for working capital requirements, it said. Unitholders can expect to receive their distributions on Sep 24.
The group’s portfolio valuation remains stable at about S$2.8 billion, with a marginal drop of 0.2 per cent year on year mainly attributed to the downward revaluation of its Australia properties in June as well as net movement in foreign currencies.
Ho Sing, chief executive officer of Starhill Global Reit’s manager, said the Reit’s operational performance improved during the year and the commitment to rejuvenate the portfolio has resulted in a high occupancy level and an improvement in revenue.
“However, despite the performance, weaker foreign currencies and higher non-operating costs have resulted in a lower DPU in FY23/24. Nonetheless, our healthy financial standing and improved quality of our income place Starhill Global Reit in a good stead to take positive actions when the market recovers,” he added.
Notably, at Wisma Atria, tenant sales increased 2.8 per cent and shopper traffic climbed 8.2 per cent year on year following the completion of basement interior upgrading works and tenant remixing. Starhill Global Reit owns the majority of units at the mall.
Gearing remained stable at 36.8 per cent, with a weighted average debt maturity of 2.5 years.
Units of Starhill Global Reit closed flat at S$0.49 on Monday.
