Starhill Global Reit’s Q1 revenue down 10.3%

aerial photography of buildings

STARHILL Global Real Estate Investment Trust’s (SGReit) revenue for the first quarter ended Sept 30 fell 10.3 per cent to S$43.1 million, while its net property income (NPI) dropped 19.2 per cent to S$29.8 million.

The fall was mainly due to rental assistance doled out to eligible tenants affected by the pandemic, including allowance for rental arrears and rebates – which were mainly for its Australia properties. The variance in revenue and NPI was also partially offset by higher contributions from The Starhill and the appreciation of the Australian dollar against the Singapore dollar.

The Reit said it will continue to extend rental relief to eligible tenants in its portfolio – which amounted to approximately S$7.3 million in the first quarter.

As at Sept 30, its Singapore properties contributed the bulk of about 62.4 per cent of total revenue in Q1; the rest of its revenue came from various other properties in Australia, Malaysia, China and Japan.

The Reit manager on Wednesday also unveiled a distribution reinvestment plan (DRP), which will allow unitholders to receive all or part of their distributions in units instead of cash. Participation in the DRP is optional.

There is no proposed distribution to its unitholders for the first quarter, following SGReit’s change of its distribution frequency.

Sales levels of tenants in its Wisma Atria property had recovered to about two-thirds of pre-Covid-19 levels in Q1, following a gradual reopening post “circuit breaker”.

In Australia, its Perth assets have already achieved pre-Covid levels in Q1.

SGreit’s gearing level stood at 39.1 per cent; rental portfolio occupancy stood at 96.6 per cent, and long portfolio weighted average lease expiry (WALE) was 8.5 years by net lettable area.

Meanwhile, SGReit has secured new committed revolving credit facilities (RCF) with relationship banks of up to S$90 million. “Undrawn and committed RCFs are more than sufficient to cover the S$250 million term borrowings maturing in the next 12 months,” it added.

Units in SGReit closed one Singapore cent lower, or 2.33 per cent, on Wednesday at 42 Singapore cents.