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Starhill Global REIT records 12.3% y-o-y fall in revenue

/ EdgeProp Singapore |

July 30, 2020 2:20 PM SGT

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YTL Starhill Global REIT Management, the manager of Starhill Global Real Estate Investment Trust (SGREIT), has announced that the REIT’s revenue for FY19/20 was $180.8 million, easing by 12.3% over the previous financial year ended June 30, 2019. It also recorded net property income (NPI) of $132.1 million, down 17.1% over the previous reporting year.

The latest valuation of the REIT’s overall properties were assessed by independent valuers, and the portfolio is valued at $2.94 billion as at June 30, 2020, compared to $3.06 billion in the previous period of assessment.

“The aggregate value was 4.0% lower y-o-y mainly due to the downward revaluation of the Australia Properties and Wisma Atria Property. The decline in valuation was largely due to the lower passing and market rents in view of the softer retail outlook which was impacted by the Covid-19 pandemic,” says the manager.

Francis Yeoh, chairman of YTL Starhill Global, says that they have provided for further rental assistance to help their tenants through the current business disruption because of elevated safe distancing measures.

The manager’s current efforts to support tenants have been positive, and portfolio occupancy was relatively resilient at 96.2% as at June 30, 2020, says Ho Sing, CEO of YTL Starhill Global. He adds that the group has a stable retail portfolio occupancy of 97.4%.

The group says it will provide further rental assistance to help their tenants through the current business disruption. (Picture: Samuel Isaac Chua/The Edge Singapore)

SGREIT’s Singapore portfolio, comprising interests in Wisma Atria and Ngee Ann City, contributed $21.4 million in 4QFY19/20, which represents 57.1% of total revenue during the quarter. The NPI for the Singapore portfolio in 4QFY19/20 also fell to $16.1 million, declining by 35.8% and is mainly attributed to rental assistance to eligible tenants.

The REIT’s Singapore retail portfolio registered an actual occupancy of 98.9% as at June 30, 2020, with Ngee Ann City Property (Retail) being fully occupied as at June 30. But tenant sales and footfall traffic at Wisma Atria fell 80.0% and 86.9% y-o-y respectively in 4QFY19/20, because of the circuit breaker measures and minimal tourist arrivals.

“To help tenants through the business disruption due to the Covid-19 pandemic, total rental rebates for eligible tenants in SGREIT’s portfolio, including an allowance for rental arrears and rebates for the Australian tenants, amounting to approximately $32.2 million has been recorded in FY19/20,” says YTL Starhill Global.

Looking ahead, the weighted average portfolio lease expiry by gross rent stands at 5.6 years while retail leases expiring in the next financial year ending June 30, 2021, comprise 14.0% of gross retail rent, says the manager.

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