Starhill Global REIT Is Getting Attractive

Key Highlights:

  • Starhill Global REIT (SGX: P40U)'s 1Q20 DPU dropped 1.7%

  • The annualised yield and price to book ratio are 6.1% and 0.85 respectively

1. Dividends

Net property income fell 8.7% to $36.9m. The was mainly due to:

  • Renovation at Starhill Gallery Malaysia has impacted the income contribution

  • The weaker contribution from its Australia retail portfolio

  • The weaker AUD against SGD

The annualised yield is 6.1%. As compared to other retail REITs, Starhill Global REIT offers a relatively high dividend yield. Besides, it is currently trading at slightly above its historical average yield.

Source: reitscompass's REITs Insider ratings

2. Portfolio

Portfolio occupancy remains stable at 96.2%. The portfolio leverage is currently at the healthy side of 36.2%. The interest cost is 3.31%, with 90% of the loans are on fixed rates.

It is currently trading at a price to book ratio of 0.85.

3. Growth Catalyst

Starhill Global REIT should maintain its DPUs in the next 12 months. In 2021, the Starhill Gallery Mall and hotel will be completed which will boost its DPUs. Besides, its prime property, Wisma Atria at Orchard Road has an unutilised plot ratio of 100k square feet. With the upcoming new MRT line - Thomson-East Coast Line which will cross the Orchard MRT station, the REIT manager is exploring options to unlock the value of the space.


At its current price and strong portfolio, Starhill Global REIT looks attractive as compared to its peers.

We have launched a new feature for the premium subscribers - REITs Numerical Scoring (R.N.S.), which we use as the core strategy to select REITs with good fundamentals.

Click here to access>>

106 views0 comments

Recent Posts

See All

REITs Newsletter

Get the latest insights on REITS. Stay informed and continued to be a profitable REITs investor, for free.

©2020 by reitscompass. All rights reserved. Reitscompass is publisher and a technology platform, not a registered broker or investment advisor, and does not provide any investment advice. Past performance does not guarantee future results.

Privacy Policy