Published July 30, 2009

Starhill Global DPU rises 6.7% in Q2

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STARHILL Global Reit has announced a distributable income of $18.4 million for the second quarter of 2009 with a distribution per unit (DPU) of 1.90 cents, 6.7 per cent higher than for the previous corresponding period.

The latest distribution represents a yield of 12 per cent on an annualised basis, said YTL Pacific Star, the manager of the Reit, which has a large presence in Orchard Road.

About $0.4 million of income available for distribution for the second quarter, comprising mainly overseas income, has been retained to satisfy certain legal reserve requirements in China and for prudency, it added.

Gross revenue in Q2 2009 was $33.4 million, or 10.5 per cent higher than the $30.2 million in Q2 2008, due primarily to higher rates achieved for office renewals and new leases in Singapore, rent review of the master lease in Ngee Ann City, as well as higher revenue from its Chengdu property.

Net property income was higher at $27 million, an increase of 16.4 per cent, mainly attributed to higher gross revenue.

Said Francis Yeoh, executive chairman of YTL Pacific Star: 'Starhill Global Reit's strong performance, despite difficult market conditions during the quarter, has been underpinned by its quality portfolio and the manager's robust capital and asset management strategies.'

'Our focus continues to be creating more value for our unitholders by driving asset performance and building long-term growth prospects for Starhill Global Reit.'

Occupancy for retail space in both Wisma Atria and Ngee Ann City remains high at around 98 per cent, while occupancy for office space in the two Singapore properties is still healthy at above 90 per cent, the Reit said.

It added it will continue to concentrate on tenant retention and sustaining the appeal of its retail properties in terms of trade mix and offerings.