Starhill Global

Starhill Global: 2Q results in-line with expectations. DPU at 1.08c, +3.8% yoy and flat qoq, while NPI at $37.1m, +4.4% yoy and flat qoq. Grp note that healthy retail sales performance and rising tourist arrivals allowed SG REIT's assets to continue achieving high occupancies and improved rents and will continue to create value with its active mgt strategies and source for yield accretive acquisitions of prime assets in our core markets when opportunity arises. REIT's SG portfolio, comprising Wisma Atria and Ngee Ann City, contributed 62.8% to total rev, while redevelopment at Wisma Atria has helped boost demand for retail space. The property has achieved 99.5% occupancy. Meanwhile grp’s Msian portfolio provided 16.7% of total rev in the qtr. At current price, grp trades at 6.2% yield, while gearing stood at a comfortable 30.5% and valuation remains compelling at 0.75x P/B. Ratings as follow: CIMB downgrades to Neutral with TP $0.75