Starhill

Starhill: UOB Kay Hian note that Wisma continues to be the jewel in Starhill Global’s retail portfolio. 3Q12 revenue increased, thanks to the rental uplift from Wisma where net property income grew 24.3% yoy after its major renovation. Overall portfolio occupancy remained resilient at 99.4%. SG office portfolio is also doing well as office demand continues to remain resilient in Orchard Road due to the tight supply. With a low gearing of 31.2%, Starhill Global has room to make acquisitions. It had previously indicated it was looking for mostly retail acquisitions in Singapore, Malaysia and China. Starhill Global is house top pick in the retail segment as it offers the highest forward yield of 5.9% among the retail REITs. House have a BUY and TP of $0.92, derived from a dividend discount model. The stock is trending up and could test $0.83/0.89 as the next resistance. Support is at $0.72. House have a technical buy Call with $0.81 TP.