Starhill Global

Starhill Global: Good set of results which was in-line, but at the top end of estimates. NPI at $37.6m, +3% yoy and +3% qoq and DPU at 1.13c, +11.9% yoy and +1.8% qoq. For the full year, NPI at $148.5m, +3.4% yoy and DPU at 4.39c, +6.6% yoy. Grp note that results was boosted by the successful completion of the asset redevelopment work in Wisma Atria, coupled with the record-breaking visitor arrivals, which contributed positively to our Singapore performance. Wisma Atria retail average passing rent continues to scale from $35.04 psf/mth last quarter to $35.82 psf/mt. Going forward, Starhill is propoposing to acquire the Plaza Arcade in Perth, Australia. Located in the prime shopping stretch in Perth’s city centre, which will be a valuable addition to SGREIT’s portfolio of quality assets in prime locations. The acquisition is accretive and being adjacent to reit’s existing David Jones Building, there are also potential synergies to be reaped between the two properties. Overall fundamentals remains strong, with gearing at 31% and occupancy rates at 99.4%. At current price, grp trades at 5.59% yield and 1x P/B. Ratings as follows: CIMB maintains neutral with $0.84 TP Maybank-KE maintains Buy with $0.90 TP Macquarie maintains Neutral with $0.76 TP