Tuesday, February 5, 2013
Starhill Global REIT
Starhill Global REIT: OCBC noted that sale of Japan property was a positive, it had divested its entire interest in the Roppongi Primo Building in Tokyo, Japan for JPY700m (~S$9.5m). The transaction was done at a sale consideration equivalent to the latest independent valuation conducted as at 31 Dec 2012. Starhill is actively reviewing and rebalancing its Japan portfolio.
The building was 76.5% occupied as at end-2012. Based on the property FY12 NPI, the yield was 3.2%, lower than the estimated implied NPI portfolio yield of 5.5%. The divestment is likely to lead to an improvement in both occupancy and yield on an overall Company basis. Company is expected to reduce its gearing level by 30bps to 30.0% since the net proceeds would be used to repay its JPY loans.
Going forward, OCBC remain positive that Starhill will continue to turn in firm performance, supported by strong contribution from its Singapore portfolio and incremental income from its recently acquired Plaza Arcade property in Perth.
OCBC maintain BUY on Company, TP remains unchanged at $0.95.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment