Starhill Global

Starhill Global: CIMB maintains Neutral with $0.93 TP. House slightly negative on Starhill’s sponsor, YTL Group’s decision to convert its CPU holdings given the 1-3% dilution to FY13-15 DPUs, though this is offset by a higher sponsor stake post-CPU conversion. House lower FY13-15 DPUs by 4-6%, factoring in dilution from the CPU conversion and adjustments to SG rental estimates, offset partially by a 6.7% rental uplift from the Toshin master lease beginning June 2013. House DDM-based target price drops marginally to $0.93 (discount rate: 7.6%). See potential re-rating catalysts in asset enhancement initiatives and accretive acquisitions.