Starhill Global Reit

Starhill Global Reit: UOBK upgrades to Buy from hold, as valuations are attractive relative to peers, with a marginally higher TP of $0.93 (from $0.92). Notes Starhill is building sustainability for the long term, having successfully secured financing at attractive rates (2.4% vs an average interest rate of 3.03% as at 2Q13). As such, Starhill will not have any refinancing requirements until 2015. Meanwhile growth momentum remains intact with full quarter contributions from new tenants at Wisma Atria and positive rental reversions for Starhill Gallery and Lot 10 (+7.2% from 28 Jun) and Toshin master lease at Ngee Ann City (+6.7% from 8 Jun). Starhill offers the highest yields for a Singapore-centric retail REIT with a fwd yield of 6.4%, which is 40-100 bps above comparable retail S-REITS and is 60 bps above the sector avg yield of 5.8%.