“Notably, the 12-year master lease renewal with Toshin for Ngee Ann City ensures income visibility, while asset upgrades at Wisma Atria and Myer Centre Adelaide, enhancing tenant experience and property value,” Eng adds.
Portfolio occupancy remains robust at 94.6% in FY2025, with a weighted average lease expiry of 7.6 years by gross rental income, underpinned by high tenant retention and master leases that provides predictable cash flows.
On the financial front, Starhill Global REIT posted stable growth with FY2024/25 gross revenue rising modestly and net income reaching $108.8 million, supported by fair value gains and currency appreciation in key markets.
“The REIT declared a distribution per unit (DPU) of 3.65 cents in FY2025, up 0.6% year-on-year, translating to a healthy 5-year average dividend yield of 6.66%, above peers,” Eng comments.
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Meanwhile, its gearing ratio remains conservative at 36%, well below the 50% regulatory limit, giving it ample debt headroom for strategic acquisitions or asset enhancements.
In his concluding statement, he recommends a medium to long term allocation on Starhill Global REIT, underpinned by stable dividend payout over the past five years, a healthy balance sheet providing financial flexibility for future opportunistic investments potentially increasing yield, alongside a management team that actively manages its debt.
As at 4.02pm, shares in Starhill Global REIT are trading 1 cent lower or 1.72% down at 57 cents.
