Starhill Global REIT's DPU for 1HFY2026 has held steady at 1.8 cents versus the preceding period ended Dec 2024. Net property income dipped by 0.8% to $75.1 million while revenue held steady at $96.3 million.
The slightly lower NPI can be attributed to loss of contribution from the divestment of certain Wisma Atria Office strata units, rental arrears provision mainly for its property in China, lower contribution from its Myer Centre Adelaide, as well as depreciation of the Australian dollar against the Singapore dollar, the reporting currency.
On the other hand, the REIT enjoyed higher contributions from Ngee Ann City and Lot 10, as well as appreciation of the Malaysian ringgit against the Singapore dollar.
Excluding the effects of divestment, NPI for 1HFY2026 would have increased 0.1% y-o-y.
“Despite a challenging macroeconomic backdrop characterised by geopolitical tensions, elevated cost pressures and divergent global economic conditions, we delivered a resilient performance in the first half of the financial year," says chairman of the REIT Francis Yeoh.
"We remained disciplined in maintaining a strong balance sheet and delivering high-quality earnings," he adds.
See also: CNMC Goldmine expects 'significantly' higher FY2025 earnings
Ho Sing, CEO of YTL Starhill Global, says the operational performance in the first half of the financial year was underpinned by proactive asset management.
"To date, we have substantially filled vacancies in Adelaide Office and China, thereby maintaining our committed portfolio occupancy.
"Ongoing capital recycling will further strengthen our balance sheet, positioning us to capitalise on opportunities in the low interest rate environment," says Ho.
See also: CapitaLand Ascott Trust announces unchanged distribution per stapled security in FY2025
He adds that the REIT has also successfully repriced its perpetual securities at an "attractive" rate.
As at Dec 31 2025, the REIT's portfolio occupancy was 91.9%, down from 94.6% as at June 30, after its sole tenant in China terminated its lease. The replacement tenant has signed a "conditional lease" earlier this month, which will then lift the REIT's committed portfolio occupancy to 96.5%.
As at Dec 31 2025, the portfolio weighted average lease term expiry remains at 7.4 years by gross rental income.
The REIT says that despite shopper traffic dipping by 1.2% y-o-y at the retail portion of Wisma Atria, tenant sales increased by 2.9% y-o-y.
As part of its ongoing asset enhancement works, the first phase of its renovation works at Wisma Atria’s taxi stand has commenced and is slated for completion in Feb; the second phase will be done by June.
At the REIT's other key asset, Ngee Ann City, a new base rent has been set at 1% higher than under the previous lease with master tenant Toshin.
The annual turnover rent, which includes a profit-sharing arrangement for the renewed master lease, will be determined by May each year, and that the next rent review will be conducted in June 2028.
The REIT's gearing has been held steady at 35.4% with about 80% of debts on a fixed/hedged basis as at Dec 31 2025.
Starhill Global REIT units closed at 60 cents on Jan 29, up 0.85% for the day and up 16.67% in the past year.
