Starhill Global Reit Q3 NPI inches up 0.5% to S$37.9 million

THE manager of Starhill Global real estate investment trust (Reit) posted a net property income (NPI) of S$37.9 million for Q3 FY2025 ended Mar 31, up 0.5 per cent from S$37.7 million in the previous corresponding period.

The slight increase in NPI was mainly driven by appreciation of the Malaysian ringgit against the Singapore dollar and lower operating expenses, said the manager in a bourse filing on Tuesday (Apr 29). This was largely offset by the higher rental provision for China property, loss of contribution from divestment of some Wisma Atria office units and depreciation of the Australian dollar against the Singapore dollar.

Revenue for Q3 FY2025 remained flat at S$47.6 million. Gearing at the end of Mar 31 stood at 36.6 per cent.

Occupancy across Starhill Global’s portfolio for the quarter dipped slightly to 97.4 per cent as at Mar 31, from 97.7 per cent as at Jun 30, 2024. The weighted average lease expiry stood at 7.2 years.

Technicolor Creative Studios Australia, a tenant at Myer Centre Adelaide, Australia, entered liquidation in April, with the liquidators effectively terminating the leases on Apr 24. The outstanding arrears of S$900,000 as at Mar 31 were fully covered by bank guarantees of S$1.4 million.

Technicolor contributed about 0.8 and 1 per cent of FY2024 revenue and NPI, respectively.

Leasing agents have been engaged to market the premises and preliminary discussions have commenced for part of the space. The manager plans to subdivide the space to mitigate concentration risk with a single tenancy.

Markor International Home Furnishings, the tenant at the China property, has been in arrears and unable to fulfil its obligations. As at Mar 31, it has racked up arrears of about S$1.1 million, which was partially covered by security deposits of S$400,000 and rental provision.

Letters of demand have been served on the tenant and the manager is taking steps to recover the arrears. Leasing agents are marketing the space.

Markor contributed about 0.8 and 1 per cent of FY2024 revenue and NPI, respectively.

Geopolitical tensions and trade uncertainty are expected to weigh on economic activity, with spillover effects on retail sales and other sectors. The manager said that it will continue to maintain a prudent capital management strategy backed by the resilient master leasers for the Singapore and Malaysia assets.

New asset enhancement initiatives will be rolled out to future proof the Reit’s malls.

Units of Starhill Global closed flat at S$0.495 on Tuesday.