Starhill Global Real Estate Investment Trust (SGREIT) has reported a 1.2% rise in revenue for the financial year 2025, reaching SGD192.1 million, alongside a 0.8% increase in net property income (NPI) to SGD150.2 million. The trust’s performance was buoyed by strong rental reversions in Singapore, despite challenges in overseas markets, according to a DBS Research report.
SGREIT’s portfolio remains nearly fully occupied, with significant contributions from its Singapore assets. The Wisma Atria mall, located on Orchard Road, is set to benefit from recent asset enhancement initiatives, including upgrades to its taxi drop-off point and interior atrium. These improvements are expected to capture increased tourism traffic and bolster rental income.
The trust’s financial stability is further supported by its conservative leverage ratio of 36% and a high proportion of master and anchor leases, which shield it from rising operating costs. Approximately 53% of SGREIT’s gross rents for the quarter were derived from these leases.
Despite a 5.2% year-on-year decline in tenant sales at Wisma Atria, attributed to a high base effect and slow recovery in luxury spending, SGREIT remains optimistic. The trust has secured a new tenant for its Myer Centre Adelaide Office, replacing a key tenant that exited, ensuring continued occupancy.
Looking ahead, SGREIT plans to rechannel gains from recent divestments to fund further asset enhancements or distribute special dividends to unitholders. The trust’s distribution per unit (DPU) for FY25 increased by 0.6% to 3.65 Singapore cents, aligning with market expectations.
SGREIT’s focus on Singapore-centric assets and strategic enhancements positions it well for future growth, with analysts maintaining a “BUY” recommendation and a target price of SGD0.68.
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