Starhill Global REIT (SGREIT) invests in Retail and Office
properties. The majority of its income is from Singapore properties.
Occupancy is healthy at 96.2%. WALE is long at 5.6 years. From the
latest presentation, 53.4% of the lease will be expiring in FY23/24 and
beyond without breakdown, if we consider before FY23/24, then the
highest lease expiry of 15.8% falls in FY20/21. Weighted average land
lease expiry is moderate at 63.42 years.
Gearing is slightly high at 39.7%. Cost of debt is high at 3.2%.
Fixed-rate debt % is slightly high at 87.4%. Unsecured debt % is
moderate at 75.6%. Interest cover ratio is low at 2.9 times. WADE is
moderate at 2.7 years where highest debt maturity of 32% falls in
Although SGREIT has multiple properties in multiple countries, it is
not diversified enough. Top geographical contribution is slightly high
at 63%. Top property, top tenant, and top 10 tenants contribution are
high at 34.1%, 22.3%, and 56.8% respectively.
Key Financial Metrics
Property yield is low at 4.3%. Due to the deferment of S$ 7.7 mils
distribution, its management fees over distribution, distribution on
capital, and distribution margin are greatly affected, which are 23.8%,
2.5% and 35.8% respectively. Without deferment, the values would be
21.3%, 2.7% and 40.1% respectively.
Related Parties Shareholding
As compared to SREITs median, sponsor and manager holding higher stake while directors of REIT manager holding lesser stake.
If we look at pre-COVID time, DPU is on downtrend, NAV per unit is
on a slight downtrend and distribution margin is on a slight downtrend
too but improved for 3Q and 4Q 2019.
i) Average Dividend Yield - Apply past 4 quarters DPU of 2.96 cents
to average yield of 6.14% will get S$ 0.48. If we consider before
deferment, DPU would be 3.31 cents which translates into S$ 0.54.
ii) Average Price/NAV - Average value is at 0.81, apply the latest NAV of S$ 0.808 will get S$ 0.655.
Cost of Debt
Interest Cover Ratio
Top Property Contribution
Top Tenant & Top 10 Tenants Contribution
Distribution on Capital
COVID affected SGREIT performance heavily, where its 2H income
available for distribution dropped 46.2% year on year. Its AEI of
Starhill Gallery also facing delay and expected to completed by end of
2021. Manager has been receiving part of its management fees in units
(since 4Q 2019 calendar year) to reduce the impact on income disruption
from Starhill Gallery, in which manager normally receive 100% of its
management fees in cash.
Retail malls are now getting more and more visitors and more
crowded, albeit still less than pre-COVID time. With this, SGREIT
performance should be able to show improvement for the upcoming
The above analysis information is extracted from SREITs Dashboard, you are welcome to use the information there for your analysis. You could also refer SREITs Data for an overview of Singapore REITs. If you like my sharing, please join the Facebook group - REIT Investing Community where you could read, share, and discuss REITs related topics. Please also invite your like-minded friends to the group.
*Disclaimer: Materials in this blog are based on my research and
opinion which I don't guarantee the accuracy, completeness, and
reliability. It should not be taken as financial advice or statement of
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or damage as a result of the use of the material in this blog. Under no
circumstances does the information presented on this blog represent a
buy, sell, or hold recommendation on any security, please always do your
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