Starhill Global ( former McQ Prime )

[tonylim]

Confirm only Tanglin Mall has natural waterfall , this may be yield accretive to its shareholders.

[winston]

Not vested

Starhill Global REIT (SGREIT SP) - BUY

Last price: S$0.645
Resistance: S$0.73
Support: S$0.595

We have a technical BUY with a target price of S$0.73; alternatively, investors may consider exiting their longs at S$0.595.

This uptrend stock has a beta to FSSTI of 0.8, according to Bloomberg, and prices appeared to be well supported at S$0.595 during Mar 11 at this juncture.

There appears to be no bearish divergences in RSI. A break above S$0.66 points to a technical target of S$0.73.

Our institutional research has a fundamental HOLD rating with a target price of S$0.70.


Source: UOBKH

[winston]

Starhill Global REIT's Q2 property income up 23.4%

Mainboard-listed Starhill Global REIT reported on Monday its net property income for the second quarter rose by 23.4 per cent from the corresponding period a year earlier to S$35.6 million.

Starhill Reit, which invests primarily in real estate used for retail and office purposes in Singapore and overseas, attributed its performance to contributions from Starhill Gallery and Lot 10 in Malaysia.

Revenue for the three months ended June was S$44.2 million, 18.9 per cent higher than the same period last year.

Starhill Reit's Singapore portfolio, comprising interests in Wisma Atria and Ngee Ann City, contributed 62 per cent, or S$27.5 million, of the total revenue. However, the Singapore portfolio's net property income for the quarter was S$21.5 million, 3.3 per cent lower year-on-year.

The company added that while the take-up rate for office space in Singapore has been healthy, overall rental rates have declined as new and renewed office leases were secured at rates below the peak levels achieved in 2007.

Income to be distributed to unitholders in the quarter was S$20.2 million, an increase of 14.3 per cent from a year earlier. Distribution per unit (DPU) for the three months ended June was 1.04 cents, 14.3 per cent higher compared to the 0.91 cent achieved for the previous corresponding period. Unitholders can expect to receive their second-quarter DPU on Aug 29.

As of June 30, Starhill Reit's outstanding debt was S$838.6 million, with a weighted debt maturity of about 2.6 years. Its gearing level remained at 30.2 per cent and its interest coverage ratio stood at 4.4 times for the quarter.


http://www.todayonline.com/Business/EDC ... me-up-23,4

[winston]

Not vested

Earnings and target price revision
2011E and 2012E DPU raised by 2.2% and 3.5% to 4.24 cents and 4.39 cents respectively. Target price increased by 0.9% to S$0.68.

Price catalyst
12-month price target: S$0.68 based on a DCF methodology.

Catalyst: Better than expected renewal rents and acquisitions


Action and recommendation

We have raised 2011E and 2012E DPU by 2.2% and 3.5% to 4.24 cents and 4.39 cents respectively to account for lower property operating expenses. Our preferred pick within the retail SREIT space remains CapitaMall Trust (CT SP, S$1.92, OP, TP: S$2.21), given the resilience of suburban malls and steady DPU growth underpinned by well-executed asset enhancements.

Source: Macquarie

[winston]

Not vested

Starhill Global REIT’s results In line with expectation, 1H DPU forms 49% of our analyst’s forecast.

Operations on track, with rental reversion and stronger portfolio performance expected to offset the vacuum for Wisma Atria AEI.

Maintain BUY and TP of S$0.73. The stock offers FY11/12F yields of 6.6-6.9%.

Source: DBS

[winston]

Not vested

Meeting the mark - by Tan Siew Ling
(SGREIT SP / STHL.SI, OUTPERFORM - Maintained, S$0.66 - Tgt. S$0.74, REIT)

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2Q11 DPU of 1.04cts (+14% yoy) meets our estimate and consensus, at 25% of our full-year number. 1H11 DPU forms 50% of our forecast.

Positives were improving occupancy and achieved rents for its office portfolio though rental reversions were expectedly negative.

Starhill has secured 75% pre-commitments with good reversions for space under AEI in Wisma Atria and could beat its ROI target of 8%.

We continue to like the stability afforded by its master and long leases, low asset leverage and well-located assets. Downside should be limited by current valuations of 0.7x P/BV and forward yields of 6.5% while re-rating catalysts could come from improving office occupancy, positive rental reviews for Toshin leases, higher-than-expected returns from AEI and accretive acquisitions.

No change to our DPU estimates or DDM target price of S$0.74 (discount rate 8.4%).


Source: CIMB

[winston]

Not vested

RESEARCH ALERT-StanChart starts Starhill Global REIT at outperform

SINGAPORE, Aug 23 (Reuters) - Standard Chartered has initiated coverage of Singapore's Starhill Global Real Estate Investment Trust with an outperform rating and a target price of S$0.81.

STATEMENT: StanChart said Starhill, which was trading at around 0.7 times adjusted net asset value, is a cheap proxy to luxury retail in Singapore.

The REIT derives around 50 percent of its net property income from the retail components of Ngee Ann City and Wisma Atria, which are located in the central area of the city-state, StanChart said.

The bank added that it believes retail rents in Singapore's central area will outperform the suburban ones because large suburban retail supply is expected to come in the next 3-5 years.

It expects a compound annual growth rate of 5.7 percent for Starhill's distribution per unit over the 2011-2013 fiscal years, saying the company's Singapore assets are likely to deliver a strong performance.

At 0235 GMT, Starhill was down 0.9 percent at S$0.585.


Source: Reuters

[winston]

May 13, 2011

APPLICATION TO COURT IN RELATION TO THE MASTER LEASE WITH TOSHIN DEV SPORE PTE LTD (“Toshin”)

YTL Starhill Global REIT Management Limited, as manager (the “Manager”) of Starhill Global Real Estate Investment Trust (“Starhill Global REIT”), wishes to announce that HSBC Institutional Trust Services (Singapore) Limited, as trustee of Starhill Global REIT (the “Trustee”), has applied to the Singapore High Court by way of an originating summons for, among other things, a declaration that the rent review mechanism (the “Rent Review Mechanism”) in its lease agreement with Toshin (the “Toshin Lease”) is not operable and that the Court proceed to determine the prevailing market rent of the Toshin Lease.

Under the Toshin Lease, Toshin is the master tenant occupying the retail areas from basement two to level four of the Ngee Ann City Property.

Under the terms of the Toshin Lease, the Rent Review Mechanism determines whether the rental rate for the next rental term of two years commencing on 8 June 2011 is to increase (not exceeding a 25% increase from current rates) or remain at the current rates.

Starhill Global REIT’s position is that the Rent Review Mechanism is no longer operable whereas Toshin takes the opposing view, hence necessitating the application to the Singapore High Court.

[winston]

Not vested

Sept 3, 2011

The Manager wishes to announce that, at the hearing of the Application on 2 September 2011, the High Court dismissed the Application, and granted liberty to both parties to apply to the Court should there be a dispute vis-à-vis the terms of the parties’ joint letter to the Singapore Institute of Surveyors and Valuers (“SISV”) to nominate 3 valuers in accordance with Clause 2.4(c)(ii) of the Toshin Lease and/or in the joint Request for Proposal to the 3 valuers when nominated by the President of SISV.

The Trustee on behalf of Starhill Global REIT will be filing an appeal against the decision and applying for a stay of the High Court’s orders in the meantime.

http://info.sgx.com/webcorannc.nsf/Anno ... endocument

[winston]

Starhill Global REIT

Looking beyond Toshin - by Tan Siew Ling / Janice Ding
(SGREIT SP / STHL.SI, OUTPERFORM - Maintained, S$0.63 - Tgt. S$0.68, REIT)

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With increased macro-economic uncertainties, we seek comfort in the stability offered by Starhill's master and long leases and strong balance sheet.

Starhill remains the cheapest retail S-REIT under our coverage at 0.7x P/BV and 7.0% DPU yields.

Though rental uplift for its Toshin master lease is a key source of growth, we believe all will not be lost even if this fails to come through, as the impact could be mitigated by other sources of growth.

We raise our FY11-13 DPU estimates by 1-2% on higher retail-rent assumptions. Our DDM target price accordingly rises to S$0.68 (discount rate 8.8%) from S$0.66.

We see catalysts from positive rental reviews for the Toshin lease, higher-than-expected returns from AEI and accretive debt-funded acquisitions


Source: CIMB