Starhill Global ( former McQ Prime )

[winston]

Judge denies Starhill's request to set new rental
Source: Business Times
Author: Grace Leong

A SINGAPORE High Court judge has denied an application by Starhill Global Reit for the court to set new retail rental rates with its master tenant, Toshin Development Singapore, in Ngee Ann City mall, saying that an existing rent review mechanism is 'still operable'.

Starhill wanted the court to determine the prevailing market rent of the Toshin lease after a dispute erupted between the parties over the rent review process.

Toshin, a unit of Takashimaya, leases more than 225,000 square feet in Ngee Ann City, which it then sub-leases to luxury brands such as Chanel, Louis Vuitton, Burberry and Tiffany & Co.

But in a grounds of decision issued last Friday and made public yesterday, High Court Justice Lai Siu Chiu declined to order an inquiry into the market rental rate of the premises, saying she 'had (her) reservations about the legitimacy of this remedy'.

'In substance, the latter remedy would amount to the court substituting its own terms for those in the lease agreement, which was a contract made between the parties,' Justice Lai wrote.

http://www.singaporelawwatch.sg/remweb/ ... howClose=y

[winston]

not vested

Starhill Global Reit’s 4Q11 results were 4% below expectations.

4Q gross revenue and NPI were flattish on a year on year basis despite lower contribution from Wisma Atria’s due to its on-going AEI works (-2.2% yoy) and negative rental reversion for the Ngee Ann City's office leases (-8.4% yoy).

DPU fell 2.9% to 1.01cts due to higher finance cost and tax expenses.

Will provide more updates after analyst briefing today.

Source: DBS

[winston]

not vested

Starhill Global REIT: Consistent set of 4QFY11 results

Starhill Global REIT (SGREIT) reported 4Q11 NPI of S$36.5m and distributable income of S$22.2m, down 0.6% and 4.7% YoY respectively.

The slight decline in earnings was mainly due to lower contribution from Singapore properties and higher expenses at Chengdu and Japan properties.

4Q DPU came in at 1.01 S cents (-2.9% YoY), bringing the full-year DPU to 4.12 S cents.

This is roughly in line with both our and consensus DPU forecast of 4.2 S cents.

Management guided that the asset redevelopment at Wisma Atria is on track for completion by 3Q12, but vacancy periods till lease commencement may continue to impact the property’s performance over the next two quarters.

We note that SGREIT is in a comfortable financial position, with aggregate leverage at 30.8% and no major debt refinancing until 2013.

We are placing our Buy rating and S$0.70 fair value UNDER REVIEW pending the analyst briefing later in the day.

Source: OCBC

[winston]

Starhill Global REIT: Performance to improve

Starhill Global REIT (SGREIT) reported FY11 DPU of 4.12 S cents, roughly in line with both our and consensus DPU forecast of 4.2 S cents.

While performance in 4Q11 was partially impacted by negative rental office reversions and rental disruption from the asset redevelopment from its Singapore portfolio, we note that take-up rate for its office space continues to be healthy, while higher rentals were achieved for new and renewed leases for its retail segment.

Management also reiterated that the asset redevelopment at Wisma Atria is on track for completion by 3Q12.

As at 31 Dec 2011, SGREIT is in a comfortable financial position, with aggregate leverage at 30.8% and no major debt refinancing until 2013.

It also enjoys a long weighted average lease term of 6.5 years by NLA. We keep our fair value unchanged at S$0.70, based on a DDM valuation method. Maintain BUY.

Source: OCBC

[winston]

not vested

DPU for Starhill Global REIT was slightly below expectation pending Toshin’s lease rental reversion.

Healthy reversion for Wisma Atria leases expected despite on-going Asset Enhancement Initiative (AEI) works.

SGReit has a healthy balance sheet and is ready for acquisitions.

Maintain BUY at lower $0.71 TP (Prev S$ 0.76).

Source: DBS

[winston]

not vested

Buy prime assets at a discount.

Considering its prime assets in Singapore, Kuala Lumpur and Perth, as well as a healthy balance sheet, Starhill’s steep 30% discount to its NAV does not seem justified to us.

Moreover, its distribution per unit yield of 6.7% is also the highest among its peers.

Maintain Buy with a target price of $0.80.


Source: Kim Eng

[winston]

vested

Another stable quarter
OUTPERFORM - Maintained
Share Price S$0.65 - Tgt. S$0.72

--------------------------------------------------------------------------------

Stronger Japan and Australia contributions offset negative office rental reversions and weaker Chengdu rentals.

Valuations remain undemanding against sector peers given stability, with potential catalysts from a Toshin rent review and Wisma Atria’s AEI.

1Q12 DPU matches our estimate and consensus at 25% of FY12.

We keep our numbers but raise our DDM-based target price on a lower discount rate of 8.4% (from 8.8%). Maintain Outperform.


Source: CIMB

[winston]

not vested

DBS ups Starhill Global target price DBS Vickers has raised its target price for Starhill Global Real Estate Investment Trust to S$0.75 from S$0.71 and has retained its 'buy' rating, citing higher rents from its Singapore and Malaysian shopping malls.

Starhill Global units were 0.8 percent higher at S$0.62, and have risen 11 percent since the start of the year, compared to the FT ST Real Estate Investment Trust's <.FTFSTAS8670> 10 percent gain.

After upgrading works are completed on Starhill's Singapore mall Wisma Atria in the third quarter, DBS expects about 20 percent of the property's net leaseable area to see a 50 percent rise in rents.

Starhill's master lease with Malaysia's Katagreen Development Sdn Bhd, which makes up 17 percent of its gross revenue, is expected to see a rent increase of 7 percent next year, which should help lift the REIT's distribution per unit, DBS said.

Source: Reuters

[tonylim]

Copy from VB


RE: Starhill Global Reit
"Toshin, a unit of Takashimaya, leases more than 225,000 sq ft in Ngee Ann City in annual rents to $33.9 million at the last review in 2008 "

33.9/225,000 sq ft/12=S$12.55 . It is too cheap for rental at any part of Ochrad road, let alone retail space in NAC. Believe the rental should be more than S$30.00 per sq ft.
The new lease of this property should bring in more than double of what Starhillis geeting now from the old lease.

[Aspellian]

Interesting observation - thanks Tony