Starhill Global ( former McQ Prime )

[tonylim]

Sponsor, YTL announced they will convert its CPUs into ordinary shares, thus increasing their holdings from 29.5 to 37%.

[winston]

not vested

Downgrade to HOLD, TP S$0.87.

Backed by a quality portfolio with good earnings visibility, we believe that positives have already been priced in at this level.

We have therefore downgraded the stock to HOLD on valuation grounds, given limited upside to our rolled-forward TP of S$0.87.

The stock is currently trading at 1.0x P/BV, and is offering FY13/14 yields of 6.1%/6.4%.

Source: DBS

[winston]

not vested

Starhill Global REIT: Consistent performer

Starhill Global REIT (SGREIT) reported an 8.8% YoY growth in its 4Q13 DPU to 1.23 S cents, coming in within our expectations.

For the quarter, Singapore portfolio continued to deliver good performance, thereby increasing its percentage revenue contribution to 65.5% from 63.0% in 4Q12.

Notably, Ngee Ann City retail NPI gained 16.6% YoY amid 6.7% rental uplift from Toshin master lease renewal in 2Q.

In addition, SGREIT saw a S$137.5m revaluation gain in its portfolio.

As a result, gearing ratio improved by 1.6ppt QoQ to 29.0%, while book value rose by 7.3% QoQ to S$0.92.

This implies a 0.82x P/B, the lowest within the local retail space.

We maintain BUY on SGREIT, but revise our fair value to S$0.90 from S$0.95 to reflect higher risk-free rate and risk premium assumptions.

Source: OCBC

[winston]

not vested

Starhill Global REIT (SGREIT SP) - Tough and winding road ahead

Starhill Global REIT’s (SGREIT) 2HFY20 and FY20 results fell short of our expectations.

FY20 DPU came in at 2.96 S cents, representing a decline of 33.9%.

This was driven by S$17m of rental assistance from its own pocket to eligible tenants to cushion the impact from Covid-19, retention of S$4.9m of income available for distribution and S$7.7m of distributable income which has been deferred.

The amount deferred (S$7.7m) needs to be distributed to unitholders by 31 Dec 2021.

SGREIT managed to keep its occupancy rate healthy at 96.2% (-0.1 ppt QoQ) despite the challenging environment. However, we are cautious on the operational outlook ahead.

In terms of portfolio valuation, SGREIT recorded a fair value loss of S$160.7m in FY20, with the main drag coming from its Australian properties and Wisma Atria property.

We bake in additional rental assistance in our model, and also cut our rental and occupancy assumptions further.

However, we also factor in the S$7.7m of deferred distribution into our FY21 forecast, such that our DPU projection is trimmed by only 2.1%.

After rolling forward our valuations, our fair value estimate inches up marginally from S$0.52 to S$0.53. BUY.

Source: OCBC

[winston]

not vested

Starhill Global REIT (SGREIT SP) - Resilient occupancy but rental rebates weigh

Starhill Global REIT (SGREIT) owns interests in Wisma Atria and Ngee Ann City, two trophy assets located at the heart of Orchard Road in Singapore.

It also has income streams from overseas markets such as Australia, China, Malaysia, and to a smaller extent Japan.

We believe there are significant uncertainties and lack of earnings visibility ahead.

Although some of SGREIT’s properties are under master leases, the severe and widespread impact of Covid-19 has resulted in management extending, or having the intention to extend some form of rental rebate to its master lessees to share the pain and build a stronger longer-term relationship.

However, we believe negatives are in the price with SGREIT trading at a significant discount to its book value. BUY.

Source: OCBC

[behappyalways]

Starhill Global REIT prices $125 mil notes with 2.23% p.a. coupon
https://www.theedgesingapore.com/news/r ... -pa-coupon

[behappyalways]

Starhill Global REIT to divest Daikanyama property in Japan for $18.9 mil
https://www.theedgesingapore.com/news/r ... an-189-mil

[behappyalways]

Starhill Global REIT has reported gross revenue $47.1 million, 1% lower y-o-y for the 1QFY2023/2024
https://www.theedgesingapore.com/capita ... ower-y-o-y

[behappyalways]

Starhill Global REIT 3QFY2023/2024 NPI down 0.9% y-o-y, gearing rises to 37.2%
https://www.theedgesingapore.com/capita ... -rises-372