Starhill Global ( former McQ Prime )

[winston]

Hi Tony,

Not too sure.

Take care,
Winston

[winston]

not vested

Although retail rents in Orchard/Scotts Road revealed weakness, we observed that the slight rental decline of <5%, is largely concentrated on malls that are undergoing renovation. Post renovation, rents should pick up again.

As reflected in Wisma Atria (owned by Starhill Global Reit), occupancy strengthened from 95% to 99.5%, while committed leases in the last 12 months have risen by 33% on a blended basis post the completion of AEI works in June.

Maintain BUY for Starhill Global Reit at TP: S$0.81.


Source: DBS

[winston]

not vested

Starhill Global Reit posts Q3 DPU of 1.11cts By Teo Si Jia

Starhill Global Reit on Monday said it recorded a 11 per cent year-on-year rise in its distribution per unit to 1.11 cents for the third quarter ended Sept 30.

Its manager, YTL Starhill Global Reit Management, said income available for distribution rose 13 per cent to S$24.68 million from a year ago.

On an annualised basis, the latest distribution represents a yield of 5.78 per cent.

The group's gross revenue rose 5 per cent to S$46.25 million from a year earlier.


Source: Business Times

[winston]

not vested

Starhill Global REIT: AEI activity came to fruition

Starhill Global REIT (SGREIT) turned in an encouraging set of 3Q12 results yesterday.

While we have expected Wisma Atria retail mall to put on a good showing following the completion of asset redevelopment works, the 24.3% increase in NPI for the segment came in stronger than expected, thanks to positive rental reversions and full committed occupancy at the mall.

Wisma Atria office segment, we note, also performed well, raking up 15.2% growth in NPI. In addition, overall portfolio occupancy remained very healthy at 99.4%, with a weighted average lease term (by NLA) of 7.3 years.

As mentioned in our Sep report, SGREIT had secured the refinancing for its existing A$63m term loan which matures in Jan 2013. With that, SGREIT has no debt refinancing requirement until Sep 2013.

We are tweaking our forecasts to factor in stronger rentals at Wisma Atria. This lifts our fair value from S$0.79 to S$0.84. Maintain BUY.


Source: OCBC

[winston]

not vested

Wisma Atria stars in 3Q

SGREIT SP / STHL.SI
NEUTRAL - Maintained
Share Price S$0.79
Tgt. S$0.81

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

Starhill’s 3Q12 was strengthened by Wisma Atria asset enhancements, completed in Jul 2012, offset by a weaker Chengdu mall.

Income was retained for working capital. Toshin negotiations are still in progress but potential rental upside has already been factored in.

3Q/9M12 DPU met expectations at 25%/72% of our full-year forecast but was slightly above consensus at 26%/76%.

We tweak DPUs downwards for lower margins in Japan and weaker China growth.

But we raise our DDM target price as we lower the discount rate from 8.4% to 7.9%.

We remain Neutral on valuation grounds.


Source: CIMB

[winston]

not vested

Starhill Global REIT (SGREIT SP, P40U)

Orchard malls continue to sparkle
Last price: S$0.78
Target Price: S$0.92

Wisma Atria (Wisma) continues to be the jewel in Starhill Global’s retail portfolio. 3Q12 revenue increased, thanks to the rental uplift from Wisma where net property income grew 24.3% yoy after its major renovation.

Overall portfolio occupancy remained resilient at 99.4%. Its Singapore office portfolio is also doing well as office demand continues to remain resilient in Orchard Road due to the tight supply.

With a low gearing of 31.2%, Starhill Global has room to make acquisitions. It had previously indicated it was looking for mostly retail acquisitions in Singapore, Malaysia and China.

Starhill Global is our top pick in the retail segment as it offers the highest forward yield of 5.9% among the retail REITs. We have a BUY and a target price of S$0.92, derived from a dividend discount model.

The stock is trending up and could test S$0.83/0.89 as the next resistance. Support is at S$0.72. We issued a technical buy on 27 Aug 12 with a target price of S$0.81.


Source: UOBKH

[winston]

ASSET SALE A POSITIVE MOVE

- Sale of Japan property
- Occupancy and yield to improve
- Expecting firm performance

Starhill Global REIT (SGREIT) announced that it had divested its entire interest in the Roppongi Primo Building in Tokyo, Japan for JPY700.0m (~S$9.5m).

We welcome the move because
1) the divestment is likely to lead to an improvement in both occupancy and yield,
2) it may mean that its Japan properties are starting to gain investor interest, and
3) it is expected to reduce its gearing level by 30bps to 30.0% since the net proceeds would be used to repay its JPY loans.

Going forward, we remain positive that SGREIT will continue to turn in firm performance, supported by strong contribution from its Singapore portfolio and incremental income from its recently acquired Plaza Arcade property in Perth.

We also believe that upcoming refinancing activities and rental valuation for the Toshin master lease may provide a further catalyst for its DPU growth if favourable interest rates and rental terms are secured.

We now factor in the divestment in our forecasts. Our fair value, however, remains unchanged at S$0.95. Maintain BUY on SGREIT.


Source: OCBC

[winston]

not vested

Starhill Global has secured a 10 percent rent increase for the master lease with Toshin Development Singapore Pte Ltd in a retail mall Ngee Ann City.


Source: Reuters

[winston]

not vested

Starhill Global REIT: 10% rent increase for Toshin master lease

Summary: Starhill Global REIT (SGREIT) has secured a 10.0% increase in base rent for Toshin master lease at Ngee Ann City, following the completion of the rent review process yesterday.

The new rate was based on the average of three market rental valuations undertaken by independent licensed valuers, in accordance with the Court of Appeal’s directions, and will be retrospectively applied for the term commencing 8 Jun 2011.

Assuming the accumulated rental arrears owing as a result of the rental increase from 8 Jun 2011 to 31 Dec 2012 were paid in FY12 (after deducting expenses), management estimates an increase of 0.19 S cents (+4.3%) in its FY12 DPU.

SGREIT intends to distribute substantially the net arrears received (~S$3.8m) from Toshin in 1Q13. This will be on top of the regular distributable income generated for the quarter.

We expect the market to react favourably to this news.

Maintain BUY on SGREIT but place our fair value of S$0.95 under review as we incorporate the rental and DPU increase in our forecasts.


Source: OCBC

[winston]

not vested

Starhill Global REIT: Poised for growth

Summary: We are positive on Starhill Global REIT’s (SGREIT) performance going forward. SGREIT announced that the acquisition of Plaza Arcade in Perth, Australia has been completed last Friday.

At an NPI yield of 7.8%, we expect the transaction to be DPU accretive, adding 0.08 S cent to SGREIT’s DPU on an annualised basis.

Apart from the maiden contribution by Plaza Arcade, SGREIT is also likely to get a boost in its 1Q13 DPU, due to the distribution of ~S$3.8m accumulated net rental arrears expected to be received from Toshin during the quarter.

Further upside in rent is possible when next lease renewal exercise comes in Jun, given that Orchard Road rental and occupancy rates have been holding up well.

In addition, SGREIT may possibly benefit from interest savings following the refinancing of its term loan maturing in Sep.

We maintain BUY with an unchanged fair value of S$0.98 on SGREIT.

Source: OCBC