Starhill Global Reit H2 NPI flat at S$74.5 million

[SINGAPORE] The manager of (real estate investment trust) posted a net property income (NPI) of S$74.5 million for the second half ended Jun 30, 2025, flat compared to the year-ago period.

The manager, in a bourse filing on Tuesday (Jul 29) attributed the lack of growth primarily to higher contributions from the Singapore retail properties and net movement in foreign currencies, which were largely offset by loss of contribution from certain divested strata office lots in Wisma Atria and rental arrears provision for its China property.

Starhill Global Reit’s Singapore retail portfolio comprises interests in Wisma Atria and Ngee Ann City in Orchard Road. It also owns assets in Japan.

Excluding the effects of divestment, its H2 FY24/25 NPI would have increased 0.6 per cent year on year.

Its revenue inched up 0.7 per cent to S$95.8 million from S$95.2 million previously.

Income available for distribution for H2 FY24/25 stood at S$44.5 million, an increase of 4 per cent from S$42.8 million in the year-ago period.

The rise was mainly attributed to higher NPI, lower tax expenses and net finance costs, retention of part of the net divestment proceeds in the current period, as well as the one-off leasing commission in relation to its Toshin master lease renewal in the previous corresponding period. This was partially offset by higher legal and professional fees.

The Reit’s manager will retain about S$2 million of income available for distribution for H2 FY24/25 for working capital requirements.

The Reit also posted a flat distribution per unit (DPU) of S$0.0185 in the second half ended Jun 30, 2025.

For the full year, DPU was 0.6 per cent higher at S$0.0365. This represented an annual yield of 7.2 per cent, based on the closing unit price of S$0.51 as at Jun 30, 2025.

The distribution reinvestment plan will apply for the H2 FY24/25 distribution, with the issue price of new units announced on or around Aug 6. Unitholders can expect to receive their H2 FY24/25 DPU on Sep 24.

Improved operational performance

The Reit’s full-year NPI rose 0.8 per cent to S$150.2 million, mainly due to higher contributions from Singapore retail properties and Perth properties, as well as the appreciation of the Malaysian ringgit against the Singapore dollar.

This was partially offset by loss of contribution from the divestment of the Wisma Atria office strata units, rental arrears provision for China Property, higher operating expenses and the depreciation of Australian dollar against the Singapore dollar.

Revenue for the full year was up 1.2 per cent on year to S$192.1 million for FY2024/25, and income available for distribution for the period grew by 3.7 per cent to S$87.8 million.

The group’s portfolio valuation remained stable at about S$2.8 billion. The figure would have reflected a 0.9 per cent year-on-year increase if not for the divested strata office lots in Wisma Atria in FY24/25. The gains were mainly due to the upward revaluation of its Ngee Ann City property, The Starhill, and Australian properties in June 2025, partially offset by net foreign currency movements.

Ho Sing, chief executive officer of Starhill Global Reit’s manager, said the partial divestment of its office portfolio enabled the Reit manager to demonstrate the asset’s value, strengthen financials and further improve liquidity amid ongoing market uncertainty.

“The improved operational performance for the year was mainly driven by our Singapore portfolio, which achieved full committed occupancy and delivered positive rental reversions,” he added.

Notably, at Wisma Atria, shopper traffic climbed 5 per cent year on year, although tenant sales declined 5.2 per cent. Starhill Global Reit owns the majority of units at the mall.

The Reit also renewed its current master lease at Ngee Ann City Property with Toshin ahead of expiry.

Gearing remained stable at 36 per cent, with a weighted average debt maturity of 3.1 years.

Units of Starhill Global Reit closed flat at S$0.55 on Tuesday.