Wednesday, April 28, 2010

Starhill Quarterly Results

SINGAPORE, 26 April 2010 – YTL Pacific Star today announced that Starhill Global REIT’s 1Q 2010 income to be distributed was S$18.4 million, 2.0% higher than that of S$18.0 million in 1Q 2009. Distribution Per Unit (DPU) (post-rights) for the period 1 January to 31 March 2010 was 0.95 cents, 2.2% higher compared to the restated 0.93 cents1 achieved for the previous corresponding period. On an annualised basis, the latest distribution represents a yield of 6.88% {based on 56 cents close on 31st March 2010}


20 lots gives me $190.

0.95 cents was lower by 0.02 cents as compared to the previous quarter. This was perhaps a little disappointing as investors might have been expecting more to come since the David Jones building was acquired in the previous quarter. Probably this is the reason for the run-up to 64 cts before the selldown back to 62 cts, and then to 61 cts today.

What's reassuring is that the $570 mil of debt due this year has been successfully refinanced with a loan facility that matures in a few years time. Hurray!

The most interesting update is the fact that Ho Sing is now the CEO of Starhill REIT. Ho Sing is the brother of Ho Ching, head of Temasek Holdings. This adds to the credibility of the REIT on top of the REIT being part of YTL Corporation. Refinancing will be easier.


  1. Hi WB,

    I'm curious as to why do you see Starhill REIT as a good buy despite their yield at 6.8% being lower than the debt that they're paying out for the medium term notes of 7.1% for the raising of capital to pay for their recent acquisitions? Info from the recent circular. Could you help shed some light pls?

    Much thx,

    P.S. heh, my firt post despite reading your blog for awhile now.

  2. Hi,

    I based my decision a multitude of factors, including properties, sponsors, yield.

    Mathematically speaking, and without looking at the balance sheets and circular, 6.8% yield on say $100mil asset base still earns more than 7.1% interest on say $40mil. Overall, they would still earn. That's in the medium term.

    In the long term, it would depends on their refinancing strategies and how they pare down debts that are of higher interests.


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