Starhill Global REIT holds 1H FY25/26 DPU at 1.80 cents on steady revenue despite Wisma Atria office divestment
Summary:
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1H FY25/26 gross revenue was stable year-on-year at S$96.3 million, while net property income slipped 0.8% to S$75.1 million mainly due to the divestment of Wisma Atria office strata units, arrears at the China property and lower Myer Centre Adelaide office contribution.
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Income available for distribution edged down 0.2% to S$43.2 million, but income to be distributed to unitholders rose 1.0% to S$41.7 million after retaining S$1.5 million for working capital, keeping DPU unchanged at 1.80 cents and implying an annualised yield of about 6.0% at S$0.595 per unit.
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Committed portfolio occupancy eased to 91.9% as at 31 December 2025 after termination of the sole China tenant, but a new tenant signed in January 2026 is expected to restore China to full occupancy and lift portfolio occupancy to 96.5%.
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Active asset management continues: tenant sales at Wisma Atria Retail rose 2.9% year-on-year, new flagship and luxury brands were added across Singapore and Malaysia assets, car park space at Wisma Atria was converted to higher-yielding commercial use with an ROI above 8%, and UNIQLO expanded to a duplex store at Myer Centre Adelaide.
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Capital management remains conservative with gearing at 35.4%, around 80% of debt fixed/hedged and average debt maturity of 3.8 years; SGREIT also refinanced term loans with sustainability-linked facilities and re-priced S$100 million of perpetuals down to a 3.25% distribution rate.