Tuesday, August 21, 2012

Massive constructions of Starhill Global REIT

Starhill Global REIT is a real estate investment trust. This trust provides support in the real estate finances which are generally for office spaces and retail purposes.  It is spread across both Singapore and overseas. The Company got listed on the main board of the Singapore Exchange Securities Trading Limited in the month of September, 2005. Since, then the company huge and have improved its portfolio. It has two landmark properties in Singapore and the rest are in Malaysia, China, Australia, Japan and Singapore. The company is a strong supporter of Go Green which could be seen by its efforts in driving organic growth. This in return enhances their focus on sourcing attractive property assets.

Current Scenario: The current revenue of Starhill Global REIT has increased up to 8.7% when compared to the revenue percent of the previous year. The revenue amount is around S$180. 1 million. The income available for distribution is up to 10.1% which sums up to S$90. 8 million. It has a 98.7% of strong occupancy. FY 2011 was another successful year for the company similar to the several other years of success they have seen. The recent history includes distribution per unit of 4.12 cents. This has been said to be the highest achieved since the listing in 2005. Net asset value per unit was 95 cents as at December 2011. Gross revenues and net property income came in at 5.0% higher at S$46. 4 million and S$37. 1 million respectively. The company’s performance has remained stable with no major impacts or changes. Though they had a seasonally-weak quarter yet it was strong.

Future Scope: Starhill Global REIT continues to create value with their active management strategies and source for yield accretive acquisitions of prime assets in their core markets when the opportunity arises. The company has properties in China, Japan and Australia. Plans are active to establish and create new ventures in the real estate business. The company’s residential index would drop 5-10% in 2012. The concentration would be more of supply in North East of Singapore while maintaining positive focus on trophy assets for residential projects and also the sources say that it would be equally on the collectible items in the residential section.

Conclusion: The past performance of Starhill Global REIT is not necessarily indicative of the future performance but it gives a positive indication of things to expect.Company owns 13 mid to high-end retail properties spread across five countries. Singapore and Malaysia make up to 85.4% of total assets. The company’s strong synergies with the YTL Group which is one of the largest companies listed on the Bursa Malaysia with total assets of about US$ 13.6 billion as of June 2012. The company has a global presence with a track record of success in real estate development and property management. It has demonstrated strong sourcing ability and execution by acquiring three quality malls. It participated in the asset redevelopment of Wisma Atria and Starhill Gallery that demonstrates the depth of the management expertise. The company has gained International and local retail and real estate experience.

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