Starhill Global REIT (SGREIT SP)
Recommendation : BUY
Fair Value : SGD 0.65
MORE ENCOURAGING METRICS
• 3QFY22 (3Q financial year to end-Jun 2022) net property income (NPI) grew 8.7% year-on-year (YoY) to SGD38.5m
• Portfolio occupancy declined slightly to 96.6%
• Wisma Atria Retail’s tenant sales rebounded 18.2% YoY in 3QFY22
Starhill Global REIT (SGREIT) owns interests in Wisma Atria and Ngee Ann City, two trophy assets located at the heart of Orchard Road in Singapore. It also has income streams from overseas markets such as Australia, China, Malaysia, and to a smaller extent Japan. While the Covid-19 situation remains fluid, we see firmer signs of reopening efforts in countries which SGREIT has exposure to, which we believe would support its recovery. Given that master leases and anchor leases represent more than 50% of SGREIT’s gross rent, we believe this would partially mitigate the impact of rising utility costs and provide some income visibility to its unitholders.