STARHILL Global Reit, which owns Wisma Atria and Ngee Ann City in Singapore, is among the latest in the list of landlords to pass on property tax rebates from the Budget to its tenants. The news came yesterday as the trust released improved results for the fourth quarter ended Dec 31, 2008.
‘We are in the process of working out the quantum of the rebates to tenants,’ trust manager YTL Pacific Star’s CEO, Franklin Heng, told BT. Last week, the government announced a 40 per cent property tax rebate for industrial and commercial properties this year and urged landlords to share these benefits.
Besides handing out rental rebates, Starhill Global will step up marketing efforts to boost pedestrian traffic and sales at Wisma Atria. ‘Some of the leases also have a stepped-up rent feature that lightens the burden for tenants, particularly new ones operating in the centre for the first year,’ Mr Heng added. ‘Where necessary, we have also introduced other ‘payment-friendly’ lease structures to help tenants sustain their businesses.’
Starhill Global saw a 17 per cent year-on-year increase in net property income to $26 million in 4Q 08. Higher rents from renewals and new leases in its Singapore properties, together with higher revenue from its China property, boosted performance.
As a result, distributable income rose 12 per cent to $18.1 million in 4Q 08. This translates to a distribution per unit (DPU) of 1.85 cents, exceeding the 1.68 cents in the same period last year. On an annualised basis, the DPU stands at 7.36 cents and generates a distribution yield of 14.2 per cent, based on Starhill Global’s closing price of 52 cents on Dec 31. The counter closed unchanged at 51.5 cents yesterday. For FY2008, Starhill Global reaped a distributable income of $69.4 million, up 18 per cent from a year ago. This led to a DPU of 7.17 cents, 16 per cent more from FY2007.
As the recession lingers, Starhill Global will continue to adopt prudent capital management and proactive asset management strategies, said YTL Pacific Star’s executive chairman, Francis Yeoh. The trust’s gearing ratio was 31 per cent as of Dec 31. It has around $17 million of debt due this year and another $601 million will mature in 2010. ‘We will also focus on building up the ‘Starhill’ brand and sourcing for yield accretive acquisitions of prime assets to enhance the long-term growth prospects of Starhill Global Reit,’ said Dr Yeoh.
Source : Business Times – 31 Jan 2009




