STARHILL Global Real Estate Investment Trust posted a 5.5 per cent increase in income available for distribution to $19.1 million for its fourth quarter ended Dec 31, 2009, from $18.1 million a year ago.
Income to be distributed rose 5.6 per cent to $18.8 million. An amount of $0.3 million of income available for distribution for the quarter had been retained to satisfy legal reserve requirements in China.
Distribution per unit (DPU) rose 5.4 per cent to 0.97 cents from Q4 2008’s restated 0.92 cents. Q4 2008’s DPU was restated to take account of rights units.
In August last year, Starhill, which owns stakes in Wisma Atria and Ngee Ann City, had completed a rights issue which had raised net proceeds of $326.1 million.
For the year, net income available for distribution rose 8.7 per cent to $75.5 million.
After retaining about $2 million to satisfy the legal reserve requirements in China and for working capital and capital expenditure purposes, net income to be distributed stood at $73.5 million, up 7.2 per cent from $68.6 million in 2008.
DPU for 2009 stood at 3.8 cents, up 6.1 per cent from 2008’s 3.58 cents, which again took into account the rights issue.
Net property income for the quarter rose 3.2 per cent year-on-year to $26.8 million, driven by increased revenue from new leases and lower property tax expenses.
For the year, the group posted net property income of $106.9 million, an 11.5 per cent increase from $95.9 million.
As at Dec 31, 2009, the trust’s gearing ratio was 26.9 per cent. The manager of the trust is in ‘active discussions’ with its banks to finalise terms for the refinancing of $570 million of debt that falls due in September.
The group’s outlook for the year is a cheery one.
‘Business sentiment has improved significantly over the last quarter. The completion of our acquisition of the David Jones Building in Perth earlier this month is timely, as the property will start contributing immediately to Starhill Global Reit’s FY2010 revenue and net property income,’ said Francis Yeoh, executive chairman of YTL Pacific Star.
‘Visitorship to our Singapore malls have continued to improve with the added buzz arising from new malls and the rejuvenation of Orchard Road and we expect this to increase in tandem with tourist arrivals when the integrated resorts open.’
Its retail assets in Singapore are expected to mitigate the effects of retail rents and occupancy rates in Japan that might still be reeling from economic weakness. Starhill rose 1.5 cents to close at $0.545 yesterday.
Source : Business Times – 29 Jan 2010
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