CIMB maintains “hold” rating for Starhill Global REIT (SGREIT) and raises its price target to 82 cents after the REIT delivered a mixed performance in 3QFY16.
The REIT’s 3QFY16 results were in line with CIMB’s expectations and made up roughly 25% of its and consensus full-year estimates. Nine-month distribution income formed 76% of its full-year forecast. 3Q topline grew by 12% to $53.6 million, thanks to contributions from Myer Centre Adelaide. This offset lower income from Wisma Atria, China, Malaysia and Japan assets as well as adverse forex impact from the Malaysian ringgit and Australian dollar.
Net property income (NPI) in Singapore fell 1.5% to $26.4 million, dragged down by the Wisma Atria retail space where occupancy dipped to 96.8% as the leasing environment remained challenging. This is despite higher tenant sales and a slight pick-up in shopper traffic, CIMB notes.
Australia revenue and NPI surged 170% and million respectively, and made up 22.5% of total portfolio revenue due to contributions from Myer Centre ......