On 26 April 2018, Starhill Global REIT has released a set of disappointing 3QFY17/FY18 results. Gross Revenue, Net Property Income (“NPI”), Distributable Income and Distribution Per Unit (“DPU”) has all declined.

Despite the fact that distributable income has declined by 6.3%, the manager retained $1.6 million for working capital purposes, worsening the income to be distributed to unit holders. Distribution Per Unit (“DPU”) fell by 7.6%. This was unexpected of a Retail/Office REIT.

3QFY17/18 3QFY16/17 Change
Gross Revenue $51.7 mil $53.3 mil (3.0%)
Net Property Income $40.3 mil $41.2 mil (2.3%)
Distributable Income $25.4 $27.1 mil (6.3%)
Income to be Distributed to Unitholders $23.8 mil $25.7 mil (7.6%)
Distribution Per Unit (“DPU”) (cents) 1.09 1.18 (7.6%)

Distribution Per Unit

 

Comparing the Distribution Per Unit side by side between FY2016/17 and FY2017/18, we …