Starhill Reit announces two news today which I have earlier anticipated after management hinted at the need for an AEI on their Malaysia properties. The first is the renewal of the Master Tenancy Agreements for both the Malaysian properties - Starhill Gallery and Lot 10 Property. The 2 properties were acquired in 2010 and were leased for 9 years to master tenant, Katagreen Development Sdn Bhd, an indirect wholly-owned subsidiary of YTL Corporation Berhad, which is the sponsor for Starhill Reit. The tenancy agreement expire is in 2019 this year. The new master tenancy agreement includes a long tenures of 19.5 years for the Starhill Gallery and 9 years for the Lot 10 Property, with a rental step-ups every 3 years from the 4th year till lease expiry. This represents an annual weighted average increase of about 1.5% per annum if we spread it across.

The new WALE...