Starhill Global REIT 4Q2017/18 Financial Results Continue to Disappoint

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Starhill Global REIT released its 4QFY17/18 financial results on 27th July 2018. The financial results are still depressed due to weaker contributions from the office portfolio and retail scene. In fact, this is similar to its 3QFY17/18 financial results which I wrote in the last quarter (Read more: Starhill Global REIT 3Q2017/18 Results Is Disappointing ). There are no signs of improvement.

$1.6 million of income available for distribution for 4QFY17/18 has been retained for working capital requirements. This is similar to 3Q2017/18 and it gives me the creeps whether Starhill Global REIT is running into some financial troubles. Total debt amounts to $1,134 million and the current gearing is 35.5%. 73% of assets are unencumbered.

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Summary of July 2018 Transactions

I have been holding on to the cash that I had from the delisting of AusNetServices from Singapore Stock Exchange (SGX). After a quick screening through my stock portfolio, I decided to increase my holdings of Frasers Logistics and Industrial Trust from 8% to 11%. The share price of Frasers Logistics and Industrial Trust hovers at S$1.04 to S$1.05 and may possibly go lower due to the weakening Aussie dollar against Singapore dollar. At the point of writing, S$1.00 translates to A$0.99. Given the current share price of S$1.05 and estimated dividend of 7.22 cents for FY18, this translates to a dividend yield of 6.88% which I deem to be pretty attractive.  Read More

CapitaMall Trust 2Q2018 Results – Increasing DPU

CapitaMall Trust has released its 2Q2018 financial results. Both Gross revenue and Net Property Income has increased by 1.6% and 2.8% respectively despite the lack of income from Sembawang Shopping Mall due to its divestment some time back (Read more: CapitaLand Mall Trust 1Q2018 Financial Results and Divestment of Sembawang Shopping Mall ). Distribution per unit increased 2.2% for 2Q2018 as compared to 2Q2017. As a dividend investor, this is something I applaud CapitaMall Trust for.

At the point of writing, the share price of CapitaMall Trust currently stood at S$2.16. Comparing it with the Net Asset Value of CapitaMall Trust of $2.01 (as of 30 June 2018), the current share price is a slight premium over its Net Asset Value.

Even though the financial results are on the positive side, one thing noteworthy is that the shopper traffic for 1H2018 decreased by 2.4% Y-o-Y. Tenant sales for 1H 2018 also decreased by 0.2% Y-o-Y. Overall portfolio occupancy is 98% which I consider is still fairly high as compared to the average market occupancy of 92.5%. Read More