Weak overseas properties threatened Starhill Global REIT’s Q2 DPU

But its strong Singapore portfolio came to the rescue.

Starhill Global REIT’s shareholders must be popping the champagne as the company reported a 5.0% YoY growth in its 2Q14 distributable income to S$26.9m.

Its DPU was pegged at 1.25 S cents. According to OCBC, these results are consistent with expectations as 1H14 DPU formed 48.5% of its full-year distribution projection.

“SGREIT’s Singapore portfolio continued to perform well, with NPI up 5.5% YoY on the back of positive rental reversions for both the retail and office units. This helped to offset the weaker overseas contribution due to declining revenue from Renhe Spring Zongbei in China, loss of income from Japan property divestment and unfavourable forex movements. Looking forward, management remains positive on the outlook and will continue to sharpen its portfolio while seeking investment opportunities,” noted OCBC.