SGREIT's net profit rises 7.2% YoY to $69.64m in H1 FY21/22
Despite a profit increase, income available for distribution declined by 1.3%.
Starhill Global REIT's (SGREIT's) net profit for the first half of the financial year 2021/2022 (FY21/22), which ended 31 December 2021, rose by 7.2% year-on-year (YoY) to $69.64m.
In FY20/21, the REIT’s net profit was $64.99m.
The REIT’s Singapore portfolio, in particular, saw a 4.4% YoY increase in its net property income (NPI) in the first half (H1) FY21/22 to $43.9m.
In a bourse filing, SGREIT’s manager, YTL Starhill Global, said the increase in net profit was due to “lower rental assistance for eligible tenants of the group,” which includes “allowance for rental arrears and rebates for Australia Properties, as well as the cessation of rental rebates in Malaysia following the completion of asset enhancement, works at The Starhill in December 2021.”
Income growth, however, was partially offset by the weaker contributions from its retail arm, Wisma Atria Property.
Despite an increase in the REIT’s net income, income available for distribution for H1 FY21/22 declined by 1.3% to $42.7m.
This was mainly due to the “one-off adjustment to reflect the timing difference of Singapore property tax refunds in the previous corresponding period, and full period of distribution to the perpetual securities holders in H1 FY21/22,” the REIT’s manager said.
Meanwhile, distribution per unit (DPU) to unitholders for H1 FY21/22 also increased by 2.3% to 1.78 cents.
Unitholders can expect to receive their H1 FY21/22 DPU on 23 March 2022.