3Q FY 2023/24 Business Updates
29 April 2024
Singapore Australia Malaysia Japan China
Contents
- Overview and Key Highlights
- Portfolio Updates
- Market Outlook
2
Overview and Key Highlights
Ngee Ann City Singapore
Overview of Starhill Global REIT
Prime retail portfolio in Asia Pacific cities
Quality Assets
- Portfolio of ~S$2.8 billion
- 9 mid- to high-endpredominantly retail properties in six Asia Pacific cities
Strong Sponsor
- YTL Group owns ~37.9% of SGREIT
- Has a combined market capitalisation of US$14.5 billion(1)
Strategic Locations
- Landmark assets at prime locations
- Excellent connectivity to transportation hubs
- Appeal to both local and international brands
Income Visibility
- Master/anchor leases with periodic rental reviews make up ~52.2% of gross rents(2)
- Committed portfolio occupancy of 98.0%(2)
Diversified Portfolio
- Core markets: Singapore, Australia, Malaysia
-
Contribution to 3Q FY23/24 revenue:
Retail (~85%) & Office (~15%)
Healthy Financials
➔ "BBB" credit rating |
with stable outlook by |
Fitch Ratings, affirmed in |
February 2024 |
➔ Gearing of 37.2%(2) and |
weighted average debt |
maturity of 2.7 years(2) |
➔ Component stock of |
FTSE EPRA NAREIT |
Notes:
- Market capitalisation of YTL Corporation Berhad and its listed entities in Malaysia, as at 31 March 2024.
- As at 31 March 2024.
Global Developed Index |
4
Key Highlights for 3Q FY23/24
Financial
Performance
Gross Revenue
S$47.6 million
0.7% y-o-y
Net Property Income
S$37.7 million
-0.9%y-o-y
Resilient
Operational Performance
Committed
Portfolio Occupancy
98.0%(1)
as at 31 Mar 2024
Long WALE
7.8 years(1)
by NLA
Expiring leases by gross rents in FY23/24
3.3%(1)
as at 31 Mar 2024
Prudent
Capital Management
Gearing
37.2%
as at 31 Mar 2024
Affirmation of
"BBB"
credit rating by Fitch Ratings with stable outlook in Feb 2024
Sufficient undrawn long- term committed revolving credit facility (RCF) lines to cover the remaining debts maturing till Jun 2025
Note:
1. Based on committed leases as at 31 March 2024.
5
Key Highlights for 3Q FY23/24
Financial Highlights
- Revenue for 3Q FY23/24 rose 0.7% y-o-y, mainly attributed to higher contributions from Singapore Properties, partially offset by weaker foreign currencies and loss of income from Japan divestment
- Net property income was lower by 0.9% y-o-y, mainly due to weaker foreign currencies and higher operating expenses, partially offset by higher revenue
Portfolio Performance
- Stable portfolio occupancy of 98.0%(1) as at 31 March 2024, with the Singapore Properties maintaining full occupancy on committed basis
- Tenant sales and shopper traffic at the Wisma Atria Property in 3Q FY23/24 improved y-o-y by 6.5% and 12.7% respectively, despite ongoing interior enhancement works in the basement, which was completed in February 2024
- Phase Two works on South façade at Myer Centre Adelaide was completed in March 2024
Capital Management
- Gearing stood at 37.2%; Weighted average debt maturity of 2.7 years
- About 77% of SGREIT's borrowings were fixed/hedged as at 31 March 2024
- SGREIT has sufficient undrawn long-term committed RCF lines to cover remaining debts maturing till June 2025
- Fitch Ratings affirmed SGREIT's corporate rating at "BBB" with stable outlook in February 2024
Note:
1. Based on committed leases as at 31 March 2024.
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3Q FY23/24 Financial Performance
$ million
Gross Revenue
0.7% y-o-y
47.3 | 47.6(1) | 40 | ||||
50 | 0.9 | 0.9 | ||||
7.2 | 6.7 | |||||
40 | 30 | |||||
10.0 | 9.8 | |||||
30 | 13.0 | 13.6 | million | 20 | ||
20 | $ | 10 | ||||
10 | 16.2 | 16.5 | ||||
0 | 0 | |||||
3Q FY22/23 | 3Q FY23/24 | |||||
Ngee Ann City Property | Wisma Atria Property | |||||
Malaysia Properties | Others | |||||
Net Property Income (NPI)
-0.9%y-o-y
38.0 (1) | 37.7(1) |
0.6 | 0.7 |
7.0 | 6.5 |
6.6 | 6.3 |
10.4 | 10.5 |
13.313.6
3Q FY22/23 | 3Q FY23/24 |
Australia Properties
Variance in gross revenue and NPI y-o-y in 3Q FY23/24:
- Mainly due to higher contributions from Singapore Properties
- Partially offset by weaker foreign currencies, loss of income from divestment of Daikanyama and higher operating expenses mainly for Wisma Atria and Myer Centre Adelaide Retail
Note:
1. Total does not add up due to rounding differences.
7
Staggered Debt Maturity Profile Averaging 2.7 years as at 31 March 2024
$ million | Debt maturity profile | ||||
300 | As at 31 March 2024 | * Peak maturity 24% | |||
* | |||||
250 | 4 | of total debt and 9% | |||
of total assets | |||||
200 | |||||||
88 | 18 | ||||||
150 | 94 | ||||||
55 | 125 | ||||||
250 | |||||||
100 | |||||||
70 | 50 | ||||||
50 | 100 | ||||||
60 | 75 | ||||||
50 | |||||||
17 (1) | |||||||
0 | |||||||
FY23/24 | FY24/25 | FY25/26(6) | FY26/27 | FY27/28 | FY28/29 | ||
S$250m term loan | S$60m term loan | S$50m term loan | S$50m term loan | S$75m term loan | |||
S$70m MTN | S$100m MTN | S$125m MTN | A$100m term loan | A$63m term loan | |||
RM330m MTN | JPY2b term loan | JPY0.5b bond | S$17m RCF |
Financial Ratios | 31 Mar 2024 |
Total debt | $1,056 million |
Gearing | 37.2% |
Interest cover (2) | 3.1x |
Adjusted interest cover (3) | 2.9x |
Average interest rate p.a.(4) | 3.86% |
Unencumbered assets ratio | 86% |
Fixed/hedged debt ratio (5) | 77% |
Weighted average debt maturity | 2.7 years |
Notes:
- Comprises of short-term RCF outstanding as at 31 March 2024, which were drawn down mainly for working capital purposes.
- Interest cover ratio computed based on trailing 12 months interest expenses as at 31 March 2024.
- The adjusted interest cover ratio takes into account the distribution on perpetual securities as at 31 March 2024.
- Includes interest rate derivatives and benchmark rates but excludes upfront costs.
- Includes interest rate swaps.
- Excludes $100 million perpetual securities (classified as equity instruments) issued in December 2020 with the first distribution rate reset falling on 15 December 2025 and subsequent resets occurring every five years thereafter.
8
Portfolio Updates
The Starhill Kuala Lumpur, Malaysia
Balance of Master / Anchor Leases and Actively-managed Leases
- Master leases and anchor leases, incorporating periodic rental reviews, represent approximately 52.2% of gross rent as at 31 March 2024
- Provide income and occupancy stability for the portfolio
Master leases /
anchor leases, with
periodic rent
reviews, 52.2%(1)
Actively- managed leases, 47.8%
Notes:
- Excludes tenants' option to renew or pre-terminate.
- Assuming the first option to renew for the six-year term is exercised.
- Assuming the option to renew for the third three-year term is exercised.
- Assuming the option to renew for the fifth five-year term is exercised.
Includes the following:
Ngee Ann City Property (Singapore)
The Toshin master lease has been renewed and will expire in June 2043(2).
The Starhill & Lot 10 Property (KL, Malaysia)
New master tenancy agreements expiring in December 2038 and June 2028(3) for The Starhill and Lot 10 Property respectively, with periodic rental step-ups.
Myer Centre (Adelaide, Australia)
Anchor lease expires in 2032 and provides for an annual rent review.
David Jones Building (Perth, Australia)
The anchor lease expires in 2032(4) and provides for upward-only rent review every three years. A rental uplift was secured in August 2023.
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Disclaimer
Starhill Global Real Estate Investment Trust published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 04:24:01 UTC.