Stock Name: Starhill Gbl
Company Name: STARHILL GLOBAL REIT
Research House: OCBC
However, the brokerage said that electricity rationing in Tokyo following the Japan earthquake may affect in the near term the business operations of Starhill Global REIT, which has seven malls in the Japanese capital.
Company Name: STARHILL GLOBAL REIT
Research House: OCBC
OCBC Investment Research has lowered its target price on Singapore’s Starhill Global Real Estate Investment Trust (STHL.SI) to $0.69 from $0.74, but maintained its buy rating.
OCBC said it positively views Starhill Global REIT’s plan to redevelop the Wisma Atria shopping mall in Singapore’s prime Orchard Road retail area as it could raise the occupancy and rental rates.
OCBC said it positively views Starhill Global REIT’s plan to redevelop the Wisma Atria shopping mall in Singapore’s prime Orchard Road retail area as it could raise the occupancy and rental rates.
However, the brokerage said that electricity rationing in Tokyo following the Japan earthquake may affect in the near term the business operations of Starhill Global REIT, which has seven malls in the Japanese capital.
The nuclear radiation fears may also dent the number of tourist shoppers and retail sales, OCBC said, adding that a 5% drop in the rental income of Starhill Global REIT’s Japan assets will lower its fair value per share by 0.4 Singapore cents.
However, OCBC said Starhill Global REIT’s valuation remains compelling and it still believes in the firm’s prime assets positioning, strong sponsor and sound financials.
At 9:17 a.m., Starhill Global REIT shares were up 1.6% at $0.625 on a volume of 227,000 shares.
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