Company Name: STARHILL GLOBAL REIT
| Research House: DBS Vickers | Price Call: BUY | Target Price: 0.75 |
DBS Vickers has raised its target price for Starhill Global Real Estate Investment Trust to $0.75 from $0.71 and has retained its ‘buy’ rating, citing higher rents from its Singapore and Malaysian shopping malls.
Starhill Global units were 0.8% higher at $0.62, and have risen 11% since the start of the year, compared to the FT ST Real Estate Investment Trust’s 10% gain.
After upgrading works are completed on Starhill’s Singapore mall Wisma Atria in the third quarter, DBS expects about 20% of the property’s net leaseable area to see a 50% rise in rents.
Starhill’s master lease with Malaysia’s Katagreen Development Sdn Bhd, which makes up 17% of its gross revenue, is expected to see a rent increase of 7% next year, which should help lift the REIT’s distribution per unit, DBS said.
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