Starhill REIT 6-month net income up 14.6pc

Business Times, 24 January 2008

STARHILL Real Estate Investment Trust (Starhill REIT) reported a revenue of RM53.58 million for the six months ended December 31, 2007, an increase by 11.8 per cent over the RM47.94 million posted in the same period of 2006.

Net income for the period grew to RM40.11 million compared to RM35.00 million, an increase of 14.6 per cent.

The improved performance was due mainly to rentals received from The Residences at The Ritz-Carlton, Kuala Lumpur, coupled with higher rental rates received from the renewal of existing tenancies and the commencement of new tenancies at Starhill Gallery and Lot 10 Shopping Centre.

“Starhill REIT’s portfolio of high-end, prime properties continued to register strong performance for the first half of the 2008 financial year, underscoring the high quality of these assets and their ability to generate solid and sustainable levels of rental income for the Trust,” said Tan Sri Dr Francis Yeoh Sock Ping, in a statement today.
He is the chief executive officer of Pintar Projek Sdn Bhd, the manager of the Trust.

A distribution of 3.4025 sen per unit, representing some 100 per cent of Starhill REIT’s income after taxation for the six-month period ended December 31, 2007, was also recommended by Pintar Projek.

Based on Starhill REIT’s five-day volume weighted average unit price of 90 sen, the proposed distribution represents an annualised yield of 7.56 per cent.

As at December 31, 2007, Starhill Gallery and Lot 10 had occupancy rates of 96 per cent and 98 per cent, respectively.

The Trust was established on November 18, 2005. It has a property portfolio comprising three prime properties situated in the heart of Kuala Lumpur’s Golden Triangle, namely Starhill Gallery and the adjoining JW Marriott Hotel Kuala Lumpur, and 137 parcels and two accessory parcels of retail, office, storage and other spaces within Lot 10 Shopping Centre.
– Bernama