STARHILL GLOBAL REIT
P40.SI
Starhill Global REIT: Divestment of Japan asset
- Starhill Global REIT (SGREIT) announced that it has divested its Roppongi Terzo property which is located in Tokyo, Japan.
- The divestment value is JPY2.5b (~S$29.9m), which is 2.5% higher than its latest valuation of JPY2.44b.
- The divestment price translates into a yield of 4.4%, which we believe is a good exit level.
- This is SGREIT’s third divestment in Japan over the past three years and reflects its strategy to streamline its overall portfolio.
- The net proceeds would be used to repay its JPY loans and/or for working capital purposes. This would lower SGREIT’s gearing slightly from 35.7% to 35.1%.
- As Roppongi Terzo contributed only 0.9% of SGREIT’s FY14/15 gross revenue, we see this transaction as immaterial in nature. Hence, we maintain our forecasts, BUY rating and S$0.93 fair value on the stock.
Wong Teck Ching Andy CFA
OCBC Securities
|
http://www.ocbcresearch.com/
2016-01-08
OCBC Securities
SGX Stock
Analyst Report
0.93
Same
0.93
