Starhill Global REIT - RHB Invest 2016-01-08 Divestment of a Japanese Asset

Starhill Global REIT - RHB Invest 2016-01-08 Divestment of a Japanese Asset STARHILL GLOBAL REIT P40.SI 

Starhill Global REIT: Divestment of a Japanese Asset 

  • Starhill announced its divestment of a Japanese mall (Roppongi Terzo) for a price consideration of JPY2,500m, which translates to an estimate cap rate of 4.4%. Though the asset constitutes a mere 0.9% of its overall portfolio, we view this initiative as a positive one as it is part of the REIT’s strategy to streamline its portfolio by divesting its nonperforming assets. 
  • In view that the cap rate for a Japanese mall averages from 4 to 5%, we think that divesting at a cap rate of 4.4%, the pricing of the divestment is reasonable. 
  • We continue to positive on SGREIT as it continues to be committed to a disciplined capital recycling strategy by focusing its strength in both Singapore and Australia. 
  • We maintain our BUY recommendation at a TP of SGD0.93.



Ivan Looi RHB Research | Ong Kian Lin RHB Research | http://www.rhbinvest.com.sg/ 2016-01-08
RHB Research SGX Stock Analyst Report BUY Maintain BUY 0.93 Same 0.93


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