Starhill Global REIT - OCBC Investment 2016-03-16: Secures master tenancies extension in Malaysia

Starhill Global REIT - OCBC Investment 2016-03-16: Secures master tenancies extension in Malaysia STARHILL GLOBAL REIT P40.SI 

Starhill Global REIT: Secures master tenancies extension in Malaysia 

  • Starhill Global REIT (SGREIT) announced that it has secured the extension of the master tenancy agreements for Starhill Gallery and Lot 10 Property in Malaysia for a third three-year lease term. This would commence on 28 Jun this year, and the total annual rent payable to SGREIT under the Master Tenancy Agreements comes in at MYR84.4m, which is ~6.67% above the total annual rent for the previous three-year term. 
  • In addition, the payment obligations of the master tenant under the agreements are guaranteed by SGREIT’s sponsor, YTL Corporation Bhd. 
  • We are positive on this development, given the rental uplift to SGREIT and added earnings visibility and stability to its unitholders. 
  • As we had previously assumed the extension of the master tenancy agreements in our model, we maintain our forecasts, BUY rating and S$0.84 fair value on the stock. 




Wong Teck Ching Andy CFA OCBC Securities | http://www.ocbcresearch.com/ 2016-03-16
OCBC Securities SGX Stock Analyst Report BUY Maintain BUY 0.84 Same 0.84


Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......