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
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http://www.ocbcresearch.com/
2016-03-16
OCBC Securities
SGX Stock
Analyst Report
0.84
Same
0.84
