Starhill Global REIT - OCBC Investment 2016-06-09: Secures 5.5% rent increase for Toshin Master Lease

Starhill Global REIT - OCBC Investment 2016-06-09: Secures 5.5% rent increase for Toshin Master Lease STARHILL GLOBAL REIT P40.SI 

Starhill Global REIT: Secures 5.5% rent increase for Toshin Master Lease

  • Starhill Global REIT (SGREIT) announced that the new base rent for its Toshin Master Lease has been determined, with an increase of 5.5% above the existing rate. This is effective for a period of three years from 8 Jun 2016. 
  • The rental increase quantum was based on the average of three market rental valuations, undertaken by independent licensed valuers. 
  • This development is within our expectations, as we had factored in a rent increase of 5% in our assumptions. 
  • In light of the soft retail industry conditions, we believe the resulting rental increment from the Toshin Master Lease would provide an element of defensiveness in SGREIT’s portfolio. 
  • Toshin contributed to approximately 19.7% of SGREIT’s portfolio gross rent in Mar 2016, and the master lease covers all the retail strata area of Ngee Ann City Property owned by SGREIT, except level 5. 
  • We maintain our BUY rating and S$0.84 fair value estimate on SGREIT.




Wong Teck Ching Andy CFA OCBC Securities | http://www.ocbcresearch.com/ 2016-06-09
OCBC Securities SGX Stock Analyst Report BUY Maintain BUY 0.84 Same 0.84


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