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
0.84
Same
0.84
