Brokers’ Take: Starhill Global REIT
The Edge, 23 December 2013
OCBC Investment Research
Starhill Global REIT (Dec 18: 76.5 cents)
SGREIT has recently delivered a strong set of 3Q13 results on the back of strength from its Singapore portfolio and new income stream from Plaza Arcade in Australia. We believe the full potential has yet been unleashed, as SGREIT has continued to make significant progress on its portfolio occupancy and rents over the year. On the capital management front, SGREIT has been consistently maintaining a robust gearing level of ~30.0%. We continue to like SGREIT for its clear growth drivers, robust financial standing and compelling valuation. We are keeping our forecasts and fair value of 95 cents intact as the recent developments have panned out according to our expectations. However, we do not rule out new investments/asset enhancements and capital recycling by SGREIT in 2014, which may provide further catalysts for growth.