Starhill Global Real Estate Investment Trust (SGREIT) reported income available for distribution of S$43.2 million for the six months ended 31 Dec 2025, down 0.2% year-on-year after the sale of several Wisma Atria Office strata units and higher professional fees, the trust’s manager said on 29 Jan 2026. Gross revenue held flat at S$96.3 million, while net property income (NPI) eased 0.8% to S$75.1 million.
Unitholders will receive a distribution per unit (DPU) of 1.80 Singapore cents, unchanged from a year earlier. Based on SGREIT’s closing price of S$0.595 on 31 Dec 2025, the annualised DPU implies a 6.0% yield. The distribution reinvestment plan will apply; the issue price for new units will be announced around 6 Feb 2026. The record date is 6 Feb 2026 and payment is scheduled for 27 Mar 2026. The manager will retain S$1.5 million of the distributable income for working-capital purposes.
Performance was mixed across assets. The divestment of Wisma Atria Office strata units, rental arrears at the Chengdu property and a softer contribution from Myer Centre Adelaide’s office tower trimmed NPI. These factors outweighed higher earnings from Ngee Ann City Property and Lot 10 Property, as well as a stronger Malaysian ringgit. Adjusting for the office divestment, NPI would have inched up 0.1% YoY, the manager said.
Portfolio committed occupancy slipped to 91.9% from 94.6% six months earlier after a tenant exited the Chengdu property in December. A replacement tenant signed a conditional lease in January, which is expected to restore China occupancy to full capacity and lift group occupancy to 96.5%. Tenant sales at Wisma Atria Retail rose 2.9% YoY despite a 1.2% decline in shopper traffic.
Operational highlights included the completion of an 8%-yielding conversion of Wisma Atria’s level-seven car park into commercial space, and the October opening of a two-level UNIQLO store at Myer Centre Adelaide. Refurbishment of Myer Centre Adelaide’s food court is under way with an A$6 million budget and completion targeted by end-2026. A 10-year lease for about 42,000 sq ft of Adelaide office space has been signed with University Senior College, commencing July 2026.
Headwinds during the half stemmed from foreign-exchange weakness in the Australian dollar versus the Singapore dollar and higher legal and advisory expenses linked to ongoing asset management and arbitration matters. The tribunal in January dismissed a claim by former tenant Myer in relation to its lease at Myer Centre Adelaide, a decision the manager said supports the trust’s legal position.
On the capital front, leverage stayed at 35.4%, with roughly 80% of borrowings fixed or hedged and an average debt maturity of 3.8 years. In October, SGREIT refinanced S$100 million of perpetual securities at a lower coupon of 3.25% to replace a 3.85% tranche, and in September drew down A$100 million and S$200 million in sustainability-linked facilities to refinance upcoming maturities.
Chairman Tan Sri (Sir) Francis Yeoh noted that resilient first-half results were achieved “despite a challenging macroeconomic backdrop characterised by geopolitical tensions, elevated cost pressures and divergent global economic conditions.” Chief Executive Ho Sing added that proactive leasing had restored vacancies in Adelaide and China, and that ongoing capital recycling and recent debt repricing should position the REIT to benefit from a lower-rate environment.
Looking ahead, management said the next rent review for the renewed master lease at Ngee Ann City’s Toshin Development will occur in June 2028 after a 1% step-up in base rent took effect in June 2025. Further asset-enhancement projects, including completion of Wisma Atria’s upgraded taxi-stand facilities by mid-2026, are aimed at sustaining income growth, while leasing efforts continue for remaining vacant office space in Adelaide.