Company Coverage
Starhill Global REIT (SGREIT SP): Regional Player With Retail Assets Across Singapore, Malaysia And Australia
NOT RATED
Current price:
Target price:
Upside:
S$0.55
n.a.
n.a.
Analyst
Highlights
- SGREIT possesses income stability with master and anchor leases accounting for 54.3% of gross rental income as of Mar 26.
- SGREIT benefits from step-up in rents of 4.75% for The Starhill in Dec 25 and 6.1% for David Jones Building in Aug 26.
- New CEO Kemmy Tan took over in Jul 26. She previously served as CEO of M+S, the JV between Khazanah Nasional and Temasek.
Analysis
- Master and anchor leases provide income stability. Master and anchor leases, incorporating periodic rent reviews, represented 54.3% of gross rental income as of Mar 26. Properties under master and anchor leases include Ngee Ann City in Singapore (Toshin Development), The Starhill and Lot 10 in Kuala Lumpur (Katagreen Development), Myer Centre in Adelaide (Myer) and David Jones Building in Perth (David Jones).
- Renewal of Toshin lease provides income stability. The renewal of the master lease with Toshin Development, the operator of Takashimaya at Ngee Ann City, was signed in Nov 23 ahead of the existing lease expiry in Jun 25. The renewed lease has an initial term of 12 years from Jun 25 to Jun 37, with extension options to lengthen the tenancy by up to nine years till 2046. The Toshin lease contributed 37% of Starhill Global REIT’s (SGREIT) group NPI in 3QFY26. The renewal substantially extends SGREIT’s WALE weighted by gross rent from 4.2 years to 8.4 years. The new agreement also introduces a profit-sharing mechanism through an annual turnover rent based on Toshin’s operating performance. Toshin has posted security deposits of five months.
- Wisma Atria offers luxury and premium brands Burberry, Tod’s and Tory Burch, alongside trendy retail names, such as Lacoste, Mango and Charles & Keith. Its food & beverage offerings include Food Republic, Haidilao Hot Pot, Paradise Dynasty and Din Tai Fung. SGREIT undertook targeted enhancements to improve visitor experience, including upgrade of interior areas and revamp of the drop-off point to improve accessibility. It also repurposed underutilised Level 7 car park space into 3,250sf of new office space. The AEI achieved the targeted ROI of more than 8%.
Highlights
- SGREIT possesses income stability with master and anchor leases accounting for 54.3% of gross rental income as of Mar 26.
- SGREIT benefits from step-up in rents of 4.75% for The Starhill in Dec 25 and 6.1% for David Jones Building in Aug 26.
- New CEO Kemmy Tan took over in Jul 26. She previously served as CEO of M+S, the JV between Khazanah Nasional and Temasek.
Analysis
- Master and anchor leases provide income stability. Master and anchor leases, incorporating periodic rent reviews, represented 54.3% of gross rental income as of Mar 26. Properties under master and anchor leases include Ngee Ann City in Singapore (Toshin Development), The Starhill and Lot 10 in Kuala Lumpur (Katagreen Development), Myer Centre in Adelaide (Myer) and David Jones Building in Perth (David Jones).
- Renewal of Toshin lease provides income stability. The renewal of the master lease with Toshin Development, the operator of Takashimaya at Ngee Ann City, was signed in Nov 23 ahead of the existing lease expiry in Jun 25. The renewed lease has an initial term of 12 years from Jun 25 to Jun 37, with extension options to lengthen the tenancy by up to nine years till 2046. The Toshin lease contributed 37% of Starhill Global REIT’s (SGREIT) group NPI in 3QFY26. The renewal substantially extends SGREIT’s WALE weighted by gross rent from 4.2 years to 8.4 years. The new agreement also introduces a profit-sharing mechanism through an annual turnover rent based on Toshin’s operating performance. Toshin has posted security deposits of five months.
- Wisma Atria offers luxury and premium brands Burberry, Tod’s and Tory Burch, alongside trendy retail names, such as Lacoste, Mango and Charles & Keith. Its food & beverage offerings include Food Republic, Haidilao Hot Pot, Paradise Dynasty and Din Tai Fung. SGREIT undertook targeted enhancements to improve visitor experience, including upgrade of interior areas and revamp of the drop-off point to improve accessibility. It also repurposed underutilised Level 7 car park space into 3,250sf of new office space. The AEI achieved the targeted ROI of more than 8%.
NOT RATED
Current price:
Target price:
Upside:
S$0.55
n.a.
n.a.
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at the following link: https://research-api.uobkayhian.com/assets/disclaimer/df64a6ea-7980-447c-ae9e-fd19b93257dc, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
Related articles
Company Coverage
19 Jun 2026
Food Empire Holdings (FEH SP): Higher Fortune SEA 500 Ranking Underscores Company’s Quality
Company Coverage
16 Jul 2026
Singapore Airlines (SIA SP): Jun 26 Operating Data In Line; 1QFY27 Likely Around Breakeven Due To High Fuel Costs And Air India Drag
Company Coverage
14 Jul 2026
Lum Chang Creations (LUCC SP): Rerating Ingredients In Place From Mainboard Transfer And Liquidity Enhancement
Our latest research
Company Coverage
16 Jul 2026
Singapore Airlines (SIA SP): Jun 26 Operating Data In Line; 1QFY27 Likely Around Breakeven Due To High Fuel Costs And Air India Drag
Company Coverage
14 Jul 2026
Lum Chang Creations (LUCC SP): Rerating Ingredients In Place From Mainboard Transfer And Liquidity Enhancement
Company Coverage
19 Jun 2026