Can This REIT Finally Reach For The Stars? I Look at It's Presentation Slides.

Disclaimer: This blog post is for entertainment purposes only where I share my findings and opinions. It does not constitute any buy or sell recommendation. Always DYODD before making any trade or investment decision.

It has been a while since I do a quick write-up on a REIT's financial results. Today I will be looking at Starhill Global REIT. This is a counter which I had previously purchased and my transactions are as shown below.

I actually read the presentation slides when it was released but I didn't get to do a blog post. Since the share price of REITs have come down, I will take this opportunity to review this REIT.

Jialat. DPU drops by 7.1% y-o-y!

                 The Good and Bad are my personal comment and not included in the actual slides

The Management has a proven track record of growing the DPU for unitholders even though there is a drop in recent years. 

Bad. Office sector is performing badly. China and Japan properties are not doing well too.

Majority of borrowings are hedged against interest rate hikes.

Current price as at 2-3-2018's closing was $0.73. Trading below NAV.

Lease expiry for FY18/19 is high. Hopefully, the Management could retain or secure tenants at positive rental escalation. Given that DPU has gone down in recent years, I am not so positive.

The slide looks rather bad. As could be seen, the office occupancy has been going down for the past few quarters. When the lease expiry arrives, will the Management be able to retain or secure new tenants? 

1 of their top tenant also pulled out their shops from Wisma Atria recently:

Cortina closes shops at Wisma Atria

So Did I Sell or Buy More? To Be Continued ...