STARHILL Global Real Estate Investment Trust’s (Reit) net property income for the third quarter ended March declined 0.9 per cent to S$37.7 million, versus S$38 million in the same period the year before.

On Monday (Apr 29), the Reit manager said this was largely due to weaker foreign currencies and a loss of income from the Reit’s recent divestment of its Daikanyama asset.

The decline was also attributed to higher operating expenses that stemmed mainly from Wisma Atria and Myer Centre Adelaide Retail.

On the other hand, gross revenue rose 0.7 per cent to S$47.6 million from S$47.3 million the prior year, mainly due to higher contributions from the Reit’s Singapore properties.

Overall portfolio occupancy was 98 per cent as at Mar 31, with the Singapore properties maintaining full occupancy on a committed basis.

At the Wisma Atria property, tenant sales improved 6.5 per cent year on year, while shopper traffic grew 12.7 per cent. The manager noted that this was despite ongoing interior enhancement works in the basement, which was completed in February.

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The Reit’s gearing as at end-March stood at 37.2 per cent, with a weighted average debt maturity of 2.7 years and about 77 per cent of total borrowings fixed or hedged.

Its manager said Starhill Global Reit has sufficient undrawn, long-term committed revolving credit facility lines to cover its remaining debts maturing till June 2025.

In its view, the global economic outlook remains uncertain given elevated interest rates, geopolitical conflicts and financial market volatility.

The manager aims to “ensure the malls remain relevant for shoppers and healthy occupancies are maintained, as well as exercise prudence in its capital management approach amid high interest rates and foreign exchange volatility”.

Units of Starhill Global Reit : P40U 0% closed S$0.005 or 1.1 per cent at S$0.48, before the business update.