OCBC Investment Research raised its target price for Starhill Global Real Estate Investment Trust to $0.84 from $0.79 and kept its ‘buy’ rating, citing higher rentals at its Singapore shopping mall Wisma Atria.
By 9:09 a.m., units of Starhill were unchanged at $0.79. They have surged 41.7% since the start of the year, compared to the FTSE ST Real Estate Investment Trust’s 35.3% rise.
Starhill Global said its distribution per unit for the third quarter rose 11% to 1.11 Singapore cents from a year earlier, helped by strong property income growth for its Singapore shopping malls.
Property income from Wisma Atria came in stronger than expected, helped by positive rental reversions and full committed occupancy at the mall, which helped offset weakness at its China and Australia properties, OCBC said.
CIMB Research also raised its target price for Starhill to $0.81 from $0.75 and kept a ‘neutral’ rating to factor in a lower valuation discount rate of 7.9%.
However, the brokerage cut its distribution per unit estimates for Starhill due to lower margins in Japan and weaker growth in China.
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