Starhill Global Reit - Should See Better Days Ahead

SPH Reit's recent Q1FY19 results show something promising for the retail rent sector as they managed to negotiate for a 10.1% positive rental reversion for the renewed leases that expire in Q1FY19 for the Paragon properties.

The Orchard central area continues to bounce back strongly on the back of strong high occupancy and the low supply pipeline for the next upcoming 5 years.

This is the latest I have extracted from the URA website.




The office space is doing well from what we see on the price and rental index, but that only takes up 5% of the total NPI for Starhill, so that isn't very significant.


The biggest move would need to come from the Singapore retail from their Wisma Atria and Ngee Ann City properties, which takes up 50% of the total NPI.


If this moves, the share price will move accordingly, usually in the same correlation.


Thus, my turnaround play would have to depend on this one.



Starhill has a next Toshin rental review in Jun 2019, which I think will be the key for a positive rental reversion that follows that to SPH Reit.

I think we should see better days ahead for Starhill performance.

And I think at 6.6% yield currently, it is an opportunity for investors to keep accumulating.

*Vested and will continue to accumulate

Thanks for reading.


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$StarhillGbl Reit(P40U.SI)

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Sporeshare

Vested at 66.5 cents . Looks pretty oversold & undervalue with p/b of 0.75, yield is about 6.86%, gearing is below 35%..

merxantia

Am also waiting to see if Plaza Arcade gets an uplift from Uniqlo and upward rent review with Myer

layers

Reply to @merxantia : I dun think the AEI can help much. think already taken into account the effect of AEI last Q? if this Q NPI dun ls again mean stablize liao.


Recommended & Related Posts

"May 18" - SG Transactions & Portfolio Update"














No.

Counters

No. of Shares

Market Price (SGD)

Total Value (SGD) based on market price

Allocation %

1.

Vicom

27,000

6.05

163,350.00

25.0%

2.

M1

75,000

1.80

135,000.00

20.0%

3.

Fraser Logistic Trust

100,000

1.05

105,000.00

17.0%

4.

Far East Hospitality Trust

125,000

0.68

84,375.00

12.0%

5.

Ho Bee Land

30,000

2.55

76,500.00

12.0%

6.

Starhill Reit

100,000

0.70

70,000.00

11.0%

7.

Tuan Sing

40,000

0.42

17,000.00

3.0%

8.

Warchest

-

-

6,000.00

1.0%

Total

657,225.00

100%



We are just a month away from finishing the first half of this year.



This has been an incredibly fast year as we move month after month with a simple blink like that.



From the traveling front, we've also completed a family trip to Taiwanearlier this year in March and we just had a long weekend staycation at JB during the labor day holiday.



I will also have my another trip next week to Phuket hence the early updates again :)



On the same front, I have also finally reached the milestone of accumulating 300,000 krisflyer miles this month which we will be using for our longer trip in the future. It'll be enough for a return plane ticket for the 4 for us to LA.





Anyway, for this month updates, I have divested my Comfortdelgro and allocate them mostly to Vicom which I blogged overhere. Vicom went higher but Comfortdelgro went even much higher so I guess that's how life is treating me. Nevertheless, it's a decision that is made so life goes on from there :)



I have also added my position in Far East Hospitality Trust (FEHT) which I blogged overhere. I think hospitality is bottoming and based on the recent result I cover it appears that the thesis is running, so I am happy with the decision here.


The number of companies in my portfolio is getting smaller and smaller. They are shrinking to levels that I don't have to monitor them very often but it's a level I am comfortable with all of the holdings.



Net Worth Portfolio

The portfolio has increased from the previous month of $653,910 to $657,225 this month (+0.5% month on month; +9.5% year on year).

This is also the fourth time in the five months that the portfolio managed to once again break the all time record high.

A quick check on the return from the sgxcafe shows that this year return is at 2.9%, lagging the STI index. But I am not really worrying too much on this aspect.

Family's Portfolio

From last month onward, I have decided to also include the family's portfolio portion in order for easier reconciliation on the cdp statement.

1.) Wife's Portfolio

I have sold CDG at a higher price than my share at $2.19 and have allocated them to FLT.








No.


Counters


No. of Shares


Market Price (SGD)


Total Value (SGD) based on market price


Allocation %

1.

FLT

13,000

1.05

13,650.00

67.0%

2.

Sasseur Reit

8,000

0.79

6,320.00

33.0%

Total SGD

19,970.00

100.00%



2.) Baby B1.0 Portfolio (Age: 4 years and 1 month)








No.


Counters


No. of Shares


Market Price (SGD)


Total Value (SGD) based on market price


Allocation %

1.

FLT

13,000

1.05

13,650.00

67.0%

2.

Singtel

700

3.50

2,450.00

33.0%

Total SGD

16,100.00

100.00%



3.) Baby B2.0 Portfolio (Age: 1 years and 4 month)

I added a bit of funds into buying more FLT share for this month.








No.


Counters


No. of Shares


Market Price (SGD)


Total Value (SGD) based on market price


Allocation %

1.

FLT

3,000

1.05

3,150.00

48.0%

2.

Singtel

1,000

3.50

3,500.00

52.0%

Total SGD

6,650.00

100.00%



4.) Mum's Portfolio







No.


Counters


No. of Shares


Market Price (SGD)


Total Value (SGD) based on market price


Allocation %

1.

FLT

6,000

1.05

6,300.00

100.0%

Total SGD

6,300.00

100.00%



Final Thoughts

Most of the companies will be paying out dividends so it'll be raining cashflow this month and it's the best time to save up in time for rainy days.



I'll be using most of the proceeds for the FLT rights which will be the main focus this month. I will write more on that once it is more conclusive.


Thanks for reading.



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$VICOM(V01.SI) $M1(B2F.SI) $Ho Bee Land(H13.SI) $StarhillGbl Reit(P40U.SI) $Tuan Sing(T24.SI) $Frasers L&I Tr(BUOU.SI)

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