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Starhill Global Reit, which owns shopping malls on Orchard Road, said its income to be distributed for the third quarter rose 7.8 per cent to S$18.3 million from a year ago.

Distribution per unit for the three months ended September was 0.95 cents, 6.7 per cent higher compared to the year-ago period, after adjusting for the rights issue.

Net property income for the quarter rose 10.4 per cent to S$26.1 million mainly due to better performance by the reit’s Singapore properties.

The reit’s manager said it’s cautiously optimistic about the outlook ahead, given the encouraging signs of recovery in the global credit market, as well as the turnaround in the Singapore economy and tourist arrivals.

Source : Channel News Asia – 28 Oct 2009

US Reit results may sober up stock rally

Posted on 27 Oct 2009 | Comments Off

Most property-owning real estate investment trusts (Reits) will begin reporting third-quarter results this week against a backdrop of spectacular industry stock rallies even as rents and occupancy rates are falling.

Will weak fundamentals finally hurt the stocks during the worst commercial real estate downturn in about 20 years? ‘Underlying fundamentals over the last year probably will show up in a more pronounced fashion probably this quarter, compared with the somewhat benign numbers of the first couple of quarters,’ Michael Knott, senior analyst at independent research firm Green Street Advisors, said.

He noted that the sector is fairly valued.

Despite weak fundamentals, the stocks have rallied, with the benchmark MSCI US Reit Index up 10.4 per cent year to date and up 90.9 per cent since the low of March 6, when capital markets were at their tightest.

Fuelling the soaring stock prices is the ability of Reits to raise capital.

From Jan 1 through Oct 19, property owning Reits raised US$19.3 billion by issuing new shares and US$7.1 billion via corporate bonds, according to research firm SNL Financial. Continue reading →