An analysis of Starhill Global

Starhill Global REIT is listed on SGX on 20/9/2005

Financial Data

Year                              Net Income                      DPU
                                        (mil)                               (cents)
2013                                                                      4.77c (est)
2012                             148.4 mil                          4.39c
2011                             143.6 mil                          4.12c
2010                             130.46 mil                        3.90c 
2009                             106.95 mil                        3.85c
2008                              95.85 mil                         3.66c   (7.17c*)   Rights Issued
2007                              76.81 mil                         6.19c
2006                              46.41 mil                         5.79c
2005                              38.518 mil                       1.58c     Proforma Distribution

Other Data   (as at Q2'2013)

Debt

• Current: 648.74 mil
• Total: 855.37 mil

Cash Balance : 62.065 mil

Shrs issued: 2,153,218,267
CPU Holders: 27,986,168

Div Yield (est): 5.7%

NAV (diluted): $0.87 

Debt Findings

A breakdown of Starhill Global borrowings:

• 284 mil       - Refinance at yr 2013
• 159.5 mil    - Refinance at yr 2013
• 124 mil       - Due 2015
• 64.6 mil      - Short term revolving credit
• 18.6 mil      - JPY Bond Due 2016
• 2.2 mil        - RMB Bond Due 2014
• 73.7 mil      - Due 2017
• 131.5 mil    - Due 2015

Business Model

An asset class company holding office and commercial space for rental.

Singapore Holding

• Wisma Atria (74.23%)
• Ngee Ann City (27.23%)

Malaysia Holding

• Starhill Gallery
• Lot 10

Australia Holding

• David Jones Bldg
• Plaza Arcade*         acquired in 2013

China Holding

• Renhe Spring Zongbei

Japan Holding

• Holon L
• Harajyuku Secondo
• Roppongi Terzo
• Ebisu Fort
• Nakameguro
• Daikanyama

Opinion

Given that Starhill Global REIT, has managed to refinance its debt, it did not need to go to the open market to look for refinancing. Thus, there may be no more options / rights issue this year. As Japan has started to reflate its economy, Starhill may just be at the right place to hitch a ride. An estimated div of 4.77c per annum can be expected for this FY 2013.

Conclusion

As of 16 Sept 2013, it is still trading at $0.78 below its NAV of $0.87. This works out to be around 10% discount. Thus, this counter should be able to accumulate on a medium to long term basis. Best pricing is below $0.76.



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