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The most recent evaluation of the REIT’s entire properties were evaluated by independent valuers, and the portfolio is currently valued at $2.94 billion as at June 30, 2020, as opposed to $3.06 billion from the last phase of assessment.
“The aggregate value was 4.0% reduced y-o-y mainly on account of the downward revaluation of their Australia Properties and Wisma Atria Property. The decrease in evaluation was largely because of this decrease departure and market rents in light of the retail prognosis that was influenced from the Covid-19 pandemic,” says the director.
Francis Yeoh, chairman of YTL Starhill Global, states they have supplied for additional rental aid to aid their tenants throughout the present business disruption due to elevated secure distancing measures.
The manager’s present attempts to encourage tenants have been optimistic, and portfolio occupancy has been comparatively resilient at 96.2% as at June 30, 2020, says Ho Sing, CEO of YTL Starhill Global. He adds that the team has a steady retail portfolio occupancy of 97.4%.
SGREIT’s Singapore portfolio, comprising pursuits in Wisma Atria and Ngee Ann City, led $21.4 million in 4QFY19/20, which represents 57.1% of total earnings during the entire year. The NPI for its Singapore portfolio at 4QFY19/20 also dropped to $16.1 million, decreasing by 35.8% and can be largely credited to rental aid to qualified tenants.
The REIT’s Singapore retail portfolio enrolled a real occupancy of 98.9% as at June 30, 2020, together with Ngee Ann City Property (Retail) being completely occupied as at June 30. But renter sales and footfall visitors in Wisma Atria dropped 80.0% and 86.9% y-o-y respectively in 4QFY19/20, due to the circuit breaker steps and nominal tourist arrivals.
“To assist tenants throughout the company disruption because of this Covid-19 pandemic, complete rental rebates for qualified tenants in SGREIT’s portfolio, such as an allowance for lease arrears and deductions to its Australian renters, amounting to about $32.2 million was listed in FY19/20,” states YTL Starhill Global.
Looking forward, the weighted average portfolio rental expiry by gross lease stands at 5.6 years while retail leases expiring from the upcoming fiscal year end June 30, 2021, include 14.0% of gross domestic leasing, says the director.