SINGAPORE (April 27): The manager of Starhill Global Real Estate Investment Trust has announced distribution per unit of 1.18 Singaporean cents for the third quarter ended March 31, a decline of 6.3% compared to DPU of 1.26 cents in the corresponding quarter last year.

This was mainly due to lower net property income, including the effects of straight-lining rent adjustments, withholding tax provision for Malaysia income, and higher cash retention.

Gross revenue fell slightly to S$53.3 million in 3Q16/17, 0.6% lower than revenue of S$53.6 million a year ago, while net property income dipped 0.9% to S$41.2 million, from S$41.6 million a year ago.

This was mainly due to lower contributions from Wisma Atria Property, Ngee Ann City Property (Office), Myer Centre Adelaide, and Renhe Spring Zongbei Property.

The decline was partially offset by stronger performance at Ngee Ann City Property (Retail), Malaysia Properties and David Jones Building.

Cash and cash equivalents stood at S$72.5 million as at March 31, 2017.

“We have taken a strategic stance to ready ourselves for the recovery by rejuvenating some assets in our portfolio, and seeking out new opportunities both domestically and regionally,” says Francis Yeoh, chairman of the manager.

Ho Sing, the CEO of the manager, says the REIT has been investing in its assets to lay the foundations to be able to deliver sustainable returns to unitholders.

In a filing to SGX on Thursday, the manager says it will continue to focus on optimising the performance of its portfolio, while sourcing for attractive property assets.

Units of Starhill Global REIT closed flat at 77.5 Singaporean cents on Thursday.