Starhill Global REIT AGM 2025: Key Developments and Investor Insights

Date: 29 October 2025
Venue: Voco Orchard Singapore, Grand Ballroom

Executive Summary

Starhill Global Real Estate Investment Trust (SGR) held its 16th Annual General Meeting (AGM), presenting a comprehensive update on its operational and financial performance for FY2024/25, as well as its strategic outlook. The AGM, attended by major stakeholders and management, delivered several key insights and updates that investors should closely monitor.

Key Highlights from the AGM

• Financial Performance and Distribution: SGR reported a slight year-on-year increase in Distribution Per Unit (DPU), with the trend supported by lower interest rates, cost reductions from refinancing, and proceeds from asset divestments. The issuance of S\$100 million perpetual securities at a 3.25% fixed rate, reducing costs by 60 basis points compared to previous tranches, is expected to benefit future distributions.
• Asset Enhancement and Portfolio Strategy: The conversion of Wisma Atria’s level 7 carpark into office space as part of the Asset Enhancement Initiative (AEI) is projected to deliver an 8% Return on Investment (ROI). Past AEIs have outperformed expectations, with the 2013 facade upgrade achieving a 14% ROI. The management remains cautious on further divestments to maintain majority MCST voting rights and is prioritising acquisitions of freehold properties for long-term value.
• Key Tenancy Updates: Rent for anchor tenant Toshin at Wisma Atria is under review, with a guaranteed minimum 1% increase or valuation-based adjustment (subject to a 125% cap), to be applied retroactively from June 2025. A profit-sharing agreement will also commence from January 2026.
• Australian Portfolio Developments: A new tenant is set to occupy two-thirds of the former Technicolor space at Myer Centre Adelaide, subject to regulatory approvals. The remaining space is actively being marketed. The upcoming opening of Edith Cowan University in Perth and increased defence contracts are expected to boost demand and vibrancy in the region, potentially translating into rental growth over time.
• China Asset Arbitration: Arbitration with Markor in China is ongoing, with a ruling expected by end-2025. The management is marketing the property but will not divest at a significant loss, preferring to wait for more favourable conditions.
• Gearing and Financial Position: The reported gearing ratio excludes perpetual securities; if included, gearing would be around 40%. All major bank loans maturing in FY26/27 have been fully refinanced, reducing near-term refinancing risk.
• Currency Fluctuations and Valuations: The decline in asset valuation was attributed to the depreciation of the Australian Dollar and Malaysian Ringgit, though recent trends suggest stabilization and potential recovery, with the Malaysian Ringgit benefiting from foreign investment and tech growth.
• Singapore Asset Performance: Interior upgrades at Wisma Atria have led to full occupancy and positive rental reversions. Management is open to new acquisition opportunities but notes the challenges in replacing high-quality Singapore assets due to market constraints.
• Growth Strategy and Market Position: Management reiterated its ambition to grow SGR’s asset base, particularly in Singapore, to enhance appeal and liquidity among global investors. However, acquisition opportunities remain limited due to tightly held assets and high pricing expectations from sellers.

Resolutions Passed at the AGM

• Adoption of Trustee’s report, Manager’s statement, and audited financial statements for FY2024/25.
• Re-appointment of KPMG LLP as auditor.
• Re-endorsement and endorsement of director appointments, including Dato’ Yeoh Seok Kian, Mr Soong Tuck Yin, and Mr Kelvin Chow Chung Yip.
• Authority granted to the Manager to issue new units up to 50% of the total issued units, or up to 20% if not on a pro-rata basis.

Investor Q&A: Noteworthy Insights

• DPU Recovery and Interest Cost Outlook: Management expects further reductions in interest expenses if SORA rates continue to fall. DPU, although still below pre-pandemic levels, is on a recovery path.
• Hedging Strategy: SGR hedges 50-75% of its AUD and MYR income for up to 12 months to manage currency volatility.
• Trust Expenses: The increase in trust expenses was mainly due to legal and professional fees from the Myer Centre Adelaide arbitration.
• Market Position and Valuation: SGR units are trading at a 25% discount to net asset value, offering a yield of 6-7% per annum, which management highlights as an attractive value proposition.
• Growth Ambitions: While the REIT is not currently among Singapore’s largest, its management is committed to pursuing further growth, especially through Singapore-centric acquisitions, backed by strong financial support from its sponsor.

Potential Price-Sensitive/Shareholder-Relevant Developments

• Issuance of S\$100 million perpetual securities at a lower fixed rate, which should improve distribution yields.
• Ongoing arbitration in China, with potential outcomes that could affect asset values and future earnings.
• New tenant arrangements in Australia, which could enhance rental income subject to regulatory approvals.
• Currency volatility and its impact on asset valuations and distributions remain a risk but show signs of stabilization.
• Management’s intent to pursue further Singapore asset acquisitions, which could be a catalyst for future growth if successful.
• Authority to issue up to 50% new units (or 20% non pro-rata), providing flexibility for potential capital-raising and acquisitions.

Conclusion

Starhill Global REIT’s latest AGM demonstrates a focus on prudent financial management, active portfolio enhancement, and growth through strategic acquisitions. The ongoing efforts to maximize returns on existing assets, combined with opportunities for new acquisitions and improved market conditions, provide potential catalysts for future value creation. However, investors should remain attentive to currency risks, outcomes of the China arbitration, and management’s ability to secure attractive new assets in a competitive market.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research or consult a licensed financial advisor before making investment decisions.

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