Broker: OCBC Group Research
Date of Report: 31 July 2026
Excerpt from OCBC Group Research report.
Report Summary
Stock Focus: Starhill Global REIT (SGREIT)
Ticker: SGREIT SP EQUITY
Action: HOLD
Target Price/Fair Value: SGD 0.525
Last Close: SGD 0.555
DPU Yield: 6.6% (FY26), rising to 6.8% (FY28E)
- Key Idea: Starhill Global REIT’s FY26 distribution per unit (DPU) rose 0.8% to 3.68 Singapore cents, meeting expectations. Portfolio committed occupancy improved to 97.2% with full occupancy in Singapore and Australia.
- Highlights:
- SGREIT is positioned to benefit from revitalisation plans for Orchard Road and rising private wealth in Singapore, supporting demand for luxury retail space.
- Medium-term risks persist due to significant exposure to department store tenants and cautious outlook for hospitality due to external factors like the Iran war and higher airfares.
- Aggregate leverage slightly increased to 35.8%. Cost of debt remains stable with 80% fixed or hedged.
- Management change: Ms Kemmy Tan appointed CEO effective 1 July 2026.
- FY27 DPU forecast trimmed by 1.8%, but fair value estimate is unchanged at SGD 0.525. HOLD rating reiterated.
- Actionable Insights:
- HOLD recommendation: Investors should maintain positions unless there are positive catalysts such as stronger tenant sales or accretive acquisitions.
- Potential catalysts include improved footfall and tenant sales at Wisma Atria, portfolio repositioning, and lower interest rates reducing borrowing costs.
- Risks include macroeconomic slowdown, foreign currency depreciation, and tenant defaults.
Above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can access the full research report from the broker’s website: OCBC Group Research research website.
