Starhill Global REIT- Review

I am a huge fan of Starhill Global REIT. It owns a part of Wisma Atria and Ngee Ann City in Singapore. SGREIT is looking into accuring Starhill Gallery and Lot 10 in KL, Malaysia. Their NAV is at $0.82 and today’s closing was $0.555. Thus, they are hugely undervalued with dividend yield of 10.3% (FY2009) and 6.5% (FY2010).

What I like about this REIT other than it being undervalued is that it is managed by very capable people, the YTL group, which recently brought Andrea Bocelli down to Singapore for a free concert.  Take a look at:

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8 thoughts on “Starhill Global REIT- Review

  1. Hello! saw ur posts n i m really very impressed! i m interested in starhill currently, given e buy rating by OCBC. :x but i m a 1st timer in shares n i m wondering is starhill a long term buy..? will u hold on to e shares or sell at which level?

    and currently, everybody ard me is tellin me how unstable e stock market is currently, so i having 2nd thoughts though.. its tough makin a decision..

    possible tt u can share wif me abit more on e analysis part? like…how u did for lionasiapac…

    • Hi Esther,

      Thanks for visiting my blog. Whatever purchases I do, I have a medium to long term perspective on it. So, Starhill is also a long term buy for me. It’s net asset value (total assets – total liabilities) is at $0.82 and the current price is way below that value. So, I would sell around that level.

      The stock market might be “unstable” now but no one can say for sure when it will “recover”. If the stock is fundamentally strong, I would just buy it without much second thoughts. Even though I would look at the charts for a good entry, I would not bother much for the market to recover. Anyway, REITS (Starhill global is a REIT) pay dividends every quarter so you can earn some dividends while waiting for some price appreciation. Also, Starhill global is owned by a very competent management. So, I’m very confident in its future. You can google their website out and check what properties they own. Also, if u were wondering what’s a REIT, it’s real estate investment trust. REITS buy properties and lease it out. The rental income the management obtains is distributed to the shareholders (at least 90% of this must be distributed to shareholders as it’s a regulation). So, if u are tight on cash to invest in properties physically, u can invest in a REIT.

      Btw, I was wondering what was the target price in the OCBC report?

      • Also, to analyse a REIT, look into how stable the dividends given will be in the future. Starhill owns part of Ngee Ann City and Wisma and a couple of other properties in Australia, Japan and Malaysia. I’m sure Ngee Ann City and Wisma will do well due to the Orchard Road refurbishment and there is a lot of potential for Orchard to prosper more. Thus, it’s a safe bet. If u have more questions do feel free to ask.

  2. OCBC estimate a fair value of 0.65. ya i also feel that the high dividend is very attractive. was deciding between Singpost & starhill. singpost gives a 6% annually but i personally feel that the price now for Singpost is a little on the high side…

    Yup, am reading up on e Starhill financials now… am staring at the portfolio lease term and expiry etc. will u be worried abt the high amt of lease tt is expiring soon? (i jus based it on e charts..)

    the 2nd quarter results shd be out soon, m tinkin of buying starhill before e announcement of dividends again..

    Really thanks for ur help!

    • Singpost is way above its intrinsic value in my opinion. Look at my analysis of Singpost under “Company Analysis” category. Regarding the lease, I feel they can easily refinance it by Sept (if I don’t remember wrongly, the lease term is ending in Sept). I looked at the lease expiry before investing in Starhill, asked a few seasoned investors about it and they said it will be the least of their worries as they have believe in the capabilities of the management. I have firm believe in the mgmt too and I’m sure they can refinance the loans easily.

  3. Hi there,

    Have heard alot about Starhill Global Reit and it’s potentials.

    How does one who has no technical experience in monitoring stocks or shares able to invest and also learn from it?

    How does one pick a particular share, in this case Starhill Reit and make any gains long and short?

    thks,
    jC

    • Hi JC,

      Thanks for visiting my blog!

      You can start off with the links on my blog (at the right side). You can also read books. I will recommend “The Neatest Little Guide to Stock Market Investing” for a start.

      Feel free to ask any questions that you might have.

      Cheers,
      FFN

  4. Hi there,

    Have heard alot about Starhill Global Reit and it’s potentials.

    How does one who has no technical experience in monitoring stocks or shares able to invest and also learn from it?

    How does one pick a particular share, in this case Starhill Reit and make any gains long and short?

    thks,
    jC

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