Starhill Global Real Estate Investment (P40U) AI Stock Analysis

• Market Cap: S$1.24B
• Dividend Yield: 6.76%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.51
• Revenue Growth: 2.00%
• EPS Growth: 224.44%
• Country: SG
• Employees: 76
• Sector: Real Estate
• Sector Strength: 61
• Industry: REIT - Retail
• EPS (TTM): N/A
• Shares Outstanding: 2,297,426,800
• 10 Day Avg. Volume: 1,482,540
• 30 Day Avg. Volume: 1,564,596
• PEG Ratio: 25.88
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$0.68
• Price Target Upside: 26.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ―

Starhill Global Real Estate Investment's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's solid profitability, stable cash flows, and high dividend yield make it a compelling investment in the REIT - Retail sector. Technical indicators suggest a generally positive trend, though caution is warranted due to potential overbought conditions.

Starhill Global Real Estate Investment Business Overview & Revenue Model

Company Description

Starhill Global Real Estate Investment Trust (SGREIT) is a Singapore-based real estate investment trust with a diverse portfolio of prime retail and commercial properties. The trust invests primarily in prime retail and commercial properties across Asia-Pacific, including Singapore, Malaysia, Australia, China, and Japan. Starhill Global REIT's portfolio includes shopping centers and office spaces, providing a diversified exposure to the real estate market in these regions.

How the Company Makes Money

Starhill Global REIT makes money primarily through the rental income generated from its portfolio of retail and commercial properties. The trust leases out space in its shopping malls and office buildings to a wide range of tenants, including retailers, restaurants, and corporate offices. The rental agreements typically include base rent, which is a fixed monthly fee, and may also include variable components like turnover rent, which is a percentage of the tenant's sales. Additionally, SGREIT benefits from property appreciation and strategic asset enhancement initiatives that increase the value and rental yields of its properties. The trust may also engage in partnerships and joint ventures to acquire or develop new properties, further contributing to its revenue streams.

Starhill Global Real Estate Investment Financial Statement Overview

Summary

Starhill Global Real Estate Investment exhibits strong financial health with consistent revenue growth, solid profitability metrics, moderate leverage, and robust cash flows. Despite some challenges in maintaining operational efficiency and equity levels, the company is well-positioned for sustainable performance.

Income Statement

Starhill Global Real Estate Investment shows strong profitability with a TTM gross profit margin of 71.64% and a net profit margin of 33.49%. Revenue has been growing steadily, with a 3.80% growth from 2021 to 2024. EBIT and EBITDA margins are also healthy at 68.33% and 68.34% respectively, indicating effective cost management. However, the slight decrease in EBIT from 2022 to 2024 signals potential challenges in sustaining operational efficiency.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 61.06%, reflecting financial stability. The debt-to-equity ratio stands at 0.59, indicating moderate leverage. The ROE is relatively strong at 3.71%, suggesting efficient use of equity to generate profit. However, the decrease in stockholders' equity from 2020 to 2024 suggests a need for careful management of financial resources.

Cash Flow

Starhill Global Real Estate Investment demonstrates robust cash flow generation, with free cash flow growth of 86.28% from 2021 to 2024. The operating cash flow to net income ratio is favorable at 2.01, highlighting strong cash conversion. The free cash flow to net income ratio is 1.90, indicating substantial cash generation relative to net income. However, the fluctuations in operating cash flow over the years suggest potential volatility in cash flow management.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	189.82M	188.19M	184.46M	171.60M	182.20M
Gross Profit	136.04M	132.80M	126.80M	110.49M	117.66M
EBITDA	115.88M	136.00M	143.51M	120.01M	-56.16M
Net Income	62.67M	28.17M	49.95M	54.43M	-97.41M
Balance Sheet
Total Assets	2.84B	2.86B	3.00B	3.08B	3.08B
Cash, Cash Equivalents and Short-Term Investments	60.57M	68.30M	85.66M	108.32M	117.44M
Total Debt	1.04B	1.15B	1.18B	1.21B	1.22B
Total Liabilities	1.12B	1.21B	1.25B	1.29B	1.31B
Stockholders Equity	1.62B	1.65B	1.75B	1.79B	1.77B
Cash Flow
Free Cash Flow	121.86M	65.41M	84.27M	61.57M	34.92M
Operating Cash Flow	136.60M	83.24M	84.27M	96.51M	64.68M
Investing Cash Flow	-12.91M	612.00K	-20.08M	-34.94M	-29.76M
Financing Cash Flow	-130.68M	-96.01M	-82.78M	-71.94M	8.60M

Starhill Global Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:P40U, the sentiment is Positive. The current price of 0.54 is above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.51, and above the 200-day MA of 0.49, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 72.86 is Negative, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:P40U.

Starhill Global Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
P40U	76 Outperform	S$1.24B	18.32	4.09%	6.76%	2.00%	224.44%
CRPU	74 Outperform	S$847.47M	15.00	5.45%	11.11%	-3.56%	-10.89%
Sector *	65 Neutral	$2.04B	18.38	2.45%	5.21%	-0.66%	2.51%
Q5T	65 Neutral	S$1.23B	26.29	2.51%	6.62%	0.84%	-64.42%
JYEU	64 Neutral	S$1.35B	22.82	3.16%	6.48%	-8.34%	-22.51%
AU8U	57 Neutral	S$1.37B	79.35	-0.91%	7.15%	-7.66%	-145.74%

Starhill Global Real Estate Investment Corporate Events

Starhill Global REIT Extends Property Management Agreement for Five Years

Starhill Global Real Estate Investment Trust has announced the extension of its property management agreement with YTL Starhill Global Property Management Pte. Ltd. for its Singapore properties, Ngee Ann City and Wisma Atria, for an additional five years. This extension ensures continuity in property management operations and maintains the existing terms and conditions, which supports stable management and operational efficiency. The extension is deemed an ‘interested person’ transaction under Singapore Exchange regulations but falls below the threshold requiring further action, indicating a stable financial position for the REIT.

The most recent analyst rating on (SG:P40U) stock is a Buy with a S$0.68 price target. To see the full list of analyst forecasts on Starhill Global Real Estate Investment stock, see the SG:P40U Stock Forecast page.

Starhill Global REIT Announces Toshin Master Lease Rent Review

Starhill Global REIT has announced a rent review for its master lease with Toshin Development Singapore Pte Ltd, which is set to commence on 8 June 2025. The lease terms include an annual fixed rent that will be the higher of a 1% increase over the existing base rent or the prevailing market rental value, with adjustments based on valuations by three licensed valuers. The Toshin Master Lease is significant as it contributes to approximately 23.1% of Starhill Global REIT’s portfolio gross rent, highlighting its impact on the company’s financial performance.

The most recent analyst rating on (SG:P40U) stock is a Buy with a S$0.60 price target. To see the full list of analyst forecasts on Starhill Global Real Estate Investment stock, see the SG:P40U Stock Forecast page.

Starhill Global REIT Completes S$100 Million Notes Redemption

Starhill Global REIT has successfully redeemed its S$100 million 3.15% notes due in 2025, using proceeds from unsecured loan facilities. This redemption underscores the company’s proactive financial management and may enhance its financial flexibility, potentially benefiting stakeholders by maintaining robust operational stability.

The most recent analyst rating on (SG:P40U) stock is a Buy with a S$0.68 price target. To see the full list of analyst forecasts on Starhill Global Real Estate Investment stock, see the SG:P40U Stock Forecast page.

Starhill Global REIT Faces Changes in Benchmark Index

Starhill Global REIT has been informed by FTSE Group of changes to the Benchmark Index, effective from May 15, 2025. This amendment impacts the calculation of the performance fee for the REIT’s manager, which is based on the accumulated returns of the REIT compared to the Benchmark Index. The exclusion of Starhill Global REIT from the Benchmark Index could influence the performance fee structure, potentially affecting the financial incentives for the management.

The most recent analyst rating on (SG:P40U) stock is a Buy with a S$0.68 price target. To see the full list of analyst forecasts on Starhill Global Real Estate Investment stock, see the SG:P40U Stock Forecast page.

Starhill Global REIT Issues New Units for Management Fee Payment

Starhill Global REIT has announced the issuance of 1,540,015 new units to its manager, YTL Starhill Global REIT Management Limited, as part payment of the base management fee for the first quarter of 2025. This issuance, priced at S$0.4889 per unit, reflects the company’s strategy to manage its financial obligations through a combination of cash and unit payments, thereby maintaining operational flexibility and aligning management interests with those of the stakeholders.