I first purchased Starhill in 2012. I was attracted by its holding of Wisma and Ngee Ann City and overseas holding. Without looking at the financial specifically but just on the reported dividend and NAV, I felt that it was undervalued and decided to buy it. So far, I am happy with my purchase and am glad with its growth.
Based on 2013 AR, Wisma and Ngee Ann City contribute 67% of NPI, while Lot 10 and Star Gallery in KL contribute 15%. David Jones and Plaza Arcade in Australia contribute 10%, Renhe Spring Zhongbei in Chengdu contribute 5% and Japan properties 2%.
The group has also grew its revenue, properties income, total asset and dividend over the past 5 years as shown below.
- Annual Report 2013
The latest unaudited year end report continue to show a good set of numbers, resulting in an increase of DPU by 5% to 1.29 cents. If the group can sustain this dividend, the current dividend yield is about 6.2%. Its NAV is $0.93, hence the counter is currently selling at a 10% discount. Gearing stands at 28.6% which seems low compared to other REITs and Business Trust. This also give it leeway to look for further opportunities to grow.
With this set of results and past track record, I will continue to hold on to my shares. Not getting more at the moment as it currently takes up 10% of my entire portfolio. However, i might re-look at my decision once i completed analyzing the rest of the companies in my portfolio.