Should You Invest In Starhill Global REIT [Fundamental Analysis]

In this article, we'll be conducting a fundamental analysis of Starhill Global REIT and its suitability to achieve the following investment objective: To deliver a stable dividend yield of 5% to 6% per year while having a high degree of capital preservation ability.

Information Is Accurate Up To Oct 2023

Business Description

Starhill Global REIT is a Retail REIT that was listed in 2005 and owns a total of 9 properties.

What I Like About Starhill Global REIT

• Historically high levels of dividend yield (Average: 6.51%) – largely due to lower underlying lease expiry and the “unattractiveness” of the REIT.
  

• Management is very conservative with their debt management and often has a high degree of hedged borrowings

What I Do Not Like About Starhill Global REIT

• Poor management which resulted in regular capital destruction
  

• Poor track record in foreign property investments