Starhill Global Real Estate Investment (P40U) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: 7.3%
• Average Volume (3M): 1.48M
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.51
• Revenue Growth: 2.00%
• EPS Growth: 224.44%
• Country: SG
• Employees: 76
• Sector: Real Estate
• Sector Strength: 65
• Industry: REIT - Retail
• EPS (TTM): 0.03
• Shares Outstanding: 2,297,426,800
• 10 Day Avg. Volume: 1,499,670
• 30 Day Avg. Volume: 1,476,080
• PEG Ratio: 24.64
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.31
• 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: $0.68
• Price Target Upside: 36.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

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 REIT is a Singapore-based real estate investment trust investing primarily in real estate used for retail and office purposes, both in Singapore and overseas. Since its listing on the Mainboard of the Singapore Exchange Securities Trading Limited (the "SGX-ST") on 20 September 2005, Starhill Global REIT has grown its initial portfolio from interests in two landmark properties on Orchard Road in Singapore to 10 properties in Singapore, Australia, Malaysia, China and Japan, valued at about S$2.9 billion. These comprise interests in Wisma Atria and Ngee Ann City on Orchard Road in Singapore, Myer Centre Adelaide, David Jones Building and Plaza Arcade in Adelaide and Perth, Australia, The Starhill and Lot 10 in Kuala Lumpur, Malaysia, a retail property in Chengdu, China and two properties in Tokyo, Japan. Starhill Global REIT remains focused on sourcing attractive property assets in Singapore and overseas, while driving organic growth from its existing portfolio, through proactive leasing efforts and creative asset enhancements. Starhill Global REIT is managed by an external manager, YTL Starhill Global REIT Management Limited, of which all of its shares are indirectly held by YTL Corporation Berhad.

How the Company Makes Money

Starhill Global Real Estate Investment Trust generates revenue primarily through rental income from its portfolio of retail and office properties. The company leases space to a variety of tenants, including retail businesses, offices, and commercial enterprises. This rental income is a steady and predictable revenue stream, providing cash flow that supports distributions to unitholders. Additionally, SGREIT may derive income from property management services and may engage in property development or asset enhancement initiatives that can increase property value and rental income potential. Strategic partnerships with retail and commercial tenants, as well as a focus on prime locations, contribute significantly to the company's earnings.

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
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
191.46M	189.82M	188.19M	184.46M	171.60M	182.20M
	Gross Profit
137.17M	136.04M	132.80M	126.80M	110.49M	117.66M
	EBIT
130.83M	130.74M	135.99M	143.48M	119.99M	104.49M
	EBITDA
130.84M	115.88M	136.00M	143.51M	120.01M	-56.16M
	Net Income Common Stockholders
64.14M	62.67M	28.17M	49.95M	54.43M	-97.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
69.21M	60.57M	68.30M	85.66M	108.32M	117.44M
	Total Assets
2.83B	2.84B	2.86B	3.00B	3.08B	3.08B
	Total Debt
1.03B	1.04B	1.15B	1.18B	1.21B	1.22B
	Net Debt
956.52M	981.13M	1.08B	1.10B	1.10B	1.10B
	Total Liabilities
1.10B	1.12B	1.21B	1.25B	1.29B	1.31B
	Stockholders Equity
1.73B	1.62B	1.65B	1.75B	1.79B	1.77B
Cash Flow		Free Cash Flow
122.15M	121.86M	65.41M	84.27M	61.57M	34.92M
	Operating Cash Flow
128.89M	136.60M	83.24M	84.27M	96.51M	64.68M
	Investing Cash Flow
10.97M	-12.91M	612.00K	-20.08M	-34.94M	-29.76M
	Financing Cash Flow
-131.67M	-130.68M	-96.01M	-82.78M	-71.94M	8.60M

Starhill Global Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.5 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.49, and above the 200-day MA of 0.49, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.73 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, 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	$1.16B	17.29	4.09%	7.30%	2.00%	224.44%
Sector *	60 Neutral	$2.82B	10.29	0.31%	8508.26%	5.91%	-17.42%

Starhill Global Real Estate Investment Corporate Events

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.

Starhill Global REIT Secures S$600 Million in Sustainability-Linked Debt

Starhill Global REIT has secured S$600 million in sustainability-linked debt facilities to refinance existing loans and support general corporate funding. This strategic move is part of the company’s proactive capital management strategy and is not expected to significantly impact its financial gearing.

Starhill Global REIT Appoints New Joint Company Secretary

Starhill Global Real Estate Investment Trust has announced the appointment of Ms. Chiang Shu Zhen, Amy as a Joint Company Secretary, effective from March 3, 2025. This strategic appointment is expected to enhance the company’s governance framework, potentially strengthening its operational efficiency and stakeholder confidence.