THE manager of Starhill Global Reit : P40U 0% reported net property income (NPI) of S$38 million for the third quarter ended Mar 31, 2023, down 1.3 per cent from S$38.5 million in the year-ago period.

Gross revenue for the real estate investment trust (Reit) fell 2.3 per cent to S$47.3 million in the quarter, from S$48.4 million previously.

The variance in NPI and gross revenue were due mainly to net movements in foreign currencies from a weaker Australian dollar and Malaysian ringgit, along with the divestment of a property in Tokyo, the Reit manager said in a business update on Wednesday (Apr 26).

That was partially offset by higher contributions from its properties in Singapore, it added.

Some 61.8 per cent of the Reit’s gross revenue in Q3 came from its Singapore assets, compared with 59.4 per cent in the year-ago period.

As at Mar 31, portfolio occupancy stood at 96.7 per cent.

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Shopper traffic at Wisma Atria improved by 24.6 per cent year on year during the quarter, while tenant sales increased 13.6 per cent, following the completion of enhancement works of the mall’s main retail area in December last year.

In terms of market outlook, retail rents are “expected to grow further in 2023, especially in Orchard Road”, the manager said, as the district is “likely to benefit from the increase in tourist arrivals and the crowds that have returned to the office”.

Retail assets contributed 85 per cent of Starhill’s gross revenue in Q3, with office assets making up the remainder.

Units of Starhill Global Reit closed unchanged at S$0.53 on Wednesday, prior to the business update.