Wisma Atria brings 17% positive rental reversions to Starhill Global REIT

Thanks to renewals and new leases for price facade units.

The FX impact pulled SGREIT’s financials down a bit, but this was partially mitigated by stronger performance from its Singapore properties.

According to a report by OCBC, revenue slipped slightly by 0.4% YoY to S$48.9 due to weaker contribution from its China and Japan assets (partly due to FX impact).

The brightest development during 4Q14 came from the 17% positive rental reversions accomplished for leases committed at Wisma Atria (retail). This was underpinned by the renewals and new leases signed for the prime façade units.

Management remains positive on the outlook of rental reversions at Wisma Atria (retail) over the next 3-6 months. Although shopper traffic and tenants’ sales at this mall fell 3.1% and 5.6% YoY to 7.2m and S$139 psf in 4Q14, respectively, which reflects headwinds in the retail sector, assets which are strategically located in prime areas will continue to be a draw for international retailers.