Starhill Global REIT ("Starhill") announced its Q1 results on Friday.
The Company announced a Q1 results DPU of 1.37 cents per unit, much higher than previous year by 28%. If i striped out the one time adjustment from the Toshi lease, the DPU is around 1.18 Singapore cents, which is about 10.3% higher than prior year. This will translate into an annualized yield of around 4.9%.
YTL has probably been a good manager where the DPU is increasing every year. I will probably expect this year to be better than the last as well.
This will explain to you why REIT is a good inflation hedge. The rental and parking at shopping malls in Singapore has been increasing "non-stop" since REIT was introduced here. Isn't it a great feeling that you own part of Ngee Ann City and Wisma? It certainly feel relatively "less painful" when i pay $8 for a short shopping spree at Takashimaya, knowing that i am getting a "rebate" in one way or another via the distributions. ^_^