Starhill Global REIT Dividend 2026
DPU History, 7% Yield & Orchard Road Deep-Dive (SGX: P40U)
Starhill Global REIT (SGX: P40U) is one of Singapore’s best-known Orchard Road landlords — owning interests in Wisma Atria and Ngee Ann City, two of the most iconic retail destinations in the country. As at April 2026, P40U trades at around S$0.555 and offers a trailing distribution yield of approximately 6.6%, rising to a forward yield of 7.2% on consensus FY2025/26 DPU estimates.
With a low gearing of 36.2%, a conservative beta of 0.45, and a portfolio WALE of 7.2 years — among the highest in the Singapore retail REIT space — Starhill Global REIT has built its reputation on stability rather than growth. But is the 7%+ yield enough to justify the flat DPU trajectory and the underperforming overseas portfolio? This deep-dive breaks it all down.
This article is for informational purposes only and does not constitute financial advice. Always do your own due diligence before investing.
Table of Contents
Contents — Click to expand
Fast Facts: Starhill Global REIT at a Glance
Here is a summary of key metrics as at April 2026:
| Metric | Value |
|---|---|
| Ticker / Exchange | P40U / SGX Mainboard |
| Sector | Retail & Office (Diversified) |
| Current Price (Apr 2026) | S$0.555 |
| Market Capitalisation | S$1.25 billion |
| NAV per Unit | S$0.69 (as at Dec 2024) |
| P/NAV | 0.80x |
| FY2024/25 DPU | 3.65 cents |
| Trailing Distribution Yield | ~6.6% |
| Forward Yield (FY25/26F) | ~7.2% (consensus 4.0¢) |
| Gearing Ratio | 36.2% |
| Interest Coverage Ratio (ICR) | 2.9x (Q3 FY24/25) |
| Portfolio Occupancy | 97.4% (portfolio); 99.5% (Singapore) |
| WALE | 7.2 years (by gross rental income) |
| Distribution Frequency | Semi-annual |
| Total Portfolio Value (AUM) | ~S$2.8 billion |
| No. of Properties | 9 (Singapore, Australia, Malaysia, Japan, China) |
Sources: Starhill Global REIT investor relations, SGX filings, StockAnalysis.com. Data as at April 2026 where available.
DPU History (FY2020/21 – FY2024/25)
Starhill Global REIT pays distributions semi-annually, with ex-dates typically in February and August. Its fiscal year runs from July to June. Below is a six-year DPU history showing the pandemic trough and the subsequent recovery:
| Fiscal Year | 1H DPU (¢) | 2H DPU (¢) | Full-Year DPU (¢) | YoY Change |
|---|---|---|---|---|
| FY2020/21 | 1.50 | 1.66 | 3.16 | — |
| FY2021/22 | 1.87 | 1.93 | 3.80 | +20.3% |
| FY2022/23 | 1.90 | 1.90 | 3.80 | 0.0% |
| FY2023/24 | 1.78 | 1.85 | 3.63 | -4.5% |
| FY2024/25 | 1.80 | 1.85 | 3.65 | +0.6% |
| FY2025/26F | 1.80 (announced) | Est. 2.20 | ~4.0 (consensus) | +9.6% |
FY2025/26 H1 DPU of 1.80¢ (ex-date 5 February 2026) has been announced. The 2H and full-year figure is a market consensus estimate. Past distributions are not indicative of future distributions.
Key observations: Starhill’s DPU recovered sharply post-pandemic (+20.3% in FY2021/22) but has since plateaued in the 3.6–3.8¢ range. The consensus forecast of ~4.0¢ for FY2025/26 implies management’s AEI programme and occupancy gains could deliver a meaningful uplift — but execution risk remains.
For investors who prefer to buy S-REITs via a diversified vehicle rather than individual names, consider reading our guide to the Singapore REIT ETF.
Peer Comparison: Retail & Mixed-Use S-REITs
How does Starhill Global REIT stack up against comparable Singapore retail and mixed-use REITs? Below is a side-by-side comparison using data as at April 2026. See our full list of Best S-REITs Singapore 2026 for a broader analysis.
| REIT | Ticker | Dist. Yield | Gearing | P/NAV | Market Cap |
|---|---|---|---|---|---|
| Starhill Global REIT | P40U | 6.6–7.2% | 36.2% | 0.80x | S$1.25B |
| CapitaLand Integrated CT | C38U | ~5.5% | ~39% | ~0.85x | ~S$12.5B |
| Frasers Centrepoint Trust | J69U | ~5.8% | ~39% | ~0.90x | ~S$3.8B |
| Lendlease REIT | JYEU | ~6.7% | 38.4% | 0.74x | S$1.79B |
| Suntec REIT | T82U | ~4.8% | ~42% | ~0.70x | ~S$3.2B |
| OUE REIT | TS0U | ~6.5% | ~36% | ~0.70x | ~S$1.8B |
Yields, gearing, and P/NAV are approximate as at April 2026 and may vary by data source. Not a recommendation to buy or sell.
Starhill’s yield is competitive among its retail and mixed-use REIT peers. Its P/NAV of 0.80x sits between the larger-cap REITs like CICT and peers such as Lendlease and OUE REIT that trade at steeper discounts to book. The lower gearing (36.2%) versus the sector average (~40%) is a meaningful structural advantage — it gives Starhill more buffer against MAS’s 50% gearing limit and room to gear up for acquisitions without a rights issue.
You can invest in REITs like Starhill Global REIT via platforms like Syfe or Endowus using cash or SRS funds.
Financial Health: Gearing, ICR & Debt Profile
Starhill Global REIT maintains a conservative balance sheet relative to most of its S-REIT peers. Here is a breakdown of the key metrics as at Q3 FY2024/25 (March 2025):
- Aggregate Leverage (Gearing): 36.2% — well below the MAS 50% regulatory limit and below the ~40% sector average. This provides meaningful headroom for acquisitions or unforeseen capital needs without a dilutive equity raise.
- Interest Coverage Ratio (ICR): 2.9x — above the MAS minimum of 1.5x for REITs seeking to gear beyond 45%. This reflects stable NPI relative to interest obligations.
- Fixed/Hedged Debt: 83.4% — the majority of Starhill’s debt is on fixed rates or hedged, significantly reducing interest rate risk as SORA normalises from its peak above 3%.
- Average All-In Interest Rate: 3.69% — manageable but worth monitoring as older fixed-rate tranches mature and are refinanced in a potentially still-elevated rate environment.
- Weighted Average Debt Maturity (WADEM): 3.0 years — a moderate tenor profile. No immediate refinancing cliff, but management will need to roll debt in FY2026/27 and FY2027/28.
The declining SORA environment (from a peak of ~3.0% in 2023 to ~1.1% in April 2026) is a tailwind for all S-REITs with floating-rate exposure. For Starhill, with 16.6% floating-rate debt, this translates to modest savings on interest costs — supporting DPU stability even if top-line rental growth is muted.
For context on how interest rates interact with S-REIT yields, see our S-REIT index buying window analysis.
Portfolio Analysis: Orchard Road & Overseas Properties
Starhill Global REIT owns nine properties across five countries, with Singapore generating approximately 62% of total revenue (1H FY2024/25). The portfolio is valued at approximately S$2.8 billion as at June 2025.
Singapore (62% of Revenue)
The Singapore properties are Starhill’s crown jewels and the primary driver of distributable income:
- Wisma Atria (100% owned): A seven-storey retail podium and 14-storey office tower at the heart of Orchard Road. The retail component (~63,000 sq ft NLA) houses a mix of F&B, fashion, and lifestyle tenants. Starhill has an active AEI programme underway — a S$4 million car park repurposing project targeting an ROI above 8%, commencing 4Q FY24/25.
- Ngee Ann City (27.23% retail interest): One of Singapore’s largest and most iconic retail developments. Anchor tenant Takashimaya holds a long-term master lease, which anchors Starhill’s extraordinary WALE of 7.2 years by gross rental income — one of the highest in the Singapore retail REIT sector.
Singapore portfolio occupancy is 99.5% as at December 2024, reflecting the enduring demand for Orchard Road’s prime retail corridor.
Australia (21.4% of Revenue)
Starhill’s Australian portfolio comprises three assets: Myer Centre Adelaide, David Jones Building (Perth), and Plaza Arcade (Perth). This segment has been the drag on overall performance — Australian NPI declined 4.5% YoY in 1H FY2024/25, impacted by softer retail conditions in Adelaide and Perth. Management is actively managing lease renewals in this segment.
Malaysia (14.9% of Revenue)
Two properties in Kuala Lumpur: The Starhill (an upscale lifestyle retail and dining destination) and Lot 10 Property. Malaysian revenue grew a healthy 4.4% YoY in 1H FY2024/25, aided by favourable tourism recovery and Ringgit translation gains.
Japan & China (1.7% of Revenue)
A retail property in Tokyo (Japan) and a retail asset in Chengdu (China) contribute a minor slice of revenue. Both markets remain small and non-core to the portfolio’s income thesis.
Key Risks to Watch
Every investment carries risks. For Starhill Global REIT, the following five deserve careful consideration:
- Flat DPU Trajectory: The DPU has been effectively stagnant between 3.63¢ and 3.80¢ for three years. Unlike industrial or healthcare REITs with built-in rental escalations, Orchard Road retail growth is constrained by tenant affordability and the competition from suburban malls and e-commerce. Unitholders seeking DPU growth should temper expectations.
- Orchard Road Structural Shift: The traditional retail paradigm on Orchard Road has evolved — tourist arrivals and luxury spending are back, but everyday footfall remains challenged. Any softening in Singapore’s retail sector would directly impact Wisma Atria occupancy and rental reversions.
- Australian Portfolio Drag: Myer Centre Adelaide and the Perth assets have been underperforming with NPI down 4.5% YoY. Weak Australian retail conditions and property valuations could lead to downward revaluations, affecting NAV. A divestment of the Australian portfolio would be seen positively by the market.
- Debt Refinancing Risk: With a WADEM of 3.0 years, Starhill will face meaningful debt rollovers in FY2026/27–FY2027/28. While current gearing is low, refinancing at higher margins (if credit spreads widen) would compress NPI-to-distribution conversion.
- Currency Risk: With 38% of revenue from overseas markets (Australia, Malaysia, Japan, China), Starhill is exposed to AUD, MYR, JPY, and CNY fluctuations. A strengthening SGD against these currencies would reduce the translated DPU contribution from overseas operations.
For a broader perspective on how tariffs and global macro events are affecting S-REITs, see our Trump Tariffs Singapore REIT 2026 analysis.
Verdict: Buy, Hold, or Watch?
Our view: WATCH → leaning HOLD for income investors.
Starhill Global REIT is not a REIT that will make you rich overnight. Its DPU growth story is muted, its overseas portfolio has structural headwinds, and its Orchard Road exposure — while prime — is a niche bet on tourist-driven retail recovery.
However, for income-focused investors in Singapore, P40U has genuine merits:
- A 7%+ forward yield at current prices is among the highest in the retail REIT space
- Gearing of 36.2% gives balance sheet safety and acquisition firepower
- 99.5% Singapore occupancy and a 7.2-year WALE signal leasing stability
- Beta of 0.45 means lower portfolio volatility — useful in turbulent markets
- The Ngee Ann City Takashimaya master lease provides an income anchor through market cycles
The key watch-point is the FY2025/26 2H DPU. If the Wisma Atria AEI and higher occupancy translate to a 2H DPU above 2.0¢, the full-year ~4.0¢ consensus becomes realistic and the 7%+ yield narrative strengthens. If 2H DPU disappoints, the stock could drift lower.
Target yield range for entry consideration: 6.8–7.5%, implying a price range of approximately S$0.49–S$0.54 for a 4.0¢ FY2025/26F DPU. At S$0.555, the stock is approaching the upper end of this range.
For CPF investors: S-REITs are eligible for CPF Investment Scheme (CPFIS) investing under CPFIS-OA, making Starhill accessible via your CPF OA funds through an approved broker.
Want to invest in S-REITs with no platform fee using CPF or SRS?
Frequently Asked Questions
What is the current dividend yield of Starhill Global REIT?
As at April 2026, Starhill Global REIT (SGX: P40U) trades at approximately S$0.555, giving a trailing distribution yield of ~6.6% based on the FY2024/25 DPU of 3.65 cents. On a forward basis, the consensus FY2025/26 DPU estimate of ~4.0 cents implies a forward yield of approximately 7.2%. All yields are pre-tax at the individual unitholder level; Singapore resident individuals are not taxed on REIT distributions.
How often does Starhill Global REIT pay dividends?
Starhill Global REIT pays distributions semi-annually — typically with ex-dates in February and August. The 1H FY2025/26 distribution (ex-date 5 February 2026, payment date March 2026) was 1.80 cents per unit. The full-year FY2024/25 DPU was 3.65 cents.
What properties does Starhill Global REIT own in Singapore?
Starhill Global REIT owns two flagship Singapore properties: (1) Wisma Atria — 100% of the retail and office components, comprising ~63,000 sq ft of retail NLA and ~95,000 sq ft of office NLA on Orchard Road; and (2) Ngee Ann City — a 27.23% interest in the retail strata lots. The Ngee Ann City interest benefits from a long-term master lease with Takashimaya, which anchors the REIT’s impressive 7.2-year WALE. Singapore generates approximately 62% of total revenue.
Is Starhill Global REIT's gearing ratio safe?
Yes — Starhill Global REIT’s gearing of 36.2% is well below the MAS regulatory limit of 50% and below the sector average of ~40%. The REIT also has 83.4% of its debt on fixed or hedged rates, reducing exposure to interest rate fluctuations. The interest coverage ratio of 2.9x is above the 1.5x MAS minimum for gearing beyond 45%, providing financial flexibility.
Can I use CPF OA to invest in Starhill Global REIT?
Yes. Starhill Global REIT (P40U) is an approved CPF Investment Scheme (CPFIS-OA) investment. You can purchase units via a CPF-approved brokerage account such as DBS Vickers, OCBC Securities, or UOB Kay Hian using your CPF Ordinary Account funds. Note that CPF OA earns a guaranteed 2.5% per annum, so you should ensure your expected REIT yield adequately compensates for the opportunity cost. Read our guide on CPF investment strategy for more.
How does Starhill Global REIT compare to Frasers Centrepoint Trust?
These two REITs serve different retail sub-sectors. Frasers Centrepoint Trust (FCT) focuses on suburban neighbourhood malls (Causeway Point, Waterway Point, Northpoint City) that cater to everyday necessity spending — delivering more resilient footfall. Starhill focuses on prime Orchard Road retail and overseas properties, which carry higher tourist-spend cyclicality but potentially stronger rental reversions in a recovery. FCT currently yields ~5.8% vs Starhill’s ~6.6–7.2%, with FCT commanding a slight premium given its larger scale (S$3.8B market cap) and more predictable income base.
What is the NAV per unit of Starhill Global REIT?
Starhill Global REIT’s NAV (Net Asset Value) per unit was S$0.69 as at 31 December 2024. At the current price of ~S$0.555, the REIT trades at a price-to-NAV ratio of approximately 0.80x. This means investors are buying the underlying property portfolio at a 20% discount to its last reported book value — potentially offering a margin of safety, though it may also reflect the market’s caution about the Australian portfolio valuations and flat DPU growth.
Is Starhill Global REIT a good buy for passive income in 2026?
Starhill Global REIT suits income-focused investors who value stability, low gearing, and a 7%+ yield over high-growth prospects. Its blue-chip Singapore assets (Wisma Atria, Ngee Ann City), conservative balance sheet, and low beta (0.45) make it a defensive income play. However, those seeking meaningful DPU growth may find better opportunities in industrial or healthcare REITs. Our verdict is Watch → leaning Hold for existing unitholders, and a potential entry zone of S$0.49–S$0.54 for new buyers targeting a 7.5%+ entry yield. See our broader Best S-REITs Singapore 2026 comparison for alternatives.
References
- Starhill Global REIT — Investor Relations: Financials
- Starhill Global REIT — Distribution History
- SGX Filing — Starhill Global REIT Financial Results (29 Jul 2025)
- StockAnalysis.com — SGX:P40U Overview
- Growbeansprout — Starhill Global REIT 1H FY24/25 Results
- The Edge Singapore — Starhill Global REIT 3Q FY2024/25 Results
Data sourced from Starhill Global REIT investor relations, SGX filings, and third-party financial data providers. All figures are as at the dates stated. This article is not financial advice.