NEWS & PRESS RELEASES


22 July 2006

Starhill REIT's net profit exceeds IPO forecast

Business Times Malaysia
STARHILL Real Estate Investment Trust (Starhill REIT) has exceeded its listing profit forecast by 11.15 per cent, posting net profit of RM35.91 million for the full year ended June 30 2006.

Revenue stood at RM50.74 million for the period. A distribution of 3.4524 sen per unit, or about 100 per cent of Starhill REIT's net profit has been recommended by trust manager Pintar Projek Sdn Bhd.

The distribution is subject to approval of Mayban Trustees Bhd, the trustee for Starhill REIT.

"Just seven months into its operations, Starhill REIT is off to an excellent start, having exceeded the profit projections for the trust and enabling us to recommend a solid distribution payout to unitholders," Pintar Projek chief executive officer Tan Sri Francis Yeoh Sock Ping said in a statement.

He said the company is committed to ensure that unitholders are well rewarded by this investment.

"To this end, Starhill REIT continues to explore acquisition opportunities of suitable properties, the key requirement being that they are yield-enhancing and will complement the trust's existing portfolio," Yeoh added.

Starhill REIT was listed on the Bursa Malaysia main board on December 16 2005.

The trust comprises three prime properties situated in the heart of Kuala Lumpur's Golden Triangle, namely Starhill Gallery, Lot 10 Shopping Complex and the JW Marriott Hotel Kuala Lumpur.

The company had forecast a net income of RM32.30 million in its listing prospectus.

Included in the net income for the year was income recorded for the 16-day period from December 16 2005, being the commencement date of business of the trust, to December 31 2005, compared with the profit forecast period of January 1 2006 to June 30 2006.

"Excluding the 16-day period, however, Starhill REIT's income after taxation still exceeded the forecast result by 1.93 per cent," the statement said.

This increase was attributable to the interest income generated from the placement of funds with licensed financial institutions, it added.


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