NEWS & PRESS RELEASES


11 July 2008

Starhill REIT Records 12% Increase in Net Income Revenue. Grows 10% to RM108 Million

Kuala Lumpur, 11 July 2008

Starhill Real Estate Investment Trust ("Starhill REIT") today announced revenue of RM108.23 million for the financial year ended 30 June 2008, an increase of 9.5% or RM9.39 million over RM98.84 million for the last financial year ended 30 June 2007. Income after taxation grew 11.8% to RM81.27 million this year, compared to RM72.69 million last year.

The improved performance was due mainly to rental received from The Residences Properties, acquired in May 2007, coupled with higher rental rates received from the renewal of existing tenancies and the commencement of new tenancies at Starhill Gallery and Lot 10. As at 30 June 2008, Starhill Gallery and Lot 10 had occupancy rates of 99% and 94%, respectively.

Tan Sri Dato' (Dr) Francis Yeoh Sock Ping, Chief Executive Officer of Pintar Projek Sdn Bhd, the Manager of Starhill REIT, said, "Starhill REIT registered another year of solid results for the 2008 financial year, underpinned by the fundamentals of the portfolio and the proactive management of Starhill REIT's assets.

"Globally, uncertainties over real estate valuations which developed during the year under review have had an impact on investors' views on REIT stocks, reflected in depressed unit prices, and Malaysian REITs have not escaped unscathed. Nevertheless, we believe that the fundamentals of the Malaysian property market remain firm and REIT's with good occupancy rates and strategies for development will be able to maintain steady dividend streams arising from the mid- to long-term nature of their tenancies, to the benefit of their unitholders."

During the year, Mayban Trustees Berhad, Starhill REIT's trustee, undertook a revaluation of Lot 10, Starhill Gallery and the JW Marriott Hotel Kuala Lumpur, which were last valued in 2005. The proposed revaluation, which is currently pending the approval of the Securities Commission, would increase the valuations of the three properties by RM254.36 million, concurrently increasing the Trust's net asset value to RM1.188 per unit from RM0.972 previously.

Distribution to Unitholders

A final distribution of 3.4911 sen per unit, representing approximately 100% of Starhill REIT's income after taxation undistributed at the end of the 2008 financial year, was also declared by the Board of Directors of Pintar Projek Sdn Bhd. The Book Closure and Payment Dates of the final distribution are 11 August 2008 and 28 August 2008, respectively.

The Trust has already distributed an interim distribution of 3.4025 sen per unit in respect of the 6 months ended 31 December 2007. The interim and final distributions result in a total distribution per unit (DPU) of 6.8936 sen for the 2008 financial year, a marginal increase over 6.7019 sen per unit distributed last year.

Based on Starhill REIT's prevailing market price of RM0.84 per unit, the DPU of 6.8936 sen represents a yield of 8.21%.

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About Starhill REIT

Starhill REIT owns 4 prime properties in the heart of Kuala Lumpur's Golden Triangle, namely, 137 parcels and 2 accessory parcels of retail, office, storage and other spaces within Lot 10 Shopping Centre ("Lot 10"), Starhill Gallery and the JW Marriott Hotel Kuala Lumpur, as well as 60 units of serviced apartments, 4 levels of commercial podium and 2 levels of car parks located within The Residences at The Ritz-Carlton, Kuala Lumpur ("The Residences Properties"). The combined approved valuation of the Trust's property portfolio currently stands at RM1,295 million.

The Trust was established on 18 November 2005 and Starhill REIT was listed on the Main Board of Bursa Malaysia Securities Berhad on 16 December 2005,

For more information on Starhill REIT, please visit http://www.starhillreit.com.

Also view the Quarterly Report at
http://www.ytlcommunity.com/quarterlyreport/pdf/Stareit%204Q300608%20(Final).pdf




 
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