Starhill Global REIT Financial evaluation - Dividend Machines by The Fifth Person

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Jan Chee asked 3 years ago

Hi I'm researching on Starhill Global REIT and looking at their financial report https://starhillglobalreit.listedcompany.com/newsroom/20230727_213018_P40U_IFIWBDGYPIESEMB5.3.pdf There is a statement under Capital Management -

In May 2023, SGREIT has (i) drawn down 5-year $50 million and 5.5-year $75 million unsecured term loan facilities to refinance the $125 million MTN, and (ii) entered into a 5.25-year $50 million unsecured RCF agreement, which will be converted to an unsecured term loan facility on 31 March 2025

And I'm wondering how I should interpret this information. Thanks

1 Answers

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Rusmin Ang Staff answered 3 years ago

Hi Jan, It is a refinancing activity which is often an on-going basis for most REITs. You may check their old rate versus the new rate for those refinanced loans. At current climate, the rate should be higher.