Al-Aqar REIT announces 3.95 sen DPU as 4Q net income jumps 87%

KUALA LUMPUR (Feb 21): Al-Aqar Healthcare Real Estate Investment Trust's (Al-Aqar REIT) net income rose 87% year-on-year to RM48.14 million in the fourth quarter ended Dec 31, 2017 (4QFY17), supported by higher investment income and gain in fair value adjustment.

Net rental income for the quarter, however, declined 2% to RM23.01 million from RM23.49 million a year ago, amid a decline in net rental income in the Australia segment due to higher property expenses.

Meanwhile, the Malaysia segment saw higher net rental income at RM20.8 million, up 3% from RM20.3 million in the preceding year.

For the full-year FY17, net income increased 19% to RM120.27 million from RM101.06 million in FY16, while net rental income fell 4.5% to RM93.21 million from RM97.59 million.

The REIT announced a final income distribution of 3.95 sen per unit for FY17, which will be paid on Feb 28.

Going forward, it expects the Malaysian healthcare industry will continue to remain positive amid stronger private healthcare consumption and improvement in healthcare affordability on the back of resilient economic growth.

"Notably, the positive outlook of the healthcare industry is expected to bode well for Al-Aqar REIT. The manager expects Al-Aqar to register a moderate growth for FY18, supported by secured 100% tenancies and modest rental revision," it said.

Al-Aqar REIT units rose one sen or 0.78% to close at RM1.30 today, giving it a market capitalisation of RM946.69 million. — theedgemarkets.com

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