UOA REIT’s 2Q distributable income flat

KUALA LUMPUR (July 21): UOA Real Estate Investment Trust (REIT) said its total income available for distribution slipped 3.33% to RM11.58 million for the second quarter ended June 30, 2016 (2QFY16), from RM11.98 million a year ago.

In a filing yesterday, the trust said it had made a provision to distribute RM11 million or 2.61 sen per unit to unitholders, which is 0.08 sen less than the 2.69 sen DPU it declared in 2QFY15.

This brings the total distributable income for the half-year period (1HFY16) to RM22.1 million, a slight decline of 1.78% from RM22.5 million for 1HFY15.

Distribution per unit for 1HFY16 was 5.22 sen, compared with 5.32 sen for 1HFY15, which would be paid by the end of August.

UOA REIT said gross rental for 1HFY16 fell 0.3%, while total expenditure rose 2%, mainly due to higher property operating expenses, manager’s fees and borrowing costs.

“The manager will continue its active operating and capital management strategy to maintain returns, while recognising the challenges posed by volatilities in [the] global economy,” it said.

It added that efforts to seek opportunities to further acquire real estate that meets its objectives will continue.

UOA REIT’s share price closed 0.6% or one sen higher at RM1.69 yesterday, giving it a market capitalisation of RM714.7 million.

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This article first appeared in The Edge Financial Daily, on July 21, 2016. Subscribe to The Edge Financial Daily here.