Tower REIT’s 4Q2016 net property income drops 31.9%

KUALA LUMPUR (Jan 24): Tower Real Estate Investment Trust (REIT) reported a 31.9% fall in net property income for the fourth financial quarter ended Dec 31, 2016 (4QFY2016) to RM4.34 million from RM6.7 million a year earlier.

The trust declared a final income distribution of 3.73 sen per unit, payable on Feb 28.

Profit slumped 86.54% to RM4.19 million or 1.42 sen per unit from RM11.09 million or 3.95 sen per unit in 4QFY2015.

The decline was mostly due to major building maintenance exercise as well as lower quarterly revenue, Tower REIT said in a bourse filing yesterday.

Revenue slid 4.11% to RM8.9 million from RM9.29 million in 4QFY2015 on the back of decreasing occupancy rate following lower demand, as well as the “huge amount of newly completed office space, which is yet to be fully physically occupied”, said Tower REIT.
 
For FY2016 as a whole, Tower REIT’s net property income slid 6.25% to RM23.09 million from RM24.63 million in FY2015.

Profit dropped 17.95% to RM21.16 million from RM25.79 million in FY2015, while revenue saw a 1.89% decrease to RM36.59 million from RM37.3 million. — theedgemarkets.com