KUALA LUMPUR (May 24): UOA Real Estate Investment Trust (REIT)'s first quarter ended March 31, 2017 (1QFY17) net rental income declined by 14% to RM14.70 million, from RM17.03 million a year ago as gross rental fell.

The REIT made a provision of RM9.02 million for income distribution, translating into approximately 2.13 sen per unit, versus the 2.61 sen per unit it distributed for 1QFY16.

In its quarterly report to Bursa Malaysia today, UOA REIT said total expenditure for the quarter under review has also slipped 2% to RM10.96 million, from RM11.16 million in 1QFY16, mainly due to lower borrowing cost.

The REIT's gross rental fell 10.17% to RM20.4 million in 1QFY17, from RM22.71 million in the previous corresponding quarter.

Moving forward, UOA REIT said its manager, UOA Asset Management Sdn Bhd, will continue to work towards its strategic goals to enhance the yields and returns of the properties in the portfolio while acknowledging the ongoing volatile economic conditions which may weigh on the occupancy rates.

"Meanwhile, the manager will continue to explore new opportunities for future acquisitions that meet the objectives of UOA REIT," it said.

At market close, UOA REIT fell one sen or 0.56% to RM1.76, valuing it at RM744.25 million. — theedgemarkets.com

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