KUALA LUMPUR (July 21): UOA Real Estate Investment Trust (REIT)'s second quarter ended June 30, 2017 (2QFY17) net rental income fell 15% to RM14.56 million, from RM17.1 million a year ago, on lower gross rental.

It declared an income distribution per unit (DPU) of 2.06 sen for the quarter, against 2.61 sen in the same period last year.

This brought its DPU for the half year ended June 30 to 4.18 sen or RM17.68 million in all — to be paid on Aug 30 — versus 5.22 sen in the corresponding period last year, or RM22.07 million in total.

In its quarterly report to Bursa Malaysia yesterday, UOA REIT's accounts showed gross rental fell 11% to RM20.46 million, from RM23.02 million a year ago. 

Though total expenditure declined 1% mainly due to lower borrowing cost, this was offset by higher property operating and administrative expenses.

On prospects, the REIT said occupancy rates continue to remain stable at its existing levels, but added uncertainty in the economic condition will continue to influence occupancy rates and rental rates.

Moving forward, the REIT's manager UOA Asset Management Sdn Bhd will continue to actively manage the properties in its portfolio with prudent capital management, in order to maximise yields for unitholders. 

"In the interim, the manager will continue to explore yield accretive acquisition opportunities that meet the objectives of UOA REIT,” the report said.

At market close yesterday, UOA REIT closed unchanged at RM1.75, for a market capitalisation of RM740.03 million. — theedgemarkets.com

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