KUALA LUMPUR (Jan 19): MRCB-Quill Real Estate Investment Trust (MQREIT) net profit for the fourth quarter ended Dec 31, 2017 (4QFY17) slumped to RM3.32 million from RM16.92 million a year earlier, despite recording a higher revenue of RM46.05 million versus RM38.93 million.

In a filing with Bursa Malaysia, MQREIT proposed a final gross income distribution of 4.16 sen per unit.

It said earnings per unit was 2.01 sen versus 1.89 sen a year earlier.

For the financial year ended Dec 31, 2017 (FY17), MQREIT posted a net profit of RM69.91 million compared with RM62.77 million, on the back of revenue RM181.50 million versus RM136.65 million.

Reviewing its performance, MQREIT said property operating expenses were higher by 18.6%, due to the inclusion of Menara Shell.

Overall, 4Q realised net property income rose by 35.2%, compared with a year earlier, the filing said.

“Interest income was higher due to higher amount placed with financial institutions during the current quarter.

“Finance costs were higher mainly due to higher borrowings in 4Q2017,” it said.

On prospects, MQREIT said 14% of its total net lettable area in 2017 was due for renewal.

“As at Dec 31, 2017, we have succesfully renewed approximately 80% of these leases. The Manager is now in active negotiations for the renewal of leases due in 1Q2018.

“The Klang Valley office market is expected to remain challenging. For 2018, we will focus on asset management and leasing strategies that are centred on tenant retention to overcome the challenging operating environment,” MQREIT said.

At midday break today, MQREIT rose 0.82% or 1 sen to RM1.22, with 14,900 units traded. — theedgemarkets.com

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