AmanahRaya REIT proposes lower 4Q DPU despite jump in net income

KUALA LUMPUR (Feb 15): Amanahraya Real Estate Investment Trust (REIT)’s distribution per unit (DPU) for the fourth quarter ended Dec 31, 2017  (4QFY17) fell 5.63% to 1.34 sen, from 1.42 sen a year ago. 

This is despite a 265% jump in net income to RM49.4 million, from RM13.5 million previously, because of an increase in fair value of investment properties or unrealised gains amounting to RM42.6 million. 

In a stock exchange filing today, AmanahRaya REIT said its DPU, totalling RM7.68 million, would be paid on April 6. The ex-date is March 6 and entitlement date is March 8. 

For the full financial year (FY17), the REIT’s net income climbed 83.16% to RM74.25 million, from RM40.54 million a year ago, while total DPU fell 6.78% to 5.5 sen, from 5.9 sen in FY16.

Going forward, AmanahRaya REIT said its existing assets within the portfolio would be well maintained to ensure rental income stability, It said the trust benefits capital appreciations. 

The manager is also actively identifying good assets for new acquisition to improve yield and further diversify its portfolio to minimise sectoral risks. 

“The strategy of having assets with long-term leases by reputable leases shall continue to be the focus to ensure sustainable returns,” AmanahRaya REIT added. 

AmanahRaya REIT’s share price rose one sen or 1.14% to 89 sen today, for a market capitalisation of RM510.17 million.

Separately, AmanahRaya REIT announced its chief executive officer Noorbaizura Hermeyney will resign on March 1, to pursue other career opportunities. 

The 38-year-old was previously its chief operating officer, before being redesignated as CEO on April 6 last year. — theedgemarkets.com

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