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MRCB-Quill REIT 3Q net profit falls 14.3% on lower revenue

KUALA LUMPUR (Nov 25): MRCB-Quill REIT's (MQREIT) net profit for the third quarter ended Sept 30, 2019, fell 14.3% to RM17.64 million from RM20.59 million a year ago, on the back of lower revenue.

In a filing to Bursa Malaysia today, MQREIT said revenue dipped to RM39.46 million from RM43.59 million previously, due mainly to lower revenue generated from Platinum Sentral, QB5 and Wisma Technip.

Earnings per unit slipped to 1.65 sen from 1.92 sen.

For the nine months ended Sept 30, MQREIT said its net profit declined to RM53.5 million from RM65.08 million in the year-ago period, on the back of lower revenue of RM120.37 million compared to RM131.58 million a year earlier.

In a separate statement, MRCB Quill Management Sdn Bhd (MQM) chairman Tan Sri Saw Choo Boon said the trust manager anticipated the operating environment for office space in Klang Valley to remain challenging due to oversupply pressures.

"We will continue to focus on cost management, tenant retention and optimisation of rental contribution," said Saw.

Meanwhile, MQM chief executive officer Yong Su-Lin said MQREIT recorded a 93% renewal rate for its leases due up to the third quarter of 2019.

She said that correspondingly, MQREIT's average occupancy rate as at Sept 30, 2019 stood at 89%.

"For the last quarter, there is a balance of 17% of the leases due in 2019 pending renewal. Negotiations are progressing as scheduled for these leases.

"We will continue with our marketing efforts to lease out MQREIT's existing vacant spaces with the aim of improving the portfolio occupancy," she said.

At the midday break, MQREIT shed 0.96% or 1 sen to RM1.03 for a market capitalisation of RM1.1 billion.

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