Atrium REIT 4Q rental income jumps 69%, declares 2.23 sen dividend

KUALA LUMPUR (Feb 7): Atrium Real Estate Investment Trust (Atrium REIT) net rental income in the fourth quarter ended Dec 31, 2019 (4QFY19) jumped 69.8% to RM8.13 million from RM4.79 million in 4QFY18.

The better results came on the back of higher gross revenue of RM7.61 million from RM4.9 million in 4QFY18, as well as lower property operating expenses for the quarter. Atrium REIT also booked unbilled lease income receivable of RM605.96 million as part of adjustment under the MFRS16 accounting requirement.

Quarterly earnings per unit grew to 2.21 sen from 1.97 sen in the previous corresponding quarter. The REIT has declared dividend of 2.23 sen per unit, bringing its full-year total to 6.63 sen — down from 8.1 sen in FY18.

For the financial year ended Dec 31, 2019 (FY19), Atrium REIT’s net rental income grew 24% to RM21.41 million from RM17.26 million as gross revenue expanded 19.05% to RM22.6 million, from RM18.78 million.

It is noted that the REIT recorded higher trust expenses on higher manager fees, administrative expenses and finance costs — the latter due to drawdown of a note programme to finance the acquisition of Atrium Bayan Lepas 2 in Pulau Pinang.

Atrium REIT units traded unchanged at RM1.03 yesterday, giving it a market capitalisation of RM210.76 million.

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