- Going forward, UOA REIT said economic conditions remain as the key factor influencing the occupancy and rental rates of its properties.
KUALA LUMPUR (May 3): UOA Real Estate Investment Trust (REIT)’s first quarter net profit fell 8.8% amid a decline in occupancy rate at its older buildings, coupled with an increase in expenditure, driven by higher electricity and borrowing costs.
Net profit for the quarter ended March 31, 2023 came in at RM14.61 million, from RM16.02 million a year ago, while net rental income dropped 4.8% to RM21.17 million from RM22.24 million, the REIT said in a stock exchange filing.
There was no income distribution declared for the quarter.
Going forward, UOA REIT said economic conditions remain as the key factor influencing the occupancy and rental rates of its properties.
“While we have seen gradual improvements in the property sector, the market sentiment remains soft. The market continues to face an uncertain external environment in view of elevated inflation, geopolitical tension and potential future interest rate hikes,” it said.
The REIT’s manager, UOA Asset Management Sdn Bhd, pledged to manage the properties in the portfolio with prudent capital management in order to maximise the yield for unitholders, while continuing to seek opportunities to further acquire real estate that meet the objectives of UOA REIT.
Units of UOA REIT closed unchanged at RM1.16 on Wednesday (May 3), giving it a market capitalisation of RM783.69 million.
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