UOA REIT's 1Q net rental income falls 3.6% on increased maintenance costs

• Net rental income declined to RM17.81 million for the first quarter ended March 31, 2025 (1QFY2025), from RM18.48 million in the same period a year earlier, according to the office and commercial property trust’s bourse filing.

KUALA LUMPUR (May 6): UOA Real Estate Investment Trust (KL:UOAREIT) reported a 3.6% decline in net rental income for the first quarter on higher maintenance costs.

Net rental income declined to RM17.81 million for the first quarter ended March 31, 2025 (1QFY2025), from RM18.48 million in the same period a year earlier, according to the office and commercial property trust’s bourse filing.

Gross rental income increased 13.25% to RM29.69 million versus RM26.22 million due to improved occupancies, while property operating expenses logged a 53.5% rise to RM11.88 million from RM7.74 million mainly due to an increase in maintenance costs.

Realised earnings per unit after manager fees fell to 1.47 sen, down from 1.73 sen in the previous year. The portfolio's occupancy rate was not provided in the filing.

There was no income distribution declared for the quarter under review.

Looking to the next financial year, UOA REIT said it expects a gradual improvement in office demand in FY2025.

"The completed asset enhancement initiatives will help to generate interest on the older buildings in our portfolio while the initiatives continue into FY2025," the company said. "While keeping the gearing within the permissible threshold, the manager continues to seek potential yield-accretive acquisition opportunities that align with the strategic objectives of UOA REIT."

Units in UOA REIT closed 1.5 sen or 1.8% lower at 80.5 sen on Tuesday, valuing the property trust at RM543.9 million. The counter has declined 14.36% so far this year.

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