Sentral REIT posts lower 4Q NPI on higher costs, declares DPU of 2.99 sen

KUALA LUMPUR (Jan 26): Sentral REIT (KL:SENTRAL) posted a slight decline in net property income (NPI) in the fourth quarter, weighed down by higher operating expenses and lease accounting under MFRS 16.

NPI for the quarter ended Dec 31, 2025 (4QFY2025) stood at RM35.5 million, down 3.4% from RM36.7 million a year earlier, according to the office tower property trust in a bourse filing on Friday.

Revenue fell 1.8% to RM47.4 million from RM48.2 million, while property operating expenses rose 3.4% to RM11.9 million from RM11.5 million.

Sentral REIT said the decline in revenue was mainly due to lease revenue being straight-lined over the lease term under MFRS 16, partly offset by higher contributions from Platinum Sentral, Lotus’s Building Penang and Plaza Mont Kiara.

The increase in operating expenses was mainly driven by one-off equipment repair or replacement costs at some properties.

The trust’s portfolio occupancy rate remained stable at 86% at the end of December.

Sentral REIT declared a final distribution per unit (DPU) of 2.99 sen, payable on Feb 27.

For the full year, the trust's NPI fell 3.4% to RM145.3 million from RM150.4 million in FY2024, as revenue declined 2.1% to RM190.8 million from RM194.8 million. DPU stood at 6.15 sen, down from 6.36 sen in FY2024.

Looking ahead, the REIT said tenant-led market conditions and cost inflation are expected to continue exerting competitive pressure on the Klang Valley office market.

By contrast, the retail market is expected to remain stable, supported by steady domestic demand and rising tourist arrivals, despite higher living costs and retailer expenses.

The REIT manager said it will continue focusing on asset management strategies, including cost optimisation and asset enhancement, to maintain competitiveness and improve asset quality.

It also remains committed to a prudent investment strategy, pursuing yield-accretive acquisitions across diversified commercial properties while rebalancing the portfolio through opportunistic divestments.

Units in Sentral REIT ended 0.5 sen or 0.6% higher at 80.5 sen on Friday, valuing the property trust at RM962.4 million.

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