UOA REIT declares 3.94 sen distribution as 2Q property income jumps 30.8%

KUALA LUMPUR (July 23): UOA REIT (KL:UOAREIT) declared an interim income distribution of 3.94 sen per unit as its second-quarter net property income surged 30.8% year-on-year on improved occupancies and lower maintenance costs.

NPI for the three months ended June 30, 2026 (2QFY2026) rose to RM23.48 million from RM17.96 million in 2QFY2025, while property income saw an increase of 10.7% to RM33.32 million from RM30.09 million.

"Total expenses declined largely due to lower property operating expenses, as the previous corresponding quarter had included higher maintenance fees and sinking fund contributions for asset enhancement initiatives. This was partially offset by higher non-property expenses, driven by increased financing costs," the REIT said in a statement on Wednesday.

Unitholders will be entitled to a distribution of 3.94 sen per unit on Aug 5, with the payment — translating to a total payout of RM26.62 million — scheduled for Aug 28.

For the first six months of FY2026, the REIT's NPI rose 35.76% to RM48.56 million from RM35.77 million in the corresponding six months in FY2025, as property income rose 10% to RM65.75 million from RM59.78 million.

The REIT manages a commercial portfolio with an aggregate fair value of RM1.73 billion as at June 30, 2026, comprising prime office locations including the UOA Corporate Tower, Menara UOA Bangsar, UOA Damansara I & II, as well as the UOA Centre and UOA II parcels.

The REIT's manager said its property performance had been supported by improved occupancy rates across its portfolio, while overall demand for office space is projected to remain resilient. "We do not expect major fluctuation in the occupancy rates of the properties in the portfolio… as the demand for office space is expected to continue to remain stable in the remaining quarters of FY26," it said.

Looking ahead, the manager said it will "continue to proactively manage the properties within its portfolio to deliver sustainable returns to unitholders, while exploring potential acquisition opportunities going forward".

Following the release of the 2Q results, UOA REIT units closed 3.07% or 84 sen higher on Wednesday, giving the group a market capitilisation of RM550.6 million.

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