Atrium REIT’s 2Q net profit rises on ASA5 and rental step‑ups, declares 2.6 sen distribution

PETALING JAYA (July 30): Atrium Real Estate Investment Trust (Atrium REIT) reported higher net profit for the second quarter ended June 30, 2026 (2QFY2026), driven by the commencement of tenancy at Atrium Shah Alam 5 (ASA5), higher rental contributions from Atrium Shah Alam 3 (ASA3) following tenant transitions, and rental step‑ups on selected leases.

It said in a Bursa Malaysia filing on Wednesday (July 29)  that net profit for the quarter rose 25.1% to RM7.95 million from RM6.35 million a year earlier, while reported revenue, including unbilled lease income recognised under MFRS 16, increased 11.7% to RM13.92 million from RM12.46 million. Earnings per unit improved to 2.99 sen from 2.39 sen previously.

Atrium REIT declared a second interim income distribution of 2.60 sen per unit for the three‑month period from April 1 to June 30, 2026, up from 2.20 sen a year earlier. The second interim distribution is scheduled to be paid on Aug 28, with an ex‑date of Aug 11 and book closure on Aug 12. Cumulative distributions for the first half of 2026 amount to 5.10 sen per unit, compared with 4.30 sen in the corresponding period last year.

Gross revenue for the quarter rose to RM13.67 million from RM12.03 million, reflecting those leasing improvements together with rental rate step‑ups for selected existing leases. Lower provisions for scheduled maintenance and repair works reduced property operating expenses, lifting net rental income to RM12.46 million from RM10.93 million a year earlier.

Trust expenses were slightly higher than a year ago, mainly due to increased finance costs following the issuance of Medium Term Note Tranche 5A and the utilisation of additional overdraft facilities, as well as legal fees incurred for ASA3’s new tenancy. The impact was partially mitigated by lower manager’s fees and administrative expenses.

For the six months ended June 30, 2026, Atrium REIT’s reported revenue climbed 9.8% to RM27.25 million from RM24.81 million, with gross revenue rising 12.5% to RM26.94 million from RM23.94 million on the back of ASA5’s tenancy commencement, ASA3’s transition‑related rental contribution and rental step‑ups. Net profit for the period increased 21.2% to RM15.24 million from RM12.57 million, while realised net income grew 27.6% to RM14.93 million from RM11.70 million.

As at June 30, 2026, Atrium REIT’s net asset value (NAV) stood at RM374.38 million, up from RM368.44 million at end‑2025, with NAV per unit before income distribution rising to RM1.4098 from RM1.3874. After reflecting the second interim income distribution of 2.60 sen per unit, NAV per unit stood at RM1.3838. The trust’s property portfolio remained fully occupied at 100%, with a slight rental rate appreciation due to a change of tenant at ASA3.

Atrium REIT’s nine‑asset industrial and logistics portfolio — comprising properties in Shah Alam, Puchong, USJ and Bayan Lepas — had a total net book value of RM695.20 million as at end‑June. The manager also said it intends to utilise the remaining proceeds from its rights issue to extend the land lease tenure for Atrium Bayan Lepas 1 (ABL1), following the board’s approval to extend the utilisation period to Dec 31, 2026.

Looking ahead, the manager remains cautious amid geopolitical tensions, including the Iran–US–Israel conflict and related disruptions to energy and commodity markets and supply chains, but expects Atrium REIT’s portfolio to remain resilient and to continue delivering sustainable performance in FY2026. It noted that the stable Overnight Policy Rate of 2.75%, continued demand for industrial and logistics facilities, and the trust’s stable financial position should help support earnings for the rest of the year.

..........

Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!