Tower REIT FY2026 net profit jumps 73% on higher occupancy, rental growth

PETALING JAYA (Aug 4): Tower Real Estate Investment Trust (Tower REIT) posted a 73% increase in net profit to RM12.46 million for the financial year ended June 30, 2026 (FY2026), driven by higher occupancy, increased rental rates and lower interest expense.

The manager, in a Bursa Malaysia filing on Monday (Aug 3), declared a final income distribution of 0.60 sen per unit, bringing the trust's total distribution for FY2026 to 1.90 sen per unit, up from 1.22 sen in the previous financial year.

Revenue rose 7.9% to RM42.0 million, while profit before tax increased 73.8% to RM12.51 million. Basic earnings per unit improved to 2.54 sen from 1.47 sen previously.

For the fourth quarter, net profit nearly quadrupled to RM3.74 million from RM962,000 a year earlier as revenue increased 7.3% to RM10.44 million. The manager said the stronger performance was driven by higher occupancy across the portfolio, increased rental rates at Menara HLX and Menara Guoco, as well as lower interest expense.

Separately, Tower REIT completed its annual revaluation of Menara HLX, Plaza Zurich and Menara Guoco, resulting in a modest fair value gain and valuing its investment property portfolio at RM807 million. The exercise was conducted by Rahim & Co International Sdn Bhd.

Net asset value per unit stood at RM1.1685 as at June 30, 2026, compared with RM1.1601 a year earlier.

The final income distribution will be paid on Aug 28 to unitholders whose names appear in the Record of Depositors on Aug 18.

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