Sentral REIT's property income slips in 2Q amid rising costs, to pay out 3.17 sen per unit

KUALA LUMPUR (Aug 6): Sentral REIT (KL:SENTRAL) reported a slight decline in its net property income as operating expenses rose faster than the rentals in the recently-ended quarter.

Net property income for the three months ended June 30, 2026 (2QFY2026) was RM35.78 million, a 3.2% decline when compared to the same quarter last year, Sentral REIT said in an exchange filing on Thursday. Property expenses rose 19% year-on-year during the quarter.

The real estate investment trust, nevertheless, raised income distribution to RM37.9 million or 3.17 sen per unit payable on Sept 18. Sentral REIT distributes income to shareholders twice a year.

“We will maintain our focus on growing and repositioning Sentral REIT’s property portfolio to adapt to market changes,” amid ongoing supply pressures in the Klang Valley office market, chairman Tan Sri Saw Choo Boon said in an accompanying statement.

Sentral REIT owns and manages 10 assets worth RM2.6 billion combined in Klang Valley and Penang. The trust’s flagship asset is the Platinum Sentral, a massive commercial development within the KL Sentral transport hub complex.

The latest addition to its portfolio is the retail shop lots in Arcoris Mont’ Kiara, which has also contributed to income during the quarter.

For the first six months, net property income slipped 2.3% year-on-year to RM71.78 million. Average occupancy rate rose by four percentage-points to 89% at the end of June. The trust also managed to renew 88,000 square feet of the 451,000 square feet of net lettable area due for renewal this year.

Negotiations for leases that are not yet up for renewal is in progress, the company noted.

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