AmFIRST REIT 1Q profit before tax doubles to RM6.64m as occupancy improves

PETALING JAYA (Aug 18): AmFIRST Real Estate Investment Trust saw its profit before tax more than double to RM6.64 million for the first quarter ended June 30, 2026 (1QFY2027), from RM3.27 million a year earlier, helped by improved operating performance and a swing in unrealised valuation movements. 

In a Bursa Malaysia announcement on Monday (Aug 17), AmFIRST REIT said quarterly revenue was broadly flat at RM27.55 million, down 0.8% from RM27.76 million a year earlier, while earnings per unit rose to 0.96 sen from 0.48 sen.

Realised revenue from operations, however, increased 7.5% to RM27.24 million from RM25.34 million, driven mainly by higher occupancy across most properties, which lifted rental and car park income, as well as a stronger contribution from its co-working space operations. Overall portfolio occupancy increased to 88.3% from 83.1% a year earlier.

The improvement was partly offset by the absence of RM1.7 million in one-off compensation for the waiver of reinstatement liability recognised in the corresponding quarter, as well as the closure of The Summit Hotel in December 2025 for a major refurbishment and rebranding exercise.

Property expenses declined 1.9% to RM11.35 million, mainly due to lower repair and maintenance expenses and lower net electricity costs, leaving net property income little changed at RM16.2 million versus RM16.19 million a year earlier.

The increase in bottom-line profit also reflected a swing in unrealised valuation movements. AmFIRST REIT recorded a RM341,000 unrealised fair-value gain on derivatives, compared with a RM2.29 million loss a year earlier, as well as a RM284,000 unrealised gain on financial liabilities measured at amortised cost, versus a RM29,000 loss previously.

Realised net income from operations rose 10% to RM5.64 million from RM5.13 million.

No distribution was declared for 1QFY2027. During the quarter, the REIT paid a final distribution of 1.60 sen per unit, amounting to RM10.98 million, for the six-month financial period ended March 31.

Almost 90% occupancy 

In its corporate presentation, AmFIRST REIT said committed portfolio occupancy reached 89.3% as at end-June, up from 88.7% at the end of FY2026 and the highest level since FY2014, while actual occupancy stood at 88.1%.

Its investment portfolio comprises Bangunan AmBank Group, Wisma AmFIRST, The Summit Subang USJ, Prima 9, Prima 10, Jaya 99 and Mydin Hypermall in Bukit Mertajam. Menara AmBank is classified as a non-current asset held for sale pending its proposed disposal.

AmFIRST REIT entered into a conditional sale and purchase agreement with AmBank (M) Bhd on June 8 to dispose of Menara AmBank for RM331 million cash. Barring unforeseen circumstances and subject to the requisite approvals and consents, the disposal is expected to be completed by the fourth quarter of 2026.

As at June 30, AmFIRST REIT had total borrowings of RM774.1 million and a gearing ratio of 46.4%. Its weighted average interest cost was 4.09%, while weighted average debt maturity stood at about three years. The REIT had RM250 million of borrowings hedged through interest-rate swaps, equivalent to 32.3% of total borrowings.

Net asset value stood at RM831.55 million, or RM1.2115 per unit, compared with RM835.90 million, or RM1.2178 per unit, at end-March.

On its outlook, the manager said the portfolio continued to benefit from high occupancy and positive rental reversions across selected assets. It remained cautiously optimistic and said it would focus on proactive asset management, prudent capital management and selective portfolio rationalisation and diversification initiatives.

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