MQREIT 2Q NPI up 5.7% on higher income from Platinum Sentral

KUALA LUMPUR (Aug 3): MRCB-Quill REIT’s (MQREIT) net property income (NPI) for the second quarter ended June 30, 2016 grew 5.7% to RM25.69 million from RM24.31 million a year ago, driven by higher income from Platinum Sentral and selected properties due to positive rental reversions, as well as lower property operating expenses.

Gross revenue for the quarter gained 1.2% to RM32.57 million from RM32.18 million a year ago due also to the same reason.

The trust manager declared a distribution per unit (DPU) of 4.23 sen, amounting to RM27.98 million, payable on Sept 8, which is 3.2% higher than the 4.10 sen DPU distributed in 1HFY15.

For the 1HFY16, its NPI gained 34.6% to RM51.15 million from RM37.99 million a year ago, while gross revenue rose 28.4% to RM65.22 million from RM50.78 million.

MQREIT chairman Tan Sri Saw Choo Boon said the better performance for 1HFY16 was achieved mainly through its proactive approach towards asset and portfolio management and cost management.

“Notwithstanding the subdued economic climate which has impacted business sentiment, we believe MQREIT would be able to deliver steady income distribution to unitholders for the second half of 2016,” he said, adding that the trust manager will continue with its current strategies as well as actively look for acquisition opportunities as part of its growth strategy, to enhance unitholder value.

Meanwhile, its chief executive officer Yong Su-Lin said MQREIT has successfully renewed 87% of the leases due for renewal in 1HFY16 and is in advanced talks with tenants for the balance leases due for renewal this year.

She said MQREIT’s average occupancy rate is resilient at 97.2% in terms of net lettable area as at June 30, 2016.

Besides proactively retaining tenants, Yong said MQREIT also successfully signed new leases with high quality tenants, which included BMW Credit Malaysia Sdn Bhd.

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This article first appeared in The Edge Financial Daily, on Aug 3, 2016. Subscribe to The Edge Financial Daily here.