Al-Hadharah Boustead REIT post lower 2Q net profit

KUALA LUMPUR: For its second quarter for the financial year ending Dec 31, 2010 (2QFYE10), Al-Hadharah Boustead REIT's net profit decreased 3.8% to RM15.9 million, compared with RM16.5 million in the same period a year ago due to unrealised loss on valuation of quoted securities.

The company said on Friday, Aug 13 that revenue for the quarter was RM18 million, up 1.45% compared with RM17.8 million a year ago. Earnings per share stood at 2.86 sen compared with 2.97 sen a year earlier.

For the six months under review, Al-Hadharah posted a net profit of RM32.6 million, down 11.4% from RM36.8 million recorded in the same period last year due to absences of gains on disposal of investment properties, and unrealised gain on valuation of quoted securities.

The fund recorded higher first half revenue of RM36.3 million compared to RM33.6 million in the same period a year ago due to revised fixed rental coupled with higher performance-based rental. Earnings per share stood at 5.85 in the six months under review compared to 6.61 sen in the same period a year earlier.

Al-Hadharah Boustead REIT expects the fund to continue to perform satisfactorily for the rest of the year, with palm oil prices expected to remain healthy “given the potential supply disruptions due to weather conditions and increasing demand for edible vegetable oil”.