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Al-Hadharah Boustead REIT sees 44% rise in 3Q net profit

KUALA LUMPUR (Nov 17): Al-Hadharah Boustead REIT, the country's only Islamic plantation-based Real Estate Investment Trust, continued to see gains from recent acquisitions as its 3QFY11 net profit rose 44.7% to RM27.2 million from RM18.8 million last year.

It said additional rental from the newly acquired Taiping Rubber Plantations and Sutera Estates contributed to an increase in its fixed rental income, which rose 12% year-on-year to RM49.1 million from RM43.6 million.

Additionally, its performance-based profit sharing more than doubled to RM28.1 million from RM11.6 million in the previous year.

"We are pleased with the results for the year to date. Clearly there is a greater usage of palm oil particularly among established markets in Asia. The REIT is expected to benefit from this strong demand given that crude palm oil prices should remain within a favourable pricing range," said chairman Tan Sri Lodin Wok Kamaruddin in a media statement.

The company expects a satisfactory performance for the remainder of the year as its performance-based profit sharing remains at healthy levels and crude palm oil (CPO) prices stay strong.

Overall rental income in the quarter rose 44.7% to RM27.2 million from RM18.8 million last year.

Net asset value per unit remained at RM1.42.

For 1HFY11, the company distributed RM25.07 million or 4 sen per unit.

It earlier distributed RM34.5 million, or 6.8 sen per unit, for FY10.

"With our strong dividend payout track record and the healthy movement of our unit price, we are confident investors will benefit from their investments in the REIT despite current capital market conditions," said Lodin.

The REIT ended 1 sen higher at RM1.48 on Wednesday on a thin volume of 3,000 units traded.

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