AmFIRST posts net property income of RM31.42 million

KUALA LUMPUR: AmFIRST Real Estate Investment Trust (AmFIRST) recorded net property income of RM31.42 million for its six-month financial period ended Sept 30, up 2.1% from a year ago.

Its gross revenue dropped 2.1% to RM47.20 million while its income after taxation declined 1.6% to RM20.59 million, and property expenses were lower by 9.6%.

“Despite a marginal slip in gross revenue and income after taxation for the first half period, we are pleased to report a fair performance of all six AmFIRST’s assets during the six months period,” said Lim Yoon Peng, Am ARA REIT Managers Sdn Bhd (Am ARA) chief executive officer on Wednesday, Nov 3.

Am ARA is manager of AmFIRST.

The trust declared an interim income distribution of 4.81 sen per unit for the first half of the financial period ended Sept 20, 2010, a marginal decline by 1.2% a year ago.

The overall occupancy of property portfolio recorded a marginal increase to 83.59% as at Sept 30, 2010. This is due to new lettings at The Summit Subang USJ (The Summit).

Higher portfolio rental reversion also took place at four of its buildings, namely Bangunan AmBank Group (BAG), AmBank Group Leadership Centre (AGLC), Kelana Brem Towers (KBT) and The Summit.

“We have recorded a higher rental reversion of 8.1% and a bulk of it took place at AGLC (50%), followed by The Summit retail podium (12.5%), KBT (9.6 %) and BAG (4.2 %),” said Lim.

On asset enhancement initiatives, the renovation and refurbishment of The Summit Hotel was completed in August 2010.

Meanwhile, BAG is scheduled to begin refurbishment exercise in December 2010. The refurbishment work — which includes improving the building’s lifts and lobby, cafeteria and washrooms — is expected to be completed by July 2011.

These activities will position the properties to remain competitive in the market and increase its current level of occupancy, it said.

On the acquisition front, AmFIRST is in the process of completing the potential acquisition of a retail lot at The Summit and FSBM Plaza, Cyberjaya by December 2010 and February 2011 respectively.