AmFirst reports RM10.3m 3Q net profit

KUALA LUMPUR: AmFIRST Real Estate Investment Trust (AmFIRST REIT) posted a net profit of RM10.3 million in its third quarter (3Q) for the financial year ending March 31, 2011, an increase of 7.8% from RM9.6 million in the preceding year's corresponding quarter due to the compensation of land acquisition at The Summit Subang USJ.

In a filling to Bursa Malaysia on Tuesday, Feb 8, AmFIRST reported revenue of RM22.2 million in the third quarter of FY2011, a drop of 9.9% from RM24.6 million a year ago, mainly due to the drop in average occupancy rate of Kelana Brem Tower.

Basic earnings per share stood at 2.41 sen in the quarter under review, compared to 2.24 sen a year earlier.

For the nine months under review, AmFIRST reported a net profit of RM30.9 million, a slight increase from RM30.5 million in the preceding year corresponding period. Revenue stood at RM69.4 million in 3Q2011, a drop of 4.8% from RM72.9% achieved in the same period last year.

AmFIRST said that the drop in revenue was due to lower occupancy rate and hotel's rental rebates to compensate for the disruption to The Summit Hotel operations during the recent refurbishment works.

On the future prospect, AmFIRST said that the outlook of office-space market is expected to remains challenging as office rents is forecast to further face a marginal downward pressure due to a significant anticipated cumulative supply of office-space that will come on stream in the next few years.

However, it added that the current tenancy profile and diversity of the tenants mix are expected to mitigate the impact of the bottom-line in the remaining period of the financial year.