Atrium REIT 1Q net income up 27%

KUALA LUMPUR: Atrium Real Estate Investment Trust's (Atrium REIT) net income after tax rose by an annual pace of  27.1% to RM2.63 million in the first quarter ended March, from RM2.07 million, as revenue grew amid lower  property expenses, besides finance and administrative costs.

In a statement to the exchange on Tuesday April 27, Atrium said its revenue was up 23% to RM3.54 million from  RM2.88 million.

"Barring any unforeseen circumstances, the manager expects all the properties of the Atrium REIT to maintain its  100% occupancy rates for 2010.

"The 100% occupancy rates of the properties are due to their competitive rental rates, strategic locations, and  excellent facilities," said Atrium REIT whose portfolio comprises mainly industrial assets including warehouses,  and offices within Selangor.

According to Atrium REIT's website, its four freehold properties, of which, two are located within Shah Alam,  and one each in Puchong and Rawang, have a combined market value of RM161.6 million, based on the latest  valuation exercise in December 2008.

Atrium's statement to the exchange indicated that leases for Atrium Shah Alam 1, and Atrium Puchong would expire  on December 31, and September 18 this year respectively.

The property trust's manager Atrium Reit Managers Sdn. Bhd is in talks with existing tenants of both properties  to renew the leases.

Atrium Shah Alam 1 is occupied by Exel Properties (M) Sdn Bhd, while Atrium Puchong is accommodating Danzasmal Domestic Logistics Services Sdn Bhd. Atrium REIT said the renewals were expected to be secured by the second the quarter of this year,

“The manager will continue to actively identify good assets for new acquisition to improve the yield and to  continue focusing on the strategy of having the investment properties leased long-term to reputable tenants,” it  said.