Atrium REIT falls short of projections

KUALA LUMPUR: Atrium Real Estate Investment Trust (REIT) fell short of its pre-tax profit and gross revenue projections for the year ended Dec 31, 2009 by 15% and 5.6% respectively.

Atrium REIT Managers Sdn Bhd told Bursa Malaysia that the trust's pre-tax profit fell to RM8.598 million from RM17.112 million in the previous year while revenue dropped to RM12.984 million from RM13.691 million.

In the prospectus dated Feb 28, 2007, Atrium REIT projected a gross rental income of RM13.750 million and pre-tax profit of RM10.121 million for the financial year ending Dec 31, 2009.

"The trust's performance was affected by the shortfall in revenue from Atrium Shah Alam 2 and the repairs and rectification costs incurred for Atrium Shah Alam 2," it said in the Jan 21 filing.

For 2010, all the properties of the Atrium REIT were expected to maintain its 100% occupancy rates due to their competitive rental rates, strategic locations and excellent facilities, it said.

The manager would 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 added. – Bernama