Atrium REIT sees higher profit

KUALA LUMPUR: Atrium Real Estate Investment Trust (Atrium REIT) saw its net profit growing 49% to RM4 million in its fourth quarter ended Dec 31, 2010 (4QFY10), from RM2.7 million the previous year.

In a filing to Bursa Malaysia on Tuesday, Jan 25, the trust said the higher profit was mainly due to the revaluation gains on the investment properties, despite it recorded higher expenses and borrowing costs for the quarter under review.

It also reported flat revenue of RM3.51 million this quarter, compared to RM3.54 million a year earlier.

For the financial year ended Dec 31, 2010 (FY2010), Atrium REIT achieved a net profit of RM11.9 million, compared to RM8.6 million in FY2009, on the revaluation gains on the investment properties and the maintenance costs returning to normal.

The revenue for the financial year was RM14.17 million, a slight increase from RM12.98 million the previous year.

"Barring any unforeseen circumstances, the manager (Atrium REIT Managers Sdn Bhd) expects all the properties of the Atrium REIT to maintain its 100% occupancy rates for 2011, due to their strong tenants, competitive rental rates, strategic locations and excellent facilities.

"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 added.

BHLB Trustees Bhd, the trustee of Atrium Reit, has carried out the revaluation of the investment properties held by Atrium REIT — namely Atrium Shah Alam 1, Atrium Shah Alam 2, Atrium Puchong and Atrium Rawang.

The open market value of Atrium Shah 1 is RM62 million; Atrium Shah Alam 2is RM54.5 million; Atrium Puchong at RM38.5 million, while Atrium Rawang is RM8 million.