Quill Capita earnings up 5.2% on higher rental, lower expenditure

KUALA LUMPUR (May 4): Quill Capita Trust's (QCT) net profit rose 5.2% to RM8.1 million for 1QFY12 ended March 31 from RM7.7 million a year ago due to higher rental and lower expenditure.

The real estate investment trust's (REIT) revenue grew 1.5% to RM17.8 million from RM17.5 million, while realised earnings per unit was 2.07 sen versus 1.97 sen previously.

QCT manager Quill Capita Management Sdn Bhd (QCM) said revenue grew due to higher rental rates of some properties and lower expenditure.

Property operating expenses were higher at 0.2% while administrative expenses rose 10.2% on higher professional fees.

It also noted that finance costs fell 3.5% during the quarter due to lower interest costs.

"This is due to the manager's proactive interest rate management strategy to refinance QCT's borrowings and its ability to procure cheaper financing cost," said QCM chairman Datuk Mohammed Hussein in a statement.

He added that QCT does not have any refinancing requirements in 2012 as its borrowings are maturing in 2013 and beyond.

" We are mindful that 24% of QCT's leases [by net lettable area] are due for renewal in 2012 and have already started engaging the tenants for lease renewal negotiations," he added.

QCM said it would continue to explore acquisition opportunities and to drive asset enhancement initiatives.