Quill Capita posts 8.3% jump in profits

KUALA LUMPUR (Nov 4): Quill Capita Trust (QCT), which is managed by Quill Capita Management Sdn Bhd (QCM), posted RM9.4 million net profit for its 3QFY11 ended Sept 30. This is an increase of 8.3% from RM8.6 million a year ago due to higher rental income contribution from properties and lower property expenses.

Its revenue also saw a slight increase to RM17.6 million from RM17.3 million in the same period last year while its earnings per unit is at 2.41 sen, up 8.6% from 2.22 sen.

QCT's year-to-date nine-month net profit stood at RM26.2 million compared with RM25 million in the same consolidated period last year. Revenue also rose by 1.6% to RM52.7 million from RM51.9 million.

"Our active asset management strategies have ensured income stability through securing lease renewals. To date, we have secured renewals as well as signed new tenants for our leases due in 2011.

"Looking ahead, we are confident that despite current market uncertainties, QCT will be able to continue to deliver stable returns to its unit holders in 2011," said QCM chairman Datuk Mohammed Hussein in a statement to Bursa Malaysia on Thursday.

Hussein also said the government's decision to grant a five-year extension on the concessionary withholding tax rate of 10% on dividends for non-corporate institutions and individual unit holders is expected to aid the development and maintain the attractiveness of the Malaysian REIT industry.

The statement also said QCT has secured commitments for its new commercial paper (CP) of RM118 million to refinance its existing CP of a similar amount, due on Nov 30, 2011, which completes all its financing requirements in 2011 and 2012. This new debt will expire on Sept 5, 2016.

"For the remaining months of the year, QCM will continue to focus on proactive asset management strategies to improve tenant relations and to continue its effort to enhance the quality of its properties.

"QCM will also continue to adopt prudent capital management strategies, as well as to look out for potential yield accretive acquisition opportunities," noted its announcement to Bursa Malaysia.