Quill Capita Trust 1Q2010 net profit up 1.7% to RM7.48 million

KUALA LUMPUR: Quill Capita Trust’s net profit for 1Q ended March 31, 2010, rose 1.7% to RM7.48 million from RM7.35 million a year ago, driven by higher income contribution from properties and lower borrowing costs.

In a statement on Tuesday, April 20, Quill Capita Management Sdn Bhd (QCM), the manager of the real estate investment trust (REIT) said QCT registered gross revenue of RM17.19 million in 1Q2010, a 1.6% increase from RM16.92 million last year.

The realised earnings per unit (EPU) increased by 2.1% to 1.92 sen from 1.88 sen in 1Q2009, it said.

QCM said the improvement in the realised income after taxation and realised EPU was due mainly to higher income contribution from the properties and lower borrowing costs.

Its chairman Datuk Mohammed Hussein said “QCT has consistently delivered strong performance, driven mainly by higher rental income from our quality portfolio and savings from our active cost and capital management strategies”.

"QCT has successfully renewed all tenancies due in 2009. For 2010, 99% of the total net lettable area of its portfolio has already been committed.

"Moving forward, we will continue the efforts to drive quality asset-enhancement initiatives and build strong tenant relations to ensure high tenant retention rates," he said.

Mohammed said QCT would continue to explore yield-accretive acquisition opportunities to enhance the returns of the REIT.

QCM chief executive officer Chan Say Yeong said in terms of capital management, QCT's borrowing costs this quarter had been reduced by approximately 3.9% compared with 1Q2009, following the refinancing of the short-term debts of RM72 million to a five-year term loan facilities.

"Furthermore, despite the interest rate hike announced by Bank Negara Malaysia on March 12, 2010, QCT's cost of borrowings remains relatively unaffected as approximately 96% of our borrowings are already on fixed interest rates," he said.

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