Tower REIT 4Q net profit falls 33% to RM8.5m

KUALA LUMPUR: Tower Real Estate Investment Trust (Tower REIT) has posted a net profit of RM8.5 million for its fourth quarter (4Q) ended Dec 31, 2010, down 33% from RM12.7 million a year ago.

The fall was despite an 11% increase in revenue to RM13.1 million from RM11.8 million a year ago, it announced to Bursa Malaysia on Monday, Jan 31.

For the financial year ended Dec 31, 2010, the fund had recorded a 14% decline in net profit to RM30.7 million from RM35.8 million a year ago, while its revenue slipped to RM49.2 million from RM49.8 million.

The REIT's performance was attributed to the lower occupancy of its Menara HLA and HP Towers. Its other asset is Menara ING.

Its net asset value (NAV) after income distribution for the financial year stood at RM1.624, up slightly from RM1.619 a year ago.

The fund manager GLM REIT Management Sdn Bhd said the office market is expected to remain competitive on new incoming supply of space, but added that the government's efforts to liberalise the business environment and economy-transforming measures should augur well for the market.

It expects the funds' performance to be sustained this year, said the manager.

In a separate announcement, the fund has declared an entitlement of 5.5 sen, taxable in the hands of unitholders, for its financial year ended Dec 31, 2010.