Tower REIT registers net profit of RM7.3m

KUALA LUMPUR: Tower Real Estate Investment Trust (Tower REIT) registered a lower net profit of RM7.3 million for the second quarter ended June 30, 2010 (2QFY2010), from RM7.7 million the previous year, caused by a drop in average occupancy rate of Menara HLA after two long-term anchor tenants moved out of the building.

Revenue also dropped 4.75% to RM12.2 million from RM12.76 million a year ago. The trust's net asset value (NAV) was RM454.7 million, while its NAV per unit was RM1.62.

Its basic earnings per share for the quarter was 2.61 sen, from 2.75 sen the previous year.

Its manager GLM REIT Management Sdn Bhd said in a filing to Bursa on Thursday, July 22, that it expects the outlook of the office market to stabilise as the economy continues to recover with the government's initiative to stimulate economy by further liberalising the business environment.

However, it also expects occupancy and rental rates to be under pressure due to the considerable amount of incoming new supply.

The manager declared an interim income distribution of 4.5 sen per unit, amounting to RM12.62 million. This represents approximately 91% of the distributable net income (realised) for the six-month period ended June 30, payable on Aug 23 to unitholders as of Aug 9.

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