Tower REIT's pre-tax profit up marginally in 3Q

KUALA LUMPUR: Tower Real Estate Investment Trust (Tower REIT) announced on Wednesday, Nov 10 that pre-tax profit for its third quarter ended Sept 30, 2010, increased slightly to RM7.777 million from RM7.707 million in the same quarter last year.

Revenue rose to RM12.975 million from RM12.744 million previously, it said in a statement.

For the nine-month period, pre-tax profit declined to RM22.208 million from RM23.133 million in the corresponding period last year as revenue dropped to RM36.161 million from RM38.047 million.

Tower REIT attributed the decline of performance for the period to lower average occupancy rate of Menara HLA and HP Towers, which together constituted 83 per cent of its investment portfolio of RM602.135 million.

As for prospects, it said that the office market is expected to remain competitive due to new completions coming onstream.

However, the government's initiative to stimulate the economy by further liberalising the business environment and implement more measures towards transforming the economy may boost demand for quality offices and help cushion the impact of impending new supply, it added.

Tower REIT said its manager will continue to proactively manage the assets under under its portfolio in order to safeguard rental income stream and continue to explore acquisition opportunities actively.

It expects to continue to sustain its performance for the remaining period of the financial year ending Dec 31, 2010. — Bernama
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