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UOA REIT records income of RM10.7m

KUALA LUMPUR: UOA Real Estate Investment Trust (REIT) recorded an income of RM10.696 million for its fourth quarter (4Q) ending Dec 31, 2010, bringing its cumulative total for its financial year 2010 (FYE2010) to RM42.81 million.

After deducting its expenditure, the trust has set aside RM6.083 million as provision for income distribution for 4Q it said in a Bursa Malaysia filing on Friday, Jan 14.

Gross rental in 4Q decreased by 2.95%, while operating expenses increased by 22.78% compared to a year ago.

UOA attributed the decrease in gross rental to pressure on rental rates and reduced occupancy in some of its older properties such as UOA Damansara parcels and UOA Centres parcels. The increase in operating expenses arose mainly from facilities fees and stamp duty in respect of obtaining additional bank borrowings for the acquisition of Wisma UOA Damansara II and Menara UOA Bangsar.

With the completion of refurbishment works in UOA Damansara, the upgrading is expected to attract new tenants. Occupancy rate has increased by about 8% from a year ago, and the trust anticipates this trend will continue.

The overall occupancy rate for FYE 2010 is at least 85%. As the economy continues to improve, UOA expects occupancy and rental rates to increase.
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