MQ REIT aims to maintain 98% occupancy rate despite softer market sentiment

KUALA LUMPUR (April 5): MRCB-Quill Real Estate Investment Trust (MQ REIT) is aiming to maintain its average 98% occupancy rate in terms of net lettable area this year albeit subdued market sentiment and challenging economic environment.

MQ REIT chairman Tan Sri Saw Choo Boon said there are still rental and occupancy rate pressure for this year although more new buildings are coming in.

"Our (MQ REIT) current occupancy rate stood at 98% as of Dec 31, 2016 and this year we hope to maintain it because we have 17% due for renewal.

"Although on macro basis the economy is expected to do better than last year, however, the main factor is the influx on the new office space. So we will face challenges," he told reporters at a news conference in conjunction with the group's annual general meeting today.

Despite the challenging economy, Saw said the group has a long-term business, which is more than three years.

"What is good on our portfolios is that we have high percentage of long-term business [length of the tenancy agreement] which allowed us to tide over this difficult period.

"I think in the next two to three years, it will remain challenging and the influx of the office space is quite significant up to 2019," he said.

Meanwhile, MQ REIT chief executive officer Yong Su-Lin said the 17% due for renewal will be carried out in the middle to the end of the year.

"We are in talks with the tenants and we want to renew all if [possible]," she said.

The REIT's active leasing and asset management strategy throughout the year has ensured successful tenant renewals of 87% for the leases due in 2016. — theedgemarkets.com

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