Atrium REIT 4Q17 net property income up 13.6%, pays 1.85 sen DPU

KUALA LUMPUR (Feb 8): Atrium Real Estate Investment Trust (REIT) closed its fourth quarter ended Dec 31, 2017 (4QFY17) with a net property income of RM4.02 million, up 13.58% from RM3.54 million recorded a year ago.

The uptick follows the full rent-out of its Atrium Shah Alam 2, Selangor in the quarter under review, said Atrium REIT in a filing with Bursa Malaysia today.

Earnings per share was higher at 1.78 sen compared with 1.52 sen. Quarterly revenue rose 9.79% to RM4.32 million in 4QFY17 from RM3.93 million in 4QFY16.

The REIT also declared a fourth and final dividend per unit (DPU) of 1.85 sen for FY17, bringing its DPU for the year to 7.4 sen. The latest payout will be issued on March 16.

For the full FY17, Atrium REIT’s net property income climbed 23.07% to RM15.18 million from RM12.34 million a year ago. Revenue rose 19.15% to RM17.3 million from RM14.52 million in FY16.

“The gross revenue increased due mainly to the rental income from Atrium Shah Alam 2 which was fully rented when the tenant took over the vacant possession of Phase 2 space on Jan 1, 2017,” said the REIT.

On ongoing maintenance programmes, Atrium REIT said its RM9.65 million asset enhancement initiative (AEI) to upgrade Atrium Shah Alam 3 (ASA3) to a Grade A logistics warehouse — to cater to its new tenant which is an international logistics company — is to be completed by 2QFY18.

The REIT is targeting to complete the handover of the vacant ASA3 concurrent with the completion of the AEI, which will result in all of its properties being fully tenanted.

“The existing tenant for Atrium Puchong has given a notice of early termination of its tenancy and has secured a replacement tenant in its place. The new tenancy shall commence in January 2018,” it added.

Atrium REIT units were untraded today. They last closed unchanged at RM1.09, giving the REIT a market capitalisation of RM132.76 million. — theedgemarkets.com

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