UOA REIT 2Q rental income doubles from low base to RM22m

KUALA LUMPUR (July 23): UOA Real Estate Investment Trust’s (UOA REIT) rental income rose 98.18% to RM22.07 million in the April-June quarter from its low base of RM11.13 million in the same quarter last year at the height of the Movement Control Order (MCO).

Earnings per unit for the second quarter ended June 30, 2021 rose to 2.21 sen, from 1.67 sen a year ago.

Quarter-on-quarter, however, the REIT’s rental income weakened 2.77% from RM22.69 million in the first quarter.

On a year-on-year basis, quarterly gross rental income rose 80.49% to RM28.97 million from RM16.05 million, while total expenditure increased 57.8% to RM14.01 million from RM8.88 million, and about half or RM7.11 million is attributable to non-property operating expenses.

“The increase in gross rental and total expenditure was mainly due to the acquisition of UOA Corporate Tower at the end of 2020,” UOA REIT said in a stock exchange filing yesterday.

For the six months ended June 30, 2021, the REIT’s net rental income rose 74.52% to RM44.76 million from RM25.65 million in the previous January-June period.

Gross rental rose 63.18% to RM58.47 million from RM35.83 million, the filing showed.

On prospects, UOA REIT acknowledged the soft market sentiment currently which continues to influence occupancy and rental rates.

“The manager will continue to actively manage the properties in the portfolio with prudent capital management in order to maximise the yields for unitholders.

“Meanwhile, the manager will continue to explore new opportunities for future acquisitions that meet the objectives of UOA REIT,” it said.

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