Share
KUALA LUMPUR (Nov 10): Sentral REIT's net property income (NPI) rose by a marginal 0.2% to RM32.47 million for the third quarter ended Sept 30, 2021 (3QFY21) from RM32.4 million a year earlier.
Earnings per unit rose 3% to 2.06 sen from two sen for 3QFY20, the commercial real estate investment trust's (REIT) bourse filing showed.
Net distribution income also rose 3% to RM22.11 million from RM21.48 million, said the REIT, which is managed by Sentral REIT Management Sdn Bhd (SRM), whose shareholders are Malaysian Resources Corp Bhd (41%), Quill Resources Holding Sdn Bhd (39%) and Global Jejaka Sdn Bhd (20%).
The REIT’s revenue fell 3% to RM40.79 million from RM42.06 million for 3QFY20 due to lower revenue generated from its office buildings, namely Quill Building 3 — BMW, Plaza Mont Kiara, Wisma Technip and Menara Shell.
Property operating expenses totalled RM8 million, a decrease of RM1.3 million or 13.6% compared to 3QFY20, mainly due to lower operating expenses incurred for some of the properties under the portfolio, said Sentral REIT.
For the nine-month period ended Sept 30, 2021, the REIT’s NPI fell 3.9% to RM92.92 million, from RM96.68 million for the same period last year, as revenue dropped 3.2% to RM120.03 million from RM123.88 million.
No income distribution was declared for the third quarter. Year to date, the REIT has distributed 3.43 sen per unit or a total of RM36.76 million.
In a separate statement, Sentral REIT said its average cost of debt remained at a competitive 3.55% per annum with a lower aggregate gearing ratio of 37.1 as at Sept 30 — after an early repayment of a term loan amounting to RM40 million and deploying the one-off gain from its divestment of Quill Building 5 for early repayment of its term loan drawn in 2008 to acquire the building.
Operationally, the REIT said its portfolio occupancy was at a healthy 91%, while 22% of its total leased net lettable area or 440,000 sq ft is due for renewal in 4QFY21.
In 3QFY21, the REIT had 198,000 sq ft of leases that were due, with 81% or 160,000 sq ft of leases successfully renewed, said SRM chief executive officer Yong Su-Lin.
“As the national vaccination programme continues to make good headway, we are looking forward for the progressive reopening of various economic sectors and also a healthy rebound in the property sector by the end of this year.
“Although this recovery may face certain headwinds with the possibility of further resurgence of the Covid-19 pandemic, Sentral REIT will continue to manage our assets actively and be in the position to take advantage of this eventual recovery,” said SRM chairman Tan Sri Saw Choo Boon.
Sentral REIT was trading half a sen or 0.56% lower at 89 sen in Wednesday (Nov 10) afternoon trading, giving the commercial REIT a market capitalisation of RM959.25 million.
Get the latest news @ www.EdgeProp.my
Subscribe to our Telegram channel for the latest stories and updates
