Sentral REIT's 1Q net property income falls 4%

• Net income fell 13% to RM17.66 million or 1.65 sen per unit from RM20.36 million or 1.90 sen per unit, the real estate investment trust (REIT) said in a filing with Bursa Malaysia.
• Similarly, quarterly revenue was down 3.31% to RM37.5 million from RM38.8 million, due to lower contributions generated from QB2 and Wisma Technip, partially offset by the increase in revenue from Menara Shell, Platinum Sentral and Plaza Mont Kiara, the company's filing showed on Thursday (May 11).

KUALA LUMPUR (May 11): Sentral REIT's net property income for the first quarter ended March 31, 2023 (1QFY2023) declined 4.03% to RM29.3 million, from RM30.5 million a year earlier.

Net income fell 13% to RM17.66 million or 1.65 sen per unit from RM20.36 million or 1.90 sen per unit, the real estate investment trust (REIT) said in a filing with Bursa Malaysia.

Similarly, quarterly revenue was down 3.31% to RM37.5 million from RM38.8 million, due to lower contributions generated from QB2 and Wisma Technip, partially offset by the increase in revenue from Menara Shell, Platinum Sentral and Plaza Mont Kiara, the company's filing showed on Thursday (May 11).

The company said higher finance costs incurred for 1QFY2023 of RM9.1 million was due to higher Kuala Lumpur Interbank Offered Rate (KLIBOR) rate in the first quarter of 2023 (1Q2023) compared to 1Q2022, which lowered its net property income.

On prospects, the Sentral REIT said it will continue to focus on asset management and leasing strategies that are centred on cost optimisation and tenant retention in the current operating environment.

“Efforts will be intensified to market the available office spaces under the portfolio with the focus on bringing in new tenants from the IT, e-commerce, serviced office and shared services sectors,” it said.

In the morning trading session, Sentral REIT units were unchanged at 86.5 sen, giving it a market capitalisation of RM927.09 million.