Sentral REIT’s 2Q net property income slips 2.5%, declares income distribution of 3.16 sen

• Revenue for the quarter was down by 2.7% to RM47.70 million from RM49.03 million in 2QFY2024, also weighed down by lower rental contributions from Menara Shell, but partially offset by gains from Sentral Buildings 3 and 4 as well as lower operating expenses.

KUALA LUMPUR (Aug 7): Sentral REIT’s (KL:SENTRAL) net property income slipped 2.5% in the the second quarter, mainly due to lower rental income from Menara Shell, coupled with accounting adjustments under the Malaysian Financial Reporting Standard 16.

Net property income for the second quarter ended June 30, 2025 (2QFY2025) was RM36.97 million, compared with RM37.91 million in the same period last year, the real estate investment trust said in a bourse filing.

Revenue for the quarter was down by 2.7% to RM47.70 million from RM49.03 million in 2QFY2024, also weighed down by lower rental contributions from Menara Shell, but partially offset by gains from Sentral Buildings 3 and 4 as well as lower operating expenses.

Sentral REIT, nonetheless, declared an interim income distribution of 3.16 sen per unit, totalling RM37.78 million, for the quarter. The ex-date is Aug 21, with payment scheduled for Sept 18.

For the first half ended June 30, 2025 (1HFY2025), net property income declined 3.4% to RM73.44 million from RM76.06 million in the same period a year ago, on the back of a 3.6% drop in revenue to RM95.15 million versus RM98.72 million.

The broader market headwinds—including the expanded sales and service tax (SST), electricity tariffs and uncertainties over tariff tensions—may pose challenges to the REIT’s financial performance moving forward, Tan Sri Saw Choo Boon, the chairman of the trust's manager Sentral REIT Management Sdn Bhd, flagged.

“However, Sentral REIT remains committed to driving sustainable income and long-term growth. We will maintain our focus on positioning and growing Sentral REIT’s property portfolio to adapt to market changes,” Saw said in a statement.

Sentral REIT, which mainly manages commercial properties, is also exploring yield-accretive acquisitions and potential divestments to optimise its portfolio.

As at end-June, the REIT’s average occupancy remained healthy at 85%, with a weighted average lease term to expiry of 4.54 years.

At the time of writing on Thursday, Sentral REIT’s units were traded half a sen or 0.62% lower at 80 sen, valuing the group at RM956.40 million.

Does Malaysia have what it takes to become a Blue Zone, marked by health and longevity? Download a copy of EdgeProp’s Blueprint for Wellness to check out townships that are paving the path towards that.