Am ARA’s 3Q gross revenue grows by 5%

KUALA LUMPUR: Am ARA REIT Managers Sdn Bhd (Am ARA), the Manager of AmFIRST Real Estate Investment Trust, saw its gross revenue for the third quarter ended Dec 31, 2009 (3QFY2010) grow by 5% to RM24.69 million from RM23.51 million the previous year on improved performance. This was mainly attributable to income from new lettings and positive tenancy renewals.

The distributable income for the same period is RM9.60 million, which translated to a distribution per unit of 2.24 sen for the quarter. Its net property income for the quarter grew 7% to RM16.14 million from RM15.1 million a year earlier.

Revenue for the nine-month ended Dec 31, 2009, increased 5.84% to RM72.91 million, against the RM68.89 million recorded the previous year. Net property income for the current period rose by 4.5% to RM46.90 million.

Moving forward, AmFIRST REIT would carry out asset enhancement works on Bangunan AmBank Group in the Kuala Lumpur’s Golden Triangle as well as at The Summit Subang USJ in Subang Jaya, Selangor.

The enhancement works, which are scheduled to commence in the first quarter of this year, will enhance yields and retail/merchandise mix.

“We plan to turn The Summit Subang USJ into a preferred shopping destination within the locality,” chief executive of Am ARA Lim Yoon Peng said.

Am ARA had last month completed the renovation works on one of its properties – Menara Merais – in Petaling Jaya, allowing it to increase occupancy and attract quality tenants.

The Selangor government announced last year its intention to compulsorily acquire all land parcels measuring 1.018 acres located at the front of The Summit Subang USJ for the extension of Light Rail Transit (LRT) services.