MRCB-Quill REIT reports 76% on-year 3Q profit rise

KUALA LUMPUR (Nov 5): MRCB-Quill REIT reported net profit of RM15.74 million in its third quarter ended Sept 30, 2015, from RM8.93 million a year earlier, on higher rental from existing commercial properties.

In its announcement to Bursa Malaysia today, MRCB-Quill said additional income from newly-acquired Platinum Sentral also supported profit growth. Platinum Sentral is located within Kuala Lumpur Sentral.

MRCB-Quill said group revenue increased to RM31.81 million, from RM17.53 million.

"As compared with the preceding year corresponding quarter, the revenue is higher by 81.4%, mainly due to additional revenue arising from the acquisition of Platinum Sentral on 30 March 2015, higher revenue from Plaza Mont'Kiara and rental rate increases for some properties," MRCB-Quill said.

Profit for 9MFY15 rose to RM37.65 million, from RM25.66 million a year earlier. Revenue was up at RM82.6 million, from RM 30.53 million.

Looking forward, MRCB-Quill foresees the Kuala Lumpur office market to remain resilient in the short term, but expects pressure on occupancy rates due to growing office supply.

The company said this came amid a challenging economic environment.

“Based on the lease expiry profile with the inclusion of Platinum Sentral into the trust's portfolio, 25% of the total net lettable area is due for renewal in 2015.
As at Sept 30 2015, 46% of these leases have been renewed, while 4% has not been renewed.

"The balance of the leases due for renewal in 2015 is due in the fourth quarter of 2015, and currently, the manager is in the midst of finalising the renewal terms for these leases," MRCB-Quill said.

Today, MRCB-Quill shares saw no trading thus far. Yesterday (Nov 4), the stock closed at RM1.14, for a market capitalisation of RM754 million. -- theedgemarkets.com

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