KUALA LUMPUR: Listed Tower Real Estate Investment Trust (REIT), which leases office space in the Klang Valley, said its net trust income for its financial year ending Dec 31, 2009 rose to RM30.06 million from RM27.82 million in its previous financial year on the back of increased revenue to RM49.83 million from RM46.34 million.

Net trust income gives a more reflective picture of the REIT’s financial performance and is calculated after deducting the market value of the properties that the REIT owns from income before taxation.

According to a statement to Bursa Malaysia Feb 3, Tower declared a final income distribution of 5 sen for FY2009.

Tower REIT owns the Menara HLA, HP Towers and Menara ING office buildings in the Klang Valley.

Tower said its occupancy and rental rates for the period remained stable and that gradual stabilisation of the economy has provided support to the office property market. It said the office property market is expected to stabilise with the government’s initiatives in stimulating the economy with greater liberalisation in business environment.

It added that overall occupancy and rental rates will depend on the strength of absorption of new office supply. It also said that growing interest in investment-grade buildings will support capital values.

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