UOA REIT's second quarter distributable income up 2.37% to RM11.39 mil

KUALA LUMPUR (July 21): UOA Real Estate Investment Trust (REIT)’s second quarter ended June 30 (2QFY15) distributable income came in at RM11.39 million, up 2.37% from RM11.12 million in 2QFY14.

This works out to a distribution per unit (DPU) of 2.69 sen compared with 2.63 sen in the previous corresponding quarter, according to UOA REIT’s filing to Bursa Malaysia this evening.

This brings its total distributable income for the half-year period (1HFY15) to RM22.50 million, up a marginal 0.95% compared with RM22.29 million in 1HFY14.

This brought its DPU for the 1HFY15 to 5.32 sen from 5.27 sen from 1HFY14, which would be paid on Aug 28.

Its total comprehensive income for the six-month period was largely flat at RM23.94 million, compared with RM23.71 million in 1HFY14.

Gross rental for the 1HFY15 has improved by 4% due to revision in rental rates and steady occupancy rates of its investment properties, said UOA REIT, but total expenditure has increased 7% due to increase in property operating expenses and borrowing costs.

The REIT’s manager said it expects the REIT to maintain stable occupancy and rental rates across its portfolio of properties for the financial year ending Dec 31, 2015.

“Efforts to both enhance the yields and returns of the existing properties and to seek opportunities to further acquire real estate that meets the objectives of the trust will continue,” it added.

Separately, UOA REIT said its public unit-holding spread as at June 30 stood at 23.36%, which does not fully comply with the minimal public unitholding spread requirement of Bursa Malaysia.

“Further to Bursa Securities approval for an extension of time until Aug 22, 2013 to comply with the public unitholding spread requirement, the manager had on Sept 20, 2013 applied to Bursa Securities for their approval for a lower public unitholding spread. This application is currently pending Bursa Securities’ approval,” it said.

It added that the manager, together with United Overseas Australia Ltd, an indirect substantial unitholder of UOA REIT, will continue to rectify the public unitholding spread requirement as soon as feasible.

UOA REIT closed 1.89% or 3 sen higher at RM1.62 today, giving it a market capitalisation of RM685.05 million.