The research house’s analyst Jessica Low Jze Teing said in a note today that while she had anticipated property sales to recover in the second half of 2020 (2H2020) due to incentives in Short Term Economic Recovery Plan (Penjana) and record low interest rate, she believed the worsening Covid-19 situation in Malaysia would derail the property sales recovery as the economic outlook turns uncertain.
In a bourse filing, the REIT said it had entered into a sale and purchase agreement with Deriv Services Sdn Bhd to dispose of the building, which is not tenanted at present, and that the expected net gain from the proposed disposal is RM3.73 million.
MRCB-Quill REIT: The increase was mainly due to higher revenue generated from Menara Shell, Wisma TechnipFMC and Tesco Building Penang.
In a statement, the group noted that its office segment — comprising Petronas Twin Towers, Menara 3 Petronas, Menara ExxonMobil and Menara Dayabumi — registered a marginal increase in profit before tax to RM121.6 million on a quarter-on-quarter basis, with a stable revenue of RM149.7 million, backed by long-term tenancies and full occupancy of all its office buildings.
The increase was mainly due to a sharp contraction in GDP during the first half of the year, the Ministry of Finance (MoF) said in its Economic Outlook 2021 report.
Hong Leong Investment Bank Research analyst Nazira Abdullah said Robinsons accounted for 12% of The Gardens Mall's net lettable area, which translates into 3% to 4% of the group’s revenue, thus the impact is minimal.
Both parties will negotiate and endeavour to enter into a joint venture (JV) to develop affordable homes over 230 acres of land in Kuala Muda, Kedah Darul Aman.
The REIT said the lower gross revenue and net property income for the quarter was mainly due to the lower rental income and lower car park income arising from the pandemic and resultant movement control orders (MCOs).
“Q2FY2021’s financial performance reflects the consistently strong contributions from its property development division, with high sales take-up rate and solid momentum in the construction progress of Parc3@KL South (Parc3), with Novum@South Bangsar (Novum) handed over to its purchasers in June 2020.”
It posted a net loss of RM5.66 million for the quarter, compared with a net profit of RM944,000 a year ago.
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