KUALA LUMPUR: MRCB-Quill Real Estate Investment Trust (MQ Reit) eyes to maintain 98% occupancy rate this year despite the challenging economic environment.
Chairman Tan Sri Saw Choo Boon said the company currently had 17% tenancy which was up for renewal this year.
However, if there was any fluctuation in rental, then the percentage of renewal and occupancy rate would be low.
"There is always rental pressure and occupancy pressure due to the Malaysian economic condition and for this year, we are not spared from it.
"Although the economy is expected to do better this year with an influx in office space, we will face challenges.
"But, the company will tide over the difficulties with the high percentage of long-term business in our portfolio," he told reporters after the company's AGM in Kuala Lumpur on Wednesday.
Meanwhile, chief executive officer Yong Su-Lin said despite the challenges, the company would continue to focus on commercial properties in the city as the income was still decent.
MQ Reit has 11 commercial properties across Malaysia, including Cyberjaya, Kuala Lumpur city centre, Shah Alam, KL Sentral and Penang.
Citing the rental income of some of the properties, she said for Cyberjaya the rental was about RM5 per sq ft while in KL Sentral, it was about RM8.50 per sq ft.
She said the company's property yield was around 6.5% and hoped it could be maintained as the group had well maintained properties in good locations.
Yong said despite preferring the central areas, the company was not dismissing decentralised areas, provided the properties met the criteria set by the company.
MQ Reit is also in the midst of evaluating some proposals to increase its office space and among the main points taken into consideration include transportation hub, connectivity, the size and building security, she added. - Bernama