KUALA LUMPUR: MRCB-QUILL REIT, which owns 11 buildings, said realised net income in the first quarter of 2019 fell 7.6% from a year ago due to lower revenue from selected properties.
With about a fifth of its net lettable area due for renewal this year, the REIT manager are having a tough time getting new tenants.
"The Klang Valley office market is expected to remain challenging," it said in a filing with Bursa Malaysia today.
Realised net income in the three-month ended March 31 declined to RM19.4mil compared with RM21.4mil achieved a year ago.
Revenue fell to RM41.7mil from RM44.3mil previously.
In 2019, 19% of MQ REIT's total net lettable area or approximately 369,000sqft are due for renewal. 16% of these leases (approximately 59,000sqft) were due in 1Q 2018.
"Approximately 97% of the leases due in 1Q 2019 were not renewed by the existing tenants," it said.
"Notwitstanding, new tenants have been identified and tenancies entered into for 48,000sqft of the non-renewed spaces."
Currently, MQ REIT owns 11 buildings comprising five in Cyberjaya, four in Kuala Lumpur, one each in Shah Alam and Penang, valued at RM2.18bil as at Dec 31, 2018.