PETALING JAYA: MRCB-Quill real estate investment trust (MQREIT) posted a loss of RM24.38mil for the fourth quarter ended Dec 31,2019, compared to a net profit of RM8.05mil a year ago.
The company said it fell into the red due to lower income from its properties as well as a RM36.73mil fair value loss for its investment properties across the Klang Valley and Penang.
During the quarter, MQREIT said its realised net income for the quarter fell almost 5% to RM18.61mil compared to RM19.57mil a year earlier.
In a filing with Bursa Malaysia yesterday, MQREIT posted a 2.8% decline in revenue to RM40.62mil in the fourth quarter compared to RM41.81mil previously due to lower revenue generated from Wisma Technip, QB5 and Platinum Sentral.
Among the investment properties that were revalued in 2019 are Quill Building DHL 1 and Quill Building 4-DHL 2, Quill Building 2-HSBC, Quill Building 3-BMW, part of Plaza Mont’Kiara, Wisma Technip, Quill Building 5 (QB5) - IBM, Tesco Building Penang, Platinum Sentral and Menara Shell.
“Based on the unaudited results as at Dec 31,2019, the net asset value per unit of MQReit will be RM1.201 upon the incorporation of the fair value loss of investment properties of RM35.66mil, ” it says.
The group said it has proposed a final income distribution of RM36.12mil or 3.37 sen per unit, which is 99.65% of the distribution income for the period July 1,2019, to Dec 31,2019. It will be payable on Feb 28,2020, to all existing unit holders at the book closure date of Feb 3,2020. The 3.37 sen per unit final income distribution brings MQREIT’s full-year FY19 dividends to 6.80 sen a unit, the property trust said.
“FY19 distribution per unit (DPU) is 6.80 sen, which is 15.8% lower compared to the FY18 of 8.08 sen, ” MQREIT said.
Cumulatively, for the full financial year of 2019, MQREIT’s net profit fell to RM29.12mil compared to RM73.13mil a year earlier.
Its revenue for the period was at RM160.99mil from RM172.53mil previously.
Despite the challenging outlook of the commercial property, MQREIT said the company will continue with its investment objective to acquire and invest in commercial properties primarily in Malaysia with a view to provide long-term growth and sustainable distribution of income to unit holders to achieve long term growth in the net asset value per unit.
MQREIT chairman Tan Sri Saw Choo Boon said: “Despite the current challenging Klang Valley office market environment, MQReit has recorded a stable portfolio occupancy rate of 90% and a healthy weighted average lease expiry of 4.9 years as at the end of FY19.
“As we anticipate that the Klang Valley office market will continue to be challenging in 2020, ongoing asset management and leasing strategies centred on tenant retention, as well as prudent cost management, will remain our focus to ensure stable occupancy and sustainable income contribution are achieved in 2020.”
Shares of MQREIT closed unchanged at RM1 yesterday.
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