MQREIT posts 1Q net income of RM19.79mil

  • Corporate News
  • Wednesday, 17 Jun 2020

KUALA LUMPUR: MRCB-Quill Real Estate Investment Trust's (MQREIT) net income of RM19.79mil in the first quarter ended March 31, 2020, was 2% higher than in the previous corresponding quarter on the back of higher revenue and lower expenses.

Revenue for the quarter rose 1.2% to RM42.22mil from RM41.72mil in the comparative quarter.

Earnings per unit and distributable income per unit was about 2% higher year-on-year to 1.85 sen.

According to MQREIT, it received higher revenue contribution from certain properties, namely Menara Shell, Wisma Technip and Tesco.

Concomitantly there was a decline in finance costs, administration expenses and trustee's and manager's fees.

At at end-March, MQREIT's average occupancy rate stood at 90.5%.

It said about 370,000 sq ft or 19% of its total leased net lettable area is up for renewal in 2020 with the bulk of these leases due in the final quarter of 2020.

It added that 93% of the leases due in 1Q2020 have been renewed and early negotiations have commenced for the bulk of the leases due in the fourth quarter.

Menawhile, the REIT had a gearing ratio of 38.3% as at end-March. which falls below the Securities Commission's 50% threshold.

According to MQREIT CEO Yong Su-Lin, RM335mil in borrowings due on March 30 was successfully refinanced for another five years, thereby increasing the debt average term to maturity to 3.32 years.

"While we expect the low interest rate environment to persist, MQREIT will consider to swap some of its floating interest rate exposure to fixed rate at an appropriate time, to cushion it from any potential rise in interest rates in a volatile market environment," she added.
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