Sentral REIT posts 4Q net profit of RM12.22m

Transport checkpoint: KTMB auxiliary police personnel taking the temperature readings of ETS passengers at KL Sentral, Kuala Lumpur.

KUALA LUMPUR: Sentral REIT Bhd, formerly MRCB-Quill Reit, posted net profit of RM12.22mil in the fourth quarter ended Dec 31,2020 and declared an income distribution of 3.65 sen per unit.

The REIT, which is the first company to announce its results for 4Q, reported on Tuesday the net profit was in stark contrast with the net losses of RM24.37mil a year ago. Its unrealised loss was reduced to RM8.4mil compared with RM43mil a year ago.

Its revenue slipped by 2.9% to RM39.46mil from RM40.66mil a year ago mainly due to the adjustments on the unrealised revenue on unbilled lease income receiveables.

Property operating expenses for 4Q2020 were RM1mil, a decrease of about RM500,000 or 4.4% compared to 4Q 2019, mainly due to lower operating expenses incurred for some of the properties under the portfolio.

For the financial year ended Dec 31,2020, Sentral REIT's FY20 net profit jumped 149% to RM72.57mil from RM29.12mil in FY19.

The net income of RM72.57mil consisted of realised income of RM81mil and an unrealised loss of RM8.4mil compared with RM43mil in FY19.

Its revenue rose by RM3mil or 1.9% to RM164mil from RM161mil due to higher revenue generated from Menara Shell, Wisma Technip and Tesco.

In 2020, it said 19% of Sentral's total committed net lettable area (NLA) or about 371,000 sq.ft. were due for renewal and a renewal rate of 85% was achieved. Approximately 440,000 sq.ft of NLA is due for renewal in 2021.Negotiations for the renewal of these leases are currently on-going.

“With the on-going uncertainties due to pandemic, the Klang Valley office and retail markets are expected to remain challenging. We will continue to focus on asset management and leasing strategies that are centred on cost optimisation and tenant retention to overcome the challenging operating environment, ” Sentral REIT said.

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