PETALING JAYA: UOA Real Estate Investment Trust (REIT) returned to the black, with a net profit of RM7.55mil in the fourth quarter (Q4) ended Dec 31,2020, compared to a net loss of RM9.81mil a year earlier.
Despite lower revenue, it managed to record profits for the quarter in review, owing to reduced borrowing costs and tax expense as well as a gain of RM1.76mil on investment properties.
UOA REIT’s fourth-quarter revenue fell 8.4% year-on-year (y-o-y) to RM18.18mil, mainly due to a drop in gross rental following the rebates given as support to tenants.
Earnings per share for the quarter were 1.74 sen. An interim income distribution of 4.46 sen per unit for the six months to December 2020, had been declared.
Cumulatively, for the entire financial year of 2020 (FY20), UOA REIT’s net profit surged 75.2% y-o-y to RM34.75mil.
However, revenue for FY20 reduced by 8.02% y-o-y to RM72.69mil.
On its prospects, UOA REIT expects to see an increase in rental income in FY21, following the injection of UOA Corporate Tower into the trust.
The acquisition of the new asset was completed on Dec 30,2020. As a result, the asset size has increased from RM1.05bil to about RM1.74bil.
“An uncertainty in the economic condition will have an impact on the occupancy and rental rates of our properties.
“However, the manager will continue to manage the properties within the portfolio with prudent capital management to maximise yield for unitholders.
“The manager will continue to explore new investment opportunities that meet the objectives of UOA REIT, ” it said in a filing with Bursa Malaysia.
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