UOA REIT Q2 earnings double despite soft market

UOA REIT said its net profit surged to RM14.93mil from RM7.06mil in the previous corresponding quarter

PETALING JAYA: The net profit of UOA Real Estate Investment Trust (REIT) more than doubled in the second quarter ended June 30, led by stronger gross rentals as well as interest and other income.

In a filing with Bursa Malaysia, UOA REIT said its net profit surged to RM14.93mil from RM7.06mil in the previous corresponding quarter.

Meanwhile, revenue in the three-month period rose by almost 81% year-on-year (y-o-y) to RM29.08mil.

“Against the corresponding quarter last year, gross rental has increased by about 80.5% whereas total expenditure increased by about 57.8%.

“The increase in gross rental and total expenditure was mainly due to the acquisition of UOA Corporate Tower at the end of 2020,” it said.

The REIT announced a distribution per unit of 4.32 sen in the latest second quarter ended June 30, compared to 3.98 sen a year earlier.

Cumulatively, for the first six months of financial year 2021, UOA REIT’s net profit ballooned by 72.5% y-o-y to RM31.1mil.

Revenue, on the other hand, increased by 63.07% y-o-y to RM58.68mil from RM35.98mil a year earlier.

“For the period under review, UOA REIT is declaring about 95% distribution of the realised income before taxation (unaudited) for the six months ended June 30, 2021, amounting to RM29.19mil to be distributed by end of August 2021 as described under Section B17, Income Distribution,” it said.

Looking ahead, the REIT said its occupancy rates and rental rates continue to be influenced by soft market sentiment.

“The manager will continue to actively manage the properties in the portfolio with prudent capital management in order to maximise the yields for unitholders.

“Meanwhile, the manager will continue to explore new opportunities for future acquisitions that meet the objectives of UOA REIT,” it said.

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