Sentral REIT records 2Q net income of RM22.64mil, DPU of 3.43 sen

KUALA LUMPUR: Sentral Real Estate Investment Trust (REIT) recorded a net income of RM22.64mil in the second quarter ended June 30, 2021, 18.67% higher than RM19.08mil in the previous corresponding quarter.

Revenue for the quarter was RM37.62mil, 7.39% below RM40.63mil in the year-ago quarter.

This brought its half-year net income to RM43.34mil, an increase of 11.5% from the previous corresponding period, while revenue was 5.07% lower year-on-year (y-o-y).

For the six months period, Sentral declared a distribution income of RM36.8mil and a distribution per unit of 3.43 sen, which translated to 7.6% yield based on the REIT's June 30 closing price.

The distribution is expected to be made on Sept 20, 2021.

According to Sentral REIT Management Sdn Bhd CEO Yong Su-Lin, the REIT's stable performance in the quarter was owing to its healthy committed portfolio occupancy of 91.7% recorded as at June 30, 2021.

Sentral has about 440,000 sq ft or 22% of its total leased net lettable area due for renewal in 2021 with the bulk of the leases due in the second half of the year.

About 56,000 sq ft or 73% of leases due in the first half of the year have been renewed.

"We will remain proactive in working with our tenants to address their space and leasing requirements.

"With continued uncertainties ahead, we will have to keep a close watch on the situation, reach out to tenants who are adversely impacted and be able to offer flexible and viable tenancy options as part of our tenant retention initiatives," said Yong.

Sentral's gearing ratio stood at 38%, below the 60% threshold prescribed by the Securities Commission's listed REIT guidelines.

Its debt maturity profile remains well-distributed with the RM200mil debt due for refinancing in December 2021 progressing as panned.

"While SENTRAL has sufficient liquidity to meet its interest servicing obligations for its current committed debt, we will continue to exercise prudence in maintaining a strong balance sheet and cash flow management," added Yong.

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