KUALA LUMPUR: Sentral Real Estate Investment Trust (REIT) will continue with its active leasing management strategies and marketing efforts to lease out the current vacant spaces with targeted strategies to address market changes.
“Sentral has approximately 162,000 sq. ft. or 10% of its total committed net lettable area (NLA) due for renewal in 2023, with approximately 47% of these NLA due in 1H 2023. Sentral achieved a renewal rate of 98% for the NLA due in 1H 2023,” Sentral REIT
Management Sdn Bhd chief executive officer Derek Teh Wan Wei said in a statement.
As at June 30, Sentral’s average occupancy has been maintained at 77% compared to the first quarter of 2023.
“The healthy renewal rate achieved in 1H 2023 has provided stability to Sentral’s occupancy rate. We will continue with our active leasing management strategies and marketing efforts to lease out the current vacant spaces with targeted strategies to address market changes,” Teh said.
“Sentral’s average cost of debt maintained at 4.44% p.a. compared to the previous quarter but was higher than the preceding year’s quarter due to the impact of higher overnight policy rate (OPR) in 2023.
“Regular reviews will be carried out to provide an optimal mix of fixed and floating rate borrowings where practical, notwithstanding the expectation of the OPR maintaining at 3.0% for the rest of this year.”
In the second quarter ended June 30, Sentral posted a realised net income of RM17.6mil, down 4.4% compared to the corresponding quarter in preceding year.
The lower realised income for the quarter was mainly due to higher finance costs and utilities expenses, notwithstanding higher net property income contribution.
Sentral has declared an income distribution and distribution per unit (DPU) of RM34.2mil and 3.19 sen, respectively for 1H23.
The annualised 1H23 DPU translates to a yield of 7.83% based on Sentral’s closing price of RM0.815 on June 30.
As Sentral pays distribution semi-annually, the DPU of 3.19 sen is expected to be distributed on Sept 18. The books closure date has been fixed for Aug 25.
It recorded a realised net income and realised earnings per unit of RM35.3mil and 3.29 sen, respectively for the first six months period to June 30.
