KUALA LUMPUR: Sentral Real Estate Investment Trust
(REIT) said it will remain focused on asset management and leasing strategies that are centred on cost optimisation and tenant retention.
In comments accompanying its quarterly results, the REIT said it expects the Klang Valley office and retail markets to remain challenging.
"Efforts will be intensified to market the available office spaces under the portfolio with the focus on bringing in new tenants from the IT, e-commerce, serviced office and shared services sectors," it said.
During the quarter ended March 31, 2024, Sentral REIT registered a net income of RM19.9mil, which compares to RM17.66mil in the previous corresponding quarter, translating to an earnings per share of 1.66 sen against 1.65 sen.
This was owing to higher revenue of RM49.69mil in the quarter under review as compared to RM37.48mil in the year-ago quarter.
The REIT said the improved revenue was mainly owing to higher realised revenue from Sentral Building 4, Platinum Sentral and Sentral Building 3 – BMW as well as revenue contribution from Menara CelcomDigi for the full quarter, net of higher property expenses and finance cost.
Movong forward, Sentral REIT reported that about 282,000 sq ft of 14% of its total committed net lettable area (NLA) is up for renewal in 2024.
Of the 46,000 sq ft of leases expiring in 1Q24, the REIT said it had successfully renewed about 38,500 sq ft or 93% of the committed NLA.
Correspondingly, Sentral REIT's
portfolio occupancy was stable at 88% as at March 31, 2024, compared to portfolio occupancy of 89% recorded in the previous quarter.
"In alignment with Sentral’s ongoing tenant retention strategies, we have initiated early negotiations for some leases expiring in the remaining quarters of 2024.
"Simultaneously, advanced marketing efforts have commenced to lease out vacant spaces coming on stream, with the aim to sustain the portfolio's occupancy rate this year," said Sentral REIT CEO Derek Teh Wan Wei.
