MQREIT posts RM22m profit on higher ren­tal in­come

New Straits Times - - Business | News -

KUALA LUMPUR: MRCB-Quill Real Es­tate In­vest­ment Trust (MQREIT) reg­is­tered a net profit of RM22.04 mil­lion in the sec­ond quar­ter ended June, which is 43.2 per cent higher than RM15.39 mil­lion a year ago.

MRCB Quill Man­age­ment Sdn Bhd, the man­ager of MQREIT, said the higher net in­come was due to from ren­tal hikes at sev­eral prop­er­ties as well as the recog­ni­tion of in­come from Me­nara Shell.

Af­ter de­duct­ing higher fi­nance costs and the man­ager’s fee, MQREIT’s prop­erty in­come saw a 35.8 per cent in­cre­ment quar­ter-on-quar­ter. With the book clo­sure date be­ing Au­gust 28, MQREIT’s dis­tri­bu­tion per unit of 4.23 sen is ex­pected to be ex­e­cuted on Septem­ber 18.

MQREIT high­lighted that the of­fice mar­ket was ex­pected to re­main chal­leng­ing due to the slow­down of global and do­mes­tic economies, low global crude oil prices and the lack of cat­a­lysts to boost de­mand.

“While we ex­pect take-up rates in the Klang Val­ley to be soft, we are work­ing hard to step up our leas­ing ef­forts to en­sure the per­for­mance of MQREIT’s port­fo­lio re­mains sta­ble in 2017,” it said.

MQREIT has a healthy bal­ance sheet with an ag­gre­gate gear­ing of 37 per cent, which is well be­low the Se­cu­ri­ties Com­mis­sion Malaysia’s reg­u­la­tory limit of 50 per cent.

Its cost of debt was sta­ble at an av­er­age of 4.4 per cent per an­num as at June. This year, MQREIT has no re­fi­nanc­ing re­quire­ments.

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