MQREIT net profit for first quarter falls to RM21mil
PETALING JAYA: MRCB-Quill Real Estate Investment Trust (MQREIT) registered a net profit of RM21mil for the first quarter ended March 31, 2018 (Q1FY18), a 9.3% dip from the corresponding quarter last year.
This was on the back of a revenue of RM44.3mil, a decrease of 4.9% from Q1FY17, mainly due to lower revenue generated from Platinum Sentral and Menara Shell.
According to a press release yesterday, MQREIT achieved a distributable income of RM22.4mil for the quarter under review, after adjusting for manager’s management fee payable in units of RM1.39mil.
This is a 3.3% decrease from the distributable income of RM23.16mil as compared to Q1FY17.
The lower distributable income was attrib- utable to lower revenue generated and higher property operating expenses due to higher routine operating expenses for selected properties as well as higher administrative expenses from disposal costs incurred for QB8-DHL (XPJ).
Correspondingly, MQREIT recorded a distributable income per unit of 2.10 sen, which is 3.3% lower compared to 2.17 sen in Q1FY17.
MRCB Quill Management Sdn Bhd (MQM) chairman Tan Sri Saw Choo Boon said the management remains optimistic that MQREIT’s operation will be able to weather the current office market environment, underpinned by its proactive approach towards asset, portfolio and cost management.
MQM is the manager of MQREIT.
According to MQM CEO Yong Su-Lin, MQREIT’s average occupancy rate as at March 31, 2018 stood at 96.2%.
“In terms of capital management, the manager has commenced negotiation with financial institutions for the refinancing of MQREIT’s RM117mil borrowings due in September 2018.
As at March 31, 2018, MQREIT average cost of debt was maintained at 4.4% per annum with 76% of total borrowings on fixed interest rate.
“In view of the rising interest rate environment, we will continue to adopt a proactive capital management strategy and plan to maintain majority of fixed rate borrowings as part of our strategy to provide income stability,” Yong added.