MQReit de­fers bond pro­gramme ma­tu­rity

> Plans more fund rais­ing to cater to im­me­di­ate and fu­ture op­por­tunis­tic ac­qui­si­tions

The Sun (Malaysia) - - SUNBIZ -

KUALA LUMPUR: Listed real es­tate in­vest­ment trust (REIT) MRCB-Quill REIT (MQReit) has ob­tained ap­proval to de­fer the ma­tu­rity of a RM60 mil­lion bond due on Sept 6, 2016 and for the is­suance of an­other RM130 mil­lion worth of com­mer­cial papers for a six-month pe­riod to co­in­cide with the ma­tu­rity of the de­ferred bond pro­gramme on March 6, 2017.

The group said in a state­ment yes­ter­day that it is also plan­ning a 20-year medium term note pro­gramme by the end of the year to cater to im­me­di­ate and fu­ture op­por­tunis­tic ac­qui­si­tions as well as fu­ture re­fi­nanc­ing re­quire­ments.

As at Sept 30, 2016 MQReit recorded an av­er­age debt to ma­tu­rity of 2.40 years with the de­fer­ment of the ex­pected ma­tu­rity of the RM60 mil­lion and RM130 mil­lion pro­gramme. As at Sept 30, 2016, MQReit’s gear­ing ra­tio was 42.8% and its av­er­age cost of debt re­mains sta­ble at 4.4% per an­num.

MQReit an­nounced that its net profit for the third quar­ter ended Sept 30, 2016 de­creased 3.2% to RM15.23 mil­lion from RM15.73 mil­lion in the cor­re­spond­ing quar­ter in the pre­ced­ing year, mainly due to higher man­ager, trustee, valu­a­tion fees and ad­min­is­tra­tive ex­penses.

MQReit’s rev­enue how­ever was higher by 2.2% at RM32.50 mil­lion from RM31.81 mil­lion a year ago mainly due to ad­di­tional rev­enue from Plat­inum Sen­tral, and higher rental in­come due to step up rent ad­just­ments from QB2, QB3 and Wisma Tech­nip.

For the nine-month pe­riod, its net profit saw an in­crease of 21.8% to RM45.85 mil­lion from RM37.65 mil­lion re­ported in the cor­re­spond­ing pe­riod in the pre­ced­ing year.

Rev­enue for the pe­riod was higher by 18.3% at RM97.72 mil­lion com­pared with RM85.60 mil­lion a year ago mainly due to ad­di­tional rev­enue aris­ing from the ac­qui­si­tion of Plat­inum Sen­tral and rental rate in­creases of some prop­er­ties.

MRCB Quill Man­age­ment Sdn Bhd (MQM) CEO Yong Su-Lin is pleased with MQReit’s fi­nan­cial per­for­mance even as it con­tin­ues to weather a sub­dued macroe­co­nomic en­vi­ron­ment and chal­leng­ing of­fice mar­ket con­di­tions in the Klang Val­ley.

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