MQPEIT income rises 21.8% in third quarter

Higher revenue and lower cost lift real estate investment trust

PETALING JAYA: MRCB-QUILL real estate investment trust (MQREIT) has posted a 21.8% year-on-year jump in realised net income to Rm21.48mil for the third quarter ended Sept 30, due mainly to higher revenue from selected properties within the portfolio, lower property operating expenses and finance costs.

Revenue for the quarter under review was 5.7% higher year-on year at Rm41.7mil.

MQREIT recorded realised earnings per unit (EPU) and distributable income per unit during the quarter of two sen.

For the nine months under review, MQREIT recorded a 12.8% year-on year jump in realised net income and EPU of Rm60.34mil and 5.63 sen respectively.

Revenue for the nine months was 3.5% higher year-on year at Rm124.55mil.

MRCB Quill Management Sdn Bhd (MQM) chairman Tan Sri Saw Choo Boon said the company will be targeting to secure renewal or new tenants for all its expiring leases.

MQM CEO Yong Su-lin said as at Sept 30, MQREIT maintained a portfolio occupancy of 90.5% with a 90% renewal rate achieved, consisting of leases due up to the third quarter of 2020 and 190,000 sq ft of leases due in the fourth quarter 2020 (4Q 2020), which was renewed ahead of time.

“Negotiations are currently on-going for the balance of leases due in 4Q 2020 of

130,000 sq ft.

While MQREIT’S portfolio continues to be stable, marketing efforts will be intensified to lease out existing vacant spaces,” she said.

Yong added that the office market outlook is expected to remain challenging in view of economic uncertainties.

“We will continue to exercise prudence in maintaining a strong balance sheet and cash flow management.

“As at Sept 30, MQREIT has a gearing ratio of 38.2% and a well staggered debt maturity profile with an average debt cost of debt of 4.09% per annum.

“Based on current committed debt, MQREIT has sufficient liquidity to meet its interest servicing obligations.”