MQReit defers bond programme maturity
> Plans more fund raising to cater to immediate and future opportunistic acquisitions
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.