MQReit second quarter earnings rallies 6.5%

PETALING JAYA: MRCB-Quill REIT’s (MQReit) net profit for the second quarter ended June 30, 2018 rose 6.5% to RM23.49 million from RM22.04 million a year ago underpinned by lower property expenses and total expenditure incurred.

Its revenue rose marginally by 0.2% to RM43.69 million compared with RM43.61 million in the previous year’s corresponding quarter.

This translates to a second quarter of 2018 (Q2’18) distributable income per unit of 2.28 sen, which is higher by 0.9% compared with the distributable income per unit of 2.26 sen recorded in Q2’17.

For the six months period, its net profit fell 1.6% to RM44.50 million from RM45.21 million a year ago, while revenue dropped 2.4% to RM87.98 million compared with RM90.18 million in the previous year’s corresponding period mainly due to lower revenue generated from Platinum Sentral, Menara Shell and loss of revenue from QB8 - DHL XPJ after its disposal.

For the six months period, MQReit recorded a distributable income and distributable income per unit of RM46.88 million and 4.38 sen, respectively. It declared a distribution per unit (DPU) of 4.23 sen for 1H 2018.

The annualised 1H’18 DPU translates to a yield of 7.42% based on MQReit’s closing price of RM1.14. The DPU of 4.23 sen is expected to be distributed on Sept 19, 2018.

MQM CEO Yong Su-Lin said 70% of the leases due up to 1H’18 have been renewed.

“In addition to the renewals, we have secured new leases for a few of our properties with demand coming from companies in the IT, business consultancy, medical and retail sectors.

“Negotiations are progressing as scheduled for the leases due in second half of 2018, which represent 86% of the total leases due for renewal in 2018. MQReit’s average occupancy rate as at June 30, 2018 stood at 96%.”

She added that its gearing ratio was 37%, unchanged from last quarter and well below the regulatory limit of 50.0%.