Al-Salam REIT’s net profit falls to RM40.6m

By BERNAMA / Graphic By TMR

Al-Salam Real Estate Investment Trust’s (REIT) net profit fell to RM40.61 million in the financial year ended Dec 31, 2017 (FY17), from RM46.67 million in FY16.

Revenue, however, rose to RM80.03 million from RM76.14 million previously.

In a filing to Bursa Malaysia, Al-Salam REIT attributed the weaker profit to lower fair value gain on investment properties of RM5.1 million versus RM10.6 million in 2016, while the higher revenue emanated from bigger contribution from its retail and office building segments.

Moving forward, the company planned to ensure its existing assets were well-maintained to ensure the stability of rental income and REIT income distributions, as well as to create long-term value for its unitholders.

“In addition, the manager is always on the lookout for potential acquisitions, including pipeline assets from the Johor Corp Group, to achieve the sustainable growth of Al-Salam REIT,” it added.

For the fourth quarter of 2017, the REIT’s net profit fell to RM13.66 million from RM21.61 million in the corresponding quarter of 2016, on the back of lower revenue of RM20.48 million from RM21.48 million.