UOA REIT 2Q net profit rises marginally by 0.94%

by S BIRRUNTHA / graphic by TMR

UOA Real Estate Investment Trust’s (REIT) net profit increased marginally by 0.94% to RM15.07 million for the second quarter ended June 30, 2022 (2Q22) from RM14.93 million a year earlier.

Revenue for the quarter declined 1.79% to RM28.56 million compared to RM29.08 million in 2Q21, according to its filing to Bursa Malaysia yesterday.

However, the company registered higher earnings per share of 2.23 sen for the period against 2.21 sen previously.

Meanwhile, UOA REIT’s net rental income fell by 1.5% to RM21.72 million from RM22.06 million a year ago, while its gross rental declined by 1.7% to RM28.49 million from RM28.97 million.

For the six-month period (1H22), its net rental income fell by 1.8% to RM43.95 million from RM44.75 million a year ago, while gross rental dropped by 1.5% to RM57.59 million from RM58.47 million.

The company also declared an interim income distribution of 4.3 sen per unit for the quarter, which is to be paid on Aug 30, with an ex-date of Aug 4.

On prospects, UOA REIT said the occupancy rates and rental rates continue to be affected by the economic growth.  

It added that while the market sentiment is improving after the opening up of the economies which has reinvigorated the entire market, the lingering Covid-19 effects and inflationary pressures remained and the affected tenants require time to recover.  

“As economic condition improves and the prevalent pandemic moves towards the endemic status, the manager is hopeful on the market outlook and will continue to actively manage the properties in the portfolio with prudent capital management in order to maximise the yields for unitholders.

“Meanwhile, the manager will continue to explore new opportunities for future acquisition that meet the objectives of UOA REIT,” it said.

As at Dec 31, 2021, UOA REIT has successfully completed and delivered projects comprising commercial, retail and residential properties with a gross development value in excess of an estimated RM20 billion.

The company has a total landbank of over 80 acres (32.37ha) to be developed over the next 10 years and its investment portfolio has grown to a value in excess of RM3.8 billion.

The UOA REIT investment portfolio includes six key UOA commercial properties, namely UOA Centre and UOA II, UOA Damansara, UOA Damansara II, Menara UOA Bangsar and UOA Corporate Tower — valued at approximately RM1.72 billion.

Shares of UOA REIT closed unchanged at RM1.15, giving it a market capitalisation of RM776.94 million yesterday.