AmanahRaya REIT sets ‘ambitious’ 90% occupancy rate target by FY25

AMANAHRAYA Real Estate Investment Trust (AmanahRaya REIT), who’s profitability plunged in the immediate financial year, targets to achieve at least 90% of its portfolio occupancy rate by the financial year ending Dec 31, 2025 (FY25).

AmanahRaya REIT MD Tunku Rozita Abdul Malek said the ‘ambitious target’ reflected the fund’s commitment to maximising value for unitholders and strengthening its position as a listed REIT on Bursa Malaysia.

It said the increase in occupancy rates for Vista Tower was poised to significantly bolster the earnings potential for AmanahRaya REIT.

“Currently, we are in active discussions with numerous potential tenants, and the outlook is quite promising. Being the largest asset within the portfolio, we anticipate that the occupancy rate for Vista Tower will reach 60% by July 2024, up from 35% at the end of FY2023, primarily due to the influx of new tenants,” she said in a statement released after its annual general meeting today.

Looking ahead, she said the fund was looking at hitting 70% occupancy rates for FY24.

“The new leases we are securing have tenures ranging from two to three years, providing stability, and contributing to our long-term growth strategy,” she said.

AmanahRaya REIT’s current portfolio comprises 11 properties, including the educational assets of SEGi University Kota Damansara, SEGi College Subang Jaya and Help University campuses. The portfolio also encompasses a variety of properties in the industrial, retail, and hospitality sectors.

Moving forward, AmanahRaya REIT has announced its strategic decision to fully divest from the hospitality sector, aligning with its ongoing initiative to optimise the portfolio by acquiring high-yielding assets and divesting non-core strategic assets.

For the year ended Dec 31, 2024 (FY23), AmanahRaya REIT saw its net profit plunge 59% to RM5.0 million on RM72.3 million in turnover.

In the last three months through December 2023, the fund posted a net loss of RM3.2 million. Its revenue of RM17.5 million was lower by RM1.4m compared to the same period last year due to the loss of rental income from Vista Tower of RM1.3 million and Holiday Villa Langkawi (HVL) of RM283,000.

However, the decrease was mitigated by improved earnings in Selayang Mall amounting to RM261,000, it said in an earlier exchange filing.

At 2.30pm today, its stock was trading at 36.5 sen, its lowest in the last five years. — TMR