MQReit 2Q net profit up 6.5% to RM23.49m

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KUALA LUMPUR (Aug 8): MRCB-Quill REIT (MQReit)'s net profit for the second quarter ended June 30, 2018 rose 6.5% year-on-year to RM23.49 million from RM22.04 million, underpinned by lower property expenses and total expenditure incurred.

In a filing to the stock exchange today, MQReit said revenue for the quarter came in at RM43.69 million versus RM43.61 million a year ago.

MQReit declared an income distribution of 4.23 sen per unit payable on Sept 19.

In a separate statement, MRCB Quill Management Sdn Bhd (MQM), the manager of MQReit, said that for the six months ended June 30, MQReit recorded a distributable income and distributable income per unit of RM46.88 million and 4.38 sen, respectively.

MQM chairman Tan Sri Saw Choo Boon said MQReit delivered stable performance despite the uncertain operating environment and will strive to continue to do so.

"A stable net property margin of 77% has been maintained without compromising the quality of services to tenants. Going forward, we will continue to focus on cost management, tenant retention and optimisation of rental contribution," said Saw.

Meanwhile, MQM chief executive officer Yong Su-Lin said approximately 70% of the leases due up to 1H2018 had been renewed.

She said in addition to the renewals, the company had secured new leases for a few of its 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 approximately 86% of the total leases due for renewal in 2018.

"MQReit's average occupancy rate as at June 30, 2018 stood at 96%," she said.