KUALA LUMPUR (Jan 24): UOA Real Estate Investment Trust's net rental income for the fourth quarter ended Dec 31, 2017 (4QFY17) fell 39.9% to RM8.98 million, from RM14.94 million in 4QFY16, on lower gross rental and higher borrowing cost.

In its filing with Bursa Malaysia, UOA REIT said gross rental slipped 2.54% to RM20.70 million, from RM21.24 million in the same quarter a year ago.

UOA REIT declared a final income distribution of 4.37 sen (comprising 4.12 sen taxable income and 0.25 sen tax exempt income) to be paid on Feb 28.

"Taking into consideration a 95% distribution, the trust has set aside RM18.48 million as provision for distribution," it said.

For the full year, net rental income declined 23.68% to RM37.88 million from RM49.63 million in FY16.

Similarly, gross rental income dropped 8.2% to RM82.35 million from RM89.73 million previously.

Thus, realised earnings per unit came down to 8.99 sen from 10.69 sen in FY16.

The REIT's manager, UOA Asset Management Sdn Bhd, said it will continue to source for opportune acquisitions, in order to maximise yields for unitholders.

UOA REIT was last traded at RM1.61, giving a market capitalisation of RM680.82 million.