Amanah Harta PNB 1Q net income slips 1.7% on higher property expense, lower rental income

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KUALA LUMPUR (May 6): Amanah Harta PNB (AHP) saw a 1.7% decline in realised net income to RM3.08 million for the first quarter ended March 31, 2020 (1QFY20), from RM3.13 million a year ago, on higher property operating expenditure and lower net rental income.

Total quarterly expenditure rose 6.25% year-on-year (y-o-y) to RM4.68 million, while net rental income came in lower by 2.8% y-o-y to RM7.67 million.

This was despite revenue for the quarter rising by 4.8% y-o-y to RM7.89 million, from RM7.53 million.

Total net asset value for 1QFY20 was RM278.83 million or RM1.2674 per unit, down 1.2% from RM282.13 million or RM1.2824 per unit a year ago.

In a bourse filing today, AHP said as a fund which is directly linked to Permodalan Nasional Bhd, it has provided some rental reduction reliefs to tenants, especially small and medium companies.

"AHP will continue being committed to strengthen its core business segment, while adjusting to the current market challenges. However, as suggested by the prime minister, landlords are urged to provide some rental reduction or discount to their tenants to assist them to ride out the effects of the Covid-19. Landlords are encouraged to provide at least 30% rental reduction from April to June 2020, which will qualify them for additional tax deduction," it added.

On its part, Pelaburan Hartanah Nasional Bhd, as the manager to the fund, via the Malaysian REIT Managers Association, has appealed for relief. These include further electricity tariff discounts, unit holder’s withholdings tax exemption, reduction of percentage of distribution payout for tax exemption and subsidies for statutory contribution.

AHP units were untraded today. They last closed at 71 sen, valuing the fund at RM156.2 million.