Atrium REIT’s 3Q rental income up 74% to RM7.7m

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KUALA LUMPUR (Oct 27): Atrium Real Estate Investment Trust (REIT)’s net rental income jumped 73.98% to RM7.71 million in the third quarter ended Sept 30, 2020 (3QFY20), from RM4.43 million a year ago.

In a bourse exchange, the REIT said its gross revenue for the quarter also surged 68.08% to RM8.27 million, from RM4.92 million in 3QFY19.

“The substantial increase in gross revenue was mainly due to the rental income from Atrium Bayan Lepas 2 which commenced in October 2019, whilst other income was in relation to the one-off gain on disposal of used racking system,” said the trust.

During the quarter under review, Atrium REIT paid an interim distribution of 2 sen per unit, amounting to RM4.09 million in respect of the realised income.

For the nine months ended Sept 30, 2020, the group’s net rental income surged 72.7% to RM22.93 million, from RM13.28 million a year ago. Its gross revenue also rose 67.97% year-on-year to RM24.77 million, from RM14.75 million.

The REIT expects the trust’s performance to be sustainable for this financial year with the full-year contribution from Atrium Bayan Lepas 2, which was acquired on Oct 7, 2019, and the positive contribution from the acquisition of Lumileds Plant 1, which was completed on Oct 22, 2020.

In addition, the REIT said one of its tenants, CJ Century Logistics Sdn Bhd, has informed the manager that it has changed its plans and will be renewing a tenancy which is expiring on Dec 31.

“The manager is in the midst of negotiating with CJ Century on the renewal terms. In the meantime, the manager will continue to market the space through agents pending the finalization of the renewal terms with CJ Century,” said the REIT.

Meanwhile, another tenant, FM Global Logistics (M) Sdn Bhd, has informed the manager that it will not be renewing a tenancy which is expiring on Jan 31, 2021.

However, the manager has managed to secure a new tenant, Lazada Express (Malaysia) Sdn Bhd, to take over the whole premises. The new tenancy commenced on Oct 1, after FM agreed to early handover of the premises to Lazada in phases.

“The new tenancy is for a tenure of three years with option to renew for another two years. The occupancy rate for the trust’s portfolio of properties as at Sept 30, 2020 was 100% and the manager expects the trust’s portfolio of properties to maintain 100% occupancy for the remaining of the financial year,” said the REIT.

Atrium REIT closed one sen or 0.93% higher at RM1.08, valuing the company at RM221 million.

Lam Jian Wyn