MQREIT 2Q realised net income up 59%

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GEORGE TOWN: MRCB-Quill REIT (MQREIT) posted a 59.22% rise in its realised net income in its second quarter ended June 30, 2015 (2QFY15), from RM8.56 million in the corresponding period last year, primarily due to the recognition of contribution from the newly acquired Platinum Sentral for the full quarter.

Its distribution per unit (DPU) for the quarter under review was 2.22 sen — up 10.4% from 2QFY14’s 2.01 sen — which the REIT will be distributing on Aug 28 (ex-date: Aug 4), according to its filing with Bursa Malaysia yesterday. Its realised net income for the half year ended June 30 (1HFY15) rose to RM21.91 million, up 31% from RM16.72 million in 1HFY14. This brings its annualised 1HFY15 DPU to 4.1 sen, same as the previous corresponding period’s.

Gross revenue for 2QFY15 came in 85.5% higher at RM32.18 million from RM17.35 million, while its 1HFY15 revenue stood at RM50.79 million, up 47.1% from RM34.53 million in 1HFY14. 

In a separate statement, Yong Su-Lin, chief executive officer of MRCB Quill Management Sdn Bhd, the manager of MQREIT, said the annualised 1HFY15 DPU translated into a yield of 7% based on MQREIT’s closing price of RM1.17 on June 30. She said MQREIT has achieved a stable performance amidst an increasingly challenging office market environment on the back of weakening business and consumer sentiment.

“We will continue to actively look for acquisition opportunities as part of our growth strategy, to enhance unitholder value,” she said.

She said from the leasing perspective, MQREIT managed to renew 94% of leases due for renewal in 1HFY15 despite challenges in the office market sector, where there was a growing supply of space in the Klang Valley.

“As at June 30, our average occupancy rate is resilient at 93% in terms of non-leaseable area vis-à-vis the average office market occupancy of 85.2% for Kuala Lumpur city,” she said. 

MQREIT (fundamental: 0.05; valuation: 1.2) closed unchanged at RM1.17 yesterday for a market capitalisation of RM773.82 million.


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This article first appeared in The Edge Financial Daily, on July 23, 2015.