MRCB-Quill REIT's 4Q realised net income up 92.5%, declares DPU of 4.37 sen

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KUALA LUMPUR (Jan 22): MRCB-Quill REIT’s (MQReit) realised net income for the fourth quarter ended Dec 31, 2015 (4QFY15) grew 92.5% to RM16.4 million, from RM8.5 million a year ago, due to higher income contribution from Platinum Sentral here, higher net property income, and higher interest income.

Net property income for 4QFY15 surged 99.7% to RM26.79 million from RM13.41 million in the previous year.
Revenue for the quarter also came in higher at RM32.58 million, a 79.2% jump from RM18.18 million in 4QFY14.

It also declared a final distribution per unit (DPU) of 4.37 sen for FY15, payable on Feb 29. This brings total DPU for the year to 8.47 sen, from 8.38 sen in FY14.

For full-year 2015 (FY15), the real estate investment trust (REIT) saw its realised net income increase 58% to RM54 million or earnings per unit (EPU) of 9.06 sen, compared with RM34.2 million or EPU of 8.76 sen recorded in FY14.

For FY15, MQReit's net property income rose 69.3% to RM90.27 million from RM53.33 million the previous year.

Revenue for FY15 rose 63.9% to RM115.17 million, from RM70.25 million in FY14.
In a statement today, MRCB Quill Management Sdn Bhd (MQM), the manager of MQReit, said the REIT’s property portfolio value increased to RM1.57 billion, after recognising a fair value gain on investment properties of RM6.7 million as at Dec 31, 2015.

"Although the property market outlook in the near term will likely remain challenging as we note an influx of supply into the market, we are confident that MQReit’s portfolio of quality commercial assets will continue to remain resilient, as they have done in the past," said MQM chief executive officer Yong Su-Lin.

She added that scheduled enhancement works will be initiated for a few properties in FY16, namely Quill Building 1-DHL1, Quill Building 4 – DHL 2 and Platinum Sentral.

"As part of our proactive capital management strategy, MQM has commenced negotiations with financial institutions for the refinancing of MQReit’s RM270 million CP/MTN programme, which will be due in September 2016.

"In view of the current rising interest rate environment, we will continue to adopt a pro-active capital management strategies and plan to maintain majority of fixed rate borrowings, as part of our strategy to provide income stability to the trust,” said Yong.

As at Dec 31, 2015, MQReit's total debts stood at RM689.72 million, with a gearing ratio of 0.42 times. It has total assets of RM1.62 billion.

MQReit closed one sen or 0.93% higher at RM1.08 today, bringing it to a market capitalisation of RM714.29 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)