This article first appeared in The Edge Financial Daily on May 10, 2019

KUALA LUMPUR: MRCB-Quill Real Estate Investment Trust’s (MQ REIT) net property income (NPI) in the first quarter ended March 31, 2019 slipped 6.2% to RM32.38 million from RM34.54 million a year ago, on the back of lower revenue.

Revenue fell 5.8% to RM41.72 million from RM44.29 million last year, despite lower property operating expenses and trust expenses, its filing with Bursa Malaysia yesterday showed.

Trust manager MRCB Quill Management Sdn Bhd (MQM) expects some fluctuation in earnings amid the persistent challenging office market environment.

“However, we remain optimistic that MQ REIT’s operation will be able to weather these market challenges over time.

“We will continue to focus on tenant retention to maintain a stable occupancy and healthy weighted average lease expiry, which stood at 4.84 years as at March 31, 2019 for the REIT’s current asset portfolio,” said MQM chairman Tan Sri Saw Choo Boon.

MQ REIT’s portfolio of assets boasts  369,000 sq ft, of which 19% of its total leased net lettable area is due for renewal in 2019.