KUALA LUMPUR (May 25): UOA Real Estate Investment Trust (REIT) registered a largely flat total income available for distribution of RM11.69 million in its first quarter ended March 31 (1QFY15), compared with RM11.75 million in the same period last year.
It also made a provision to distribute RM11.10 million or 2.63 sen per unit for unitholders for the quarter under review, which is 0.01 sen or 0.38% down from the 2.64 sen per unit it announced for the previous corresponding quarter.
"No income distribution was declared for the quarter under review but a provision was made to distribute 95% of the distributable income for 1QFY15 to be distributed by end of August 2015," the REIT said in its filing with Bursa Malaysia today.
UOA REIT (fundamental: 1.0; valuation: 2.3) said total expenditure has increased by 8%, mainly due to increases in property operating expenses and borrowing costs.
The REIT recorded a revenue of RM22.78 million in 1QFY15, a 3.34% increase from RM22.05 million last year, which was due to a 3% improvement in gross rental from revision in rental rates and steady occupancy rates of the investment properties.
Moving forward, the REIT's manager foresees occupancy rates will continue to be stable for the remaining part of financial year 2015, while average rental rates are expected to remain consistent with no major changes anticipated.
"The manager will continue to adopt an active operating and capital management strategy to enhance the yields and returns of the existing properties while continuing to seek opportunities to further acquire real estate that meets the objectives of the trust," it said.
UOA REIT closed two sen or 1.26% higher at RM1.61 per unit today, with a market capitalisation of RM672.37 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.)