KUALA LUMPUR (Jan 20): UOA Real Estate Investment Trust (UOA REIT) reported net rental income of RM15.9 million for the fourth quarter ended Dec 31, 2016 (4QFY2016), down 9% from RM17.52 million in the same period last year.
Net profit plunged by a steep 80% to RM14.94 million from RM74.54 million in the same period a year ago due to absence of revaluation surpluses.
This pulled down its earnings per share to 3.53 sen per share in 4QFY2016 from 17.63 sen per share in 4QFY2015.
Quarterly revenue dropped 7.9% to RM21.24 million in 4QFY2016 from RM23.07 million in 4QFY2015, on lower gross rental rate of its commercial properties, which has declined by 2%.
Looking through its income statement, which was filed with Bursa Malaysia last evening, UOA REIT’s dramatic fall in its latest quarterly net profit was due to absence of a revaluation surplus, a non-cash gain item that paints the fair value adjustment of its investment properties.
UOA REIT last revalued its investments properties on Dec 31, 2015, netting a gain of RM64.13 million.
For the full-year ended Dec 31, 2016 (FY2016), UOA REIT’s net profit slumped 55% to RM49.63 million or 11.74 sen per share from RM110.32 million from 26.09 sen per share in FY2015.
Revenue in FY2016 slipped 2.4% to RM89.73 million from RM91.93 million in FY2015.
UOA REIT did not declare any income distribution in 4QFY2016, but has set aside RM22.24 million as provision to distribute 98% of its pre-tax profit to unit holders by February this year.
However, in a separate announcement to the local bourse this evening, UOA REIT announced that that it has declared a final income distribution of 5.26 sen per share for FY2016, of which 0.4 sen is tax-exempt. The payment, the company said, will be paid on Feb 28.
On outlook, UOA REIT said it will continue to manage its portfolio to maximise the yield for unitholders.
“The occupancy rates continue to be influenced by uncertainties in the domestic and global economy,” the company said, adding that in the interim, UOA REIT’s manager will continue to seek opportunities for further acquisitions that meet its objectives.
Listed in 2005, UOA REIT currently manages six commercial properties, valued at RM1.13 billion.
UOA REIT shares yesterday closed 0.55% higher at RM1.83, giving it a market capitalisation of RM773.86 million. — theedgemarkets.com