KUALA LUMPUR (Nov 7): Sentral REIT (KL:SENTRAL), which mainly manages office towers, said on Thursday its net property income rose 25% in the third quarter ended Sept 30, 2024 (3QFY2024) from a year earlier, boosted by revenue from a newly acquired property.
Net property income for 3QFY2024 was RM37.6 million, helping to lift net distributable income to RM20.5 million, the real estate investment trust said in an exchange filing. The trust, however, did not declare income distribution for the quarter.
“We remain confident in Sentral REIT’s ability to sustain a consistent trajectory, with the overall office market in the Klang Valley demonstrating positive performance, marked by growth in occupancy rates and rents this year,” said chairman Tan Sri Saw Choo Boon.
Sentral REIT owns 10 properties, including Sentral Buildings 1 to 4, Menara Shell and Platinum Sentral, with a combined market value of RM2.52 billion. The company added Menara CelcomDigi to its portfolio in December 2023.
The REIT has about 282,000 sq ft or 14% of its total committed net lettable area due for renewal in 2024, with about 180,000 sq ft or 62% of the area due up to September. The occupancy rate was stable at 84% at the end of the quarter.
“We are optimistic about the renewal outcomes for tenancies due in the last quarter, which will ensure that Sentral REIT’s portfolio occupancy remains robust for the year,” said chief executive officer Derek Teh. “Leasing efforts are ongoing to lease out the balance of vacant spaces within the portfolio.”
For the nine months ended Sept 30, 2024 (9MFY2024), net property income rose 28% to RM113.68 million. After deducting higher finance costs, manager's fees and trustee's fees, net distributable income was 14% higher at RM60.92 million for 9MFY2024.
Sentral REIT units were unchanged at 79.5 sen ahead of the results announcement. At that price, the trust had a market capitalisation of RM950 million.