KUALA LUMPUR (Jan 22): Sentral REIT (KL:SENTRAL) ended the final financial quarter with a flat net property income (NPI), as revenue gains were offset by operating expenses for Menara CelcomDigi.

NPI for the fourth quarter ended Dec 31, 2024 (4QFY2024) rose a marginal 1.25% to RM36.71 million from RM36.26 million, according to the office tower property trust in a bourse filing on Wednesday.

Revenue increased 5.54% to RM47.38 million from RM44.89 million, while property operating expenses rose 10.52% to RM11.5 million versus RM10.4 million a year earlier.

Sentral REIT attributed the rise in revenue to higher revenue generation from Menara CelcomDigi, as well as Sentral Buildings 1, 2 and 3. Higher property operating expenses were mainly pinned on the inclusion of operating expenses for Menara CelcomDigi.

The REIT's portfolio occupancy rate as at end-December remained stable at 84%. Menara CelcomDigi was added to the portfolio in December 2023.

Sentral REIT also declared a final distribution per unit (DPU) of 3.15 sen, payable on Feb 28.

Despite the flat 4QFY2024 earnings, NPI for the full year ended Dec 31, 2024 (FY2024) was still up 20.4% to RM150.37 million from RM124.87 million previously, as revenue rose 18.6% to RM191.15 million versus RM161.15 million.

Full-year DPU stood at 6.36 sen, lower than the 6.68 sen declared for FY2023.

Looking ahead, Sentral REIT said the tenant-led market environment and cost inflation will continue to exert competitive pressures on the trust in the Klang Valley office and retail markets in FY2025.

“Sentral REIT will continue to focus on asset management and leasing strategies that are centred on cost optimisation and tenant retention in the current operating environment,” the property trust said.  

“Efforts will be continued to market the available office spaces under the portfolio, with the focus on bringing in new tenants from the information technology, e-commerce, serviced office and shared services sector,” it added.

Units in Sentral REIT ended half a sen or 0.63% higher at 80 sen on Wednesday, valuing the property trust at RM956.4 million.