KUALA LUMPUR (July 9): TDM Bhd (KL:TDM) said it will pay nearly 10% more in annual rent for 32,089 acres of plantation land in Terengganu operated by its plantation unit, KLLT Kumpulan Ladang-Ladang Terengganu Sdn Bhd (KLLT).

This follows a revision of the rates which covers land in Kemaman, Setiu and Hulu Terengganu leased from Perbadanan Memajukan Iktisad Negeri Terengganu (PMINT), according to the group's bourse filing on Thursday.

This, it added, will increase TDM's annual rental payments by 9.8% or RM482,000 to RM5.38 million from RM4.9 million previously,

Under the revision, rental for the Kemaman land parcels will increase to RM166 per acre annually from RM151 previously, while rates for the Setiu and Hulu Terengganu estates will rise to RM174 per acre from RM159.

KLLT has signed supplemental agreements with PMINT to formalise the revised rates under a provision allowing the Terengganu statutory body to review rental rates every five years based on prevailing market rates.  

The revised lease payments will be funded through internally- generated funds. As at end-March, TDM had cash of RM71.08 million, short-term borrowings of RM67.74 million and long-term borrowings of RM403.99 million.

TDM said the rental revision may affect its earnings for the financial year ending Dec 31, 2026, although the group noted that its performance would also depend on crude palm oil prices and other factors affecting revenue and profitability.

For the first quarter ended March 31, 2026, TDM narrowed its net loss to RM5.78 million from RM17.66 million a year earlier as revenue climbed 34% to RM174.54 million from RM130.18 million, driven by higher sales volumes of crude palm oil and palm kernel, as well as improved occupancy rates and patient volumes at its healthcare division, KMI Healthcare.

Shares of TDM closed unchanged at 21 sen on Thursday, valuing the group at RM353.19 million.