KUALA LUMPUR (July 30): YTL Hospitality REIT (KL:YTLREIT) reported a slight increase in its fourth quarter net property income (NPI), supported by a higher contribution from its property rental segment following the commencement of the lease for AC Hotel Puchong in April.

The NPI for the fourth quarter ended June 30, 2026 (4QFY2026) rose 3.47% to RM66.19 million from RM63.97 million a year earlier, according to a bourse filing on Thursday.

Revenue dropped marginally by 0.57% to RM126.33 million from RM127.05 million, with a lower contribution from the REIT's Australian hotel portfolio amid the uncertainty following the Iran conflict. This was however offset by a higher rental income from its Malaysian properties.

Profit before, however, surged 94.52% year-on-year to RM132.90 million from RM68.32 million, lifted by the higher NPI and a higher fair value gains on investment properties of RM110 million compared with RM52.01 million previously. There was also an unrealised exchange gain of RM1.93 million on foreign currency borrowings, compared to a RM700,000 loss previously.

The REIT, 55%-owned by YTL Corp Bhd (KL:YTL), declared a final income distribution of 4.9189 sen per unit, comprising 4.6232 sen taxable and 0.2957 sen non-taxable, bringing the total FY2026 distribution to 8.00 sen per unit, or RM140.78 million, equivalent to about 100% of distributable income.

The books will close on Aug 13, with payment scheduled for Aug 28.

The FY2026 distribution exceeded the 7.75 sen per unit, or RM132.1 million, paid for FY2025.

For the full financial year, YTL Hospitality REIT’s NPI increased 7.5% to RM313.97 million from RM292.07 million in the previous year, while revenue rose 4.02% to RM570.35 million from RM548.32 million.

Looking ahead, the REIT expects operating conditions across its hospitality markets in Malaysia, Japan and Australia to remain stable, supported by sustained growth in domestic and international travel demand.

The REIT owns a portfolio of hotels and resorts across the three countries, including the JW Marriott Kuala Lumpur, The Ritz-Carlton Kuala Lumpur, Hilton Niseko Village and Marriott-branded hotels in Sydney, Brisbane and Melbourne.

YTL Hospitality REIT units closed a sen or 0.93% lower at RM1.06 on Thursday, valuing the trust at RM1.9 billion.