KUALA LUMPUR (Nov 5): Sentral REIT (KL:SENTRAL) saw its net property income (NPI) dip nearly 2% in the latest quarter as higher operating costs at Arcoris Mont Kiara offset the income gained from the new property.

NPI for the three months ended Sept 30, 2026 (3QFY2026) fell 1.8% to RM35.7 million from RM36.3 million in the corresponding quarter a year earlier, according to the office-focused property trust's bourse filing on Thursday. Revenue was flat at RM48.6 million, while property operating expenses rose 8% to RM12.9 million from RM11.9 million a year earlier. 

Sentral REIT’s revenue increased due to contributions from Arcoris Mont Kiara, acquired last year, and better performance from its existing properties. The REIT's portfolio occupancy rate improved to 90% as at end-September. No income distribution was proposed for the quarter, as Sentral REIT makes distributions on a half-yearly basis.

For the cumulative nine months ended Sept 30, 2026 (9MFY2026), NPI declined 2.1% to RM107.5 million from RM109.8 million in 9MFY2025, despite revenue rising 1.6% to RM145.7 million from RM143.4 million. 

Looking ahead, Sentral REIT said its manager, Sentral REIT Management Sdn Bhd (SRM), would leverage the stability of its core assets and healthy financial position to explore opportunities to diversify into other asset classes.

"With a strong balance sheet, Sentral REIT is well positioned to continue diversifying its portfolio through selective, accretive acquisitions, driving sustainable growth in distributions to unitholders," said SRM chief executive officer Tay Hui Ling.

Units in Sentral REIT were unchanged at 56 sen at Thursday's midday break, valuing the property trust at RM669.5 million.