MRCB-Quill REIT's Q4 net profit down 80% on deficit in revaluation

PETALING JAYA: MRCB-Quill REIT's (MQREIT) net profit for the fourth quarter ended Dec 31, 2017 plunged 80% on a RM18.2 million deficit in revaluation of its investment properties.
It made a net profit of RM3.3 million for the quarter under review, compared with Rm16.9 million for the same quarter in 2016.
This was on 18.3% higher revenue of RM46.1 million, compared with RM38.9 million for the same quarter in 2016.
The REIT comprises of 10 buildings worth a market value of RM2.2 billion as at Dec 31, 2017.
In 2017, 14% of MQREIT's total net lettable area was due for renewal.
As at Dec 31, 2017, MQREIT successfully renewed approximately 80% of these leases. It is now in active negotiations for the renewal of leases due in 1Q 2018.
In its filing with Bursa Malaysia, MQREIT said the Klang Valley office market is expected to remain challenging and for 2018, they will focus on asset management and leasing strategies that are centred on tenant retention.
For the 12 month period ended Dec 31, 2017, MQREIT registered a 11.4% jump in net profit to RM9.9 million, compared with RM62.8 million for the same period in 2016.
Revenue for the period was 32.8% higher at RM181.5 million, compared with RM136.7 million in 2016.
Its share price gained one sen to RM1.22 today, with 131,200 shares changing hands.