Al-Hadharah REIT's Q4 net profit leaps 639%

PETALING JAYA (Jan 27, 2012): Al-Hadharah Boustead REIT posted a net profit of RM239 million for the fourth quarter ended Dec 31 2011, a staggering increase of 639%, from RM32 million a year ago, mainly due to fair value gains and an increase in rental income.

Revenue was up 13% to RM22 million from RM20 million a year ago.

The plantation-based REIT declared a final dividend of 8 sen, bringing the total dividend for the year to 12 sen.

"Moving forward, we look forward to further cultivating our portfolio of assets and enhancing our earnings potential. Given our unique position as Malaysia's only plantation-based REIT coupled with the steady demand for commodities, we are confident that we are poised for greater growth in the year ahead." Al-Hadharah REIT chairman Tan Sri Lodin Wok Kamaruddin said in a statement today.

For the full year ended Dec 31 2011 (FY11), Al-Hadharah REIT's net profit surged 273% to RM306 million compared with RM82 million in FY10.

This was achieved on the back of a higher revenue of RM100 million, a 33% increase from RM75 million in FY10.

"Despite the uncertain global economic climate, by building on our established track record and exploring further opportunities in the market, we were able to continue to deliver greater value to our unitholders with improved earnings," said Lodin.

"In line with our accounting policy, we also undertook a revaluation of our assets, recording a fair value gain of RM213 million. This contributed to our total profit for the year and resulted in an increase in the closing net book value of our investment properties to RM1.3 billion," he added.

Al-Hadharah REIT's unit price closed at RM1.54 per unit on Dec 31 2011, while net asset value for the 12-month period rose to RM1.81 per unit. The fund's market capitalisation stood at RM965.4 million.