PETALING JAYA: MRCB-Quill REIT (MQREIT) posted a 14.3% decline in net profit to RM17.64 million for the third quarter ended Sept 30, from RM20.59 million due to lower revenue contribution from selected properties within the portfolio.
Correspondingly, realised earnings per unit and distributable income per unit for 3Q19 of 1.65 sen was recorded.
Revenue for the quarter was also lower at RM39.46 million, from RM43.59 million, mainly due to lower revenue generated from Platinum Sentral, QB5 and Wisma Technip.
In a statement, MRCB Quill Management Sdn Bhd (MQM) CEO Yong Su-Lin said the company recorded a 93% renewal rate for its leases due up to 3Q19.
“Correspondingly, MQREIT’s average occupancy rate as at Sept 30, 2019 stood at 89%. For the last quarter, there is a balance of 17% of the leases due in 2019 pending renewal. Negotiations are progressing as scheduled for these leases. We will continue with our marketing efforts to lease out MQREIT’s existing vacant spaces with the aim of improving the portfolio occupancy.”
On a cumulative basis, MQREIT’s net profit declined 17.8% to RM53.5 million, from RM65.08 million a year before.
Revenue was also 8.5% lower at RM120.37 million, from RM131.58 million due to lower revenue generated from Platinum Sentral, Wisma Technip, QB5 and loss of revenue from QB8-DHL XPJ after the disposal took place on 12 April last year.
MQM chairman Tan Sri Saw Choo Boon said looking ahead, the company anticipated the operating environment for office space in Klang Valley will remain challenging due to oversupply pressures.
“We will continue to focus on cost management, tenant retention and optimisation of rental contribution,” he said.
