PETALING JAYA: Sentral REIT (formerly MRCB-Quill REIT) posted a net profit of RM12.23 million for the fourth quarter ended Dec 31, 2020 compared with a net loss of RM24.38 million a year ago, mainly thanks to the change in fair value of investment properties.
The net profit consists of realised income of RM20.6 million; and unrealised loss amounted to RM8.4 million. Its realised net income of RM20.61 million is 10.8% higher than the realised net income of RM18.61 million recorded for Q4’19, mainly due to lower property operating expenses and finance cost incurred.
Sentral recorded a revenue of RM39.46 million in Q4’20, a decrease of 2.9% compared to RM40.62 million in Q4’19, mainly due to the adjustments on the unrealised revenue on unbilled lease income receivable pursuant to requirements of MFRS 16 Leases, recognised on a straight-line basis over the lease terms.
For the full year, its net profit more than doubled to RM72.57 million from RM29.12 million in FY19. The net profit consists of realised income of RM81 million and an unrealised loss amounted to RM8.4 million.
It achieved a realised net income and distributable income of RM80.95 million, an increase of 12.3% and 10.9% compared to the realised net income and distributable income of RM72.11 million and RM73.01 million recorded for FY2019.
Sentral recorded a revenue of RM164.01 million in year-to-date (YTD) December 2020, a increase of 1.9% over RM160.99 million in the previous financial year ended YTD December 2019, mainly due to higher revenue generated from Menara Shell, Wisma Technip (pix) and Tesco.
Distribution per unit (DPU) for the full year was 7.08 sen, which is 4.1% higher compared to the FY2019 DPU of 6.8 sen. The DPU consists of an interim distribution of 3.43 sen and the proposed final distribution of 3.65 sen, which translates to a distribution yield of 8.09%.
MQM CEO Yong Su-Lin said Sentral REIT had 371,000 sq ft (19% of its total leased net lettable area [NLA]) due for renewal in 2020. The manager’s active leasing and asset management strategies throughout the year has ensured a retention rate of 85% and correspondingly, achieved a healthy weighted average lease expiry of 4.51 years and 90% occupancy rate for its property portfolio as at the end of FY2020. Meanwhile, 440,000 sq ft or 22% of its total leased NLA will be up for renewal this year.
