MRCB-Quill REIT’s third quarter net income falls to RM17.64m

In a filing with Bursa Malaysia today, MRREIT said the lower realised net income was mainly attributable to lower revenue contribution from selected properties within the portfolio, net of lower property operating expenses and trust expenses. — Bernama pic
In a filing with Bursa Malaysia today, MRREIT said the lower realised net income was mainly attributable to lower revenue contribution from selected properties within the portfolio, net of lower property operating expenses and trust expenses. — Bernama pic

KUALA LUMPUR, Nov 25 — MRCB-Quill REIT’s (MQREIT) net income for the third quarter ended Sept 30, 2019 (3Q2019), fell 14.3 per cent to RM17.64 million from RM20.59 million posted in the same quarter last year.

In a filing with Bursa Malaysia today, it said the lower realised net income was mainly attributable to lower revenue contribution from selected properties within the portfolio, net of lower property operating expenses and trust expenses.

Revenue also decreased by 9.5 per cent to RM39.46 million from RM43.59 million previously, mainly due to lower revenue generated from Platinum Sentral, Quill Building 5 — IBM (QB5) and Wisma Technip.

MQREIT’s manager, MRCB Quill Management Sdn Bhd (MQM) chairman Tan Sri Saw Choo Boon said the group hopes further liberalisation of the withholding tax incentives could be considered via the reduction of the withholding tax rates for individual unitholders to zero.

This he said, is to further promote the development and competitiveness of REITs in Malaysia.

“We anticipate the operating environment for office space in Klang Valley to remain challenging due to these oversupply pressures.

“We will continue to focus on cost management, tenant retention and optimisation of rental contribution,” he said.

MQM Chief executive officer Yong Su-Lin said MQREIT recorded a 93 per cent renewal rate for its leases due up to 3Q2019.

“Correspondingly, MQREIT’s average occupancy rate as at Sept 30, 2019, stood at 89 per cent, while there is a balance of 17 per cent 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,” she said. — Bernama

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