PETALING JAYA: The net profit of MRCB-Quill REIT (MQREIT) slipped 7.6% to RM19.4mil in the first quarter, on the back of lower revenue generated from selected properties.
The company, in a filing with Bursa Malaysia, said this was despite lower property operating expenses and trust expenses incurred during the period.
In line with the lower net profit, MQREIT recorded a realised earnings per unit (EPU) of 1.81 sen, which is 7.9% lower than the EPU of 1.97 sen recorded during the same period last year.
Revenue for the first quarter ended March 31, 2019, was also down by 5.8% to RM41.7mil.
In a statement, MRCB Quill Management Sdn Bhd (MQM), the manager of MQREIT said it expected to see some fluctuation in earnings during the current challenging office market environment.
MQM chairman Tan Sri Saw Choo Boon said that it, however, remained optimistic that MQREIT’s operations would be able to weather the challenges over time.
“We will continue to focus on tenant retention to maintain a stable occupancy and healthy weighted average lease expiry, which stands at 4.84 years as at March 31, 2019 for the REIT’s current asset portfolio,” he said.
MQM’s CEO Yong Su-Lin, meanwhile, noted that MQREIT had 369,000 sqf, which represented 19% of its total leased net lettable area, due for renewal in 2019, with 16% of these leases due in Q1.
The leases, due in Q1, 2019, are predominantly relating to the tenancies in Platinum Sentral which have not been renewed.