MRCB-Quill REIT’s Q3 net profit improves 21.8%

PETALING JAYA: MRCB-Quill REIT’s (MQREIT) net profit rose 21.8% to RM21.48 million for the third quarter ended Sept 30 from RM17.64 million reported in the previous quarter on the back of higher revenue and lower operating expenses incurred from some of its properties.

Correspondingly, realised earnings per unit (EPU) and distributable income per unit for 3Q’20 of 2 sen was recorded.

Revenue for the quarter stood at RM41.71 million, a 5.7% increase from RM39.46 million reported previously.

According to its disclosure, 19% of the group’s committed net lettable area or approximately 371,000 sq ft are up for renewal and as of 3Q’20 it has concluded the lease negotiation for 216,000 sq ft, while 25,000 not renewed.

“This translates into a total renewal rate of 90% as of 3Q’20 and negotiations are ongoing for 130,000 sq ft of leases due in 4Q’20,” it said.

For the nine month period, the group reported a net profit of RM60.34 million, a 12.8% improvement over RM53.5 million reported in the corresponding period of the previous year.

MQREIT declared realised EPU of 5.63 sen, in the first three quarters of 2020.

Meanwhile, its revenue picked up by 3.5% to RM124.55 million, against RM120.37 million reported previously.

Going forward, MQREIT’s manager, MRCB Quill Management Sdn Bhd (MQM) chairman Tan Sri Saw Choo Boon acknowledged that the challenges remains with the resurgence of increased Covid-19 infections, but it is confident that the government will soon bring it under control and it will be targeting to secure renewal or new tenants for all the expiring leases.

MQM’s CEO Yong Su-Lin stated that the group’s portfolio continues to be stable and the marketing efforts will be intensified to lease its existing vacant space to improve portfolio occupancy.

As of Sept 30, MQREIT has a gearing ratio of 38.2% and a staggered debt maturity profile with an average debt cost of debt of 4.09% per annum. Based on current committed debt, MQREIT has sufficient liquidity to meet its interest servicing obligations.