UOA REIT 2Q net profit up 62% to RM10.68m

KUALA LUMPUR: UOA Real Estate Investment Trust’s net profit rose 62% to RM10.68 million in the second quarter ended June 30, 2011, from RM6.59 million a year ago.

It said on Friday, July 15, revenue increased by 88% to RM20.28 million from RM10.78 million. Earnings per share were 2.53 sen compared with 2.68 sen.

It said total expenditure was RM9.49 million with RM4.51 million due to property operating expenses and RM4.98 million due to non-property operating expenses.

“Income before taxation available for distribution for the quarter under review was RM10.79 million. Taking into consideration a 95% distribution, the trust has set aside RM10.28 million as provision for income distribution.

UOA REIT said this translated into about 2.43 sen per unit for the quarter under review and included a non-taxable portion of about 0.27 sen per unit.

“Despite the recent departure of a major tenant in UOA II, the manager anticipates an improvement in the occupancy given the active enquiries received. High occupancy rates for all the PROPERTIES [] are expected for the remaining part of the year,” it said.

For the first half, net profit rose 67.7% to RM22.33 million from RM13.31 million in the previous corresponding period. Revenue increased by 83.1% to RM39.38 million from RM21.50 million.

UOA REIT said gross rental has improved by 81.4% due mainly to the contribution from the newly acquired properties (RM17.50 million).

However, operating expenses increased by about 116.0%, arising mainly from the maintenance costs of the new properties (RM3.38 million), increased manager's fee (RM558,592), increased repair and maintenance expenditure (RM170,838).

It also said there were increased borrowing costs (RM5.23 million) due to increase in cost of funding and additional bank borrowings to part-finance the acquisition of Wisma UOA Damansara II and Parcel B - Menara UOA Bangsar.

The net improvement in realised income before taxation amounted to RM8.39 million or 63.0%.