Quill REIT 2Q profit drops 3.9% to RM8.56m, declares 4.10 sen payout

by **Cals** Wed 23 Jul 2014, 01:34

Business & Markets 2014

Written by Charlotte Chong of theedgemalaysia.com

Tuesday, 22 July 2014 19:24
KUALA LUMPUR (July 22): Quill Capita Trust (QCT) registered a net profit of RM8.56 million for the second financial quarter ended June 30 this year, a decrease of 3.88% compared with RM8.91 million reported for the previous corresponding period.

The real estate investment trust’s (REIT) revenue was flat at RM17.35 million compared with RM17.27 million previously.

QCT, in a statement today, attributed the decrease in profit to higher property operating cost, finance cost and valuation fee although it saw higher rental income contribution and utility recoveries from some of the properties.

For the six months period ended June 30, the REIT posted a net profit of RM16.72 million, down 1.72% against RM17.02 million for the same period last year. Revenue remained flat at RM34.53 million against RM34.50 million previously.

QCT said the marginal increase in revenue was mainly due to rental rate increases of some properties and higher recoveries.

“Property operating expenses is higher by 3.5% mainly due to higher repair and maintenance costs, thus resulting in lower net property income by 0.9%,” it explained.

The REIT declared an income distribution of 4.10 sen per unit for the six months, which is expected to be paid on Aug 29.

Quill Capita Management Sdn Bhd, the manager of QCT, said in the statement that it will continue with a proactive leasing strategy to drive organic growth for the current financial year.

“Another growth opportunity that will augment QCT’s income stream is the proposed acquisition of Platinum Sentral,” QCM chairman Datuk Mohammed Hussein said, adding that the acquisition is set to be completed by 4Q14