Al-Hadharah REIT 2Q net profit jumps 50% to RM23.9m

KUALA LUMPUR: AL-HADHARAH BOUSTEAD REIT [] (Al-Hadharah REIT) net profit for the second quarter ended June 30, 2011 jumped 50% to RM23.91 million from RM15.95 million a year earlier, due mainly to an increase in fixed rental income and the doubling of performance-based profit sharing.

Revenue for the quarter rose to RM27.70 million from RM18.06 million. Earnings per unit was 3.81 sen while net assets per share was RM1.43.

The fund declared an income distribution of 4 sen per unit which will be paid in September, 2011.

For the six-month period ended June 30, Al-Hadharah REIT posted profit RM44 million compared with RM33 in 2010, on the back of revenue RM50 million.

Al-Hadharah REIT chairman Tan Sri Lodin Wok Kamaruddin said the quarter was driven by strong crude palm oil (CPO) prices coupled with the injection of new assets, particularly the Sutera and Taiping Rubber PLANTATION []s (including Trong Oil Mill) for an aggregate purchase consideration of RM190 million.

“Given the current volatility in the capital markets, we are indeed an ideal investment prospect for discerning investors based on our strong income distribution track record.

Additionally, we expect crude palm oil prices to remain at a healthy level despite current inventories. These factors will all go well in terms of our future dividend payments for the rest of the financial year”, he said.