Sentral REIT property, Menara Shell. (Photo: REITsWeek)Sentral REIT property, Menara Shell. (Photo: REITsWeek)

MRCB-Quill REIT (MQREIT) has reported a distribution per unit (DPU) of 3.43 sen for its 1H 2019, a fall of 18.9% from the same period of 2018.

The REIT’s realised net income for 2Q 2019 decreased by 29.9% to MYR16.45 million compared to the preceding quarter.

This is largely due to lower income contribution from Platinum Sentral, Wisma Technip and Quill Building 5, as well as the extraordinary gain from the disposal of Quill Building 8 in 2Q 2018.

Correspondingly, the REIT recorded distributable income of MYR17.35 million in 2Q 2019, down 29.1% from RM24.49 million achieved in 2Q 2018.

This translates to a 2Q 2019 distributable income per unit of 1.62 sen compared to the distributable income per unit of 2.28 sen recorded in 2Q 2018, a fall of 29.1%.

“We anticipate the operating environment for office space in Klang Valley to remain challenging due to the oversupply pressure”, said Tan Sri Saw Choo Boon, Chairman of the REIT’s manager.

“This is not expected to abate soon with more office buildings pending completion”, he warned.

“We are confident that the trust will ride out the office market down cycle with our continued focus on cost management, tenant retention and optimisation of rental contribution”, he added.

The annualised 1H 2019 DPU translates to a yield of 6.35% based on MQREIT’s closing price of MYR1.08 on 28 June 2019.

The DPU of 3.43 sen is expected to be distributed on Monday, 23 September 2019. The books closure date has been fixed for Friday, 23 August 2019.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.