KUALA LUMPUR (Jan 22): UOA Real Estate Investment Trust’s (UOA REIT) net rental income fell 11.77% to RM18.76 million for the fourth quarter ended Dec 31, 2023 (4QFY2023), from RM21.26 million a year earlier, dragged down by lower gross rental and higher property operating expenses.

The operating expenses increased due to higher electricity costs and routine lift maintenance that occurs every few years, the commercial REIT's Bursa Malaysia filing showed.

Total income dropped 11.52% to RM18.94 million, from RM21.41 million in 4QFY2022.

Net profit fell 17.59% to RM11.38 million from RM13.81 million, while earnings per unit dropped to 1.68 sen from 2.04 sen.

Quarterly revenue decreased 3.52% to RM27.30 million, from RM28.30 million a year earlier.

The REIT declared an income distribution per unit (DPU) of 3.86 sen (compared with 4.32 sen in 4QFY2022) and it will be paid on Feb 29.

This brings its total income distribution for FY2023 to 7.82 sen, down 9.28% compared with the 8.62 sen paid for FY2022.

UOA RET's net rental income fell 6.65% to RM82.38 million in FY2023, from RM88.25 million in FY2022, while total income inched down 1.35% to RM112.84 million from RM114.38 million.

Full-year net profit decreased 11.54% to RM53.85 million from RM60.87 million, as revenue shrank 1.13% to RM113.51 million from RM114.80 million.

UOA REIT units closed one sen or 0.88% lower at RM1.12 on Monday, giving the commercial REIT a market capitalisation of RM757 million.