UOA REIT's net rental income fell 22.06% to RM16.48 million in its second quarter ended June 30, 2024 from RM21.15 million a year ago, dragged by higher property operating expenses.

KUALA LUMPUR (July 25): UOA REIT (KL:UOAREIT), a trust which mainly manages commercial properties, saw its net rental income fall 22.06% to RM16.48 million in its second quarter ended June 30, 2024 (2QFY2024), from RM21.15 million a year ago, dragged by higher property operating expenses.

Its property operating expenses stood at RM11.11 million in 2QFY2024, up 51.77% compared to RM7.32 million in 2QFY2023 as one of its properties was undergoing upgrading works.

Its gross rental dropped 3.07% to RM27.59 million in 2QFY2024, from RM28.47 million a year before, due to the departure of an anchor tenant, its bourse filing showed.

Its net profit declined by 42.08% to RM8.1 million in 2QFY2024 against RM13.98 million a year ago.

UOA REIT declared an interim income distribution of 2.9 sen per unit for 2QFY2024, payable on Aug 30, 2024.

For the first half of FY2024 (1HFY2024), UOA REIT’s net rental income dropped 17.38% to RM34.96 million from RM42.32 million in 1HFY2023, while gross rental decreased 5.79% to RM53.81 million versus RM57.12 million during the same period.

Its net profit fell 30.88% to RM19.76 million in 1HFY2024 from RM28.59 million in 1HFY2023.

On prospects, UOA REIT said while the property sector saw gradual improvement, the market and business sentiment remain subdued.

“The market continues to face uncertainty, particularly with the potential for elevated inflation,” it added.

At Thursday’s market close, shares of UOA REIT were unchanged at RM1.12, valuing the group at RM757 million.