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UOA REIT's profit rises on property revaluation

KUALA LUMPUR: UOA Real Estate Investment Trust's (REIT) net profit more than tripled to RM31.81 million in the first quarter ended March 31, 2018, from RM9.91 million in the same quarter of 2017 due to a fair value adjustment on an investment property of RM22.46 million.

Revenue, meanwhile, slipped to RM19.66 million from RM20.45 million a year earlier, the trust said in a filing with Bursa Malaysia today.

The REIT's manager, UOA Asset Management Sdn Bhd, said it undertook a revaluation exercise on Wisma UOA Pantai in Kuala Lumpur last month.

UOA REIT's gross rental decreased by four per cent, year-on-year, to RM19.6 million in the quarter under review while total expenditure decreased by three per cent to RM10.64 million.

“The decrease in total expenditure was mainly due to lower property operating expenses, which was offset with higher borrowing cost,” the trust said.

Taking into consideration a 95 per cent distribution, UOA REIT has set aside RM8.57 million as provision for distribution.

Realised earnings per unit fell to 2.13 sen from 2.24 sen in the corresponding period last year.

On prospects, it said UOA Asset Management would continue to adopt active operating strategy with prudent capital management in order to enhance the yields and returns of the existing properties.

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