Sentral REIT expects rental and occupancy rates for office buildings in Klang Valley to remain under pressure in fiscal year 2022 (FY2022), given the current excess supply and the expected increase in supply.
However, it remains optimistic that the economic recovery this year will have a positive impact on the office space market.
"The manager believes that Sentral REIT will be able to surpass these market challenges as it continues to intensify efforts to sustain revenue underpinned by its continuing strategies," it said in a filing with Bursa Malaysia recently.
Sentral REIT listed prudent capital management, proactive management to drive organic growth, prudent investments to deliver growth, and diversification as among its strategies.
"Sentral REIT is able to consider all types of commercial properties in the event that there are opportunities to diversify in the future," it said.
Sentral REIT owns nine buildings, four in Cyberjaya, four in Kuala Lumpur, and one in Penang, with a total value of RM2.08 billion as of December 31, 2021, and a 66 per cent renewal rate.
The REIT achieved a realised net income and distributable income of RM84.49 million in FY2021, a 4.4 per cent increase over the realised net income and distributable income of RM80.95 million in FY2020.
Sentral REIT is managed by Sentral REIT Management (SRM) Sdn Bhd (formerly MRCB Quill Management Sdn Bhd).
SRM is owned by Malaysian Resources Corp Bhd (41 per cent), Quill Resources Holding Sdn Bhd (39 per cent); and Global Jejaka Sdn Bhd (20 per cent).