KUALA LUMPUR: MRCB-Quill real estate investment trust (MQ REIT) posted realised net income of RM15.2mil for the July to Sept 30 quarter.
It said on Wednesday this was a dip of 3.2% from the RM15.7mil a year ago.
Gross revenue rose 2.2% to RM32.50mil from RM31.81mil while net property income fell 3.2% to RM15.22mil from RM15.73mil.
“Notwithstanding the higher net property income, the realised net income for the current quarter was marginally lower than Q3, 2015 mainly due higher manager's fee, trustee’s fee, valuation fee and administrative expenses,” it said.
MQ REIT said its realised net income from January to September rose 21.8% to RM45.9mil from RM37.6mil in the previous corresponding period.
Net property income rose 20.8% to RM76.67mil from RM63.47mil while gross revenue increased at a slower pace of 18.3% to RM97.72mil from RM82.60mil.
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MQReit also said it plans to set up a 20 year medium term notes (MTN) programme by end 2016 which be a long term debt financing platform to cater for immediate and future opportunistic acquisitions as well as its future refinancing requirements.
“Arising for this, MQReit’s special purpose entity, Kinabalu Capital Sdn Bhd (KCSB) has successfully obtained its MTN noteholder approval for the deferment of the expected maturity of the RM60mil MTN from Sept 5 this year to March 6, 2017,” it said.
MQ REIT added KCSB had also obtained its commercial papers (CP) noteholder approval for a new issuance of CP with a nominal value of RM130mil with a tenure of six months to coincide with the expect maturity of the MTN.
Yong Su-Lin, the CEO of MRCB Quill Management Sdn Bhd, which is manager of MRCB-Quill REIT, said she was pleased with MQReit’s financial performance even as it continues to weather a subdued macro-economic environment and challenging office market conditions in Klang Valley.
Yong added another growth opportunity that would boost MQReit’s income stream was the proposed acquisition of Menara Shell.
“The proposed acquisition is slated to be completed by end of 4Q 2016 and would increase the number of properties under the Trust to a total of 11,” she said.
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