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Property News

AME REIT delivers RM8.7m net income for 2Q, sustains 100% occupancy rates

KUALA LUMPUR (Nov 8): AME Real Estate Investment Trust (AME REIT) reported a net income of RM8.72 million for the second quarter ended Sept 30, 2023 (2QFY2024) on the back of a net property income of RM10.78 million. It continued to maintain 100% occupancy rates across its industrial properties.
The industrial REIT proposed an interim distribution of 1.8 sen per unit, payable on Dec 18 to unitholders at the close of business on Nov 24, according to its filing with local stock exchange on Wednesday (Nov 8).
As the REIT was only listed on Bursa Malaysia in September last year, financial results for 2QFY2023 were not comparable.
For the first half of FY2024 (1HFY2024), AME REIT reported a net income of RM17.37 million, on the back of a net property income of RM21.49 million.
“We are optimistic on the prospects for the rest of FY2024, as we are making encouraging headway in finalising the remaining renewals with the four existing tenants that will be expiring in the current financial year,” said Chan Wai Leo, chief executive officer and executive director of I REIT Managers Sdn Bhd, the management company of AME REIT.
“Of the 12 tenancies expiring in the current financial year, we successfully renewed seven existing tenants and obtained one replacement tenant representing about 66% of the total space up for renewal for the industrial properties segment.
“Maintaining the current 100% occupancy rates across all industrial properties, with longer term tenancies, is a testament to the quality of service and properties we delivered to our customers,” he added.
Chan also highlighted the REIT’s recently concluded acquisition of Plot 16 Indahpura in Iskandar Malaysia, whose rental commencement is expected to be reflected in AME REIT’s financial performance for 3QFY2024.
“This, along with the positive development on the tenancy renewals, enables us to generate healthy distributable income which we can distribute to unitholders,” he said.
AME REIT’s properties under management rose to RM668 million with the latest acquisition, consisting of 34 industrial properties with agreed lettable area of approximately 1.9 million sq ft and three industrial-related properties of workers’ dormitories.
Units of AME REIT closed one sen or 0.8% lower at RM1.26 on Wednesday, valuing it at RM659.14 million.
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Source: EdgeProp.my

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