Quill Capita Trust's 1Q 2014 Realised Earnings Per Unit Increased by 0.7% year-on-year
Kuala Lumpur, 30 April 2014– Quill Capita Management Sdn Bhd ("QCM"), the manager of Quill Capita Trust ("QCT"), a listed real estate investment trust ("REIT"), is pleased to announce that QCT has achieved a realised net income of RM8.2 million for the first quarter of 2014 ("1Q 2014"). This is a 0.7% increase from the realised net income of RM8.1 million recorded for the first quarter of 2013 ("1Q 2013"). As a result, the realised earnings per unit ("EPU") for 1Q 2014 was 2.09 sen, up from 2.08 sen in 1Q 2013. Despite lower revenue, the improved realised net income for the quarter was attributable to higher rental income contribution from some of its properties, savings in finance cost, valuation fee and tax agent fee.
QCT's unaudited Consolidaed Financial Statements for 1Q 2014 are available on its website (www.qct.com.my) and on Bursa Malaysia's website (www.bursamalaysia.com).
Summary of QCT's 1Q 2014 Results
(unaudited) 1Q 2014 (RM'000)
(unaudited) 1Q 2013 (RM'000)
Net Property Income
Dato's Mohammed Hussein, Chairman of QCM said: "We are pleased with QCT's performance in 1Q 2014 which was achieved through active asset management and prudent cost management strategies, even in the midst of economic uncertainty and the challenging office market environment. QCT recently signed a conditional sales and purchase agreement for the proposed acquisition of a freehold commercial development in Kuala Lumpur Sentral known as Platinum Sentral. Subject to the satisfaction of the conditons in the agreement, the acquisition is targeted to be completed before the end of 2014. This is a substantial growth opportunity that will provide a stable and sustainable income stream to the Trust. Further detailed information of this proposed acquisition will be made available in the circular to unitholders which will be issued in due course."
Yong Su-Lin, Interim Chief Executive Officer of QCM said: "QCT has a well spread portfolio lease expiry profile with 31% of its total leased Net Lettable Area ("NLA") due for renewal in 2014. We have already proactively, commenced negotiations well in advance with tenants for the renewal of the said leases. In view of the growing competition in the office market, we have intensified our marketing and leasing efforts to lease out the available occupancy rate as at 31 March 2014 remains resilient at 91% by NLA as compared to the average office market occupancy of 80%* in Klang Valley. This year, we will be carrying out asset enhancement works to selected properties within the portfolio, notably, Quill Building 1 & 4-DHL. Quill Building 2-HSBC, Quill Building 3-BMW, Quill Building 5-IBM, Quill Building 8-DHL XPJ and Wisma Technip. These works will be carried out while tenants remain in operation at the respective properties. We have commenced asset enhancement works at Wisma Technip and it is on track to be completed by the end of this year."
She added: "The Manager has been proactive and prudent in its capital management strategy. QCT's average cost of debt is 4.3% per annum for 1Q 2014 while 95% of QCT's total borrowings of RM332 million are on fixed interest rate, giving certainty of cash flow and reducing its exposure to interest rate risk."
"Going forward, we will continue our strategy to enhance unitholders' value by growing our portfolio through asset enhancements, proactive capital management as well as acquisitions."