Quill Capita Trust achieved DPU of 8.38 sen for Fy2013
Kuala Lumpur, 28 January 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 RM8.6 million for the fourth quarter of 2013 ("4Q 2013"). This is a 8.6% increase from the realised net income of RM7.9 million recorded for the fourth quarter of 2012 ("4Q 2012"). Despite the lower portfolio occupancy of 92%, the improved realised net income for the quarter was attributable to higher rental income contribution from a few of its properties as well as lower finance and administrative cost.
On a full year basis, a realised net income of RM34.54 million was recorded for the financial year ended 31 December 2013 ("FY 2013"). This is an increase of 0.22% from the realised net income of RM34.46 million for the financial year ended 31 December 2012 ("FY 2012"), on the back of lower finance and administrative cost.
FY 2013 distribution per unit ("DPU") was flat at 8.38 sen, similar to what was distributed in FY 2012. This translate to a distribution yield of 7.10% based on the closing price of RM 1.18 per unit as at 31 December 2013.
An interim distribution of 4.10 sen was paid to QCT unitholders on 9 September 2013. The proposed final distribution of 4.28 sen for the six-month period ended 31 December 2013 is expected to be paid on Monday, 10 March 2014.
As at 31 December 2013, QCT's property portfolio value for increased to RMB825.56 million after recognising a fair value gain on investment properties of RM2.1 million.
QCT's unaudited Consolidated Financial Statements for FY 2013 are available on its website (www.qct.com.my) and on Bursa Malaysia's website (www.bursamalaysia.com).
Summary of QCT's FY2013 Results
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Dato' Mohammed Hussein, Chairman of QCM said: "Despite the challenging office market environment, QCT was able to maintain its FY 2013 DPU at 8.38 sen. Sustainable income distribution was achieved through active asset management and prudent cost management strategies which are reflected via its lower total expenditure of 5.0% compared to FY 2012."
Yong Su-Lin, Interim Chief Executive Officer of QCM said: "The Manager's active asset management strategy throughout the year has ensured successful tenant renewals for majority of the leases due in 2013. QCT's average occupancy rate for the year stood at 92% in terms of Net Lettable Area ("NLA") as compared to the average office market occupancy of 77.68%* in Klang Valley. As part of the Manager's continuous effort to maintain and enhance the quality and physical condition of QCT's portfolio of assets, we have initiated and completed asset improvement works for a few properties in 2013. These properties are Quill Building 2-HSBC, Quill Building 3-BMW, Quill Building 5-IBM and Quill Building 8-DHL XPJ. In addition, we have also initiated major asset improvement works for Wisma Technip, which is expected to be completed by 2015."
"QCT has approximately 23% of its leases based on NLA that are due for renewal in 2014, with the bulk of the leases due in the second half of 2014. We have already commenced negotiations for these lease renewals. In cognizance of the growing competition in the office market, we have intensified our marketing and leasing efforts to lease out the available vacant space to further increase QCT's portfolio occupancy rate.
She added: "The Manager has been proactive and prudent in its capital management strategy. QCT's total borrowings of RM307 million are on fixed interest rate, achieving an average cost of debt of 4.3% per annum. QCT has also successfully completed the refinancing of its RM117.0 million Medium Term Notes ("MTN") due on 13 September 2013 with a fixed rate RM150.0 million term loan facility and the next refinancing will only be due in September 2016."
"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."