Quill Capita Trust reported Earnings Per Unit of 2.29 sen in 3Q 2014
Kuala Lumpur, 26 November 2014– Quill Capita Management Sdn Bhd ("QCM"), the manager of Quill Capita Trust ("QCT"), a listed commercial real estate investment trust ("REIT"), wishes to announce that QCT's realized net income was RM8.93 million for the quarter from 1 July to 30 September 2014 ("3Q 2014"). This was an increase of 0.2% from the realized net income of RM8.92 million reported in the corresponding quarter in the preceding year ("3Q 2013"). The realized net income for the current quarter was higher than 3Q 2013 mainly due to higher net property income and savings from lower administrative expenses incurred. Correspondingly, QCT reported an earnings per unit ("EPU") of 2.29 sen for 3Q 2014.
QCT's unaudited Consolidated Financial Statements for 3Q 2014 are available on its website (www.qct.com.my) and on Bursa Malaysia's website (www.bursamalaysia.com).
Summary of QCT's 3Q 2014 Results
(unaudited) 3Q 2014 (RM'000)
(unaudited) 3Q 2013 (RM'000)
Net Property Income
Dato' Mohammed Hussein, Chairman of QCM said: "QCT has achieved stable performance for 3Q 2014 with an EPU of 2.29 sen, notwithstanding the challenging office market and a rising cost environment. The Securities Commission Malaysia had on 14 October 2014 granted QCT the approval for the propoesd acquisition of Platinum Sentral, including the proposed placement and the proposed authority for the purpose of paying management fee to QCM in the form of QCT units. Subject to all necessary approvals being obtained, the proposed acquisition is expected to be completed by early 2015 and would increase the number of properties under the Trust to a total of 11 that would contribute to a stable and sustainable income stream with effect from mid 2015."
Dato' Mohammed Hussein, Chairman of QCM added: "QCM is also optimistic that in view of its on-going active leasing strategy, asset enhancements and proactive capital management, the Trust will be able to maintain its current performance for the rest of the financial year ending 31 December 2014."
Yong Su-Lin, Interim Chief Executive Officer of QCM said: "QCT's portfolio occupancy rate is resilient at 91.0% as at 3Q 2014 compared to the average market occupancy of the Kuala Lumpur city centre and city fringe of 83.4% and 83.7%* respectively. Our active leasing strategy has enabled us to complete all lease renewals due in 3Q 2014 and are now at the final stages of negotiation for the renewal of the leases that are due in the last quarter of 2014. QCT regularly embarks on asset enhancement works on selected properties in its portfolio with a view of enhancing asset value. This year, the bulk of the enhancement works were carried out at Wisma Technip and this is on track to be completed as scheduled by the end of this year. The upgrading works to Wisma Technip has enhanced visibility and created a modern feel to the main lobby entrance, drop-off area and upper level lift lobbies."
She added: "On the capital management front, the Manager has been proactive and prudent in its strategy. QCT's average cost of debt is 4.3% per annum for 3Q 2014 while all of QCT's total borrowings of RM307 million are on fixed interest rate, giving certainty of cash flow and reducing its exposure to interest rate risk."