KUALA LUMPUR (July 23): UOA Real Estate Investment Trust (REIT) saw its net rental income fall 3.8% to RM14.31 million in its second quarter ended June 30, 2019 (2QFY19) from RM14.88 million recorded a year ago, as gross rental retreated.

Though property operating expenses retreated 6.5% to RM5.19 million from RM5.5 million in 2QFY18, this was not enough to offset the drop in the REIT's gross rental, which fell 4.5% to RM19.5 million from RM20.43 million.

It declared an income distribution per unit (DPU) of 2.03 sen for the current quarter, about 1% higher compared to the 2.01 sen it had declared in 2QFY18, bringing its year-to-date DPU to 4.24 sen — which it will pay on Aug 30 — versus 4.04 sen last year. 

For the cumulative six months ended June 30 (1HFY19), UOA REIT’s net rental income declined 3.2% to RM28.62 million from RM29.57 million a year ago, as gross rental retreated to RM39.05 million from RM40.03 million.

On prospects, the commercial REIT said occupancy rates and rental rates will continue to be influenced by soft market sentiments. 

“The manager will continue to actively manage the properties in the portfolio with prudent capital management, in order to maximise the yields for unitholders.

"Meanwhile, the manager will continue to explore new opportunities for future acquisitions that meet the objectives of UOA REIT,” it added. 

UOA's units closed 0.76% or one sen higher at RM1.33 today, giving the REIT a market capitalisation of RM562.42 million.