AmFIRST REIT closes deals in Cyberjaya

Am ARA REIT Managers Sdn Bhd, the manager of AmFIRST Real Estate Investment Trust (AmFIRST REIT), has completed its acquisition of Prima 9 and Prima 10 in Cyberjaya for RM133mil cash.

It told Bursa Malaysia that it was AmFIRST REIT’s first investment in Cyberjaya, capitalising on the economic growth and vibrancy of Cyberjaya’s commercial office segment. The properties were tenanted by multinationals secured against long leases, it said.

Before the acquisition, AmFIRST REIT had six properties, namely Bangunan AmBank Group, Menara AmBank and AmBank Group Leadership Centre in Kuala Lumpur as well as Menara AmFIRST in Petaling Jaya, Kelana Brem Towers in Kelana Jaya and The Summit Subang USJ in Subang Jaya with total net lettable area (NLA) of 2,311,489 sq ft as at Sept 30.

AmFirst REIT falls on lower Q1 earnings

AmFirst Real Estate Investment Trust, a Malaysian property trust, fell to a four-month low in Kuala Lumpur trading after announcing lower first-quarter earnings and plans for a rights offer.

The stock dropped 2.6 per cent to RM1.14 at 9:22 a.m. local time, set for its lowest close since March 28. — Bloomberg

AmFirst REIT has small fall in Q1 profit

AmFirst Real Estate Investment Trust posted a slight decline in its pre-tax profit for the first quarter ended June 30, 2011, at RM9.438 million compared with RM9.941 million in the corresponding quarter of 2010.

Its revenue declined to RM22.748 million from RM25.114 million.

Despite the challenging office market, the proactive efforts taken to actively market spaces in the past months have seen increased occupancies at particularly two of its office buildings outside the city centre, said Am ARA REIT Managers Sdn Bhd (Am ARA), the Manager of AmFirst.

The occupancies at Menara Merais and Kelana Brem Towers had improved significantly during the period reviewed to 71 per cent and 77 per cent respectively from 53 per cent and 60 per cent the previous quarter, it said in a statement.

YP Lim, Chief executive officer of Am ARA, said the company was confident of filling up more vacant spaces for both these properties.

The improved occupancy will invariably boost gross revenue as well as net income of the AmFirst, he added.

Recently, the company had also announced the proposed acquisition of Prime 9 & 10 for RM133 million with the due completion of acquisition in September this year.

Am ARA also announced that AmFirst was proposing to undertake a renounceable rights issue on the basis of three rights units for every five existing units in AmFirst.

This will increase the existing approved fund size of 429.001 million units to 686.402 million units.

The proceeds from the proposed rights issue shall be used to pare down borrowings, it said.

AmFirst is currently one of the larger commercial space REITs in Malaysia with six properties worth RM1.024 billion under its portfolio namely Bangunan AmBank Group, Menara AmBank, AmBank Group Leadership Centre, Menara Merais, Kelana Brem Towers and The Summit Subang USJ. — Bernama

REIT expected to buy 2 Cyberjaya buildings

AmFIRST Real Estate Investment Trust (AmFIRST) is expected to sign a deal to buy two commercial buildings in Cyberjaya with a combined estimated value of over RM130 million.

Sources said an agreement between AmFIRST and the Prima Group of companies could be entered into as early as tomorrow.

The properties, which are a couple of years old, were identified as Prima 9 and Prima 10. They are both located within the Prima Avenue II development in Cyberjaya.

The purchase will effectively increase the total assets under AmFIRST’s management by 12 per cent. It currently has six assets worth RM1.02 billion.

AmFIRST’s last major acquisition was in 2008 when it bought The Summit Subang in USJ Subang Jaya, Selangor.

A source told Business Times that one of the buildings is fully occupied, while the other is currently 80 per cent occupied.

The major tenant of Prima 9, a seven-storey office building with two basement car parks, is EDS MSC Sdn Bhd. It has a total net lettable area of 110,000 sq ft is. The major tenant at Prima 10, with 100,000 sq ft of space, is RBC Dexia.

However, it is understood that upon completion of the purchase, expectedly in September 2011, both buildings will enjoy full occupancy.

According to Prima Avenue’s website, the Prima Avenue I and II are integrated office developments, owned and managed by Prima Properties.

Prima Properties has to date designed and built over 3.8 million sq ft of commercial space in Cyberjaya.

An official from AmFIRST, contacted by Business Times declined to comment when asked about the acquisitions.

Its assets now include Menara AmBank, Bangunan AmBank Group and the AmBank Leadership Centre in Kuala Lumpur.

Apart from The Summit, its properties in Petaling Jaya include Menara Merais and Kelana Brem Towers.

In the financial year ended March 31 2011, AmFIRST revenue slipped 9.8 per cent to RM88.54 million from RM98.19 million.

Net profit declined by 12.35 per cent to RM10.57 million from RM12.60 million in the year ended March 31 2010.

The decrease was attributed to the reduction in occupancy rates in Kelana Brem Towers and cessation of an guaranteed minimum income for Summit Subang.

Nevertheless, AmFIRST declared a dividend of 9.75 sen, which is the same as in the previous year.

AmFIRST REITs posts lower profit

AmFIRST Real Estate Investment Trust recorded a lower pre-tax profit of RM45.362mil for the financial year ended March 31, 2011, compared with RM54.057mil recorded last year.

In a filing to Bursa Malaysia, the company said revenue decreased to RM88.539mil, for the period under review, from RM98.188mil registered previously.

Meanwhile,  Am ARA REIT Managers Sdn Bhd, the manager for AmFIRST, declared a final income distribution per unit of 4.94 sen for the six-months ended March 31, 2011.

Taking into account the interim distribution payout of 4.81 sen, the total dividend was maintained at 9.75 sen, similar to the previous year. – Bernama

AmFIRST REIT posts lower profit of RM45m

AmFIRST Real Estate Investment Trust recorded a lower pre-tax profit of RM45.362 million for the financial year ended March 31, 2011, compared with RM54.057 million recorded last year.

In a filing to Bursa Malaysia, the company said revenue decreased to RM88.539 million, for the period under review, from RM98.188 million registered previously.

Meanwhile, Am ARA REIT Managers Sdn Bhd, the manager for AmFIRST, declared a final income distribution per unit of 4.94 sen for the six-months ended March 31, 2011.

Taking into account the interim distribution payout of 4.81 sen, the total dividend was maintained at 9.75 sen, similar to the previous year. — Bernama

AmFirst REIT posts RM10m net profit

AMFIRST Real Estate Investment Trust (REIT) reported a RM10.4 million net profit on the back of RM22.2 million revenue in the third quarter ended December 31 2010, compared with a RM9.6 million net profit and RM24.7 million revenue in the previous corresponding period.

The firm attributed the 10 per cent slide in revenue mainly to a drop in average occupancy rate at the Kelana Brem Towers.

Outlook for office space market is expected to remain challenging.

However, AmFirst said its current tenancy profile and tenant mix are expected to mitigate impact to the bottom line in the remaining period of the financial year.

FBSM sells land to AmFirst REIT

FBSM Holdings Bhd, an information technology service and systems provider, is selling a plot of land with a five-storey office building in Cyberjaya to AmFirs t Real Estate Investment Trust for RM51.5 million cash.

The disposal will allow FSBM to unlock the value and realise its investment in the building, it told Bursa Malaysia yesterday.

Am ARA, the manager of AmFirst REIT, will pay via bank borrowings, FBSM added.

AmFIRST REIT nets RM25 revenue in Q1

AmFIRST Real Estate Investment Trust (AmFIRST) has registered a revenue of RM25.11 million for its first quarter ended June 30, 2010, up by 6.17 per cent from RM23.65 million in the same quarter last year.

Its net property income rose 15.94 per cent to RM17.66 million from RM15.23 million previously. However, the company’s income after tax declined marginally to RM9.94 million from RM10.58 million previously due to higher interest expense that resulted from the overnight policy rate (OPR) hike and provision for doubtful debt, AmFIRST said in a filing to Bursa Malaysia today.

“Despite a marginal slip in income after tax for the first quarter period, we are pleased to report a positive start to the year with a fair performance of all six AmFIRST’s assets during the three-month period,” said Lim Yoon Peng, chief executive officer of Am ARA REIT Managers Sdn Bhd, the manager of AmFIRST.

During the three-month period under review, the overall occupancy rate of AmFIRST’s property portfolio recorded a slight increase to 82.92 per cent from 82.36 per cent.

“Our asset management team, together with the appointed property managers are actively promoting the existing vacant space at Menara Merais, Kelana Brem Towers and The Summit Subang USJ,” Lim said.

“Judging from the feedback and enquiries received from potential tenants, we hope to seal a few tenancies within the second quarter period ended September 30, 2010,” he said, adding that a more aggressive leasing effort will be undertaken amid the growing competition and supply of office and retail space.

AmFIRST, which earlier this year completed the refurbishment of Menara Merais, has lined up asset enhancement works on its other properties to make it attractive to potential and existing tenants. — Bernama