UOA REIT Q2 pre-tax profit rises to RM14.5m

UOA Real Estate Investment Trust's pre-tax profit rose to RM14.583 million in the second quarter ended June 30, 2012, compared to the RM10.682 million posted in the same period last year.

Turnover for the quarter rose to RM24.409 million from RM20.286 million registered previously, the company said in a filing to Bursa Malaysia here today.

UOA REIT, which currently owns a RM 1.03 billion portfolio of six prime properties in Kuala Lumpur, said against the six months corresponding period last year, gross rental had improved by about 7.7 percent. It said the improvement is mainly due to better occupancy rates.

Meanwhile, total expenditure increased by about 10.9 per cent arising mainly from increased property operating expenses, and borrowing costs due to an increase in borrowing rates.

It said during the quarter under review, the occupancy rates remained stable with marginal improvement.

Barring unforeseen circumstances, the manager does not anticipate major fluctuation in the occupancy or rental rates in the second half of this year.

It will also continue to adopt an active operating and capital management strategy to enhance the yield and returns of existing properties while continuing to seek opportunities to further acquire real estate that meets the objectives of the trust. — Bernama

UOA REIT post lower pre-tax profit

UOA Real Estate Investment Trust (UOA REIT) posted a lower pre-tax profit of RM25.078 million in the financial year ended Dec 31, 2010, compared to RM58.009 million in 2009.
Revenue fell to RM42.805 million from RM44.636 million in the previous year, said UOA REIT in a filing to Bursa Malaysia today.
“Despite a challenging year, the existing properties continue to enjoy an occupancy rate of at least 85 per cent.
“With the improving economic conditions and outlook, the manager expects the occupancy and rental rates to further improve,” it said. — Bernama

UOA REIT may buy 2 buildings

UOA Real Estate Investment Trust (REIT) (5110) is considering buying two office blocks in Kuala Lumpur for RM500 million.

It received an offer from UOA Holdings, a substantial unitholder in UOA REIT, for the sale of Parcel B Menara UOA Bangsar and Wisma UOA Damansara II, priced at RM289 million and RM211 million respectively.

“The board of directors of the manager (UOA Asset Management Sdn Bhd) and OSK Trustees Bhd (trustee) will deliberate on the terms and conditions contained in the offer letters and a further announcement will be made upon completion of the deliberation,” UOA REIT said in a statement to Bursa Malaysia Bhd.

Parcel B Menara UOA Bangsar, located in Jalan Bangsar Utama 1, comprises a tower block with 15 levels of office space, three levels of retail podium, six levels of elevated car park and four levels of basement parking.
The newly completed commercial and retail property, which has a 99-year leasehold tenure, is 88.5 per cent occupied.

Wisma UOA Damansara II, located at Changkat Semantan, comprises a 16-storey office building and five levels of basement parking.

The two-year-old freehold property, used for commercial and retail purposes, is 87 per cent occupied.

The purchase of Parcel B, Menara UOA Bangsar, will involve a refundable deposit of 0.01 per cent, or RM28,900; a cash payment of RM156.03 million; and the issuance of 102.26 million new REIT units.

The purchase of Wisma UOA Damansara II will also involve a refundable deposit of 0.01 per cent, or RM21,100; a cash payment of RM113.92 million; and the issuance of 74.66 million new REIT units.