AmFIRST REIT posts improved Q1 results

The Sun

2 days ago

PETALING JAYA: AmREIT Managers Sdn Bhd, the manager of AmFIRST Real Estate Investment Trust, reported improved financial performance for the first quarter of the current financial year, underpinned by higher rental income from improved portfolio occupancy and higher carpark income.
Also, a one-off compensation received for waiver of reinstatement liability has also contributed to the improved gross revenue.
Key financial highlights for Q1'26 are gross revenue of RM27 million, up 7.6% quarter-on-quarter; net property income of RM16.2 million, an increase of 17.3% from the preceding quarter and realised earnings per unit of 0.75 sen per unit, up 47% quarter-on -quarter.
In a statement yesterday, AmREIT said its portfolio occupancy continued to strengthen in the current quarter, with notable improvements at Menara AmBank and Wisma AmFIRST.
It added that Prima 9 and Jaya 99 also saw gains, driven by multiple new tenancies secured during the period. These new leases have lifted overall committed portfolio occupancy by 4.1%, from 84.7% as at March 31, 2025, to 88.8% as at June 30, 2025 — supporting sustained rental income growth in the years ahead.
Property expenses were slightly higher mainly due to higher repair and maintenance costs, as well as increase in assessment charges. However, this increase was partially mitigated by lower electricity expenses.
Finance costs saw a marginal decline of 0.5% compared to the corresponding period of last financial year, supported by lower average cost of borrowings.
The recent 25 basis points cut in the overnight policy rate by Bank Negara Malaysia is expected to further reduce interest expenses. With 67% of the trust's borrowings are subject to floating rates, it is estimating the interest saving of approximately RM1.3 million per annum from every 25 basis points reduction in the cost of debt. This favourable rate environment expects to enhance the trust's earning resilience.
Overall, the realised net income from operations rose significantly by 45.4% to RM5.1 million, compared to RM3.5 million in the same quarter of the previous financial year.
Looking ahead, the manager aims to further enhance the performance of the trust's asset portfolio by driving revenue growth and optimising operational costs, to increase the asset portfolio's yield for higher income distribution to the unitholders.
Barring any unforeseen circumstances, the manager remains cautiously optimistic that the trust will deliver improved performance for the remainder of the financial year, supported by higher occupancy rates and ongoing operational efficiencies.