KUALA LUMPUR: Sentral Real Estate Investment Trust (Sentral REIT) achieved a realised net and distributable income of RM84.49mil for the financial year ended Dec 31, 2021, an increase of 4.4% from RM80.95mil in 2020.

       For the fourth quarter ended Dec 31, 2021, Sentral REIT reported a realised net income of RM19.03mil, which was 7.6% lower than the RM20.61mil recorded in the previous corresponding period.

       Sentral REIT said the higher realised net income for 2021 was mainly attributable to lower finance cost and administrative expenses incurred and a gain on divestment of the company’s Quill Building 5.

       “Correspondingly, realised earnings per unit and distributable income per unit of 7.88 sen for 2021 was achieved,” it said in a statement yesterday.

       Sentral REIT said distribution per unit (DPU) for 2021 stood at 7.41 sen, which was 4.7% higher than the DPU of 7.08 sen in the previous corresponding period.

       The DPU of 7.41 sen translates to a distribution yield of 8.19% based on the closing price of RM0.905 per unit as at Dec 31, 2021.

       “The 2021 DPU of 7.41 sen consists of an interim distribution of 3.43 sen that was paid to Sentral REIT unitholders on Sept 20, 2021 and the proposed final distribution of 3.98 sen for the six-month period ended Dec 31, 2021.

       “The distribution for the six-month period ended Dec 31, 2021 includes the distribution of gains from the divestment of Quill Building 5 that was completed this year.”

       Sentral REIT said the proposed final distribution of 3.98 sen is expected to be paid on Feb 28, 2021.

       Sentral REIT Management Sdn Bhd chairman Tan Sri Saw Choo Boon said he is pleased with the company recording a stable financial performance in 2021 and the 4.4% increase in realised net income, despite the prolonged Covid-19 pandemic.

       “Sentral REIT’s 2022 performance may continue to be affected by the protracted pandemic with the possibility of further resurgences of the Covid-19 pandemic.

       “That said, Sentral REIT will continue to manage its assets proactively and be in the position to take advantage of the eventual recovery.”

       Meanwhile, chief executive officer Yong Su-Lin said leasing activities and tenant retention efforts during the year had been challenging.

       “The unprecedented crisis has compelled tenants to restructure their operations to embrace the new normal environment. In the wake of this trend, Sentral REIT recorded a retention rate of 66% for 2021.

       “Notwithstanding, Sentral REIT achieved a stable weighted average lease expiry of 3.78 years and 90% occupancy rate for its property portfolio as at Dec 31, 2021. Meanwhile, about 511,000 sq ft or 28% of total leased net lettable area will be up for renewal this year.”