PETALING JAYA: Sentral Real Estate Investment Trust (REIT) has posted a lower net property income of RM30.5mil for the first quarter ended March 31, 2022 (1Q22), down 2.9% compared with RM31.4mil in 1Q21.

       Correspondingly, the REIT, previously known as MRCB-Quill-REIT, saw its earnings per unit or EPU and distributable income per unit of 1.90 sen for 1Q22, compared with 1.93 sen in 1Q21

       During the period in review, Sentral-REIT recorded a gross revenue of RM38.76mil, compared with RM41.02mil in 1Q21. The 5.5% decrease was mainly due to lower revenue generated from Wisma Technip, Menara Shell and QB3-BMW.

       Its realised net income stood at RM20.4mil for 1Q22, slightly lower than RM20.7mil in 1Q21. The lower realised income for the quarter was mainly due to a lower realised revenue net of lower property expenses and finance cost, said the manager Sentral-REIT Management Sdn Bhd (SRM).

       SRM CEO Derek Teh said Sentral-REIT had approximately 511,000 sq ft, or 28% of its total committed net lettable area due for renewal in 2022, with 5% of these leases due in 1Q22. The trust achieved a renewal rate of 56% for these leases due in 1Q22.

       “Correspondingly, Sentral-REIT’s average occupancy rate as at March 31, 2022 was lower at 86%.

       “Negotiations are progressing as scheduled for the leases due in the second and third quarters of 2022 which represent 27% and 28% respectively, of the total leases due for renewal in 2022,” he added.

       In terms of capital management, Sentral- REIT had successfully refinanced its RM130mil debt due in March 2022.

       Teh said the group initiated early refinancing of the REIT’s RM77mil term loan which is due in September 2023.

       “The completion of the above refinancing exercises has extended Sentral-REIT’s debt average term to maturity from 3.16 years to 4.05 years. This addresses all of Sentral-REIT’s refinancing needs until 2025,” he said.