Al Salam REIT's 4Q NPI jumps 33% due to bigger asset portfolio

The REIT did not announce any distribution for the quarter, but it did previously announce a distribution per unit (DPU) of 3.4 sen for the financial year ended Dec 31, 2016 (FY16), payable on Feb 28, 2017.

Net profit for 4QFY16 rose 49% to RM21.61 million, from RM14.48 million in 4QFY15.

“The increase in income was primarily due to rental income from KOMTAR JBCC and 14 QSR properties, which were acquired on Sept 29, 2015. Prior to that, Al-Salam REIT only received rental from 13 QSR properties, which were acquired on May 6, 2015,” said the trust.

For the full-year period, Al Salam REIT’s NPI spiked 262% to RM56.91 million, from RM15.71 million in the previous year; while net profit increased 216% to RM46.67 million, from RM14.77 million.

The REIT said its diversified portfolio of strategically-located properties in Penang, Johor and Klang Valley are enjoying high occupancy rates, averaging at approximately 94% as at Dec 31.

Going forward, the REIT said it is eyeing further growth and is currently assessing other high potential assets, including commercial and office buildings.

Al Salam REIT closed up 1 sen or 0.97% at RM1.04 today, giving it a market capitalisation of RM603.2 million. — theedgemarkets.com

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