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- Revenue for the quarter, however, rose marginally to RM48.27 million from RM47.89 million, supported by steady rental contributions from its office portfolio. The trust did not declare any income distribution for the quarter.
KUALA LUMPUR (Nov 6): Sentral REIT (KL:SENTRAL), which owns a portfolio of prime office and commercial buildings in Klang Valley and Penang, saw its third-quarter net property income (NPI) slip, no thanks to higher operating expenses, including one-off equipment repairs and replacement costs across several properties.
Quarterly NPI for three months ended Sept 30, 2025 (3QFY2025) stood at RM36.34 million compared with RM37.59 million a year earlier, leading to a lower net distributable income of RM19.69 million compared with RM20.5 million previously, the real estate investment trust (REIT) said in a filing with Bursa Malaysia on Thursday.
Revenue for the quarter, however, rose marginally to RM48.27 million from RM47.89 million, supported by steady rental contributions from its office portfolio. The trust did not declare any income distribution for the quarter.
“Sentral REIT’s financial performance may continue to be impacted by broader market headwinds, including the expanded sales and service tax, electricity tariff reforms, and uncertainties over global trade tensions,” Sentral REIT chairman Tan Sri Saw Choo Boon said in a separate statement.
Still, he added that the REIT remains focused on strengthening its portfolio positioning to adapt to market shifts, noting that its stable results reflect the operational strength and quality of its assets despite ongoing supply pressure and flight-to-quality trends in the Klang Valley office market.
As of Sept 30, Sentral REIT’s portfolio—comprising 10 properties including Menara Shell, Menara CelcomDigi, and Sentral Buildings (SB) 1 to 4—had a combined market value of RM2.52 billion. The REIT maintained a portfolio occupancy rate of 86%, with a weighted average lease expiry of over four years.
Meanwhile, chief executive officer Derek Teh Wan Wei added that the trust continues to prioritise capital management and cost optimisation. “Sentral REIT’s debt maturity profile remains stable at 2.81 years, with an improved average cost of debt of 4.33% as at 3QFY2025,” he said.
For the nine months ended Sept 30, 2025 (9MFY2025), Sentral REIT’s NPI fell 3.4% to RM109.78 million from RM113.66 million a year earlier, while net distributable income slipped 2.45% to RM59.43 million from RM60.92 million.
Revenue for the nine-month period declined slightly to RM143.42 million from RM146.61 million, mainly due to lower income from Menara Shell, Platinum Sentral, and SB3, as well as lease accounting adjustments under MFRS 16 Leases. This was partially offset by higher contributions from Plaza Mont Kiara, SB1, SB2, and SB4.
Sentral REIT units closed half a sen or 0.64% lower at 78 sen on Thursday, giving the trust a market capitalisation of RM932.5 million.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
