Sentral-REIT buys retail units for RM70mil
PETALING JAYA: Sentral Real Estate Investment Trust (Sentral-REIT) is acquiring 38 stratified retail units and 1,432 car park bays as part of the Arcoris Plaza Development from UEM Sunrise Bhd for RM70mil.
In a filing with Bursa Malaysia, Sentral-REIT said the property is strategically located in Mont Kiara, Kuala Lumpur.
'Sentral-REIT will be able to take advantage of greater economies of scale in the Mont Kiara neighbourhood with the purchase of the property.
'This enables the company to leverage its existing resources (property management and leasing team) to manage the operations at the property.'
Sentral-REIT said the prospects of the property are expected to be positive in view of its strategic location, good accessibility and steady income stream.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 days ago
- The Star
CLMT's RM250mil fundraise to reduce gearing
TA Research said the placement would support the REIT's continued diversification into logistics and industrial assets. PETALING JAYA: Capitaland Malaysia Trust 's (CLMT) proposed private placement to raise up to RM250mil is being viewed positively as a successful placement will enable the real estate investment trust (REIT) to reduce net gearing that has climbed due to borrowings to acquire industrial assets. Maybank Investment Bank Research, which has maintained a 'buy' recommendation on the stock and raised the target price to 76 sen from 75 sen, projects the REIT's net gearing to be reduced to 39.6% post-placement from 44.1% in the first quarter ended March 31, 2025 (1Q25) based on existing borrowings for the industrial asset acquisitions. 'We are positive on this exercise as it enhances CLMT's balance sheet strength and provides additional headroom for future yield-accretive acquisitions,' the research house said, as proceeds from the placement would be used to partly refinance borrowings of RM400mil of completed and pending logistics as well as industrial assets. It added that these acquisitions would be expected to contribute RM20mil in gross rental income annually or around 4% of the financial year ending Dec 31, 2026 (FY26) revenue. 'Post-acquisition, CLMT's industrial and logistics exposure will rise from 2.8% to 7.9% of assets under management, which is expected to contribute around 9% of FY26 net property income,' it said. 'We expect its retail assets to remain resilient with mid-to-high single-digit range rental reversion and steady occupancy for its ex-Klang Valley malls. 'Despite short-term dilution, longer-term earnings visibility, diversification and improved gearing, support our positive view,' it added. TA Research said the placement would support the REIT's continued diversification into logistics and industrial assets in which more stable and recurring income can be expected. 'We are positive on CLMT's proposed placement, which reflects a proactive and forward-looking approach to strengthening its capital base while preserving balance sheet flexibility,' the research house said. It has reiterated a 'buy' call on the stock with an unchanged target price of 82 sen. It pointed out that while there would be some near-term dilution to earnings per unit, the longer-term benefits from improved gearing, enhanced portfolio mix and rising rental contributions from logistics assets outweigh the short-term impact.
The Star
3 days ago
- The Star
AME Elite's presence in investment hotspots to lift results in FY26
PETALING JAYA: Despite missing forecasts on its earnings for its financial year 2025 ended March 31 (FY25), analysts are still maintaining a 'buy' call on AME Elite Consortium Bhd. According to a report by Philip Capital Research, the engineering and construction firm still has a presence in high-demand foreign-direct-investment hotspots Penang and Johor. The research house noted would will continue to be a positive element despite a drop in AME Elite's revenue. For FY25, its revenue fell 15% year-on-year to RM609mil on the back of weaker contributions from the property sector. 'Nevertheless, its earnings before interest, taxes, depreciation, and amortisation improved 5.2 percentage points to 25.1%, attributed to better progress milestones for construction and property development projects, cushioning core net profit decline to a marginal 2% to RM89mil,' the research house said. Philip Capital Research noted that overall, the group's results came in below expectations, accounting for 54% of its full-year forecast and 52% of consensus forecasts. 'The result miss was primarily due to the timing of recognition for its RM210mil land sale to Digital Hyperspace (M) Sdn Bhd, which is expected to recognise a net gain of RM85mil, pending the final payment of the remaining 85% of the total consideration,' the research house noted. However, the data centre client remains committed to the deal and has requested an extension for the final payment deadline to June with an optional extension to August. Meanwhile, the research house also noted that AME Elite surpassed its FY25 target in terms of sales, which was supported by the launch of a industrial-park project in Penang. The company's earnings for its third quarter ended Dec 31, 2024 saw its core net profit soar 77% quarter-on-quarter to RM33mil, attributed to margin improvement from its construction and property development, as well as the recognition of industrial property sales to AME Real Estate Investment Trust (AME-REIT). In March, AME Elite announced that it was proposing to sell three industrial properties in Johor to AME-REIT for RM100.8mil in a related party transaction. The properties comprise one industrial property in i-Park @ Senai Airport City and two industrial properties in i-TechValley at Southern Industrial Logistic Clusters. 'AME Elite recorded RM640mil in new sales in FY25, surpassing its internal RM550mil sales target, including strong sales of RM55.9mil in the fourth quarter of FY25 from its newly launched RM1.3bil Northern TechValley in Penang,' the research house said. It added that it raised its earnings forecast for AME Elite in FY26 by 78% to reflect the delay in the recognition of data centre land sale and faised FY27 earnings by 2% on housekeeping adjustments. It also introduced its FY28 earnings forecasts which is a 4% increase year-on-year. Philip Capital Research said it had trimmed its sum-of-parts-derived target price to RM2 from RM2.10 to reflect a higher forecast gearing level in FY26. AME Elite declared a second interim dividend of three sen per share, down from four sen last year, bringing the total dividend for the year to six sen. The dividend will be paid on July 4.
New Straits Times
29-05-2025
- New Straits Times
Hektar Reit posts 8.9pct higher income in Q1
KUALA LUMPUR: Hektar Real Estate Investment Trust (Hektar Reit) posted RM30.9 million revenue in the first quarter of financial year 2025 (Q1 FY25), up 8.9 per cent from RM28.4 million a year earlier. This was driven by income contributions from the newly-acquired Kolej Yayasan Saad (KYS) education asset and improved performance from Hektar Reit's retail properties. Its net property income rose 4.4 per cent to RM15 million, while net realised income stood at RM4.2 million, lower than the RM5.1 million in the same quarter last year. This was due to the absence of one-off fund placement income recognised in prior period and slightly higher administrative and financing expenses. In line with its environmental, social and governance (ESG) ambitions, Hektar Reit partnered with Samaiden Group Bhd to implement solar project at five of its shopping centres. The initiative is projected to deliver long-term energy cost savings of about RM2.05 million annually or RM41.3 million over 20 years. The Reit's manager Hektar Asset Management Sdn Bhd, said in a statement that a comprehensive asset enhancement initiative is underway at Subang Parade, with the first phase of interior upgrades targeted for completion by the first quarter of 2026. Hektar Asset executive director and chief executive officer Zainal Iskandar said the positive start to the Reit's financial year is encouraging, supported by the strategic diversification of portfolio and prudent cost management. "Our retail assets are now consistently recording positive rental reversions, while our education asset continues to provide consistent income. "These results reflect our continued discipline in maintaining stable returns and strengthening the resilience of our portfolio," he added, The company remains optimistic on the value enhancements to be generated by its retail assets upon completion of asset enhancement initiatives and strategic leasing initiatives. It noted that early gains are already seen in elevated occupancy rate which currently stands at 85.6 per cent, positive rental reversions and higher footfall, boosting yields across Hektar malls. It added that the acquisition of a 15-year master-leased industrial asset in Bayan Lepas Free Industrial Zone is progressing as planned and is poised to further diversify and strengthen the Reit's income profile. Hektar Reit's total assets stood at RM1.44 billion as at March 31, 2025, while the net asset value per unit was RM1.0396. Hektar Reit's portfolio of diversified properties includes Subang Parade in Selangor, Mahkota Parade and Kolej Yayasan Saad in Melaka, Wetex Parade & Classic Hotel and Segamat Central in Johor, as well as Central Square and Kulim Central in Kedah.
