Latest news with #Sentral-REIT
The Star
2 days ago
- Business
- The Star
Asset sale a positive for Sentral-REIT's financials
PETALING JAYA: Sentral Real Estate Investment Trust 's (Sentral-REIT) disposal of Wisma Sentral Inai located along Jalan Tun Razak in downtown Kuala Lumpur is being viewed as a strategic move to free up capital for future acquisitions and at the same time lift the overall occupancy rate of the REIT's office and retail properties. Analysts were largely positive on the RM135mil disposal to Turiya Bhd , which was announced last week, as they pointed out that the property has been vacant since July 2022 and would save the REIT up to RM1.2mil in annual operating expenses. The property was last valued at RM150mil. Hong Leong Investment Bank Research (HLIB Research) views the disposal as a prudent move by the REIT as it will be yield accretive to the portfolio given that the asset has been loss-making. 'While sold at a relatively fair value, we believe it is a strategic move for the long term, as it frees up capital for future acquisitions, potentially reducing reliance on equity funding,' HLIB Research added. The research house has maintained a 'buy' call on the stock with a higher target price of 83 sen from 82 sen. 'We continue to like Sentral-REIT, despite challenges in the oversupplied Klang Valley office market, as it has demonstrated resilience, registering a five-year earnings compound average growth rate of 2.1%,' the research house said. CIMB Research, which has maintained a 'hold' rating on the stock with a target price of 80 sen, said the move 'is unsurprising' given that the REIT had announced its intention to dispose of the asset but views the acquisition of Arcorise Plaza from UEM Sunrise Bhd for RM70mil positively as this would boost its core net profit forecast for next year (FY26) by RM3.3mil. RHB Research has raised its FY26 and FY27 earnings forecast for Sentral-REIT by 5% each year to reflect lower borrowing cost after the disposal. The research house has maintained a 'buy' rating on the REIT with a higher target price of 97 sen from 93 sen. 'The divestment removes a drag on the portfolio, with the blended occupancy rate expected to improve to 94% from 85%, while also unlocking capital that can be redeployed into yield-accretive assets or used to pare down borrowings and lower financing costs,' the research house said. Maybank Investment Bank Research has maintained a 'buy' call on the REIT and target price of 88 sen. According to the research house, Sentral-REIT offers the highest yield among Malaysian REITs under its coverage.
The Star
07-08-2025
- Business
- The Star
Sentral-REIT's 2Q25 net income dips
PETALING JAYA: Sentral Real Estate Investment Trust 's (Sentral-REIT) second-quarter net income dipped slightly on the year as the Klang Valley office market continues to face ongoing supply and flight-to-quality pressures. In the second quarter ended June 30, 2025 (2Q25), Sentral-REIT recorded a realised net income of RM20.14mil, down from RM20.53mil in the year-ago quarter. Income per share slipped to 1.68 sen from 1.72 sen in the previous quarter. Revenue in 2Q25 dipped to RM47.7mil from RM49.03mil in the comparative quarter. For the six-month period, the REIT's net income was slightly lower at RM39.74mil compared to RM40.42mil in 1H24, while revenue contracted to RM95.15mil from RM98.72mil in the year-ago period.
The Star
27-05-2025
- Business
- The Star
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.
