Sentral REIT Management Sdn Bhd has achieved a realised net income of RM74.2 million for the full year ended 31 December 2023 a 0.8% compared to the realised net income of RM73.6million recorded for the financial year ended 31 December 2022.
The group said the higher realised net income in FY2023 was mainly attributable to higher revenue contribution from Platinum Sentral and Menara Shell as well as revenue contribution from the newly acquired Menara CelcomDigi since 11 December 2023, net of higher utility expenses and finance cost. Correspondingly, SENTRAL recorded a realised earnings per
unit (“EPU”) of 6.88 sen, a marginal increase of 0.14% compared to the FY2022 EPU of 6.87 sen after taking into account the enlarged total units in circulation of 1.195 billion units.
FY2023 distribution per unit declared is 6.68 sen and is 2.0% lower compared to the FY2022 DPU of 6.82 sen. The FY2023 DPU of 6.68 sen translates to a distribution yield of 8.51% based on the closing price of RM0.785 per unit as at 29 December 2023.
Tan Sri Saw Choo Boon, Chairman of SRM said: “We are pleased to report that SENTRAL has recorded satisfactory performance in FY2023. This achievement was due to improved occupancy of its portfolio, anchored by its KL Sentral properties which remains resilient.
Moving forward, its enhanced portfolio with the inclusion of Menara CelcomDigi is expected to contribute positively to the income growth of SENTRAL.
In December 2023, the group had an additional RM362 mil debt incurred to part finance the acquisition of Menara CelcomDigi. In tandem with the growth in the property portfolio, SENTRAL recorded a gearing ratio of 44.54% as at end of FY2023. Proactive measures in the medium term through portfolio realignment and future refinancing exercises will be
undertaken to rebalance SENTRAL’s debt profile with its portfolio composition to yield a sustainable gearing ratio. The additional debt had also increased SENTRAL’s floating rate debt from 66% to 76% of its total debt. While SENTRAL’s average cost of debt remained stable with a competitive weighted average cost of debt of 4.40% p.a. and no further hikes on the overnight Policy Rate is anticipated, regular reviews will still be carried out to optimize its debt composition mix. SENTRAL’s debt maturity profile remained evenly distributed with the next debt refinancing due in 2025.
