AmFIRST Reit released its full year ending 31 March 2024 and fourth quarter financials results for its existing 8 properties, the group recorded a revenue of RM101 million which was marginally lower by 0.8% attributed by lower average occupancy at Bangunan AmBank Group, Menara AmBank, Wisma AmFIRST and The Summit Office due to non-renewal and downsizing of tenancies. However, the group managed to raise its profit from RM14 million achieved in the previous year to RM24 million for this financial year.
Property expenses it said was higher by 11.7%, mainly driven by the absence of service charge rebate from The Summit Subang USJ Management Corporation. Interest expenses increased by 3.4% due to a higher cost of debts resulted from increase in OPR.
For Q4, the total revenue remained at RM25 million while profit surged to RM17.9 million compared to RM5.8 million achieved in the previous years quarter.
AMFirst Reit said the office market remains challenging due to oversupply in the office market while the retail sector is forecasted to grow at a moderate level amidst dampening in consumer demand brought about by review of government subsidies and increase in service tax.
The Manager said it will continue to adopt appropriate capital and asset management strategies that are centred on intensifying leasing effort, cost optimization and implementation of selective asset enhancement initiatives to improve the asset portfolio yield.
The Board of Director has declared a final income distribution of 1.18 sen per unit for the sixth-month financial period from 1 October 2023 to 31 March 2024, amounting to RM8,099,539 to be payable on 31 May 2024.
