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Saturday, January 28, 2012

Al-Hadharah REIT net profit soars 273pc

KUALA LUMPUR: Al-Hadharah Boustead REIT (Al-Hadharah REIT) turned in a historically strong performance for the final quarter of its year ended December 31 2011.

It posted a net profit of RM239 million compared with RM32 million in the corresponding quarter last year.

The significant jump was mainly due to fair value gains and an increase in rental income, Al-Hadharah said in a statement yesterday.

This boosts Al-Hadharah's full-year net profit to RM306 million compared with RM82 million last year, up a whopping 273 per cent.

Group revenue rose 33 per cent to RM100 million from RM75 million in 2010.

The realised operating profit for the year was RM93 million, a substantial jump of 37 per cent from RM68 million last year.

The remaining profit was derived from fair value gains, the company said.

"We are pleased to maintain our position as a leader in the REIT sector with an exceptional performance for financial year 2011," Al-Hadharah chairman Tan Sri Lodin Wok Kamaruddin said in the statement.

"Despite the uncertain global economic climate, by building on our established track record and exploring further opportunities in the market, we were able to continue to deliver greater value to our unitholders with improved earnings," he added.

Lodin said in line with its accounting policy, the company had undertaken a revaluation of its assets, recording a fair value gain of RM213 million.

This contributed to its total profit for the year and resulted in an increase in the closing net book value of its investment properties to RM1.3 billion, he added.

Al-Hadharah REIT's unit price closed at RM1.54 per unit (2010: RM1.44 per unit) on December 31 last year.

Its net asset value for the 12-month period rose to RM1.81 per unit (2010: RM1.42 per unit).

At the close of the financial year, the fund's market capitalisation grew to RM965.4 million, up substantially a significant jump compared with RM802.1 million in the previous year.

To reflect the strong performance, Al-Hadharah has announced a final dividend of eight sen, bringing the total dividend for the year to 12 sen. This represents a strong yield of eight per cent based on the closing unit price of the year.

"Moving forward, we look forward to further cultivating our portfolio of assets and enhancing our earnings potential.

"Given our unique position as Malaysia's only plantation-based REIT coupled with the steady demand for commodities, we are confident that we are poised for greater growth in the year ahead," Lodin said.

By Business Times

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