Sentral REIT

SENTRAL REIT’s net property income (NPI) fell 2.5% year-on-year to RM36.97 million in the second quarter ended June 30, 2025 (2Q25), mainly due to lower rental income from Menara Shell and adjustments under MFRS 16.

Revenue for the quarter also declined 2.7% to RM47.70 million from RM49.03 million a year earlier, impacted by the same property, though partially cushioned by contributions from Sentral Buildings 3 and 4 and lower operating expenses.

The real estate investment trust declared an interim income distribution of 3.16 sen per unit — totalling RM37.78 million — with an ex-date of Aug 21 and payment set for Sept 18.

For the first half (1H25), NPI declined 3.4% to RM73.44 million, while revenue dropped 3.6% to RM95.15 million.

Its chairman Tan Sri Saw Choo Boon cautioned that factors such as higher electricity tariffs, the expanded SST and global uncertainties may affect future performance.

“However, Sentral REIT remains committed to driving sustainable income and long-term growth. We will maintain our focus on positioning and growing Sentral REIT’s property portfolio to adapt to market changes,” he said.

The REIT, which focuses on commercial assets, is also evaluating yield-accretive acquisitions and potential divestments.

As at end-June, the portfolio maintained a healthy average occupancy of 85%, with a weighted average lease term of 4.54 years. — TMR