UOA Real Estate Investment Trust (REIT) has posted a RM10.696 million income in the fourth quarter ending 31 December 2010, making its cumulative income reach RM42.81 million for the fiscal year 2010.
Operating expenses rose 22.78 percent in Q4, while gross rental declined 2.95 percent. The decline in gross rental was attributed to the slump in rental rates, as well as to the slump in occupancy in some of its existing properties, including UOA Centres and UOA Damansara parcels.
The increase in operating expenses, on the other hand, was largely due to a higher facilities fee and stamp duty in obtaining bank borrowing for the purchase of Menara UOA Bangsar and Wisma UOA Damansara II.
With the completion of renovation works in the UOA Damansara development, the company said the property will attract new tenants. Occupancy rates have risen 8 percent from the previous year, it said, adding that the trend will likely continue.
Overall, the occupancy rate stood at 85 percent during the financial year 2010 and as the economic recovery continues, the company expects rental and occupancy rates to increase.