KUALA LUMPUR, November 7, 2008 – Al-Hadharah Boustead REIT (Al-Hadharah REIT or the Fund), one of the larger and more successful REITs is on track with a strong performance for its nine month period ended 30 September 2008.
The REIT recorded a cumulative unaudited net income after tax of RM50 million compared with RM36 million achieved in the previous financial year’s corresponding period. This was largely due to higher performance-based rental income for the period under review.
YBhg. Tan Sri Dato’ Lodin Wok Kamaruddin, Chairman of Boustead REIT Managers Sdn Bhd said, “We have seen very strong and positive growth over the last nine months of this year, thanks to good crude palm oil prices. Obviously the market has come off currently. However, due to our efficient management of the estates and the focus on developing yield, we are confident the Fund will perform satisfactorily.”
For the nine-month period, earnings per unit rose to 10.5 sen compared with 8.7 sen for the previous corresponding period.
During the period under review, the REIT announced its plans for the acquisition of two more plantations, namely the Bebar and Malakoff estates from Boustead Rimba Nilai Sdn Bhd and Boustead Holdings Berhad for an aggregate purchase consideration of RM189 million and the subsequent lease of these estates to Boustead Plantations Berhad.
The purchase consideration will be fulfilled via RM95 million in cash which will be funded by Syariah compliant financing and the issuance of 85 million new units at RM1.10 per unit.
“We have since our listing continued on our strategy to inject plantation assets into the Fund with a view to strengthening its earnings potential and delivering positive returns to our unitholders. We will continue on this course as we look forward to the new financial year,” YBhg. Tan Sri Dato’ Lodin concluded.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Fund and certain plans and objectives of Boustead REIT Managers Sdn Bhd with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
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