KUALA LUMPUR: Sentral REIT is setting its sights on broadening its investment footprint beyond commercial office properties, seeking selective, yield-accretive acquisitions to build long-term portfolio resilience amid shifting tenant demands.
Sentral REIT Management Sdn Bhd (SRM) chief executive Tay Hui Ling said the manager will leverage its healthy financial position, active asset management, and improved tenant retention to explore new asset classes.
While the Klang Valley office landscape remains competitive, SRM noted that quality assets with established transit connectivity and green credentials continue to see steady demand from multinationals and digital economy firms.
For the third quarter ended Sept 30, 2026 (3Q26), the trust posted a marginal 0.7% year-on-year (y-o-y) increase in realised net income to RM19.82 million, up from RM19.69 million recorded in the corresponding quarter last year. Realised gross revenue for the quarter grew 2.3% y-o-y to RM48.73 million from RM47.63 million.
The higher top-line performance was primarily driven by a full-quarter earnings contribution from Arcoris Mont' Kiara, acquired in late December 2025, alongside improved rental income from its existing property base.
However, the gain was partially offset by an 8% rise in property operating expenses to RM12.88 million, caused by portfolio expansion costs and higher utility charges, which nudged net property income down 1.8% y-o-y to RM35.7 million.
On a quarter-on-quarter (q-o-q) basis, top-line performance held steady, with realised revenue matching the RM48.7 million posted in the immediate preceding quarter (2Q26).
Net income before tax eased 1.2% q-o-q from RM20.06 million, primarily dampened by a 1.5% uptick in finance costs to RM12.99 million due to elevated Kuala Lumpur Interbank Offered Rate (KLIBOR) rates during the quarter. Even so, the trust held its weighted average cost of debt flat at 4.22% q-o-q.
Cumulative nine-month realised revenue climbed 3% y-o-y to RM146.13 million, while realised net income rose 0.5% to RM59.72 million. Realised earnings per unit (EPU) stood at 1.66 sen for the quarter and 5 sen year-to-date.
SRM chairman Tan Sri Saw Choo Boon highlighted that portfolio occupancy crossed the 90% threshold during the quarter, up from 86% in 3Q25, marking six consecutive quarters of occupancy improvement. Year-to-date, the trust successfully renewed 84% of leases that fell due.
Sentral REIT maintained a comfortable financial buffer, closing the period with a gearing ratio of 45.2%, well below the 50% regulatory ceiling and a healthy interest coverage ratio of 2.6 times. Net asset value per unit stood at RM1.1169.