AmanahRaya REIT Fifth Annual General Meeting
Kuala Lumpur (18 April 2017, Tuesday) – The Board of Directors of AmanahRaya- Kenedix REIT Manager Sdn. Bhd. (formerly known as AmanahRaya-REIT managers Sdn Bhd) (“Manager”), the management company of AmanahRaya Real Estate Investment Trust (“ARREIT”), today held its fifth Annual General Meeting (“5th AGM”). The Resolutions relating to the following matters as set out in the Notice of 5th AGM dated 27 March 2017 were put to the meeting and duly passed:-
1. To receive the Audited Financial Statements for the financial year ended
31 December 2016 of ARREIT together with the Reports attached thereon.
2. Proposed Authority to allot and issue new units pursuant to clause 14.03 of the
Securities Commission Malaysia’s Guidelines on Real Estate Investment Trusts.
Based on the approval granted by the unit holders of ARREIT, the Manager is hereby authorized to allot and issue new units in ARREIT up to 114,643,972 units representing 20% of the existing fund size of ARREIT of 573,219,858 subject to relevant regulatory approvals.
Such authority is important to allow any possible fund raising exercises including but not limited to further placement of units for the purpose of funding current and/or future investment projects, working capital and/or acquisitions of investment assets and/or to refinance existing debt subject to the relevant laws and regulations.
The Manager reported today that for the financial year ended 31 December 2016, ARREIT has 15 properties. In 2016, the total assets of ARREIT is RM1.04 billion from
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RM1.10 billion in 2015 in which the decrease was mainly attributed to the disposal of Wisma AmanahRaya in Jalan Ampang.
The shortfall in rental revenue from RM61.61 million in 2015 to RM57.39 million in 2016 was mainly due to the loss of rental income of RM6.52 million from disposal of Wisma AmanahRaya. Nevertheless, the decline in rental income was well mitigated as the Manager successfully completed three acquisitions during the year namely the Toshiba TEC (Shah Alam), Deluge Factory (Johor) and Contraves Building (Cyberjaya) in April, August and December 2016, respectively. Collectively, these properties are currently generating annual rental income of RM7.47 million. The full year impact of increase in revenue from these acquisitions will be evident in FYE2017.
Subsequently, the net realized income for distribution has decreased to RM35.33 million in 2016 as compared to RM36.62 million in 2015. A total distribution per unit (“DPU”) of 5.899 sen was declared in 2016 as compared to 6.305 sen in 2015.
The Manager commits to ensure that the values of all properties in its portfolio are well preserved through its planned and scheduled Assets Enhancement Initiatives (“AEI”) activities. In 2016, the Manager has successfully completed refurbishment projects worth over RM3 million for HELP University (formerly known as Wisma Amanah Raya Berhad, Jalan Semantan) and Holiday Villa Langkawi.
The Manager aims to continue acquiring yield and value accretive assets in the long term. In the interim, the Manager will strive to double its fund size to RM2 billion in the next few years. In terms of growth of the dividend and capital values, the Manager is targeting new acquisitions of sizeable assets located in prime areas within the Klang Valley but also major cities in Northern and Southern Region with great potential for growth.
In December 2016, KDA Capital Malaysia Sdn Bhd had acquired 49% shareholdings in the former AmanahRaya-REIT Managers Sdn Bhd and 15% of AmanahRaya-REIT’s units from Amanah Raya Berhad. This strategic collaboration would provide a competitive advantage to AmanahRaya-REIT as KDA Capital Sdn Bhd is a wholly-owned company of Kenedix Inc. (Japan), the largest independent real estate management company in Japan.