Tower REIT 1Q net profit rises 16.3% to RM3.21m on higher revenue, lower costs
Tower Real Estate Investment Trust posted a 16.3% increase in net profit to RM3.21 million for the first quarter ended Sept 30, 2026. Revenue rose 1.9% to RM10.59 million, while property operating expenses fell 10.5% to RM4.34 million.
PETALING JAYA (Oct 28): Tower Real Estate Investment Trust (Tower REIT) posted a 16.3% increase in net profit to RM3.21 million for its first quarter ended Sept 30, 2026 (1QFY2027), from RM2.76 million a year earlier. Revenue rose 1.9% to RM10.59 million from RM10.39 million, while property operating expenses declined 10.5% to RM4.34 million from RM4.85 million, the trust said in a Bursa Malaysia filing on Tuesday (Oct 27).
Earnings per unit rose to 0.65 sen from 0.56 sen. The trust attributed the revenue growth mainly to higher occupancy at Plaza Zurich. The fall in property operating expenses was due largely to lower spending on building repairs and maintenance, as well as agency commissions.
Net property income increased 12.9% to RM6.25 million from RM5.54 million. Interest expense, however, rose to RM2.45 million from RM2.30 million. Compared with the preceding quarter, net trust income eased to RM3.2 million from RM3.3 million.
No income distribution was declared for the quarter. The trust paid a final distribution of 0.60 sen per unit on Aug 28 for the financial year ended June 30, 2026. Its net asset value per unit stood at RM1.1691 as at Sept 30, compared with RM1.1685 as at June 30. The trust's investment properties — Menara HLX, Plaza Zurich and Menara Guoco — had a combined carrying value of RM807 million, unchanged from the previous financial year-end.
On prospects, its manager, GLM REIT Management Sdn Bhd, said the Klang Valley office market continued to show positive leasing momentum, with demand increasingly favouring premium-grade, ESG-compliant and well-connected buildings. However, competition remained intense amid elevated vacancies and new supply. The manager also expected some near-term volatility arising from lease reversions and tenant downsizing, and said it would focus on tenant retention and proactive leasing initiatives to sustain and improve occupancy.
In a separate Bursa Malaysia filing, the manager said unitholders had passed all three resolutions tabled at Tower REIT's 14th annual general meeting on Tuesday. These covered the renewal of a mandate to allot and issue new units, a proposed increase in the existing total number of units issued, and the renewal of a mandate for recurrent related party transactions.
