KUALA LUMPUR: JLG Reit Managers Sdn Bhd, the manager of Al-Aqar Healthcare Real Estate Investment Trust (Al-Aqar Healthcare Reit), posted a revenue of RM29.2 million for the first quarter (Q1) ended March 31, 2025 (FY25), a 2.2% year-on-year decrease compared to RM29.8 million in Q1 FY24.
The company registered a net property income (NPI) of RM25.0 million for Q1 FY25, representing a 3.9% decrease from RM26.0 million in Q1 FY24.
Revenue and NPI decreased slightly due to a rental adjustment in relation to the aged care facility in the Australian segment subsequent to the completion of the disposal of the business sale agreement (BSA) in Q1 FY24 and the disposal of Damai Care & Wellness Centre, despite annual rental increments.
Al-Aqar Healthcare Reit declared a distribution per unit (DPU) of 1.74 sen in Q1 FY25, translating into a payout of 95.4% and meeting its above-market distribution policy of 95.0%.
In terms of geographical segmentation, Al-Aqar Healthcare Reit’s Malaysian segment contributed RM24.9 million in NPI in Q1 FY25, compared to RM25.5 million in Q1 FY24.
The decrease in revenue and NPI was due to the disposal of Damai Care & Wellness Centre in June 2024 and a revision in the management fee rate from 0.25% to 0.30%, effective January 2025.
The NPI of Al-Aqar Healthcare Reit’s Australian segment for Q1 FY25 stood at RM0.1 million compared to RM0.6 million in Q1 FY24.
The decrease in NPI was primarily due to rental adjustments following the completion of the BSA for the aged care facility in Jeta Gardens.
Al-Aqar Healthcare Reit CEO Zulhilmy Kamaruddin said despite a slight decrease in revenue and NPI compared to Q1 FY24, Al-Aqar’s healthcare portfolio stays resilient with long-term lease structures in place.
He said as Malaysia’s healthcare sector continues to expand, Al-Aqar Reit is well-positioned to capitalise on this growth by strengthening its portfolio with high-quality assets that support the industry’s evolving needs.
“Healthcare-focused Reits have proven to be a resilient and attractive investment class. With long-term leases, predictable rental income, and alignment with essential services, healthcare Reits offer stability and growth potential for investors seeking defensive assets in a shifting landscape.
“Our recent proposed acquisitions of a new extension building forming part of KPJ Ampang Puteri Specialist Hospital and a new extension building forming part of KPJ Penang Specialist Hospital demonstrate this strategy in action.
“These additions are expected to deliver stable rental income for up to 15 years, reinforcing our ability to generate consistent, sustainable returns while meeting the healthcare sector’s infrastructure demands,“ Zulhilmy said.
In the hospital segment, KPJ Healthcare Bhd has recorded increased bed capacity and patient visits throughout 2024, indicating a strong foundation for stable and potentially growing rental income for Al-Aqar Healthcare Reit’s healthcare assets.
Zulhilmy said as KPJ Healthcare fills more beds and serves more patients, their revenue base becomes more solid, ensuring reliable and timely rental payments to Al-Aqar Healthcare Reit.
“As KPJ Healthcare continues to grow, Al-Aqar Healthcare Reit is positioned to pass on this financial strength to investors through regular and reliable distributions.
“Al-Aqar Healthcare Reit is supported by long-term tenant partnerships with the KPJ Group, one of Malaysia’s largest private healthcare providers.
“The manager expects minimal to no disruption to earnings, as Al-Aqar Healthcare Reit’s income is secured through long-term lease agreements.
“To maintain positive distribution growth and uphold these agreements, the fund is actively engaged in various corporate initiatives and continues to explore third-party acquisition opportunities.
“We remain committed to financial discipline and strategic expansion as we build a future-ready portfolio,” Zulhilmy said.
Al-Aqar Healthcare Reit is supported by long-term tenant partnerships with the KPJ Group, one of Malaysia’s largest private healthcare providers.
