Al-Hadharah Boustead REIT surpasses dividend forecast
The fund posted a net profit of RM49.8 million on the back of RM55.2 million revenue for the year. The revenue comprised a performance-based profit sharing of RM17.1 million and rental income of RM38.1 million.
In a statement yesterday, Boustead REIT Managers Sdn Bhd said the income distribution represented a dividend yield of 7.7% based on the closing price for the year or 11% based on the initial public offering price.
It said the final distribution of 7.22 sen per unit comprised a fixed dividend of 3.69 sen and variable or performance-based dividend, which is a notable first in the Malaysia REIT market, of 3.53 sen.
Boustead REIT Managers said the fund’s plantation assets achieved an actual average palm oil price of RM2,332 per tonne against the reference price of RM1,500 resulting in a profit of RM832 per tonne for its performance-based profit-sharing portion.
The fund has a portfolio of eight oil palm plantations boasting a hectarage in excess of 12,000 hectares and two palm oil mills.
Boustead REIT Managers chairman Tan Sri Lodin Wok Kamaruddin said: “During the past year, the Al-Hadharah Boustead REIT chalked up significant milestones and exceeded our expectations with its impressive financial gains.”
“Crude palm oil (CPO) continues to experience high price levels based on the insatiable demand from emerging economic powerhouses such as
“The global trend for alternative energy sources such as biodiesel also provides a platform for CPO prices to soar even higher,” he said.
Lodin said the fund would adopt a combination of strategies to improve its performance.
“The first is the organic growth strategy where plantation assets will be managed for maximum returns. This is followed by our acquisition growth strategy whereby selected plantation assets will be acquired to provide attractive cash flows and yields,” he said.
In November 2005, Boustead Holdings Bhd entered into a sale and leaseback arrangement to facilitate the largest Islamic asset-backed securitisation programme in
Pursuant to the sale and leaseback, the Boustead group was granted call options by GCRB to buy back the plantation assets at the end of the lease periods of three, five and seven years. The first of the call options will expire in November this year and will involve the buyback of the two plantation assets.
Subsequent to this exercise, the REIT expects to acquire these assets subject to unitholders and regulatory approvals. The expected land size to be injected into the REIT is in excess of 3,770ha.
