[%FBqT%] 
Research by Malacca Securities 
Hold – Target Price RM1.20

“Margins compressed due to higher property expenses”

• Below expectation. UOAREIT’s 2Q23 core earnings came in at RM13.9m (-2.1% QoQ, -8.9% YoY), brought the 6M23 sum to RM28.1m (-8.0% YoY), which accounted for 45.6% and 42.7% of ours and consensus estimates. The results were deemed below expectations and key deviations include (i) the lower occupancy rate in Wisma UOA II and Wisma UOA Damansara II, (ii) higher expenditure arising from high electricity costs, repair and maintenance expenses and borrowing costs. 
• YoY. Most of UOAREIT’s properties managed to demonstrate a YoY improvement in occupancy rates, with the exception of Wisma UOA II. During this period, UOAREIT’s core earnings were down 8.9% YoY, mainly impacted by higher-than-expected total expenditure amid the abovementioned factors.

Analyst:
Loui Low Ley Yee
[%IljI%]

$KLSE-UOAREIT 
Research by Malacca Securities 
Hold – Target Price RM1.20

“Margins compressed due to higher property expenses”

• Below expectation. UOAREIT’s 2Q23 core earnings came in at RM13.9m (-2.1% QoQ, -8.9% YoY), brought the 6M23 sum to RM28.1m (-8.0% YoY), which accounted for 45.6% and 42.7% of ours and consensus estimates. The results were deemed below expectations and key deviations include (i) the lower occupancy rate in Wisma UOA II and Wisma UOA Damansara II, (ii) higher expenditure arising from high electricity costs, repair and maintenance expenses and borrowing costs. 
• YoY. Most of UOAREIT’s properties managed to demonstrate a YoY improvement in occupancy rates, with the exception of Wisma UOA II. During this period, UOAREIT’s core earnings were down 8.9% YoY, mainly impacted by higher-than-expected total expenditure amid the abovementioned factors.

Analyst:
Loui Low Ley Yee
louilow@msec.com.my

$UOAREIT / 5110 (UOA REAL ESTATE INVESTMENT TRUST)