Boustead REIT to distribute 98% of earnings from Islamic plantation REITs

bizedge.com

Boustead REIT Managers Sdn Bhd plans to distribute 98% of the distributable earnings from the Al-Hadharah Boustead REITs (real estate investment trusts), which is scheduled to be listed on the Main Board on Feb 8.

Its chairman Tan Sri Lodin Wok Kamaruddin said on Jan 15 the Al-Hadharah Boustead REITs would be well positioned to declare a dividend distribution of 7.38 sen per unit for the next three years, beginning from 2008.

The projected earnings before taxation for the REIT, which is the first Islamic plantation REIT on Bursa Malaysia, is RM34.51 million for the financial year ending Dec 31, 2008 and RM34.82 million for FY09.

Boustead REIT Managers, a subsidiary of Lembaga Tabung Angkatan Tentera (LTAT), will manage the REIT.

The listing exercise involves 20 million units offered to the public at a retail price of 99 sen per unit. Another 198 million units would be offered top institutions and selected investors at RM1.05 per unit.

Lodin, who is also Boustead Holdings Bhd group managing director, was speaking to reporters after the release of the prospectus in Kuala Lumpur on Jan 15 by Second Finance Minister Tan Sri Nor Mohamed Yackop.

He said the initial REIT would involve eight oil palm estates and two palm oil mills in Peninsular Malaysia, valued at RM472 million.

Lodin said the current flood in Johor did not have an impact on the REITs as the plantation in Kota Tinggi was on high land. He added the only problem was to transport the fresh fruit bunches.

"The only issue is with accessibility. However, at the current CPO (crude palm oil) prices, we do not see this as a major problem,” he said.

On the PSC Industries Bhd (PSCI), Lodin said he expected it to perform well this year.

“There are many positive things happening for the company. We will be making the announcement at the appropriate time. PSCI is moving in the right direction, which we hope could help it turn around this year,” he said.

Boustead owns 32.5% or 56.57 million PSCI shares as of July 2005. PSCI posted a net loss of RM47.78 million for the third quarter ended Sept 30, 2006 compared with RM391 million net loss in the previous year.