KUALA LUMPUR: The Al-Hadharah Boustead REIT posted operating profit of RM69 million, up 8.8% from RM63.5 million in 2008 mainly due to a stronger contribution from fixed rental income as a result of the inclusion of two new estates, Bebar and Malakoff.

The fund said on Jan 29 the positive result was achieved on the back of a revenue of RM71 million compared with RM67.5 million in 2008. For FY09, net asset value per unit increased to RM1.31 from RM1.26 in 2008 due to a revaluation exercise on the plantation assets which resulted in an increase in market value of our plantation assets portfolio to RM831 million.

Boustead REIT Managers Sdn Bhd chairman Tan Sri Lodin Wok Kamaruddin said despite turbulent commodity prices, particularly for crude palm oil, the fund was still able to register increased turnover and improved profit.

Due to the adverse market conditions which had a strong impact on global CPO prices, the fund closed the year with an actual average CPO price of RM2,191 per  tonne, drastically lower than RM2,627 in 2008.

"The prospects of CPO are expected to remain positive given the potential supply disruption due to weather conditions and increasing demand for edible vegetable oils. As such, we are confident the Fund should sustain its earnings projection moving forward," he said.