AL-`AQAR Healthcare REIT has rolled out its 1Q FY2026 ended March 31, 2026 results which reflects steady year-on-year (yoy) growth in core operating metrics
For starters, the group’s revenue firmed 13% yoy to RM32.96 mil (1Q FY2025: RM29.19 mil) while its net earnings inched up 9.6% yoy to RM17.31 mil (1Q FY2025: RM15.79 mil.
Its net property income (NPI) notched up 15.2% yoy to RM29.0 mil on the back of stable rental income across its healthcare asset portfolio and continued operational resilience.
The improved revenue and NPI were primarily due to additional rental income contributed by the acquisition of two KPJ Healthcare Bhd properties, namely KPJ Ampang Puteri Specialist Hospital (New Building) and KPJ Penang Specialist Hospital (New Building) which were completed in October 2025.
The betterment of net profit was driven by Al-`Aqar’s improved NPI performance given the fund’s resilience in its underlying operations despite higher financing costs incurred during the quarter.
In essence, the group declared its first interim income distribution of 1.93 sen for 1Q FY2026 – an equivalent of 95% of its distributable income – which is higher than the first interim income distribution in its 1Q FY2025 (1Q FY2025: 1.74 sen).
This development underscores the fund’s consistent income-generating capability and commitment to delivering sustainable returns to unitholders.
“Our 1Q FY2026 results reflect the stability of our healthcare-focused portfolio, supported by disciplined asset management and long-term lease structures,” commented Zulhilmy Kamaruddin who is CEO of JLG REIT Managers Sdn Bhd which manages Al-`Aqar Healthcare REIT.
“Looking ahead, Malaysia’s healthcare sector is expected to remain resilient and underpinned by favourable long-term fundamentals, including demographic shifts, rising healthcare demand and continued expansion of medical tourism.”
While global geopolitical tensions and rising cost pressures may introduce uncertainty into broader financial markets, Zulhilmy is cautiously optimistic that healthcare assets have historically demonstrated defensive characteristics, supported by the essential and non-discretionary nature of healthcare services.
“Against this backdrop, our focus remains on strengthening portfolio resilience through long-term lease structures and disciplined capital management while selectively pursue yield-accretive opportunities to deliver sustainable long-term returns to our unitholders,” he added.
At 3.23pm, Al-`Aqar Healthcare REIT was down 1 sen or 0.81% to RM1.22 with 18,700 shares traded, thus valuing the REIT at RM1.02 bil. – May 28, 2026
