Axis-REIT focuses on high-quality properties for future growth

KUALA LUMPUR: Axis Real Estate Investment Trust (Axis-REIT) remains steadfast in its investment objective of acquiring high-quality, accretive properties with strong recurring rental income.

“We shall continue to evaluate acquisition targets of Grade A logistics facilities and well-located manufacturing facilities with long leases, such as the acquisition of the manufacturing facility in Sendayan, Negeri Sembilan. This plus other acquisitions to come in the near future should boost yields and contribute to our growing portfolio of quality properties,” Axis REIT Managers Bhd chief executive officer/executive director Leong Kit May said in a statement.

In the third quarter ended Sept 30 (3Q), Axis REIT reported a total trust income of RM71.8mil compared with RM71.7mil last year.

Its net trust income dipped to RM42.5mil against RM43.8mil previously.

Axis REIT has also proposed to distribute 99% of its realised income available for distribution, generated from operations during 3Q, as 2023’s third interim income distribution.

This third interim income distribution works out to 2.15 sen per unit, which includes a non-taxable portion of approximately 0.56 sen per unit, derived from capital allowances, industrial building allowances and tax-exempt profit income which is not subject to tax.

The interim income distribution will be paid on Dec 15 while the book closure date is on Nov 10.

For the first nine months, it reported a net trust income of RM107.5mil on net trust income of RM210.4mil.

“The third quarter result has shown improvement, by more than 10% in net income before tax (realised) as compared to the two preceding quarters and this has enabled us to propose a higher distribution of 2.15 sen versus second quarter’s 2.05 sen.

“The new tenancy at Axis Shah Alam DC 3 and the completion of the development of Bukit Raja Distribution Centre 2 will undoubtedly contribute positively to Axis-REIT’s income in the coming quarters,” Leong said.