by NUR HANANI AZMAN / graphic by MZUKRI MOHAMAD
AXIS Real Estate Investment Trust’s (Axis REIT) net property income rose 4.9% in the third quarter ended Sept 30, 2020 (3QFY20) to RM50.26 million from RM47.87 million a year ago.
Its gross revenue for 3QFY20 rose 6.1% to RM57.17 million from RM53.86 million (3QFY19).
“For 3QFY20, Axis REIT’s property income was RM57.25 million, 4% higher compared to the immediate preceding quarter of RM55.02 million, mainly due to contributions from newly acquired properties and higher carpark income as the fund gave waiver on season carpark rental for all its multi-tenanted buildings during the period of Movement Control Order,” it said in bourse filing yesterday.
Axis REIT’s total trust income increased by 6% year-on-year (YoY) to RM57.2 million, while net income increased by 24% to RM32.4 million.
The increase in net income was due to contributions from new acquisitions and lower Islamic financing costs.
The earnings per unit (EPU) worked out to 2.24 sen in contrast to 3QFY19’s EPU of 2.11 sen.
Axis REIT has proposed a distribution of 2.25 sen per unit for 3QFY20, amounting to 99% of the quarter’s realised income available for distribution.
For the nine months ended Sept 30, Axis REIT’s total trust income grew by 4% YoY to RM167.4 million, while net income appreciated by 14% to RM92.8 million.
Axis REIT Managers Bhd CEO and ED Leong Kit May remains cautious of the current Covid-19 pandemic, which has caused a global economic downturn.
She stated that the pandemic’s impact on Axis REIT’s operations and financials have been manageable thus far, however, should the pandemic prolong or worsen unexpectedly this may impact Axis REIT’s performance for the rest of the financial year ending Dec 31, 2020.
During this challenging and uncertain time, the manager is actively managing the portfolio and exercising prudent capital management at all times in order for Axis REIT to deliver sustainable EPU and distribution per unit (DPU) payout to unitholders, Leong added.
“Positively, the current gearing level of 32% provides headroom for Axis REIT to continue its yield accretive acquisition strategy, should good opportunities come along,” she said in a statement.
Early in September, Axis REIT proposed to acquire a warehouse located in Shah Alam, Selangor, for RM11.87 million to strengthen its portfolio of industrial properties.
Its trustee RHB Trustees Bhd has entered into a sale and purchase agreement with Melewar Steel Services Sdn Bhd for the acquisition of a parcel of leasehold industrial land measuring 8,732.6 sq m, on which the single-storey warehouse is situated.
Axis REIT Managers intends to utilise a financing facility of RM11.87 million from its existing credit lines to fund the deal.