Axis REIT’s net profit slumps 61%

The REIT registered a 32% lower net profit from RM209.2m to RM142.1m for the full year


AXIS Real Estate Investment Trust (REIT) posted 61% lower year-on- year (YoY) net profit of RM49.27 million for its fourth quarter ended Dec 31, 2020 (4Q20).

According to a filing to Bursa Malaysia yesterday, the REIT reported significantly lower net property and investment incomes.

Revenue or trust income for the period rose 5% YoY to RM57.51 million.

“The manager has proposed to distribute 99.9% from realised income available for distribution generated from operations for 4Q20. The total net asset value stood at RM2.12 billion and the net asset value per unit before income distribution was RM1.47,” the report noted.

For the full year, the REIT registered a 32% lower net profit from RM209.24 million to RM142.06 million, while revenue was higher from RM216.41 million to RM224.94 million.

A total of RM93.75 million was declared as 2020 first, second and third interim income distributions, which translates to 6.5 sen per unit

and were paid on July 3, 2020, Oct 2 and Nov 30 respectively.

“Axis REIT has further set aside RM32.45 million as 2020 final income distribution, which translates to 2.25 sen per unit payable on March 11, 2021,” it said.

Moving forward, Axis’s manager remains cautious of the current Covid-19 pandemic which has caused global economic downturn.

The report noted that the impact on the REIT’s operations and financials has been manageable thus far amid management’s move to hold the portfolio and exercise prudent capital management in order for the REIT to deliver sustainable earnings per unit and distribution per unit payout to unitholders.

“The current gearing level of 33% provides headroom for the REIT to continue its yield accretive acquisition strategy should good opportunities come along,” it noted in its exchange filing yesterday.