Axis REIT’s 1Q income rises 3.3%

Earnings growth for the quarter primarily comes from its new property acquisitions


AXIS Real Estate Investment Trust’s (Axis REIT) net property income rose 3.26% in the first quarter ended March 31, 2021 (1Q21) to RM49.82 million from RM48.25 million a year ago.

In a filing to Bursa Malaysia yesterday, the group said its quarterly revenue increased by 5% to RM57.48 million from RM54.77 million a year ago.

Axis REIT’s total trust income also increased by 9.2% year-on-year to RM32 million, while the realised net income from operations increased by 6.7% to RM31.9 million.

According to the trust, earnings growth for the quarter primarily came from its new property acquisitions.

“Axis REIT has completed four acquisitions for a total purchase value of RM148.2 million in 1Q21.

“The said acquisitions, which are Indahpura Facilities 2 and 3, Beyonics i-Park Campus Block F and Bukit Raja Distribution Centre 2. These four properties brought the total portfolio of the fund to 57 properties as at March 31, 2021,” it noted in a statement.

Axis REIT declared an interim distribution per unit (DPU) of 2.23 sen to be paid on May 31.

As at the end of 1Q21, the group stated its unitholders totalled 8,637, a substantial 27.5% increase from the end of financial year 2020’s (FY20) total of 6,776 unitholders. The latter, in turn, grew by almost 19% to 5,715 unitholders at the end of FY19.

On March 12, 2021, Axis REIT completed the income distribution reinvestment plan for the final income distribution of FY20 at an issue price of RM1.88 per unit.

The net proceeds of RM7.7 million, raised from the issuance of 4.15 million new units, had been used to finance enhancement of properties of the fund.

Axis REIT Managers Bhd CEO and ED Leong Kit May said with the vaccination rollout in the country, the company is optimistic of the industry’s outlook backed by higher demand for industrial properties and logistics warehouse properties, as the government continues to attract manufacturing investment and accelerate e-commerce adoption.

“Should the pandemic prolong or worsen, this may impact Axis REIT’s performance for the rest of FY21 ending Dec 31,” he added.

Leong said the group will continue to manage Axis REIT’s portfolio and exercise prudent capital management at all times to deliver sustainable earnings per unit and DPU payout to the unitholders.

He noted that the current financing ratio of 36% provides headroom for Axis REIT to continue its yield-accretive acquisition strategy should opportunities come along.