Axis REIT posts higher net income of RM37m in 3Q21

By ANIS HAZIM / Pic TMR

AXIS Real Estate Investment Trust’s (Axis REIT) net income grew by 14.4% year-on-year (YoY) to RM37.39 million for its third quarter ended Sept 30, 2021 (3Q21), compared to RM32.39 million a year ago, mainly attributed to the higher property income and lower operating cost. 

Its total trust income for the quarter registered an increase of 7.8% YoY to RM62.61 million from RM57.17 million a year ago contributed by full three months’ rental from its new tenant at D8 Logistics Warehouse in Port of Tanjung Pelepas, Johor, and positive rental reversion. 

It also announced its third interim income distribution of 2.45 sen per unit payable on Nov 30, 2021. 

In a filing to Bursa Malaysia yesterday, the group said its total capital expenditure of RM29.631 million for the current quarter has been incurred for its properties and warehouse. 

“RM9.9 million was incurred for enhancement of the properties of Axis REIT and RM19.7 million was incurred for the extension of the lease of D21 Logistics Warehouse or another 30 years,” it said.

The group’s nine months result recorded a net income of RM99.79 million and total revenue of RM179.47 million. 

Its management company, Axis REIT Managers Bhd CEO and ED Leong Kit May (picture) said the group remains cautious by the impact of the ongoing pandemic. 

“We will continue to exercise caution while managing the portfolio and exercise prudent capital management to deliver sustainable earnings per unit and distribution per unit payout to our unitholders,” she said in a statement accompanying the group’s result. 

She stated that Axis REIT is also proposing to place out new units to provide additional headroom for future acquisitions and reduce its financing ratio which is currently at 37%. 

Meanwhile, the group has completed the acquisition of the two parcels of leasehold industrial land located within the Kawasan Perindustrian Pasir Gudang, Johor, for a total cash consideration of RM75 million from Xin Hwa Trading & Transport Sdn Bhd. 

Axis REIT’s share price closed unchanged at RM1.95, giving it a market capitalisation of RM2.82 billion.