Axis REIT net income jumps to RM99m in 4Q21

by S BIRRUNTHA / graphic by MZUKRI MOHAMAD

AXIS Real Estate Investment Trust (REIT) net income for the fourth quarter ended Dec 31, 2021 (4Q21), jumped 102.9% to RM99.98 million from RM49.27 million it posted in the corresponding period the year earlier.

In a filing to Bursa Malaysia yesterday, Axis REIT stated its total trust income for 4Q21 came in at RM62.9 million, up 9.43% year-on-year (YoY).

The property trust stated the increase in its property income compared to the preceding year’s corresponding period was mainly due to rental from newly acquired properties, the commencement of new tenancy at Axis Industrial Facility @ Rawang and the positive rental reversion recorded for the period.

For the full financial year, Axis-REIT’s net income increased 41% YoY to RM200.36 million underpinned by a higher gain in fair value of investment properties.

It registered a gain in fair value of RM67.8 million in the financial year 2021 (FY21) against RM19 million in the preceding year.

The REIT posted a 7.8% YoY increase in total trust income to RM242.4 million in FY21.

Axis REIT Managers Bhd, the management company of Axis-REIT, has proposed to distribute 99% of its realised income available for distribution, generated from operations for the period from Dec 16, 2021, to Dec 31, 2021, as of FY21 final income distribution.

This gives a distribution per unit (DPU) of 0.38 sen, of which is wholly non-taxable due to utilisation of capital allowances, industrial building allowances and tax-exempt profit income which is not subject to tax.

The 2021 final income distribution will be payable on Feb 28, 2022, and the book closure date is Feb 8, 2022.

On prospects, Axis REIT remains cautious of the current Covid-19 pandemic which has caused a global economic downturn.

In its exchange filing yesterday, the trust stated while the pandemic’s impact on its operations and financials have been manageable thus far, should the pandemic prolong or worsen unexpectedly, this may impact Axis-REIT’s performance for FY22.

“During this challenging and uncertain time, the manager is actively managing the portfolio and exercising prudent capital management at all times for Axis-REIT to deliver sustainable earnings per unit and DPU payout to unitholders.

“The current gearing level of 31% provides headroom for Axis REIT to continue its yield accretive acquisition strategy should good opportunities come along,” it noted.

Axis REIT has completed the acquisition of five properties worth a total of RM223.2 million. This has raised its total investment properties value to RM3.6 billion.