by S BIRRUNTHA / graphic by MZUKRI MOHAMAD

AXIS Real Estate Investment Trust’s (Axis REIT) net profit for the first quarter ended March 31, 2022 (1Q22), rose to RM39.84 million from RM31.96 million in 1Q21.

In a filing to Bursa Malaysia yesterday, the group said revenue for the quarter increased to RM66.69 million from RM57.48 million previously.

“The realised net income from operations was RM39.1 million after deducting total expenditure of RM27.59 million, of which RM8.76 million were attributable to property expenses and RM18.83 million to non-property expenses.

“The manager has proposed to distribute 99% of realised income available for distribution generated from operations for 1Q22.

“The total net asset value stood at RM2.53 billion and the net asset value per unit (before 2022’s first interim income distribution) was RM1.55,” it noted in a statement accompanying its financial results.

The group noted that the increase in property income compared to preceding year corresponding period was mainly due to rental from newly acquired properties and the commencement of new tenancies at Axis Industrial Facility @ Rawang and D8 Logistics Warehouse.

It said this includes the positive rental reversion recorded for the period and sale of recycled materials arising from the demolition work at Bukit Raja Distribution Centre 2.

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

“While the pandemic’s impact on Axis REIT’s operations and financials have been manageable thus far, should the pandemic worsen unexpectedly this may impact Axis REIT’s performance for the rest of the financial year ending Dec 31, 2022.

“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 earning per unit and distribution per unit payout to unitholders,” it added.

Positively, the group said the current gearing level of 29% provides headroom for Axis REIT to continue its yield accretive acquisition strategy should good opportunities come along.

Axis REIT also noted that the trust has been successful in achieving the investment objectives where the trust has set out to provide the

unitholders with a stable income distribution and to achieve growth in net asset value per unit of the trust by acquiring high quality accretive properties with strong recurring rental income.

During the quarter under review, Axis REIT said it had completed the acquisitions of Pasir Gudang Logistics Warehouse 2 and Indahpura Facility 4 on March 7 and 8, 2022, respectively.

The property portfolio size of Axis REIT increased from 58 to 60 properties as at March 31, 2022.

Shares of Axis REIT closed one sen or 0.53% lower to RM1.87 yesterday, valuing the group at RM3.06 billion.