Axis-REIT sees higher income in 2Q22

THE growth in realised net income was mainly attributed to the higher total trust income

AXIS Real Estate Investment Trust (Axis-REIT) posted higher net income for its second quarter of the results for the financial year ending Dec 31, 2022 (2QFY22), than a year ago.

It reported an increase of 38.8% in its realised net income to RM42.9 million for its 2QFY22 from RM30.9 million in 2QFY21.

The growth in realised net income was mainly attributed to the higher total trust income which increased by 20.1% to RM72.5 million from RM60.4 million last year. 

The total trust income growth in turn was driven by contributions from newly acquired properties and positive rental reversion recorded from the tenancy renewals and contracted step-ups in the past one year.

Over the past 12 months, Axis-REIT acquired four properties, including the DW1 Logistics Warehouse in Tanjung Pelepas Port, Johor, which was completed on April 25, 2022. This largest acquisition to date brought the total portfolio to 61 properties as at June 30, 2022.

For the six months ended June 30, 2022, Axis-REIT recorded a total trust income of RM139.2 million, up by 18.1%, year on year, from RM117.9 million. The realised net income rose by 30.6% to RM82 million from RM62.8 million for the corresponding period last year.

Axis-REIT’s management company, Axis REIT Managers Bhd, has proposed to distribute 99% of the realised income available for distribution for the quarter under review, as the second interim income distribution for FY22. 

This gives a distribution per unit of 2.55 sen as opposed to 2QFY21 2.4 sen. The proposed 2.55 sen includes a non-taxable portion of approximately 0.61 sen per unit derived from capital allowances, industrial building allowances and tax-exempt profit income which is not subject to tax. — TMR