Axis REIT 4Q net profit fell by 40% to RM59.7m

AXIS Real Estate Investment Trust (REIT) net profit sank 40.3% to RM59.67 million in its fourth quarter ended Dec 31, 2022 (4Q22), from RM99.98 million a year ago.

Revenue, however, increased 12.3% to RM70.72 million from RM62.94 million in 4Q21.

For the quarter, Axis REIT registered a total trust income of RM70.72 million.

The realised net income from operations was RM36.17 million after deducting total expenditure of RM34.55 million of which RM9.97 million were attributable to property expenses and RM24.58 million to non-property expenses.

The fund has declared the 2022 fourth interim income distribution of 99% from realised income available for distribution generated from operations for the period from Oct 1, 2022, to Dec 22, 2022, of 2.09 sen per unit, totalling RM34.3 million and payable on Jan 20, 2023.

The total net asset value stood at RM2.57 billion and the net asset value per unit (before 2022 fourth interim and final income distribution) was RM1.5670.

For FY22, the company’s net profit slipped 5.1% to RM190.11 million from RM200.36 million.

Revenue rose 16.2% to RM281.63 million from RM242.41 million last year.

The realised net income generated from operations was RM157.29 million after deducting total expenditure of RM124.34 of which RM39.13 million were attributable to property expenses and RM85.2 million to non-property expenses.

In FY22, a total of RM57.28 million has been incurred for major capital expenditure.

Despite the challenging business environment, Axis REIT Managers Bhd CEO and ED Leong Kit May (picture) said the FY22 total trust income growth rate has surpassed the rate recorded for pre-Covid FY19.

Moving forward, Leong said while the pandemic storm may be tapering off, the business community will continuously be faced with one challenge after another over time.

“Nevertheless, given the satisfactory performance of Axis REIT’s existing portfolio in 2022 on the back of the tried and tested growth strategy to actively pursue quality investments, we will endeavour to maintain this commendable performance for 2023,” added Leong. — TMR / TMRpic