KUALA LUMPUR: Axis REIT Managers Bhd is in the midst of completing four industrial properties in Johor by end-January and another two by the middle of the year.
Chief executive officer and finance director Leong Kit May said this is in line with its plan to expand portfolio in 2016 as it sees an opportunity in the current softening economic environment.
"We have plans to look at a few other acquisitions to put into the assets portfolio.
"Our focus this year is on industrial assets and the e-commerce industry," she told a media briefing on the group's financial year ended Dec 31, 2015 results.
As at Dec 31, 2015, Axis REIT owned 34 properties worth RM2.14 billion.
"We are targeting RM3 billion in total assets under management, but have not set any time frame for this," said Leong.
Axis REIT has recorded an occupancy rate at 91.97% and achieved an 82% tenants rate with positive rental reversion of 8% for 2015.
As at Dec 31, 2015, the group had vacant space of 563,411 sq ft. It expects to add as much as 2.03 sen to the annual distribution per unit as the vacant space fills up.
"The occupancy rate will improve as we are in talks with a few potential tenants to take up the space. A lot of commitments have come in over the last quarter of 2015," said Leong.
She added that Axis REIT is working with a promoter to develop its Axis PDI Centre in Sijangkang, Klang, as the property became vacant in the fourth quarter of 2015.
Leong said the property is scheduled for major enhancement works to create a mega distribution centre.
"The submission plan has gone in, but we have not conducted the tender process. We will be able to show details on the construction cost later. We are still finalising the design," she added.
Total trust revenue rose by 18% to RM163.82 million in its FY15 compared with RM138.84 million a year earlier.
Realised net income for FY15 increased 13% to RM91.54 million from RM81.29 million in the corresponding period of the previous year. - Bernama
Limited time offer:
Just RM5 per month.
