PETALING JAYA: Axis Real Estate Investment Trust (REIT) has posted a 12% decline in its net profit to RM26.15mil in the third quarter ended Sept 30 from RM29.74mil a year ago, due to higher maintenance costs.
Despite the decline in its bottomline, the group has maintained its dividend payment for the quarter at 2.35 sen a share.
Its revenue or total trust income for the quarter jumped almost 3% to RM53.86mil compared to RM52.35mil previously.
Net asset per share stood at RM1.34, while earnings per share stood at 2.11 sen.
Cumulatively, for the first nine months, Axis REIT’s net profit declined by 7% to RM81.79mil from RM87.99mil a year earlier.
Revenue for the period was higher by 11.7% to RM161.83mil compared to RM144.89mil previously,
During the period under review, Axis REIT will be dishing out a higher dividend of 7.06 sen a share compared to 6.29 sen last year.
Axis REIT chief executive officer and executive director Leong Kit May said the group is targeting to acquire a total of five properties worth RM191.3mil this year.
“Axis REIT continues to provide unit-holders with a stable income distribution and growth in net asset value per unit.
“Besides the build to suit project, we have also initiated the acquisition of five properties worth a total of RM191.3mil.
“When all these acquisitions are completed, the properties will definitely contribute positively to Axis REIT’s future earnings, ” she said in a separate statement
The group said it recently completed several acquisitions in Johor, including two manufacturing plants located in Nusajaya at a purchase price of RM55.8mil.
It also bought a warehouse facility for RM65mil located at the Port of Tanjung Pelepas in Johor on Oct 14,2019.
As at Sept 30, Axis REIT was managing 47 properties under its portfolio with 9.49 million square feet of floor space worth about RM2.95bil.
About 52% of the floor space is located in the Klang Valley, while the remaining is located in Johor, Pahang, Negri Sembilan, Kedah and Penang.
The group said its portfolio occupancy stood at 92% as at Sept 30 with an average lease expiry of six years.
Its properties are currently yielding about 7.9% net.
Shares in Axis REIT closed unchanged at RM1.80 apiece yesterday.
The company has about RM1.3bil in total liabilities and its gearing currently stood at 0.4 times.