New assets to lift Axis-REIT earnings

CGS-CIMB expects Axis REIT to capitalise on the low interest rate environment following the overnight policy rate cuts as well as the Securities Commission’s temporary lifting of M-REITs’ gearing limit from 50% to 60% (until December 2022), outpacing peers in its asset acquisition drive.

PETALING JAYA: The low interest rate environment, which tends to make property acquisition cheaper, will bode well for Axis Real Estate Investment Trust (Axis REIT) in its trail of acquisitions.

CGS-CIMB expects Axis REIT to capitalise on the low interest rate environment following the overnight policy rate cuts as well as the Securities Commission’s temporary lifting of M-REITs’ gearing limit from 50% to 60% (until December 2022), outpacing peers in its asset acquisition drive.

“We remain positive on Axis REIT’s asset acquisition outlook, which has picked up pace in the second half of this year with two asset purchases worth a combined RM107mil in a prime industrial area in Shah Alam, ” the research outfit said.