PETALING JAYA: Axis Real Estate Investment Trust (Reit) reported a higher net income of RM31.96mil in its first quarter ended March 31,2021, up 9.2% from RM29.28mil in the corresponding period a year ago.
The trust also saw its first-quarter revenue rise to RM57.48mil from RM54.77mil in the previous corresponding period.
Its distribution per unit (DPU) was at 2.23 sen for the first quarter, which reflects a distribution yield of 4.57%.
“The increase in property income as compared to the preceding year’s corresponding period was mainly due to rental from newly acquired properties, ” Axis Reit said in a statement.
“This has offset the rental loss from the expiry of tenancy of D8 Logistics Warehouse since end-October 2020. During the movement control order 2.0 period, we had also registered lower seasonal and visitor carpark income, ” it added.
As of end-March, the trust said it had RM3.52bil in total assets with a net asset value of RM1.47 per unit and a gearing level of 36%.
Its space under management rose to 10.9 million sq ft, spread over 57 assets and 152 tenants (91% occupancy rate) in the first quarter of 2021, from 10.48 million sq ft in 2020.
On its prospects, Axis Reit’s managers said they remained cautious about the current Covid-19 pandemic that has caused a global economic downturn.
“While the pandemic’s impact on Axis-Reit’s operations and financials have been manageable thus far, should the pandemic prolong or worsen unexpectedly, this may impact the performance for the rest of the financial year ending Dec 31,2021, ” they said.
“During this challenging and uncertain time, we are actively managing the portfolio and exercising prudent capital management at all times in order to deliver sustainable earnings per unit and DPU payout to the unitholders.”
Pursuant to the completion of the income distribution reinvestment plan in conjunction with the payment of the 2020 final income distribution, the trust said its fund size had increased from 1.442 billion units to 1.446 billion units.
Moving forward, managers of the trust said they would continue to aggressively source and evaluate potential acquisition targets that are deemed investable.
“The selection of properties will continue to focus on Grade A logistics and manufacturing facilities with long leases from tenants with strong covenants. It should also be well-located retail warehousing in locations ideal for last-mile distribution, ” the managers said.
This would include office, business parks and industrial properties with a potential for future enhancements, they said.
Axis-Reit’s total estimated value of acquisition targets is at RM135mil in the near term, they added.