However, despite being able to manage the impact of Covid-19 pandemic, Axis-REIT said an unexpected worsening of the pandemic might impact its performance for the rest of the financial year.
PETALING JAYA: Axis Real Estate Investment Trust (Axis-REIT) says its current gearing level of 36% provides headroom for it to continue its yield accretive acquisition strategy.
However, despite being able to manage the impact of Covid-19 pandemic, Axis-REIT said an unexpected worsening of the pandemic might impact its performance for the rest of the financial year.
Axis-REIT net profit for the second quarter ended June 30, surged by almost 50% year-on-year (y-o-y) to RM46.79mil while revenue was up by 20% y-o-y to RM72.52mil.
“Property income went up mainly due to rental from newly acquired properties, commencement of new tenancies, positive rental reversion, and the sale of recycled materials arising from the demolition work at Bukit Raja distribution centre two,” the group said in a filing with Bursa Malaysia yesterday.
Net income from operations amounted to RM42.91mil after deducting total expenditure of RM29.61mil of which RM9.89mil was attributable to property expenses and RM19.72mil to non-property expenses.
In a positive note, Axis-REIT Managers Bhd, the management company of Axis-REIT, has proposed to distribute 99% of the realised income as the second interim dividend payout amouting to 2.55 sen per share, or RM41.85mil in total.
Despite an increase of about 6.5 million shares on the group’s fund size to a total of about 1,641 million shares during the quarter in review, the group recorded earnings per share of 2.86 sen, up from 2.17 sen in the previous comparative period.
It rasied RM11.3mil in net proceeds from the new shares issue pursuant to the implementation of the income distribution reinvestment plan that had been used to finance enhancement of properties.
