PETALING JAYA: Axis Real Estate Investment Trust (Axis REIT) will leverage on its gearing ratio of 36% to continue acquiring high quality industrial properties that are earnings accretive and have strong value propositions.
In a statement yesterday, Axis REIT Managers Bhd chief executive officer and executive director Leong Kit May said the acquisition of new properties will allow the company to deliver sustainable earnings per unit and distribution per unit.
“Despite the challenging business environment and rising interest rates, Axis-REIT continues to deliver commendable results amidst our strong portfolio which comprises industrial properties with long-serving tenants which act as a strong base of recurring income,” she said.
For its third quarter ended Sept 30, 2022, Axis REIT’s net profit rose to RM43.81mil from RM37.05mil in the previous corresponding period, while revenue improved to RM71.71mil from RM61.61mil a year earlier.
Basic earnings per share stood at 2.67 sen, compared with 2.56 previously.
The company reported a 5.7% increase in realised net income to RM39.1mil in the third quarter.
“The increased realised net income came on the back of higher total trust income which increased by 16.4% to RM71.7mil.
“The total trust income growth was driven by contributions from newly acquired properties, coupled with positive rental reversions recorded from the tenancy renewals and contracted step-ups in the past one year,” Axis REIT said.
Year-to-date, Axis REIT said it had completed three acquisitions, which include its largest-ever acquisition of the RM390mil DW1 Logistics Warehouse in Pelabuhan Tanjung Pelepas, Johor, thus bringing its total portfolio to 61 properties as at Sept 30.
“Axis-REIT is currently in the midst of finalising the recently proposed acquisition of a RM41mil industrial facility in Klang, Selangor, which is slated for completion by the fourth quarter of 2022.”
For the nine-months period ended Sept 30, 2022, net profit increased to RM130.44mil from RM100.38mil in the previous corresponding period, while revenue rose to RM210.91mil from RM179.47mil previously.
The realised net income increased by 21.4% to RM121.1mil from RM99.8mil in the corresponding period last year.
Axis REIT has proposed to distribute 99% of the realised income available for distribution for the quarter under review, as the third interim income distribution for the financial year ending Dec 31, 2022.
“This gives a distribution per unit of 2.45 sen which includes a non-taxable portion of approximately 0.62 sen per unit derived from capital allowances, industrial building allowances and tax-exempt profit income which is not subject to tax,” it said.
On its prospects, Axis REIT said it remains cautious of the current Covid-19 pandemic, which has caused a global economic downturn.
“While the pandemic's impact on operations and financials have been manageable thus far, should the pandemic worsen unexpectedly, this may impact Axis REIT’s performance for the rest of the financial year ending Dec 31, 2022.”
