KUALA LUMPUR: AME Real Estate Investment Trust (AME REIT) is optimistic about its prospects in the upcoming financial year given the robust demand for industrial properties in Malaysia.
“We are buoyant of the upcoming financial year, as AME REIT not only successfully secured new leases on all three tenancies that expired during the financial period ended March 31, 2023 (FY23), but also at higher rates than the former leases.
“Moreover, we will incorporate new rental income from two newly-acquired properties which have existing lease arrangements for a tenure of 10 years with an option to renew for a further three to five years,” I REIT Managers Sdn Bhd CEO and executive director Chan Wai Leo said in a statement.
I REIT Managers is the management company of AME REIT.
In the fourth quarter ended March 31 (4Q23), the industrial-focused AME REIT recorded net property income (NPI) of RM10.2mil on revenue of RM10.8mil.
The quarter under review also saw RM38.1mil in fair value gain on investment properties resulting in net income after tax of RM43.2mil.
After adjustments for the fair value gain net of its deferred tax expenses, in addition to unbilled lease income receivables and others, distributable income came in at RM9.5mil.
For the financial period from Sept 20, 2022 to March 31, 2023, AME REIT recorded a NPI of RM21.5mil on revenue of RM22.9mil while the distributable income during this period was RM19.8mil.
As AME REIT was listed on the Main Market of Bursa Malaysia on Sept 20, 2022, a comparison with the previous corresponding quarter and period is not available.
It announced a second 100% of distributable income with a distribution per unit (DPU) of 1.82 sen for 4Q23, amounting to RM9.5mil. The second distribution is payable on May 30.
“We have elected to distribute 100% of this quarter’s distributable income as a gesture of appreciation to AME REIT’s unitholders for investing with us at the early stage of what will be an exciting journey of growth,” Chan said.