Security deposits to cushion Axis-REIT

HLIB Research said YESB was a tenant contributing 5% of Axis-REIT’s total revenue for the financial year ended Dec 31, 2022.

PETALING JAYA: Axis Real Estate Investment Trust’s (Axis-REIT) loss of revenue due to the recent cessation of a lease agreement will likely be partly shielded by the six months’ security deposits paid by the major tenant of Axis Steel Centre @ SiLC, who had defaulted.

This is based on the lease agreement set between Axis-REIT and Yongnam Engineering Sdn Bhd (YESB) in 2014, according to Hong Leong Investment Bank (HLIB) Research.