Axis REIT Managers Bhd chief executive officer Leong Kit May
PETALING JAYA: Axis Real Estate Investment Trust (REIT) aims to acquire new properties worth RM430mil, adding to its 69 assets across Peninsular Malaysia with total assets under management of RM5.21bil.
The new target for acquisition value marks a sharp jump from the RM300mil target mentioned in January.
Axis-REIT Managers Bhd chief executive officer cum executive director Leong Kit May said potential acquisition targets have been identified.
These will be “high-quality, yield-accretive” assets that are strategically located.
Axis-REIT also reported yesterday that its net trust income for the first quarter ended March 31 (1QFY25) increased by 16.2% year-on-year (y-o-y) to RM49.13mil.
Meanwhile, total revenue rose by nearly 19% y-o-y to RM89.87mil.
The improvement was driven by contributions from newly acquired assets, commencement of new tenancies at Axis Mega Distribution Centre (Phase 2), as well as continued positive rental reversions across the portfolio.
In 1Q25, Axis-REIT spent about RM4.51mil for the enhancement of its properties, including maintenance.
With the higher net income, the trust’s earnings per share for 1Q25 inched up marginally to 2.44 sen.
Axis-REIT looks to distribute 99% of its 1Q25 realised income to its unitholders.
A 2.5 sen distribution per unit has been announced for the first quarter. It will be payable on May 30, with the book closure date on May 8.
“The manager is optimistic that in view of the satisfactory performance of Axis-REIT’s existing property portfolio and its growth strategy to actively pursue quality investments, it will be able to maintain its current performance for the financial year ending Dec 31, 2025.”
In line with its capital recycling strategy, Axis-REIT has entered into a sale and purchase agreement for the proposed disposal of The Annex in Petaling Jaya, for a total cash consideration of RM24.2mil.
The disposal is expected to generate net gains that will be distributed to unitholders upon completion.
As at end-March 2025, out of Axis-REIT’s 69 properties, a total of 58 assets enjoyed 100% occupancy. Overall, the occupancy rate stood at 97%.
