Axis REIT Managers Bhd chief executive officer Leong Kit May.
PETALING JAYA: Axis Real Estate Investment Trust
(Axis-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 acquisition target marks a sharp jump from the RM300mil goal mentioned in January.
Axis-REIT Managers Bhd chief executive officer and executive director Leong Kit May said potential acquisition targets have already 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, 2025 (1Q25), increased 16.2% year-on-year (y-o-y) to RM49.13mil.
Meanwhile, total revenue surged nearly 19% y-o-y to RM89.87mil.
The improvement was driven by contributions from newly acquired assets, the 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 on property enhancements, including maintenance.
With the higher net income, the trust’s earnings per unit for 1Q25 inched up marginally to 2.44 sen.
Axis-REIT plans to distribute 99% of its realised income for the quarter to its unitholders.
A distribution of 2.5 sen per unit has been announced for 1Q25, payable on May 30, with the book closure date set for 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, which will be distributed to unitholders upon completion.
As at end-March 2025, 58 out of Axis-REIT’s 69 properties enjoyed full occupancy, bringing the overall portfolio occupancy rate to 97%.
Axis-REIT closed 0.54% lower yesterday at RM1.83.
