PETALING JAYA: Industrial-focused AME Real Estate Investment Trust
(REIT), which released first quarter ended June 30, 2026 (1Q27) results on Wednesday, will continue to leverage off demand for industrial space in Johor.
It recently announced the acquisition of three freehold plots totalling 3.6 ha for RM50.2mil located at i-Park @ Senai Airport City, its first third-party purchase other than from the sponsor, AME Elite Consortium Bhd, which owns roughly half the REIT.
Analysts covering the REIT remained positive of its outlook, with RHB Research expecting occupancy rates of its properties to be near full supported by high tenant retention, manageable lease expiries, and sustained demand from new and existing tenants looking to expand.
The research house has maintained a “buy” call on the stock with target price (TP) of RM1.95 without any changes to the earnings forecast.
It expects the i-Park SAC 34 acquisition to start contributing financially from 2Q27 onwards.
“Rental reversions should stay positive in the low- to mid-single-digit range, while 11% of leases due for renewal in financial year ending March 31, 2027 (FY27) should provide further rental catch-up opportunities as they progressively expire,” it further added.
It said the REIT targets 7% net property income yield from the recent acquisition of the three plots in i-Park @ Senai Airport City.
“Given the strong demand outlook for industrial space in Johor particularly in the Johor – Singapore Special Economic Zone area, we believe the three assets should achieve a relatively smooth lease-up upon completion (expected in FY29).
“Assuming the full project cost is debt funded, we estimate gearing to rise to 37%,” it said, adding that gearing rose to 31% in 1Q27 from 29% in 4Q26.
BIMB Research said the acquisition of the three industrial plots adds to the medium-term growth pipeline, but no immediate rental contributions have been made pending further details. It has maintained a “buy” call and TP of RM1.93.
