• For the full FY2022 ended Dec 31, 2022, Axis REIT logged an NPI of RM245.08 million, up 15.13% from RM212.88 million in FY2021, while revenue grew 16.18% to RM281.63 million from RM242.41 million.
  • In FY2022, Axis REIT acquired four new properties, one of which is the RM390 million DW1 logistics warehouse in Pelabuhan Tanjung Pelepas, Johor ― which raised the number of properties under its portfolio to 62 from 58 a year ago, and its total investment properties’ value to RM4.3 billion.

KUALA LUMPUR (Jan 19): Axis Real Estate Investment Trust (Axis REIT)’s net property income (NPI) for the fourth quarter ended Dec 31, 2022 (4QFY2022) rose 12.71% to RM61.96 million from RM54.98 million a year ago, on the back of income from new acquisitions, new tenancies from existing properties, and positive rental revisions.

Revenue rose 12.35% to RM70.72 million from RM62.94 million, according to the REIT’s filing on Thursday (Jan 19). Realised income available for distribution stood at RM38.37 million, versus RM35.81 million previously.

A distribution per unit of 2.33 sen ― 0.24 sen and 2.09 sen ― has been declared in 4QFY2022, versus 2.41 sen in the same quarter last year. This brings full FY2022 DPU to 9.75 sen versus 9.49 sen for FY2021.

For the full FY2022 ended Dec 31, 2022, Axis REIT logged an NPI of RM245.08 million, up 15.13% from RM212.88 million in FY2021, while revenue grew 16.18% to RM281.63 million from RM242.41 million.

In FY2022, Axis REIT acquired four new properties, one of which is the RM390 million DW1 logistics warehouse in Pelabuhan Tanjung Pelepas, Johor ― which raised the number of properties under its portfolio to 62 from 58 a year ago, and its total investment properties’ value to RM4.3 billion.

In a press briefing, Axis REIT Manager’s chief executive officer Leong Kit May said the bulk or 52% of the REIT’s properties comprises its logistics warehouse portfolio, followed by manufacturing facilities (28%), office/industrial (13%), office (4%) and hypermarkets (3%).

The group recorded a 3.3% growth in rental reversion in 2022, with the renewal of 77.3% of the 2.49 million sq ft of leases that expired during the year, she said. This is compared to the 5.6% positive rental reversion in 2021, with the renewal of 89% of 1.96 million sq ft of leases that expired.

In talks to acquire RM120 million worth of assets

In the year ahead, Axis REIT head of investment Tan Kee Hong said the REIT is negotiating with various owners and vendors to acquire RM120 million worth of assets, which he hopes can be completed in the next two quarters of 2023.

While specific details on the target properties were not disclosed, Tan said the REIT’s focus remains on logistics and manufacturing facilities with long leases from tenants with strong covenants.

In the event of a recession, the group may take the opportunity to ramp up its acquisition strategy, said Leong, as a recession may provide the group with the opportunity to acquire quality assets at lower prices.

Touching on the outlook of its existing properties, Leong said the group believes that its logistics warehouse and manufacturing facility portfolios will continue to do well in 2023.

However, despite being cognisant of the dimmer outlook of its office portfolio, no thanks to the current supply-demand mismatch, Leong said Axis REIT has no plans to dispose of its office properties and is targeting to push the segment’s net yield to 7%, from 6.8% in FY2022.

Units of Axis REIT ended unchanged at RM1.88 on Thursday, giving the REIT a market capitalisation of RM3.27 billion.

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