Axis REIT posts small rise in 1Q net property income, declares 2.05 sen income distribution

• Axis REIT’s manager is optimistic that in view of the satisfactory performance of the REIT’s existing property portfolio and its growth strategy to actively pursue quality investments, it will be able to maintain its current performance for FY2023.

KUALA LUMPUR (April 18):  Axis Real Estate Investment Trust’s (Axis REIT) posted a marginal increase of 0.92% in its net property income (NPI) to RM58.93 million for the first quarter ended March 31, 2023 (1QFY2023), from RM58.39 million a year earlier, due mainly to rental from newly acquired properties and positive rental reversion in 2022.

However, the property income was partly offset by lower occupancy rate as two properties are undergoing development and major enhancement, the REIT said in a bourse filing.

“In addition, one of the tenancies for Axis Shah Alam Distribution Centre 3 expired in December 2022 and is currently in the process of securing a new tenant,” it added.

Revenue for the quarter rose 5.22% to RM70.17 million, from RM66.69 million in 1QFY2022.

The commercial property REIT said the realised net income from operations was RM32.55 million after deducting total expenditure of RM37.63 million of which RM11.54 million was attributable to property expenses and RM26.09 million to non-property expenses

Axis REIT declared a first interim income distribution of 2.05 sen per unit, which will be paid on May 31.

Axis REIT’s manager is optimistic that in view of the satisfactory performance of the REIT’s existing property portfolio and its growth strategy to actively pursue quality investments, it will be able to maintain its current performance for FY2023.

Shares in Axis REIT closed unchanged at RM1.91, giving the REIT a market capitalisation of RM3.33 billion.