AME REIT’s 4Q net property income jumps 12%, declares 1.87 sen distribution per unit

• During the quarter, AME REIT registered RM12.48 million in rental income, compared with RM10.77 million previously (3QFY2024), contributed by the income generated from the acquisitions of three industrial properties in 2023, along with positive rental reversions and renewals of expiring tenancies.

KUALA LUMPUR (April 24): AME Real Estate Investment Trust (AME REIT) recorded a 11.9% growth in net property income (NPI) in the fourth quarter ended March 31, 2024 (4QFY2024) to RM11.4 million, from the previous corresponding quarter, driven by a 15.9% increase in rental income.

During the quarter, AME REIT registered RM12.48 million in rental income, compared with RM10.77 million previously (3QFY2024), contributed by the income generated from the acquisitions of three industrial properties in 2023, along with positive rental reversions and renewals of expiring tenancies.

However, the REIT’s distributable income for the quarter only grew by 2.65% to RM9.77 million, compared with RM9.52 million in the corresponding quarter. The industrial properties REIT declared a 1.87 sen per unit distribution for the quarter.

The fourth distribution will be payable on May 30, 2024 to unitholders listed in the record of depositors of AME REIT at the close of its business on May 9, 2024, AME REIT’s bourse filing showed.

Despite the rather low level of distributable income growth, AME REIT chief executive director and I REIT Managers Sdn Bhd executive director Chan Wai Leo said he believes that the REIT’s position within the industrial real estate sector would be further strengthened by the influx of multinational corporations into its portfolio. I REIT is the REIT manager of AME REIT.

“We are also pursuing opportunities to expand our portfolio with industrial properties that align with our investment strategy,” Chan said in a statement.

For the financial year ended March 31, 2024 (FY2024), AME REIT recorded an NPI of RM44.44 million, on a revenue of RM48 million, more than double of last year’s RM21.51 million figures. As a result, its distributable income rose almost 95% to RM38.55 million.

The REIT is optimistic about achieving a favourable performance for the financial year ending March 31, 2025 (FY2025), given the 99% committed occupancy rate and a 98% occupancy rate for its existing industrial and industrial-related properties portfolio.

AME REIT closed one sen or 0.72% lower at RM1.38 on Wednesday, with a market capitalisation of RM724.2 million.

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