Axis REIT issues RM155m sukuk to cover debts

KUALA LUMPUR: Axis REIT Bhd, via wholly owned subsidiary Axis REIT Sukuk Bhd, has issued medium-term sukuk worth RM155 million to refinance its debts.

The sukuk carries tenures of five and seven years with a blended annual financing rate of 4.13% and 4.18% per annum respectively.

The issuance is pursuant to Axis REIT's sukuk programme of up to RM300 million.

In a filing  with Bursa Malaysia, the REIT group said the RM155 million sukuk comprises five tranches, with the first two rated AAA.

The first tranche, worth RM70 million, has a seven-year tenure while the second tranche of RM60 million has a five-year tenure.

"With this second sukuk issue, Axis REIT has successfully increased its weighted average debt maturity to 4.2 years matching the fund's assets portfolio's weighted average lease expiry of 4.34 years," it said.

The group's financing facilities include 47% of revolving credit, 22% of 10-year sukuk, 17% of five- year sukuk and 14% of seven-year sukuk.

Axis REIT recorded net profit of RM24.4 million for its second quarter ended June 30, up 25.1% from RM19.5 million in the same quarter last year.

Revenue stood at RM35.5 million, an increase of 7.5% from RM33 million.

In an announcement to Bursa, Axis REIT said its net property income increased by 8% for the first half of the year.

The group currently holds a total of 31 property investments.

Some of Axis' property investments are Menara Axis, Axis Business Park (Petaling Jaya), Giant Hypermarket, Fonterra HQ (Subang Hi-Tech Industrial Park) and BMW Centre PTP.

This article first appeared in The Edge Financial Daily, on August 16, 2013.


Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.