Axis REIT’s NPI jumps 31% on-year in 3Q with expanded portfolio

KUALA LUMPUR (Oct 22): Axis Real Estate Investment Trust’s (Axis REIT) net property income (NPI) grew 31% in the third quarter ended Sept 3, 2018 (3QFY18) to RM45.34 million from RM34.72 million a year ago, as its property size grew to 44 properties from 39 properties.

Total trust revenue rose 25% year-on-year to RM52.35 million from RM42 million. It recorded a realised net income from operations of RM29.27 million for the quarter, up 33% from RM22 million a year ago.

The REIT announced a third income distribution per unit (DPU) of 2.35 sen for the quarter — which is 18% higher than 3QFY17's 2 sen per unit. The DPU is scheduled to be paid on Dec 10. The payout represents 99.2% of the REIT's realised income available for distribution generated from its operations during 3QFY18.

Its board of directors has also determined that the income distribution reinvestment plan, which allows unitholders of Axis REIT to reinvest their income distribution in new units, will apply to its third income distribution.

For the cumulative nine-month period ending Sept 30, the REIT's NPI rose 16% to RM123.47 million, versus RM105.94 million in the same period last year, as the trust's revenue grew 15% to RM144.89 million from RM126.33 million. Its realised net income from operations was RM77.38 million, up 13% from RM68.35 million a year ago.

Moving forward, the manager of the REIT is optimistic that in view of the current satisfactory performance of Axis REIT’s existing investment portfolio and its growth strategy to actively pursue quality acquisitions, it will be able to maintain its current performance for FY18.

As of Sept 30, 10 out of its 44 properties have vacancies, while one is undergoing development; 33 of its remaining properties record 100% occupancy.— theedgemarkets.com

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