Axis REIT 3Q income jumps 12.5%, declares 2.45 sen DPU

• Axis REIT reported a revenue of RM71.71 million for the quarter, 16.39% higher than the RM61.61 million it logged a year ago, mainly due to higher property income.

KUALA LUMPUR (Oct 19): Axis Real Estate Investment Trust’s (REIT) net property income (NPI) in the third quarter ended Sept 30, 2022 (3QFY22), climbed 12.54% to RM61.49 million from RM54.64 million a year earlier, on the back of rental income from newly-acquired properties.

A third interim income distribution of 2.45 sen per unit will be paid on Nov 30, Axis REIT said in a bourse filing on Wednesday (Oct 19). Together with the 2.42 sen per unit and 2.55 sen per unit distributed for 1Q and 2QFY22, the company’s year-to-date distribution per unit (DPU) stands at 7.42 sen.

Axis REIT reported a revenue of RM71.71 million for the quarter, 16.39% higher than the RM61.61 million it logged a year ago, mainly due to higher property income.

For the cumulative nine-month period (9MFY22), the REIT posted a 15.97% jump in NPI to RM183.12 million from RM157.9 million a year ago, as revenue came in 17.52% higher at RM210.91 million versus RM179.47 million before.

Its total number of properties stood at 61 against 57 a year prior, with a portfolio occupancy of 95%.

Going forward, Axis REIT said its manager ― Axis REIT Managers Bhd ― remains cautious of the current Covid-19 pandemic and said that while the pandemic’s impact on the REIT’s operations and financials have been manageable, the REIT’s performance for the remainder of FY22 may be hampered if the situation unexpectedly worsens.

“During this challenging and uncertain time, [Axis REIT Managers] is actively managing the portfolio and exercising prudent capital management at all times, in order for Axis REIT to deliver sustainable EPU and DPU payout to unitholders.

“Positively, the current gearing level of 36% provides headroom for Axis REIT to continue its yield accretive acquisition strategy, should good opportunities come along,” the company added.

Shares in Axis REIT closed two sen or 1.08% lower to RM1.84 on Wednesday (Oct 19), valuing the REIT at RM3.02 billion.