Axis REIT to declare additional 0.44 sen distribution after RM24.2m warehouse sale

• The disposal is expected to generate a net gain of RM9 million, which Axis REIT plans to fully distribute the sum. This will translate into an additional income distribution of 0.44 sen per unit, according to the industrial property-focused trust’s statement.

KUALA LUMPUR (Feb 26): Axis Real Estate Investment Trust (KL:AXREIT) is selling a warehouse property in Petaling Jaya, called The Annex, for RM24.2 million.

Axis REIT's trustee, RHB Trustees Bhd, entered into a sale and purchase agreement to sell the property to Basic Eight (M) Sdn Bhd.

The disposal is expected to generate a net gain of RM9 million, which Axis REIT plans to fully distribute the sum. This will translate into an additional income distribution of 0.44 sen per unit, according to the industrial property-focused trust’s statement.

“After 12 years of ownership, the property, a 42-year-old building currently operating as a sports centre, has reached a point where unlocking its value through the disposal is in the best interest of Axis REIT and its unitholders,” Axis REIT Managers Bhd chief executive officer and executive director Leong Kit May said.

Besides the RM9 million set to be distributed to unitholders, the remainder of the proceeds will be used to reduce gearing and enhance Axis REIT’s financial flexibility for future acquisitions and developments. The REIT said the disposal is expected to reduce its financing ratio to 34.03% of audited total assets at end-December 2023.

Leong added that by redeploying proceeds to higher-yielding assets, Axis REIT remains committed to delivering sustainable returns to its unitholders.

Axis REIT acquired The Annex for RM12 million in October 2012. It carried an audited net book value of RM21.74 million as at end-December 2023.

The property has 45,400 sq ft of net lettable area and is fully occupied currently.

The RM24.2 million price tag for the property with Basic Eight was reached based on an independent valuation of RM23 million ascribed to the property by Raine & Horne International Zaki + Partners Sdn Bhd in January 2025.

The property disposal is expected to be completed by the first half of the year.

Axis REIT gained two sen to close at RM1.78 on Wednesday, valuing the property trust at RM3.58 billion.

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