Axis REIT 2Q net property income up 18.34%, declares 2.55 sen DPU

KUALA LUMPUR (July 20): Axis Real Estate Investment Trust's (Axis REIT) net property income rose 18.34% to RM63.24 million for the second quarter ended June 30, 2022 (2QFY22) from RM53.44 million a year earlier, owing mainly to higher property and profit income.

The commercial property REIT announced a second interim income distribution of 2.55 sen per unit for 2022. Axis had paid a first interim income distribution of 2.42 sen on June 15, taking the current total income distribution to 4.97 sen against 4.63 sen a year ago.

In a bourse filing on Wednesday (July 20), Axis REIT said it proposed to distribute 99% of its realised income available for distribution generated from operations from April 1 to June 30.

“The 2022 second interim income distribution will be payable on Aug 30 and the book closure date is Aug 3,” Axis REIT Managers Bhd, the management company of Axis REIT, said.

Axis REIT’s total trust income for the quarter stood at RM72.52 million, 20.11% higher than the RM60.38 million reported for 2QFY21. Property income for the latest quarter rose 19.78% to RM72.11 million from RM60.2 million, compared with the corresponding quarter last year; profit income also rose 74.19% to RM216,000 from RM124,000 before.

“The realised net income from operations was RM42.91 million after deducting total expenditure of RM29.61 million, of which RM9.88 million were attributable to property expenses and RM19.72 million to non-property expenses.

“The total net asset value stood at RM2.55 billion and the net asset value per unit before 2022 second interim income distribution was RM1.55,” the manager said.

For the six months ended June 30, Axis REIT said it recorded a total revenue of RM139 million. It added that the realised net income generated from operations was RM82 million after deducting total expenditure of RM57.2 million, of which RM18.65 million were attributable to property expenses and RM38.55 million to non-property expenses.

In terms of prospects, the manager said it remains cautious of the current Covid-19 pandemic causing a global economic downturn.

“While the pandemic's impact on Axis REIT's operations and financials have been manageable thus far, should the pandemic worsen unexpectedly, this may impact Axis REIT’s performance for the rest of the financial year ending Dec 31, 2022,” it said.

In a separate statement, Axis REIT highlighted that the total trust income growth in turn was driven by contributions from newly acquired properties and positive rental reversion recorded from the tenancy renewals and contracted step-ups in the past one year.

It noted that it had acquired four properties, including the DW1 Logistics Warehouse in Pelabuhan Tanjung Pelepas, Johor, which was completed on April 25. This largest acquisition to date brought the total portfolio to 61 properties as at June 30.

Commenting on the results, Axis REIT Managers chief executive officer Leong Kit May said: “The financial results demonstrated the solid portfolio of Axis REIT that largely comprises logistics and industrial properties.

“We will continue to grow our portfolio with the acquisition of quality properties, as well as develop our properties with the ultimate objective of delivering better returns to unitholders.”

On Wednesday, Axis REIT’s shares closed one sen or 0.53% lower to RM1.88, valuing the group at approximately RM3.09 billion.