I REIT Managers CEO and executive director Chan Wai Leo.

KUALA LUMPUR (Aug 9): AME Real Estate Investment Trust (REIT) is aiming for 100% renewal of its 12 leases expiring in the financial year ending March 31, 2024 (FY2024) to reinforce the industrial REIT’s future earnings.

Of the 12 leases, AME REIT has successfully renewed leases with five existing tenants, obtained one replacement tenant, and confirmed lease renewals with six existing tenants, which will be finalised by end-FY2024. With this, AME REIT is on track for 100% occupancy rates across all industrial- and industrial-related properties.

I REIT Managers Sdn Bhd, the management company of AME REIT, is confident of AME REIT maintaining its full occupancy position with healthy rent escalations.

“We are confident that our strong proposition as an innovative and value-accretive asset manager will bode well in retaining our tenants at improved rental rates, thereby enhancing our earnings stability," said I REIT Managers CEO and executive director Chan Wai Leo.

"As part of an integrated industrial space solutions provider via our sponsor AME Elite Consortium Bhd, we have both the capability and speed to work proactively with our tenants to customise to their requirements,” he said in a statement.

AME REIT now has 36 properties in its portfolio, with the acquisition of another industrial property on track for completion in FY2024. The acquisition will bring AME REIT’s total investment property value to RM668 million, with all properties enjoying full occupancy.

On top of that, AME REIT is on the lookout for new properties in Johor, Klang Valley, and the northern region to further strengthen its asset base.

“In this respect, we are targeting approximately RM100 million acquisition to expand our portfolio, and continue to reinforce our reputation as a leading industrial REIT in Malaysia,” the REIT said.

AME REIT posted a net property income of RM10.71 million for the first quarter ended June 30 (1QFY2024), on revenue of RM11.39 million.

No comparative figures for the preceding year are available, as the group was only listed on the Main Market of Bursa Malaysia on Sept 20, 2022.

On a quarter-on-quarter (q-o-q) basis, AME REIT's NPI rose 5.16% from RM10.19 million in 4QFY2023, as revenue increased 5.75% from RM10.77 million.

The higher revenue and net property income was attributed to the full-quarter contribution from two newly acquired industrial properties towards the end of the immediate preceding quarter.

Net profit, however, fell 79.98% q-o-q to RM8.65 million from RM43.19 million in 4QFY2023, due to the absence of fair value gain on investment properties recorded in the 4QFY2023.

On prospects, Chan said Malaysia’s positive outlook provides an optimistic landscape for the industrial sector to thrive, and AME REIT is well-positioned to capitalise on these opportunities. Hence, the REIT aimd to maintain a steady growth trajectory going forward.

AME REIT closed up three sen or 2.46% at RM1.25 on Wednesday (Aug 9), bringing the REIT a market value of RM653 million.