goodiewilly, Ageson now good to buy or not?

goodiewilly, Ageson now good to buy or not?

Hidden gem? naaaaaaaaah southland counter

Axis’s portfolio has increased by 2 to a total of 50 properties. More than 50% of Axis’s tenants are still operating during MCO; the warehouse logistics are fully operating as well as hypermarkets. Overall, Axis remains relatively stable and defensive amid the Covid-19 outbreak and MCO given their well-diversified portfolio (focusing on industrial properties, with considerable tenants offering essential services). There are 17.7% of total NLA expiring in FY20 and we expect a flattish rental reversion amid Covid 19 outbreak and MCO. We expect a better FY20 due to full year contribution from acquisition in FY19 as well as new contribution from newly acquired properties. We increase our earnings slightly by 0.4% for FY20 and 0.5% for FY21-22 to reflect contribution from newly acquired properties. We maintain BUY with marginally higher TP of RM2.47 (from TP: RM2.46).

We organized a conference call with management; the following are some of the key takeaways.

Portfolio. Portfolio size increased by 2 to a total of 50 properties. The 2 additional properties came from completed acquisition in Bukit Raja (from Lion Steelworks Sdn. Bhd.) on 17th Mar 2020 and acquisition in Kawasan Perindustrian Nilai II (from K Plastics Industries Sdn. Bhd.) on 28th Feb 2020.

Some tenants still operating during MCO. More than 50% of Axis’s tenants are still operating during the Movement Control Order (MCO); the warehouse logistics are fully operating as well as hypermarkets. Besides, 20% of manufacturing facilities are also still in operations (see Figure #1 for portfolio breakdown). Overall, Axis remains relatively more stable and defensive amid the Covid-19 outbreak and MCO given their well-diversified portfolio (focusing on industrial properties, with considerable tenants offering essential services). Furthermore, there are 150 tenants (out of 154 tenants) that do not have a force majeure clause; hence, Covid-19 and MCO should not have material impact to Axis’ bottom-line. Management shared that the most they can do as landlords to help their tenants is potential rental deferment. In any case, Axis believes that they are able to collect any outstanding rental before August’s dividend payout. As consequence, there is unlikely to be an impact for unitholders during this time.

Flattish rental reversion is expected. There are 17.7% of total net lettable areas (NLA) of portfolio are expiring in FY20 (See Figure #3). Management expects that it will be a flattish rental reversion this year amid Covid-19 and MCO. To compare with FY19, 22.4% of total NLA expired and Axis managed to successfully secured 96% leases with 2% positive rental reversion. As for retention, this should not be an issue as tenants are likely to maintain status quo and keep operations at the same location.

Dividend distribution to remain as usual. Management assured that they will maintain their dividend distribution policy of a least 95% of dividend payout ratio for 1st

to 3rd quarter while at least 99% of payout ratio for 4th quarter. This is in line with REIT policy of distribution of earnings of more than 95% to enjoy tax-free benefits.

Pipeline assets. There are 2 more pipeline assets from FY19 that have not been acquired yet (targeting to do so by 1H20): (i) 1 manufacturing facility in Shah Alam, Selangor (c.RM56m) and (ii) 1 manufacturing facility in Kota Kinabalu, Sabah (c. RM60m). Besides, Axis REIT is evaluating other assets to acquire, with an estimated total value of RM135m. Their acquisition plan is still ongoing amidst MCO but may be delayed as they cannot go onsite to do due diligence.

Outlook. We expect a better FY20 due to full year contribution from acquisition in FY19 as well as new contribution from newly acquired properties (acquisition of Bukit Raja and Kawasan Perindustian Nilai II), coupled with (hopefully) a post Covid-19 recovery. Axis REIT is still actively pursuing quality acquisitions with focus on Grade A logistics and manufacturing facilities as prime focus.

Forecast. We increase earnings marginally by 0.4% for FY20 and 0.5% for FY21-22 to reflect contribution from newly acquired properties of Bukit Raja and Kawasan Perindustian Nilai II.

Maintain BUY, TP: RM2.47. We maintain BUY with marginally higher TP of RM2.47 (from TP: RM2.46) to reflect contribution of newly acquired properties. To note, our valuation is derived from 1SD below 2-year historical average yield spread between Axis REIT and 10-year MGS yield in view of increased popularity in industrial properties, high occupant tenancy in its diversified portfolio and is also one of the few Shariah compliant REITs.

wow

hahaha

china company? bye bye......

suddenly boom

baby shark tooot tooo t tootot tttoott

Low trading volume..............

hei

It’s been quite some time now since we have seen highly “intellectual” comments from warm water and Doraemon ministers. Seems like PAS is not wanting to be shortchanged and lose in the battle for limelight in the PN government. PAS had outdone itself with two major insights from yesterday and today. Yesterday, Malaysians are enlightened by the ban of alcohol in solving drunk driving and today, we got another dose of PAS’s economic prowess. Only PN politicians are capable of overtaking Trump.

British colonial masters are the main culprits. Palestine, India vs Pakistan, racial politics in Malaysia. Hong Kong. The list goes on. Britain stole US$45 trillion from India according to an Aljazeera report in 2018. Perhaps Malaysians should sue UK government as well

That's because there are too many alternatives to bypass Malaysia's 'apartheid'. Just drive over to Singapore. 940k Malaysians working there. 1 SGD = 3 MYR. x4 by 2025? Regional HQ's , R&D centres, financial centre, top schools for your children.. all there. Would they disrupt their careers to come back here and deal with these bumis?? 250k in Australia. 100k+ in London. They check the Malaysian news every now and then, look at the Ringgit becoming like a Rupiah , and think to themselves - "hmm .. that's too bad!"

Saturday, Sunday, Monday, after long weekend over, lab mula kerjalah. hehe

Conclusion is? need social distance or not ?

wah!

Good idea!

Yeah dunno end of june project that vvip got use his superpower or not? If yes, cantik lo! If no all fair deal, yiu!

Yup, That 2super vvip Are the highest in Msia already ma, so confirm cannot let you use his face to con people lo. Then if discuss project pass, then confirm ON lo.

goodiewilly, UMNO? Its not a problem at ALL, the problem is TRD too 谦虚 99.99%? Alamak!

alipay88 , Arbb needed the most is 3 bottle of Power root + 3 bottle of kacip fatimah= 阴阳和谐。Cannot be berat sebelah la.....If not everyday investors ask why this forum everyday talk about politics only!

I know the answer, If all project ON Arb price will shoot up to at least rm2-rm5 !

Right talknumberone

Wah since when talknumberone involve? Its nickychung88 la, not jason fong! Jason fong became good already!

Rakyat bukan bodoh but blindfold.....

Accuse away...Selangorians are not dumb folks to take the bait from a questionable gomen filled with a bunch of political hacks, hehehe

Selangor can just as easily refer to guidelines established WHO and CDC; it is not rocket science to just adopt the SOP as outlined by them. No need to wait for PN, show some independence from the illegitimate backdoor gomen. Don't think Moo and his merry band of cabinet members have enough smarts, as they too look to WHO and CDC

I Don't Want to Miss a Thing

I could stay awake just to hear you breathing
Watch you smile while you are sleeping
While you're far away dreaming
I could spend my life in this sweet surrender
I could stay lost in this moment forever
Every moment spent with you is a moment I treasure
Don't want to close my eyes
I don't want to fall asleep
'Cause I'd miss you baby
And I don't want to miss a thing
'Cause even when I dream of you
The sweetest dream will never do
I'd still miss you baby
And I don't want to miss a thing
Lying close to you feeling your heart beating
And I'm wondering what you're dreaming
Wondering if it's me you're seeing
Then I kiss your eyes
And thank God we're together
I just want to stay with you in this moment forever
Forever and ever
Don't want to close my eyes
I don't want to fall asleep
'Cause I'd miss you baby
And I don't want to miss a thing
'Cause even when I dream of you
The sweetest dream will never do
I'd still miss you baby
And I don't want to miss a thing
I don't want to miss one smile
I don't want to miss one kiss
I just want to be with you
Right here with you, just like this
I just want to hold you close
Feel your heart so close to mine
And just stay here in this moment
For all the rest of time
Don't want to close my eyes
I don't want to fall asleep
'Cause I'd miss you baby
And I don't want to miss a thing
'Cause even when I dream of you
The sweetest dream will never do
I'd still miss you baby
And I don't want to miss a thing
Don't want to close my eyes
I don't want to fall asleep
'Cause I'd miss you baby
I don't want to miss a thing
'Cause even when I dream of you
The sweetest dream will never do
I'd still miss you baby
And I don't want to miss a thing

plus us$23 trillion ever increasing debt.....

QueenElizebeth I, your saying Hk is being ruined by the US supported democratic riots. With the new security law, hopefully hk will regain the stability n security it had been enjoying before the riots.
US is going to contain China as it threatens the former 's leadership. Whatever the excuses, an all out strike by uncle sam to China is inevitable. For example, mainland companies will not be able to get capital from New York Stock Exchange. Instead , they will come to hk.
All in all, with the loss of preferential status from US but the return of security n stability , hk is likely to thrive in the other way. I think your wrong in many ways!

Last尾彩MoneyMaker168 ambil lo, bash their head until their eyes flip over翻白眼! Bravo!

Hahaha, one of them kena i slap kick into the stomach, heard a loud fart, hahahahaha

That grandmother story again? wei its not few years back.....i think its a already been at least 15years ago! you guys think your kids lagi ke?

Aiya talk so much also pointless, just ask them out to meet lo, sure 100% all con lan firm 100样理由推卸，不敢出来，理由多过肉油！

nice

I think his whole family are farm animals!

A goat a chicken a duck, now a dog? wah

How misfortune...... a goat a chicken and a duck, by the way who is his parents again?

Kaw kaw bash guys, cantek!

Seems like YO HO HO and HO ho HO is feeling ecstatic! Great day ahead GUYs!

Wah happy happy lo guys!

Matt2020, good call!

Our goal is tp rm1.00, stay tune guys!

Arbb have lots of great project, announcement will be revealed very soon! Buy hold and wait!

28days count down

No you should get the hell out of here jason fong!

You want war go somewhere else!

hello jason fong go some where else with you talk cock, before someone visit your office !