KUALA LUMPUR (Aug 6): Axis Real Estate Investment Trust’s (Axis REIT) net property income or NPI rose 15% to RM26.83 million from RM23.27 million a year ago for the second financial quarter ended June 30, 2018 (2QFY18), as its portfolio size grew to 42 properties as opposed to 38 properties in the year-ago quarter.

Its total quarterly revenue rose 14% to RM47.45 million from RM41.64 million. It recorded a net realised income of RM24.42 million for 2QFY18, which is higher than the RM23.68 million it recorded in 2QFY17.

It announced a distribution per unit (DPU) of 2 sen for the quarter — which is payable on Sept 7 — compared with 2.17 sen in 2QFY17. The distribution represents 99.7% of its realised income available for distribution generated from operations for 2QFY18.

“We are pleased that Axis-REIT’s portfolio continues to grow whilst improving its performance. The occupancy rate stands at 94% with a stable weighted average lease expiry of 5.5 years.

"In 2Q2018, the portfolio recorded a positive rental reversion of 5% and close to 1,392,306 sq ft of space has been locked in through tenancy renewals as well as new tenancies,” said Leong Kit May, chief executive officer/ executive director (CEO/ED) of Axis REIT.

During 2QFY18, Axis REIT said RM4.12 million has been used for the enhancement of Axis-REIT's properties, while RM37.51 million has been used for the development of the Nestle Distribution Centre, which has since been completed, and the ongoing Axis Aerotech Centre project, which is scheduled to be completed by end-2018.

Axis REIT is optimistic of being able to maintain its current performance for FY18, in view of its satisfactory performance with its existing investment portfolio, and its strategy of proactive capital management, asset enhancement, tenant management as well as active pursuit of quality acquisitions.