Axis REIT 3Q NPI up 1.8%, declares 2.35 sen DPU

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KUALA LUMPUR (Oct 21): Axis Real Estate Investment Trust’s (Axis REIT) net property income (NPI) rose 1.8% in the third quarter ended Sept 30, 2019 (3QFY19) to RM47.87 million from RM47.03 million a year ago, after adding three more properties to its portfolio during the period.

Total income increased by 2.9% year-on-year to RM53.86 million from RM52.35 million, with property income reaching RM53.64 million versus RM52.13 million previously, its stock exchange filing showed. The REIT's net income, however, fell 12.07% to RM26.15 million for the quarter, from RM29.74 million a year ago.

It announced a third income distribution per unit (DPU) of 2.35 sen for 3QFY19 — down one sen from the 2.36 sen it announced in 3QFY18 — which will be paid on Nov 29. The payout represents 99.8% of the REIT’s realised income available for distribution generated from its operations during 3QFY19.

For the cumulative nine months ended Sept 30, 2019 (9MFY19), the REIT’s NPI rose 13.2% to RM144.52 million from RM127.65 million in the same period last year, as total trust income grew 11.7% to RM161.83 million from RM144.89 million; property income rose to RM160.95 million versus RM144.34 million previously.

"Increase in property income as compared to preceding year corresponding period was mainly due to the commencement of lease on Axis Mega DC on June 1, 2018, Axis Aerotech Centre @ Subang on Dec 16, 2018 and rental from three newly-acquired properties since the end of third quarter 2018. [A] 3% positive rental reversion has been recognised year-to-date. This has offset the rental loss from Axis Industrial Facility @ Rawang (formerly known as Scomi Facility @ Rawang), as the tenant has redelivered vacant possession in July 2019," Axis REIT said.

Moving forward, the manager of the REIT is optimistic that in view of the current satisfactory performance of Axis REIT’s existing investment portfolio and its growth strategy to actively pursue quality acquisitions, it will be able to maintain its current performance for FY19.

As at Sept 30, 2019, Axis-REIT’s portfolio comprises 47 properties, with RM3 billion worth of assets under management and 92% portfolio occupancy, with a weighted average lease expiry of six years.

Axis REIT’s unit price closed unchanged at RM1.80 today, valuing the trust at RM2.23 billion. The counter saw some 620,600 units traded.