KUALA LUMPUR: Axis Real Estate Investment Trust's (Axis REIT's) net property income (NPI) for the fourth quarter ended Dec 31, 2017 (4QFY17) slid 1% to RM35.31 million from RM35.61 million a year ago, as realised property income declined marginally.

Realised property income came in at RM41.91 million during the quarter, versus RM42.23 million a year ago, its Bursa Malaysia filing today showed. Income available for distribution for the quarter came in at RM22.52 million, versus the year ago's RM23.23 million.

The REIT proposed a final distribution per unit (DPU) of 0.92 sen, which represents 99.86% of income available for distribution from performance of properties for the period Nov 16 to Dec 31, 2017. The DPU is payable on Feb 28 this year.

This brings its DPU — paid and declared — for the full FY17 to 8.26 sen versus 8.25 sen in FY16.

In the full FY17, the REIT's NPI grew 1% to RM141.25 million from RM139.64 million in FY16, as realised property income climbed to RM167.76 million from RM166.69 million.

It said the improved realised property income was due to rental proceeds from its newly acquired Kerry Warehouse and Wasco Facility @ Kuantan, coupled with positive rental revision and rental of 17.6 acres land at Axis Mega Distribution Centre.

"This has offset the short-term rental loss from Pasir Gudang Logistics Warehouse 1 (formerly known as Delfi Warehouse), D21 Logistics Warehouse (formerly known as BMW Centre PTP) and Axis Eureka due to its disposal. New tenants have been secured for both Pasir Gudang Logistics Warehouse and D21 Logistics Warehouse," it added.
 
Moving forward, Axis REIT said its manager is optimistic that given the REIT's current satisfactory performance and growth strategy to actively pursue quality acquisitions, it will be able to maintain its current performance for the coming FY18.

Axis REIT closed unchanged at RM1.40 for a market capitalisation of RM1.73 billion.