KUALA LUMPUR (May 20): Axis Real Estate Investment Trust (REIT), which has a mixed portfolio of commercial and industrial assets like manufacturing plants and warehouses, reported a 1.3% year-on-year dip in its net property income for the first quarter of the financial year 2020.

The REIT's NPI slid to RM48.25 million from RM48.9 million a year ago, its stock exchange filing today showed despite an increase in property income to RM54.88 million from RM53.88 million. Notably, the lease on Axis Facility @ Batu Kawan had commenced on March 1, 2020, as well as rental from four newly acquired properties since the end of 3QFY19.

But the higher property income was offset by higher property expenses - which rose to RM8.16 million from RM7.46 million - due to higher building maintenance spending during the quarter, following the addition of new properties to its portfolio.

Nevertheless, realised income available for distribution rose to RM30.56 million from RM29.3 million. “The manager has proposed to distribute 99% from realised income available for distribution generated from operations for the first quarter of 2020,” said Axis REIT.

This amounts to a first interim income distribution per unit (DPU) of 2.1 sen, payable on July 3.

Its total net asset value stood at RM2.1 billion and the net asset value per unit (before income distribution) was RM1.4587.

As at March 31, Axis REIT has 50 assets comprising 9.93 million sq ft, compared with 45 a year ago.

On prospects, Axis REIT said the impact of the pandemic, which has been manageable on its operations and financials so far, may further affect its performance for the rest of this year if it prolongs.

“During this challenging time, the manager will continue to closely collaborate with the tenants to provide the necessary support wherever possible,” said the trust, adding that the Manager is committed to ensure the sustainability of its earnings per unit (EPU) and DPU payouts to Unitholders while continuing its long-term value creation via organic growth acquisition, greenfield development and ongoing asset enhancement strategies.

Axis REIT’s unit price was unchanged at RM1.95 today, valuing the trust at RM2.81 billion. Over the past year, it has risen by 11.43 % from RM1.75.