KUALA LUMPUR (July 21): Axis Real Estate Investment Trust (REIT) announced a 9.27% increase in its net property income (NPI) for the second quarter ended June 30, 2021 (2QFY21) to RM53.44 million from RM48.91 million in the same quarter last year, on higher property income with an expanded property portfolio.
It also announced a second interim income distribution per unit (DPU) of 2.4 sen, including a non-taxable portion of 0.51 sen, which will be paid on Aug 30, its Bursa Malaysia filing today showed.
The commercial property REIT — which has offices, warehousing and manufacturing facilities under its portfolio — reported an 8.81% increase in revenue during the quarter to RM60.38 million from RM55.49 million a year prior.
On a quarterly basis (QoQ), the group’s NPI rose 6.2% from RM49.11 million in the preceding quarter of 1QFY21, underpinned by higher property income and lower expenses posted in 2QFY21. Revenue grew 5.03% from RM57.48 million in 1QFY21.
For its half-year ended June 30 (1HFY21), the group’s NPI rose 6.29% to RM103.26 million from RM97.15 million recorded in the previous year's corresponding period. Revenue grew in tandem by 6.89% to RM117.86 million from RM110.26 million. The group's total assets stood at 51 in 1HFY20, compared with 57 now, with portfolio occupancy of 94%, with a weighted average lease expiry of 5.2 years.
Moving forward, the group remains cautious of the current Covid-19 pandemic, which has caused a global economic downturn.
“While the pandemic's impact on Axis REIT's operations and financials have been manageable thus far, should the pandemic prolong or worsen unexpectedly this may impact Axis REITs performance for the rest of the financial year ending December 31, 2021 (FY21).
“During these challenging and uncertain times, the manager is actively managing the portfolio and exercising prudent capital management at all times in order for Axis REIT to deliver sustainable EPU and DPU payout to unitholders.
“Positively, the current gearing level of 36% provides headroom for Axis REIT to continue its yield accretive acquisition strategy should good opportunities come along,” it added.
Just in 1HFY21, the group inked a sale and purchase agreement to buy a warehouse in Pasir Gudang, Johor Bahru, for RM75 million. It also accepted a letter of offer to buy another warehouse in the same vicinity for RM32 million.
Axis REIT settled two sen or 1.03% lower at RM1.93 today, giving it a market capitalization of RM2.79 billion.