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Axis Reit (+ve)
AXIS REIT (Fundamental: 0.9/3, Valuation: 0/3) is one of the most active listed real estate investment trusts in terms of expanding its portfolio, focusing on industrial-logistic properties.

It completed a placement exercise in 4Q2014, to partially fund the acquisition of 4 assets worth RM434 million, which will underpin earnings growth this year. More potential acquisitions are in the pipeline, which will be funded, in part, by another round of placement units. Gearing stood at 32.8%.

Additionally, the trust has proposed a one-to-two unit split to improve liquidity. Revenue fell by 2.46% to RM140.05 million in 2014, attributed to loss of earnings following the disposal of Axis Plaza and ongoing refurbishment of two other properties. The latter are expected to be completed by 2Q2015. Nevertheless, income available for distribution increased 9.2% to RM92.72 million, boosted by RM10.95 million gain from the sale of Axis Plaza. Notably though, Axis is trading at nearly 1.5 times book value while yield is 4.7%.

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This article first appeared in The Edge Financial Daily, on April 3, 2015.

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