At a glance
- Company
- Axis Real Estate Investment Trust (Axis-REIT)
- Announcement
- Earnings
- Location
- Petaling Jaya, Malaysia
Key figures
- Total trust income, Q2FY2023
- RM68.5 million
- Net trust income, Q2FY2023
- RM34.7 million
- Property income, Q2FY2023
- RM67.9 million
- Proposed interim distribution per unit
- 2.05 sen per unit
- Distribution as a share of realised income available
- 99%
- Anticipated portfolio occupancy rate
- 92%
People
- Leong Kit MayChief executive officer and executive director, Axis REIT Managers Berhad
Products and programs
ANTICIPATES COMPLETION OF THE DEVELOPMENT OF BUKIT RAJA DISTRIBUTION CENTRE 2 (BRDC 2) WILL BOOST OCCUPANCY RATE TO 92%
PETALING JAYA, July 26, 2023 -- Axis Real Estate Investment Trust (“Axis-REIT”) today announced its second quarter results for the financial year ending 31 December 2023 (“Q2FY2023”). Axis-REIT reported a net trust income of RM34.7 million and property income of RM67.9 million on the back of a total trust income of RM68.5 million. It has also proposed to distribute 99% of the realised income available for distribution, which was generated from operations during Q2FY2023 as the second interim income distribution for 2023. This works out to 2.05 sen per unit, which includes a non-taxable portion of approximately 0.56 sen per unit derived from capital allowances, industrial building allowances and tax-exempt profit income which is not subject to tax. This second interim income distribution will be payable on 30 August 2023. The book closure date is 9 August 2023.
Axis-REIT also revealed that the development of BRDC 2 has obtained Certificate of Practical Completion (CPC) on 26 June 2023 and anticipates to obtain the Certificate of Compliance and Completion (CCC) in August 2023. With the CCC in hand, Axis-REIT will be able to hand over BRDC 2 to the e-commerce operator, SPX Xpress (Malaysia) Sdn Bhd (formerly known as Shopee Express Malaysia Sdn). The property has been fully tenanted by the latter for a period of 15 years. The development of BRDC 2 involves the construction of a single storey warehouse and ancillary buildings, enhancement of an existing 3-storey office block with a total gross built-up area of approximately 620,096 sq ft, located on a 20-acre freehold land in Bukit Raja.
Coupled with the new tenancy at Shah Alam DC 3 by early August 2023, the positive effect from this on-time completion of BRDC 2 will snowball to improve the portfolio occupancy rate by three percentage points to 92%. The higher occupancy rate will contribute positively to Axis-REIT’s income in the coming quarters.
Axis REIT Managers Berhad chief executive officer/executive director Leong Kit May says, “The second quarter was undoubtedly a challenging period for us as we addressed issues related to the shortfall in contribution from Axis Steel Centre @ SiLC. Some challenges are undeniably beyond our control but on our part, as we move forward, we will continue with our proactive leasing strategy and our strategy of pursuing high-quality accretive properties with strong recurring rental income to optimise our earnings. We are also pleased to reveal that of the 1.57 million sq ft of space expiring in 2023, 78% has been renewed from 64% as at March 2023. That is an additional 220,000 sq ft of space renewed.”
About Axis Real Estate Investment Trust
Axis Real Estate Investment Trust (“Axis-REIT”), Malaysia’s first real estate investment trust, was listed on Bursa Securities on 3 August 2005. Having been reclassified as an Islamic REIT on 11 December 2008, all acquisitions by Axis-REIT are Shariah compliant. It currently has a diverse portfolio of 62 properties strategically located in the Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah. Axis REIT Managers Berhad is the Manager of Axis-REIT while RHB Trustees Berhad is the latter’s trustee. Axis-REIT has a solid industrial space portfolio where 93% of the properties are on industrial titles. As at 30 June 2023, the occupancy rate of Axis-REIT’s portfolio stood at 89% with a weighted average lease expiry period of 5 years, based on rental. As at 30 June 2023, the space under management is 12.7 million square feet and total asset value of RM4.4 billion. For more information, please log on to http://www.axis-reit.com.my.
Issued by Imej Jiwa Communications Sdn. Bhd. on behalf of Axis-REIT.
MEDIA QUERIES
Ng Wai Mun Tel: +60 16-222 6776 Email: [email protected]
Sim Chan Hong Tel: +60 16-640 6599 Email: [email protected]
If you detect any issues, problems, or errors in this press release content, kindly contact [email protected] to notify us (it is important to note that this email is the authorized channel for such matters, sending multiple emails to multiple addresses does not necessarily help expedite your request). We will respond and rectify the situation in the next 8 hours.
In brief
Axis Real Estate Investment Trust reported RM68.5 million in total trust income for Q2FY2023, alongside net trust income of RM34.7 million and property income of RM67.9 million. The trust proposed a second interim distribution of 2.05 sen per unit, representing 99% of realised income available for distribution from quarterly operations; payment is scheduled for 30 August 2023. Axis-REIT says Bukit Raja Distribution Centre 2 received its Certificate of Practical Completion in June and is expected to receive its completion certificate in August before handover to tenant SPX Xpress (Malaysia). The centre is fully leased under a 15-year tenancy. Together with a new Shah Alam DC 3 tenancy, the company anticipates portfolio occupancy will rise to 92%. Management also reported that 78% of space expiring in 2023 had been renewed.
Key takeaways
- Q2FY2023 total trust income was RM68.5 million, with net trust income of RM34.7 million.
- Axis-REIT proposed a 2.05 sen-per-unit interim distribution, payable on 30 August 2023.
- BRDC 2 is fully tenanted for 15 years, with handover expected after the completion certificate is obtained.
- The trust anticipates occupancy will reach 92% following BRDC 2 and the Shah Alam DC 3 tenancy.
