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.

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