Latest news with #Axis-REIT
The Star
7 days ago
- Business
- The Star
Axis-REIT's acquisition of Port Klang warehouse a positive move
PETALING JAYA: Axis Real Estate Investment Trust's (Axis-REIT) decision to acquire a logistics warehouse in Port Klang for RM80mil will bode well for the group, say analysts. In a report, RHB Research said the purchase was a proxy to the resilient and growing industrial property segment and maintained a 'buy' call on the group. 'While relatively small in scale, the acquisition supports the REIT's ongoing strategy of delivering consistent inorganic growth. The purchase price implies a decent gross yield of 6.4% which is reasonable, since the asset is fully leased under a six-year term, and is strategically located within a key logistics hub,' it noted. Concurrently, the research house raised its financial year 2027 (FY27) earnings by 1% to reflect the new rental contribution, while adjusting for additional financing costs. 'Given the minor earnings adjustment, we maintain our target price (TP) of RM2.23, implying a FY26 yield of 4.6%, which we think is fair, given the stable outlook for the REIT's industrial assets.' BIMB Securities Research is also positive on the REIT, stating it was consistent with the REIT's strategy of expanding logistics exposure through high-quality, income-accretive assets. It said, upon completion of the acquisition, earnings-accretion is expected from FY26, contributing approximately 1% to 2% to distributable income. 'The fully tenanted property ensures immediate rental visibility, while the 6.4% yield and modest gearing impact make it an earnings-accretive addition that supports the net asset value growth and solidifies the group's standing as Malaysia's leading industrial REIT,' it said. On its outlook, BIMB Securities said the REIT's yield trajectory remains positive, underpinned by rental growth and a RM430mil acquisition target for 2025. 'Its acquisitive strategy should drive further value and income accretion. We maintain our 'buy' call with a TP of RM2.17. 'At RM2.01, the REIT offers an estimated 13% total return, combining an 8% price upside and a 5% yield, supported by continued portfolio expansion and earnings-accretive asset addition,' it noted. Meanwhile, MBSB Research maintained its 'neutral' call on the REIT, noting it was slightly positive on the purchase of the warehouse as it is in line with its expansion strategy or Axis-REIT via asset acquisition. 'The acquisition is the first acquisition of Axis-REIT in FY25. 'We note that it is targeting to grow its portfolio via asset acquisition with estimated value of acquisition targets at RM430mil in the second quarter of FY25, while the latest asset acquisition marks the execution of the acquisition targets,' it said. In revising its earnings. MBSB Research said it placed a higher TP of RM2.07 from RM2.06, based on a dividend discount model.
The Star
04-08-2025
- Business
- The Star
Axis-REIT's shares higher during early trade following RM80mil warehouse acquisition in Selangor
KUALA LUMPUR: Axis Real Estate Investment Trust (Axis-REIT) shares rose during early trade following its proposed acquisition of warehouses and ancillary buildings in Port Klang, Selangor, for RM80 million. At 9.58 am, the counter was two sen higher at RM2.03 with a total of 311,300 shares traded. In a filing with Bursa Malaysia on Friday, Axis-REIT via Axis REIT Managers Bhd stated that RHB Trustees Bhd, the trustee for Axis-REIT, has signed an agreement with the vendor TS Worldwide Warehousing Sdn Bhd for the purchase. It said TS Worldwide will undertake to subdivide the master land and deliver to RHB Trustees a final land area of about 41,248 square metres (4.12 hectares), along with the buildings on it. Meanwhile, RHB Investment Bank said it anticipates a positive outcome from the acquisition as it supports the REIT's ongoing strategy of delivering consistent inorganic growth. "The purchase price implies a decent gross yield of 6.4 per cent, which is reasonable, since the asset is fully leased under a six-year term and is strategically located within a key logistics hub,' it said in a note today. The investment bank also maintained a 'buy' rating on Axis-REIT with a target price of RM2.23 per share. - Bernama Trading ideas: RHB, Inari, Bintulu, Cypark, KNM, Itmax, Tanco, TSA, Axis REIT, HCK, Skygate, Pestec, Westports, FN
The Star
03-08-2025
- Business
- The Star
Larger portfolio expected to boost Axis-REIT
PETALING JAYA: Axis Real Estate Investment Trust's (Axis-REIT) expanded portfolio of properties will anchor the growth of its financial performance this year (FY25) and beyond, analysts say. The REIT bought eight properties worth RM719mil last year and added 509,000 sq ft of net lettable area following the second- phase expansion of its Axis Mega Distribution Centre in Selangor. This translated to a 27% year-on-year rise in earnings to RM102.9mil in the first half of FY25 (1H25) for Axis-REIT. The REIT reported revenue of RM90mil and core net profit of RM52mil for 2Q25. Axis-REIT unitholders can expect a special dividend per unit (DPU) of 0.43 sen from the sale of The Annex office development in Petaling Jaya in April for RM24.2mil, which resulted in net gains of RM8.8mil. The special DPU will be evenly distributed from 2Q25 to 4Q25, the research house stated. The research house kept its 'market perform' call on the REIT with a target price (TP) of RM1.86 a unit on FY26 net distribution of 9.8 sen per unit. CGSI Research also maintained its 'add' call on Axis-REIT with a TP of RM2.28, while UOBKH Research has a 'buy' call with a TP of RM2.09.
The Star
01-08-2025
- Business
- The Star
Axis-REIT to acquire Port Klang warehouse for RM80mil
Warehouse facility in Telok Gong, Klang. PETALING JAYA: Axis Real Estate Investment Trust (Axis-REIT) has proposed to buy a warehouse site in Telok Gong, Port Klang from TS Worldwide Warehousing Sdn Bhd for RM80mil cash. In a filing with Bursa Malaysia, the trust noted the facility measures 41,248 sq mt or 10.19 acres of leasehold land expiring in April, 2093. The structure has a net lettable area of 259,310 sq ft.
Barnama
31-07-2025
- Business
- Barnama
Axis REIT Shares Up In Early Trade With Stronger 2Q Earnings
REGION - CENTRAL > NEWS KUALA LUMPUR, July 31 (Bernama) -- Axis Real Estate Investment Trust (Axis-REIT) shares rose in early trade following stronger earnings recorded in the second quarter ended June 30, 2025 (2Q 2025). At 10.37 am, the counter rose two sen to RM1.99 with a total of 568,400 shares traded. In a filing with Bursa Malaysia yesterday, Axis-REIT posted a higher net profit of RM46.95 million in the 2Q 2025 compared with RM38.95 million in the same period last year. Revenue also increased to RM90.25 million in 2Q 2025 from RM76.53 million a year ago. bootstrap slideshow Kenanga Investment Bank Bhd said in a note today that it does not expect the group to continue acquiring assets in the 2025 financial year (FY2025) as aggressively as in FY2024, given that industrial assets are currently experiencing yield compressions due to landlords raising asset prices at a pace faster than the rate of rental reversions. 'The group will likely see double-digit growth in FY2025 from the accretive asset acquisitions in FY2024 and FY2025. 'Meanwhile, its current gearing ratio of 33 per cent provides approximately RM900 million in additional headroom for future acquisitions,' it said in a note today. It has maintained a 'market perform' rating on the group with an unchanged target price of RM1.86 per share. -- BERNAMA
