Latest news with #AxisREIT
New Straits Times
01-08-2025
- Business
- New Straits Times
Axis REIT acquires property in Port Klang for RM80mil
KUALA LUMPUR: Axis Real Estate Investment Trust (Axis REIT) is acquiring a single-storey detached warehouse with an annexed double-storey office, as well as a one-and-a-half storey detached warehouse and other ancillary buildings, in Port Klang, Selangor, for RM80 million. Axis REIT Managers Bhd said RHB Trustees Bhd, the trustee for Axis REIT, has signed an agreement with the vendor TS Worldwide Warehousing Sdn Bhd, for the purchase. 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, it said in a filing with Bursa Malaysia today. Axis REIT Managers said the acquisition is in line with the fund's investment objectives and its growth strategy to provide the unitholders with stable income distribution and to achieve growth in the net asset value per unit of Axis-REIT, by acquiring high-quality, earnings accretive property with strong recurring rental income. "The acquisition will be accretive to Axis REIT's distributable income and adds to the property portfolio that will benefit the Fund in the long term," it said. The deal is expected to contribute positively to the earnings of Axis REIT for the financial year ending Dec 31, 2026, on agreement completion date, which is targeted to be by the fourth quarter of 2026.
New Straits Times
31-07-2025
- Business
- New Straits Times
Axis REIT outlook bright for FY25, says HLIB
KUALA LUMPUR: Axis Real Estate Investment Trust's (Axis REIT) earning prospect remains bright in the financial year 2025 (FY25), said Hong Leong Investment Bank Bhd (HLIB). HLIB said this will be supported by full-year contributions from prior acquisitions, a stronger balance sheet post-RM449.7 million placement in Oct 2024, and potential uplift from global supply chain shifts amid rising geopolitical risks. "Looking ahead, we continue to anticipate earnings growth in FY25, mainly supported by the full-year contributions from acquisitions completed in the previous year as well as higher rental rate reversion. "In addition, rising geopolitical tensions and shifting global trade policies could further accelerate supply chain diversification among multinational firms, which may strategically benefit industrial-focused REITs like Axis," it said in a note. Axis REIT posted a second quarter (Q2) 2025 net profit of RM51.0 million, bringing the first half of 2025 (1H25) to RM101.2 million. HLIB said this is slightly ahead of the firm's expectations but within consensus forecasts. "The results slightly exceeded our expectations, making up 53 per cent of our full-year forecast, but remained within consensus estimates at 49 per cent," it said. Moving forward, management has guided minimal impact from the electricity tariff hike. HLIB has tweaked its FY25/FY26/FY27 bottom line up 3 per cent/3 per cent/3 per cent to reflect slightly higher than expected rental revenue. Post earnings adjustment, the firm has retained Buy on the stock with a higher target price of RM2.25 (from RM2.18). "We believe this premium is justifiable, considering its proactive acquisition strategy, supported by its healthy gearing level of 33 per cent, along with its exposure in Johor to benefit from the JS-SEZ theme," it added.
The Star
30-07-2025
- Business
- The Star
AXIS REIT records higher 2Q earnings
Axis REIT Managers Bhd chief executive officer Leong Kit May. PETALING JAYA: Axis Real Estate Investment Trust (Axis REIT) reported a higher net profit of RM46.95mil for the second quarter ended June 30, 2025 (2QFY25), compared with RM38.96mil in the same quarter last year, driven by stronger property income. Revenue for the quarter rose to RM90.25mil from RM76.53mil a year earlier, while basic earnings per unit increased to 2.32 sen from 2.23 sen. In a filing with Bursa Malaysia, Axis REIT said total trust income and net income for the quarter stood at RM90.25mil and RM46.95mil, respectively. For the first half of FY25, net profit rose to RM96.08mil from RM81.22mil, while revenue increased to RM180.12mil from RM152.07mil in the same period last year. The group said it remains optimistic about maintaining its performance in FY25, supported by its existing property portfolio and continued efforts to pursue quality investment opportunities. Axis REIT also declared a second interim income distribution of 2.65 sen per unit, including an additional 0.14 sen per unit from the partial disposal gain of The Annex, payable on Aug 29, 2025. 'Our strong performance reflects the resilience and quality of our industrialfocused portfolio, supported by sustained demand for our strategically located assets. 'Despite the headwind from global uncertainties and rising cost of operation, we remain cautiously optimistic on the industrial sector as Malaysia continues to attract foreign investments, underpinned by well-established infrastructure and robust industrial ecosystem,' Axis REIT Managers Bhd chief executive officer/executive director Leong Kit May said in a statement.
New Straits Times
24-04-2025
- Business
- New Straits Times
REIT earnings top expectations, target prices revised up
KUALA LUMPUR: Real estate investment trusts (REITs) surprised on the upside in the first quarter of 2025, with Axis REIT, IGB REIT and IGB Commercial REIT all delivering earnings that exceeded analysts' expectations. Hong Leong Investment Bank (HLIB) upgraded its forecasts across the board, citing strong rental income, improved occupancy and cost efficiencies as key drivers of the outperformance. Axis REIT posted a 25.5 per cent year-on-year rise in core net profit to RM50.2 million, driven by positive rental reversions and reduced financing costs. Portfolio occupancy improved to 97 per cent and the trust declared a dividend of 2.5 sen per unit. HLIB noted that Axis REIT continues to benefit from its exposure to industrial assets, which remain in demand as multinational firms diversify supply chains amid rising geopolitical risks. With a strengthened balance sheet following a RM449.7 million private placement last year, it said Axis REIT has the capacity to pursue further acquisitions. The firm maintained a "Buy" call and raised its target price to RM2.06. IGB REIT, which owns Mid Valley Megamall and The Gardens Mall, delivered a core net profit of RM110.6 million, up 8.1 per cent from a year ago, on the back of higher rental revenue and flat operating costs. Both properties remained fully occupied, while a dividend of 3.2 sen per unit was declared. HLIB expects earnings momentum to be supported by full-year contributions from the newly launched South Court at Mid Valley. The potential injection of the Mid Valley Southkey portfolio, valued at around RM2.3 billion, is also seen as a strategic growth catalyst. However, the firm maintained a "Hold" rating, citing limited upside as much of the near-term growth appears priced in. The target price was revised upward to RM2.29. IGB Commercial REIT recorded a 27 per cent jump in core net profit to RM24 million, exceeding expectations due to stronger occupancy and a sharp reduction in maintenance costs. The trust's portfolio occupancy rose to 89 per cent, with average rental rates edging higher to RM6.4 per square foot. This was achieved despite the broader Klang Valley office market, where vacancy rates remain elevated and rental reversions are largely muted. HLIB highlighted the trust's strategic advantage, particularly its assets within Mid Valley City, which continue to command resilient demand. The REIT was upgraded to "Buy," with a target price raised to 60 sen from 52 sen.
