Axis REIT Managers Bhd is optimistic about future performance due to the satisfactory performance of its existing property portfolio.
PETALING JAYA: Axis Real Estate Investment Trust (Axis-REIT), which saw an improvement of about 25% in its bottom line for the first half of financial year 2024 (1H24), is confident of maintaining its current performance through the rest of its financial year ending Dec 31, 2024 (FY24).
In a filing with Bursa Malaysia, the REIT said its manager, Axis REIT Managers Bhd, is optimistic about future performance due to the satisfactory performance of its existing property portfolio and its growth strategy to actively pursue quality investments.
In light of this, the manager expects to maintain its current performance for 2H24.
For the second quarter ended June 30, 2024 (2Q24), the REIT’s revenue edged up 11.8% to RM76.53mil from RM68.45mil in the previous corresponding quarter.
Its bottom line for the quarter under review saw an improvement of 12.2% to RM38.96mil from RM34.72mil in 2Q23.
Axis-REIT noted that this net income is after deducting total expenditure of RM36.97mil, of which RM11.29mil was attributable to property expenses and RM25.69mil to non-property expenses.
The manager of Axis-REIT has proposed to dispense 99% of the realised income available for distribution generated from operations for the period, resulting in a second interim income distribution of 2.25 sen per unit, which includes a non-taxable portion of about 0.01 sen per unit derived from tax-exempt profit income.
The second interim income distribution for FY24 will be payable on Aug 30, with the book closure date set for Aug 6.
Meanwhile, for 1H24, Axis-REIT’s net profit increased to RM81.22mil, nearly 25% higher than the RM65.03mil recorded in the previous corresponding period.
This growth was driven by revenue of RM152.07mil in 1H24, compared to RM138.63mil in 1H23.
The realised net income generated from operations was after deducting total expenditure of RM72.52mil, of which RM22.38mil was attributable to property expenses and RM50.14mil to non-property expenses.
During 1H24, a total of RM44.09mil was incurred for major capital expenditure, comprising RM8.45mil for the enhancement of Axis-REIT properties and RM35.64mil for the development of logistics warehouse Axis Mega Distribution Centre (Phase 2) in Kuala Langat, Selangor.
The total net asset value stood at RM2.83bil, with the net asset value per unit before the 2024 second interim income distribution at RM1.61 a share.
