HLIB Research has raised its earnings forecasts by 3.7% and 1.9% for the financial years of 2024 and 2025, respectively.
PETALING JAYA: Axis Real Estate Investment Trust (Axis-REIT) is expected to sustain its earnings in subsequent quarters, driven by the demand for industrial assets in Malaysia.
Its acquisitions, all completed this month, are seen to provide further boost, leading Hong Leong Investment Bank (HLIB) Research to raise its earnings forecasts by 3.7% and 1.9% for the financial years of 2024 and 2025 (FY24 and FY25), respectively.
Axis-REIT, which owns 64 properties, is also expected to benefit from its stable occupancy rates, said HLIB Research.
With 177 tenants, Axis-REIT’s occupancy rate stood at 89%.
Meanwhile, out of the 17.6% of total net lettable area up for renewal in FY24, 52% of tenancies have renewed while an additional 8.6% has been re-tenanted.
MIDF Research expects stable earnings prospects for Axis-REIT in the medium-to-long-term on the back of stable demand for local industrial space.
“Besides, Axis-REIT is expanding its assets under management via acquisitions which should continue to underpin earnings and distribution per unit growth.
“Note that Axis-REIT has a total estimated value of target acquisitions of RM220mil,” it said.
Year-to-date, Axis-REIT has completed acquisitions totalling RM248mil across Selangor, Pahang and Negri Sembilan and is in the process of acquiring a further RM362mil worth of properties in Bukit Raja.
