BUSINESS

AXIS REIT'S TOTAL TRUST INCOME GROWS 7.8 PCT TO RM242.4 MLN FOR FY2021

20/01/2022 07:23 PM

KUALA LUMPUR, Jan 20 -- Axis Real Estate Investment Trust (REIT) posted a 7.8 per cent increase in total trust income to RM242.4 million for the financial year ended Dec 31, 2021 (FY2021), from RM224.9 million in the previous year.

In a statement today, it said the increase was mainly attributed to the completion of five new acquisitions, the commencement of new tenancies at Axis Industrial Facility @ Rawang, and positive rental reversion in FY2021.

“In addition to the higher total trust income, Axis REIT’s net income was also driven by a higher gain in fair value of investment properties, which led to a 41.0 per cent increase in its net income to RM200.4 million from RM142.1 million in the preceding year.

“The gain in fair value in FY2021 was RM67.8 million in contrast to RM19.0 million in the preceding year,” it said.

For the fourth quarter ended Dec 31, 2021 (Q4 2021), Axis REIT said it recorded a total trust income of RM62.9 million and a realised net income of RM36.4 million, a year-on-year increase of 9.4 per cent and 13.3 per cent, respectively, mainly due to contributions from newly acquired properties and positive rental reversion.

It said Axis REIT’s management company, Axis REIT Managers Bhd (ARMB), has proposed to distribute 99 per cent of its realised income available for distribution, generated from operations from Dec 16 to Dec 31, 2021, as the FY2021 final income distribution, giving a distribution per unit (DPU) of 0.38 sen.

The income distribution will be paid on Feb 28.

“Coupled with the dividend that was declared earlier on Dec 1, 2021, total DPU declared in Q4 2021 was 2.41 sen, some 7.1 per cent higher than Q4 2020’s 2.25 sen,” it said. 

It further explained that this gives a total DPU of 9.49 sen for FY2021, an increase of 8.5 per cent as compared with FY2020’s 8.75 sen.

Moving forward, ARMB chief executive officer and executive director Leong Kit May said the group would continue to pursue high-quality accretive acquisitions with strong recurring rental income by leveraging on a healthy gearing level of 31 per cent, to deliver sustainable EPU and DPU payout to unitholders.

Axis REIT said it will embark on the proposed development of Bukit Raja Distribution Centre 2 (BRDC 2), its existing property located at Kawasan Perindustrian Bukit Raja Selatan in Shah Alam, with an estimated development cost excluding land at approximately RM130.0 million.

It said the proposed development entails the construction of a single-storey warehouse and ancillary buildings, enhancement of an existing three-storey office block with a total gross built-up area of approximately 620,096 square feet.

“The proposed development is expected to commence in the first quarter of 2022 and to be completed for handover to Shopee Express Malaysia Sdn Bhd no later than Aug 31, 2023,” it said in a filing with Bursa Malaysia today.

The company has secured Shopee Express, an e-commerce operator, to lease the entire BRDC 2 upon completion of the proposed development.

It said the estimated development cost represents 3.86 per cent of Axis REIT’s total asset value of RM3.36 billion based on its latest audited financial statements for the year ended Dec 31, 2020, and below the 15 per cent threshold imposed under the Guidelines on Listed Real Estate Investment Trusts issued by the Securities Commission Malaysia.

On March 5, 2021, ARMB had announced the proposed acquisition of BRDC 2, which was completed on March 31, 2021. 

-- BERNAMA


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