Axis REIT on acquisition trail, targets RM292m new asset injection

Wed, 24 Jan 2018
4:52 pm

KUALA LUMPUR (Jan 24): Axis Real Estate Investment Trust (Axis REIT) said it is aiming to achieve RM292 million worth of industrial asset acquisitions this year.

Acquisition already ongoing include an industrial facility in Senawang, Negeri Sembilan for RM18.5 million, three industrial facilities in Indahpura, Johor for RM45.2 million and an industrial facility in Shah Alam, Selangor for RM87 million.

Axis REIT hopes to complete these acquisitions by the middle of this year, said chief executive officer Leong Kit May.

Other acquisitions planned by the REIT will come on stream in the second half, Leong told a press conference in conjunction with the release of Axis REIT’s financial results for the fourth quarter ended Dec 31, 2017 (4QFY17).

Net property income (NPI) for 4QFY17 slid 1% to RM35.31 million from RM35.61 million a year ago, while realised property income fell to RM41.91 million from RM42.23 million.

For the full year (FY17), the REIT’s NPI grew 1% to RM141.25 million from RM139.64 million in FY16, as realised property income climbed to RM167.76 million from RM166.69 million.

Leong said the REIT expects to meet and perhaps surpass the target due to the overwhelming in e-commerce industry.

“Our focus this year will be very much on industrial property to enhance our portfolio.

“We see warehouse, logistics and manufacturing facilities as the areas of growth moving forward, especially in the warehousing segment where people are talking about e-commerce that will drive the growth,” she said.

Leong said Axis REIT Managers Bhd, the REIT’s manager, is continuing to aggressively source and evaluate potential acquisition targets that are deemed investable by Axis REIT.

“We will embrace opportunities that arise and take advantage of the current market conditions,” she said, adding that the REIT would actively engage the market to identify and acquire good quality yield accretive assets that can be added to the portfolio. — theedgemarkets.com

For more stories, download EdgeProp.my pullout here for free.

Kongsikan Sekiranya Bermanfaat...
BACA JUGA:  Country Garden Holdings achieves record sales in China in FY17

Leave a Reply

Your email address will not be published. Required fields are marked *