KUALA LUMPUR (Feb 5): AME Real Estate Investment Trust (AME REIT) saw its net income grow 19.4% year-on-year for the third financial quarter ended Dec 31, 2023 (3QFY2024), driven by additional contributions from three industrial properties acquired from sponsor AME Elite Consortium Bhd.
Net income rose to RM9.95 million or 1.90 sen per unit for 3QFY2024, from RM8.33 million or 1.60 sen per unit a year ago, according to the REIT in a stock exchange filing on Monday.
AME REIT declared an income distribution of 1.88 sen per unit, with Feb 20 being the ex-date.
With the additional rental from the three newly-acquired industrial properties, the industrial REIT’s net property income (NPI) grew 14.4% to RM11.55 million for 3QFY2024, from RM10.1 million for 3QFY2023.
Net income for the cumulative nine months ended Dec 31, 2023 (9MFY2024) jumped nearly three times to RM27.31 million from RM9.3 million for the previous corresponding period, while NPI grew at a similar pace to RM35.52 million from RM12.1 million for 9MFY2023.
In a statement, the REIT's manager I REIT Managers Sdn Bhd attributed improvements in the latest financial results to its 100% occupancy rate, coupled with the newly acquired industrial properties.
The manager's chief executive officer and executive director Chan Wai Leo said AME REIT’s tenancy renewals sustained a positive momentum with a renewal rate of 83% with existing tenants and a new replacement tenant, resulting in total renegotiated space of 92%.
“The increasing number of high-profile multinational corporations in our portfolio bolsters our status as a premier industrial-focused REIT, and we also stand to benefit from Malaysia’s resurgent status as a magnet for foreign direct investment,” he said.
“With the recent success of three industrial property acquisitions, we intend to further expand our portfolio by exploring acquisition opportunities in Johor and other industrial hubs across Peninsular Malaysia, as we endeavour to continue providing our unitholders with stable and growing total returns,” he added.
AME REIT’s properties under management stood at RM669.3 million as at 3QFY2024, following the acquisition of Plot 16 at i-Park @ Indahpura from AME Elite Consortium in October 2023.
The REIT’s current portfolio consists of 34 industrial properties, with an agreed lettable area of approximately 1.9 million sq ft, and three industrial-related properties of workers’ dormitories.
AME REIT’s properties are mainly situated across three industrial parks of the AME group in Iskandar Malaysia, namely i-Park @ Indahpura in Kulai, i-Park @ Senai Airport City in Senai, and i-Park @ SILC in Iskandar Puteri.
AME REIT units closed unchanged at RM1.30 on Monday, valuing the REIT at RM681.14 million.