KUALA LUMPUR (April 23): Axis Real Estate Investment Trust (Axis REIT) reported a 39.5% surge in its net trust income for the first quarter ended March 31, 2024 (1QFY2024), attributable to post-development contributions from its Bukit Raja Distribution Centre 2, and new tenancies in its Shah Alam Distribution Centre 3.

Net trust income rose to RM42.27 million from RM30.30 million for 1QFY2023, while property income climbed 7.6% year-on-year to RM75.54 million from RM70.17 million.

In a statement on Tuesday, the REIT's management company, Axis REIT Managers Bhd, proposed to distribute 99% of the realised income available for distribution as the financial year's first interim income distribution.

This translates into a distribution of 2.3 sen per unit, including a non-taxable portion of 0.47 sen per unit.

"The first quarter saw the completion of the acquisition of a hypermarket in Temerloh, and earnings contributions from the Bukit Raja Distribution Centre 2.

“Coupled with our continuous lookout for Grade A logistics facilities and manufacturing facilities to boost our portfolio, we are optimistic that the fund will continue to deliver good results for the rest of the year," said Axis REIT Managers chief executive officer Leong Kit May.

The value of the fund's investment properties stands at RM4.51 billion. As of March 31, the fund had 63 assets in its portfolio, with an occupancy rate of 89%. Logistics warehouses comprised 56% of its portfolio, followed by manufacturing facilities (25%) and industrial buildings (13%).

Axis REIT is in the midst of acquiring a manufacturing facility with a net lettable area of 105,310 sq ft in Sendayan, Negeri Sembilan, for RM48 million, as well as a manufacturing facility with a net lettable area of 199,500 sq ft in Klang, Selangor, for RM49 million. The acquisitions are expected to be completed in the first half of the year.

It is also acquiring a manufacturing facility with a net lettable area of 924,000 sq ft in Klang, Selangor, for RM313 million. The acquisition is expected to be completed in the second half of 2024.

Axis REIT rose by two sen or 1.09% to RM1.86 at Tuesday’s market close, valuing the group at RM3.25 billion.