KUALA LUMPUR (April 22): AmFirst Real Estate Investment Trust (REIT) (KL:AMFIRST) is positive on weathering pressures ahead, after it posted a 5% year-on-year (y-o-y) rise in net property income (NPI) for its latest closed fiscal year.

The retail and office property trust’s NPI for the financial year ended March 31, 2026 (FY2026) edged up to RM64.1 million from RM61.04 million a year earlier, according to its bourse filing on Wednesday. Revenue rose 5.2% y-o-y to RM110.26 million.

The improved results were driven by higher occupancy and rental rates, partially offset by higher property expenses on higher building management costs and assessment charges. NPI for the final quarter of the fiscal year was up 9.2% y-o-y to RM17.78 million, on a 11.5% climb in revenue to RM28.68 million.

The REIT, which carries assets including Menara AmBank and Mydin HyperMall in Bukit Mertajam, declared a final distribution per unit (DPU) of 1.6 sen, up from 1.4 sen in the same period a year ago. Full-year DPU stood at 2.87 sen compared with 2.4 sen a year earlier.

Stable occupancy plus moderate rental growth is supporting the office market’s gradual recovery, AmFirst REIT noted, while the retail sector remains broadly resilient on sustained domestic demand and robust tourism spending.

That said, businesses continue to face cost pressures from the sales and service tax (SST) expansion and rising wage levels, it noted. Meanwhile, heightened geopolitical tensions pose risks to business confidence, operating costs and consumer sentiment.

“The trust’s realised net income has continued to show positive momentum, driven by strong revenue growth from higher occupancy levels and improved rental rates, alongside disciplined cost optimisation,” AmFirst REIT said.

“Barring any unforeseen circumstances, the manager remains cautiously optimistic and will continue to focus on proactive asset management, prudent capital management and selective asset portfolio rationalisation and diversification initiatives to support the delivery of sustainable high returns to unitholders,” it added.

According to AskEdge data, the company is currently trading at a price-to-earnings ratio of 11.4 times, which is the lowest among peers. The company's price-to-net-asset-value ratio of 0.3 times is also lower than most peers.

Units in AmFirst REIT ended unchanged at 31 sen, valuing the investment trust at RM212.8 million.