Axis Real Estate Investment Trust (REIT) net property income increased 24% for the first quarter ended March 31, 2019 (1QFY19) to RM48.9 million, from RM39.4 million a year earlier, mainly due to the commencement of two leases, and the rental contribution of four newly-acquired properties.
The two leases that commenced were Axis Aerotech Centre @ Subang, which started last Dec 16; and Axis Mega DC, which started on June 1.
According to its filing with Bursa Malaysia, realised property income rose 19% to RM53.56 million in 1QFY19 from RM44.95 million a year ago, as revenue climbed to RM53.77 million from RM45.09 million.
Axis REIT declared an interim income distribution of 2.35 sen per unit, payable on May 31.
Its total net asset value stood at RM1.66 billion or RM1.3419 per unit as of March 31.
"I am pleased that Axis REIT continues to do well, supported by a portfolio of good properties and a team of dedicated staff. Our property portfolio continues to enjoy high occupancy rate averaging 94%, and the weighted average lease expiry for the portfolio has further strengthened to 6.22 years," said chief executive officer Leong Kit May in a statement.
Looking ahead, the trust said it is optimistic on being able to maintain its current performance for FY19, given its satisfactory performance of its investment portfolio so far and its growth strategy to actively pursue quality acquisitions.
Axis REIT units closed unchanged at RM1.77 today, giving it a market capitalisation of RM2.19 billion.