Steady portfolio to bolster Axis-REIT in FY26

PETALING JAYA: Axis Real Estate Investment Trust (Axis-REIT) expects to sustain its current performance for the financial year ending Dec 31, 2026, backed by the solid showing of its existing portfolio and ongoing growth strategy.

“The manager, Axis-REIT Managers Bhd, is optimistic that in view of the satisfactory performance of Axis-REIT’s existing property portfolio and its growth strategy to actively pursue quality investments, it will be able to maintain its current performance for the financial year ending Dec 31, 2026,” it said in a filing with Bursa Malaysia.

In the first quarter ended March 31, Axis-REIT posted a higher net profit of RM53.2mil, or earnings per share of 2.63 sen compared with RM49.1mil, or 2.44 sen in the year-ago quarter.

Axis-REIT said the improved earnings were supported by strong recurring rental income from its existing property portfolio.

Quarterly revenue climbed to RM90.5mil from RM89.9mil.

Its total asset value increased to RM5.45bil, while net asset value was RM3.42bil.

During the quarter, Axis-REIT expanded its portfolio to 70 properties following the completed acquisition of Axis Industrial Facility 1 @ Northport.

Axis-REIT continues to build on its growth pipeline, with two proposed acquisitions totalling RM114.6mil currently underway. It plans to undertake two development projects – a manufacturing facility and a logistics warehouse – with a combined built-up area of about 254,000 sq ft.

These are expected to contribute to earnings progressively, with completion anticipated around 2027.

Axis-REIT Managers has proposed to distribute 99% of realised income for the period from Jan 1 to March 31, 2026.

The first interim distribution of 2.50 sen per unit includes a non-taxable portion of about 0.01 sen per unit from tax-exempt income, payable on May 29, 2026, with a book closure date of May 14.

Chief executive officer and executive director Leong Kit May said Axis-REIT delivered a solid start to 2026, supported by the resilience of its industrial-focused portfolio.

“Despite uncertainties and potential headwinds arising from geopolitical tensions, our portfolio remains well-occupied, supported by a diversified and high-quality tenant base, particularly within the manufacturing and logistics segments where demand continues to be resilient.”

Leong said the group is seeing sustained interest in its portfolio, as its properties are well located in prime industrial areas with established utility infrastructure and close to major highways and seaports that are key to the industrial ecosystem.

“With a visible acquisition pipeline alongside ongoing and upcoming development projects, such as Pasir Gudang Logistics Warehouse 2 and Axis Facility 4 @ Bukit Raja, we are confident in our ability to drive sustainable income growth.”