KUALA LUMPUR: Axis REIT Managers Bhd (ARMB), the manager of Axis Real Estate Investment Trust (Axis REIT), is targeting to acquire RM200 million properties in 2019 compared to the RM180 million spent for the same purpose last year.
ARMB head of investment Siva Shanker said moving into 2019, the trust will continue to aggressively source and evaluate potential acquisition targets that are deemed investable.
“The selection of properties will continue to focus on Grade A logistics facilities and manufacturing facilities with long leases from tenants with strong covenants, well-located warehousing in locations ideal for last-mile distribution and office, business parks and industrial properties with potential for future enhancement,” he said during a media briefing, here, today.
He said the trust will continue to focus on Klang Valley for potential acquisitions, as well as venturing into Melaka, the East Coast region, Sabah and Sarawak. At the moment, Axis REIT’s portfolio stands at 45 properties, located in Klang Valley, Johor, Penang, Pahang, Negri Sembilan and Kedah.
The valuation for the 45 properties were carried out in the fourth quarter 2018 and have resulted in a valuation surplus of RM35.18 million into the fund’s accounts in the same quarter under review.
ARMB chief executive officer Leong Kit May said the trust will continue its investment objectives and will embrace opportunities that arise.
“Having completed five acquisitions in 2018, we are also actively engaging the market to identify and acquire good assets that can be added to the portfolio.“In the fourth quarter (Q4) of 2018, ARMB completed the RM18.5 million acquisition of the Semarang Industrial Facility in Seremban, Negri Sembilan, increasing portfolio size from 44 to 45,” she said.
For the fourth quarter, Axis REIT total trust revenue was at RM59.48 million compared to RM42.42 million in the preceding year’s corresponding quarter.
Total expenditure for the quarter was RM23.42 million.The realised net trust income after taxation for the fourth quarter 2018 was RM36.06 million compared RM22.45 million of the preceding year’s fourth quarter 2017.
The trust has also declared the final 2018 distribution per unit (DPU) of 2.45 sen, payable on February 28, 2019.
This, together with earlier paid first, second and third 2018 interim DPU, resulted in a total DPU of 8.74 sen for 2018.