Axis-REIT records RM16m profit in Q4

AXIS REIT Managers Bhd has reaped RM16.16 million profit in its fourth quarter ended December 2010 and plans to distribute 5.25 sen a unit to investors.

"Last year, we saw the highest gain in fair value of investment properties for a single year since the listing of the trust," said chief executive officer Stewart Labrooy. He said the company revalued 14 of its stable properties.

"It has led to an increase in the net asset value of the trust to close at RM2.009 a unit compared with RM1.842, a year ago," he told reporters at a briefing in Kuala Lumpur yesterday.

In the fourth quarter of 2010, Axis-REIT bought three more properties, namely Tesco Hypermarket, Axis PDI Centre and Axis Technology Centre. It also concluded the purchase of two IDS warehouses in Seberang Prai, Penang.

Two days ago, Axis-REIT said it will sell an industrial complex in Port Klang for RM14.5 million by June 2011.

"We need to maintain growth by culling smaller assets where the returns have stagnated. We will bring in assets that have capital gain potentials," said Labrooy.

"We'll gain RM764,000 from the sale of industrial complex in Port Klang and this will be chanelled back to unitholders," he added.

On outlook for 2011, he said Axis-REIT is looking to buy five more warehouses in Johor and the Klang Valley and two more office blocks in Cyberjaya. So far, the company has set aside RM365 million for these acquisitions.

Axis-REIT to reposition assets

Axis Real Estate Investment Trust (Axis-REIT) aims to enhance and reposition its assets to increase performance, said Axis REIT Managers Bhd chief executive officer Stewardt Labrooy.

Axis REIT Managers is the manager of Axis-REIT.

"The aim of the asset enhancement is to assess the REIT's portfolio from a property player's perspective. It will increase the occupancy rate, rental as well as valuation of the properties," Labrooy told a media briefing today.

He said asset enhancement was currently being undertaken for Menara Axis, Crystal Plaza, Fuji Xerox Asia Pacific and Infinity Centre.

Major enhancements would also be undertaken this year on Kayangan Depot in Shah Alam and the Cycle & Carriage complex in Petaling Jaya, he said.

He said the Kayangan Depot building would be repositioned to face Section 15 Shah Alam roundabout while building cladding systems and power supply would be improved and upgraded.

As for the Cycle & Carriage complex, Labrooy said refurbishment of the existing building would include enhancing the exterior and adding new space for optimium use.

He said Axis-REIT, which currently owned a portfolio of 26 commercial, office and industrial real estate in Malaysia, managed total assets worth RM1.3 billion.

Last year, Axis REIT Managers acquired Tesco Hypermarket, Axis PDI Centre and Axis Technology Centre and concluded the purchase of two warehouses from IDS Logistics Services (M) Sdn Bhd in Seberang Prai, Penang.

Axis-REIT recorded a higher pre-tax profit of RM101.401 million for the financial year ended December 31, 2010, compared with RM61.976 million recorded in 2009.

Revenue increased 25 per cent to RM89.851 million from RM71.870 million previously.

The realised income before taxation and available for distribution amounted to RM52.598 million, for the year under review, bringing the total distribution in 2010 to 16 per cent per unit. — Bernama

Axis REIT to grow 19.6pc in 2011: ECM

ECM Libra expects a 19.6 per cent earnings growth in Axis Real Estate Investment Trust (REIT) Financial Year 11 (FY11) due to contributions from four recently acquired properties.

Axis REIT has completed acquisition of PTP D8 in Johor, Axis Technology Centre in Petaling Jaya, Axis PDI centre in Kuala Langat, Selangor and Tesco Johor as well as its proposal to acquire an office building in Cyberjaya for RM51.3 million which will be completed in the first quarter of this year.

In its research note on Axis REIT, ECM Libra said it expects more acquisitions going forward.

"We understand that the management is working on the acquisition of an office warehouse in Petaling Jaya, a logistics warehouse in Johor and a warehouse/logistics and manufacturing facility in Shah Alam/Klang," ECM Libra said.

"Despite its defensive quality, Axis' average annual total return of 23 per cent since its listing in 2005 outperforms the equity market as represented by the total return of the benchmark FBMKLCI over the corresponding period," the research house said.

ECM Libra said another plus point is its distribution visibility as Axis commits to distribute 99 per cent of its earnings on quarterly basis.

Axis has the most enviable acquisition track record among M-REITs as it has grown its asset under management (AUM) from five properties with AUM of RM260.4 million to 27 properties with AUM of RM1.4 billion now. — Bernama