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

UOA REIT post lower pre-tax profit

UOA Real Estate Investment Trust (UOA REIT) posted a lower pre-tax profit of RM25.078 million in the financial year ended Dec 31, 2010, compared to RM58.009 million in 2009.
Revenue fell to RM42.805 million from RM44.636 million in the previous year, said UOA REIT in a filing to Bursa Malaysia today.
“Despite a challenging year, the existing properties continue to enjoy an occupancy rate of at least 85 per cent.
“With the improving economic conditions and outlook, the manager expects the occupancy and rental rates to further improve,” it said. — Bernama

Average Yield = 7.047%

Last Updated : 31-Dec-10

Note : Hektar : Yield Table Uses Full Year DPU 10.3 sen to Compute Yield as Hektar Pays DPU = 2.4 sen for Q1,Q2,Q3 and the Balance in Q4

Withholding tax

• Resident Individual = 10%
  
• Non Resident Individual = 10%
  
• Resident Institutional Investors = 10%
  
• Non-Resident Institutional Investors = 10%
  
• Resident Companies = 0% ; Subject to Corporate Tax at Prevailing Rate
• Non-Resident Companies = 25% for Year of Assessment 2009