Axis – BT

Axis-REIT targets RM66m rental income

AXIS Real Estate Estate Investment Trust (Axis-REIT) expects to increase its rental income to RM66 million from RM60 million annually with its latest acquisition of the Axis Steel Centre.

To date, the company has about 20 asset properties worth RM800 million.

Chief executive officer Stewart LaBrooy said the company had acquired the Axis Steel Centre, an industrial complex in Klang, from Maximum Icon Sdn Bhd for RM65 million.

“We expect better income growth with the purchase of this new property,” he told reporters after Axis-REIT unitholders” meeting in Kuala Lumpur today.

“The acquisition is in line with the manager’s objective which is to provide the unitholders with a stable income distribution and to achieve growth in net asset value per unit of Axis-REIT,” he said.

Axis-REIT’s net asset value is currently trading at 9.04 per cent.
LaBrooy said the company was in negotiations to acquire more assets such as logistics warehouse, offices, industrial building and factory which are estimated to be worth RM220 million.

“Axis-REIT is typically looking at places in Section 14 in Petaling Jaya, Shah Alam And Johor Baru,” he said.

According to him, the company’s REIT looks more appealing in the current gloomy economic climate due to its diversified tenancy portfolio.

In its second quarter ended June 30, 2009, the company recorded a revenue of RM17.36 million, up from RM15.67 million in the same quarter of last year.