AME Real Estate Investment Trust (AME REIT) has made good on its promise made during the listing exercise last year to unitholders by distributing 100% of distributable income with a distribution per unit (DPU) of 1.82 sen for the fourth quarter ended 31 March 2023 (4Q23), amounting to RM9.5 million.
During 4Q23, the industrial-focused AME REIT recorded net property income (NPI) of RM10.2 million on revenue of RM10.8 million. The quarter under review also saw RM38.1 million in fair value gain on investment properties resulting in net income after tax of RM43.2 million. After adjustments for the fair value gain net of its deferred tax expenses, in addition to unbilled lease income receivables and others, distributable income came in at RM9.5 million.
For the financial period from 20 September 2022 to 31 March 2023, AME REIT recorded a NPI of RM21.5 million on revenue of RM22.9 million while the distributable income during this period was RM19.8 million.
The second distribution is payable on 30 May 2023 to unitholders whose names appear in the Record of Depositors of AME REIT at the close of business on 10 May 2023. As AME REIT was listed on the Main Market of Bursa Malaysia Securities Berhad on 20 September 2022, a comparison with the previous corresponding quarter and period is not available.
Chan Wai Leo, CEO and Executive Director of I REIT Managers Sdn Bhd, the management company of AME REIT, is optimistic about AME REIT’s prospects in the upcoming financial year given the robust demand for industrial properties in Malaysia even as the Malaysian economy is
expected to grow at a more moderate pace in 2023 compared to the previous year.
Chan Wai Leo, Chief Executive Officer and Executive Director, I REIT Managers Sdn Bhd said: “We have elected to distribute 100% of this quarter’s distributable income as a gesture of appreciation to AME REIT’s unitholders for investing with us at the early stage of what will be an exciting journey of growth.
We are buoyant of the upcoming financial year, as AME REIT not only successfully secured new leases on all three tenancies that expired during the financial period ended 31 March 2023, but also at higher rates than the former leases. Moreover, we will incorporate new rental income from two newly-acquired properties which have existing lease arrangements for a tenure of 10 years with an option to renew for a further three to five years.
AME REIT is on a solid trajectory as the demand for industrial properties in Malaysia remains strong thanks to an increasing net inflow of foreign direct investment into Malaysia and healthy growth in the nation’s industrial sector.
Furthermore, AME REIT is uniquely positioned to leverage on the Iskandar Malaysia economic region which remains a dynamic engine of growth for the state and the nation. It is also pursuing geographical diversification by exploring acquisition opportunities in the central and northern regions of the peninsula.
AME REIT is also able to tap into the vast expertise of our sponsor AME Elite Consortium Berhad, particularly in the areas of customisation and asset enhancement initiatives, allowing us to attract and serve high-profile multinational corporations.”
Meanwhile, AME REIT’s acquisitions of two industrial properties, namely Plot 15 Indahpura and Plot 43 SAC, were completed on 24 March 2023. The acquisitions have expanded AME REIT’s portfolio to 36 properties comprising 33 industrial properties and three industrial-related worker dormitories, all of which are fully occupied and strategically located in the fast-growing Iskandar Malaysia economic zone in southern Johor.
The acquisition of a third property, Plot 16 Indahpura, is pending the completion of construction, with the Certificate of Completion and Compliance expected to be issued by the third quarter of 2023. The property is expected to be fully occupied and income generating prior to or on the completion of the Sale and Purchase Agreement.
The acquisitions of the three properties for RM69.3 million, the first acquisitions since AME REIT’s listing, were approved by unitholders at an Extraordinary General Meeting on 27 February 2023.
AME REIT’s properties are mainly situated across three AME Group industrial parks in Iskandar Malaysia, namely i-Park @ Indahpura in Kulai, the i-Park @ Senai Airport City in Senai, and i-Park @ SILC in Iskandar Puteri. Its current portfolio has a combined agreed lettable area of 1.8 million sq ft with multinational corporations occupying approximately 91% of the net lettable area.
