Axis Real Estate Investment Trust (Axis REIT) announced that it reported a total trust income of RM71.8 million and a net trust income of RM42.5 million for Q3FY2023.
In its announcement its third quarter results for the financial year ending 31 December 2023 (Q3FY2023) today (Oct 27), the company also propose to distribute 99% of its realised income available for distribution.
“The third interim income distribution works out to 2.15 sen per unit, which includes a non-taxable portion of approximately 0.56 sen per unit.
“This is derived from capital allowances, industrial building allowances and tax-exempt profit income which is not subject to tax,” it said in a statement today.
The third interim income distribution will be payable on 15 December 2023 while the book closure date is 10 November 2023, the company said.
Axis REIT Managers Berhad chief executive officer and executive director Leong Kit May said the third quarter result has shown improvement, by more than 10% in net income before tax (realised) as compared to the two preceding quarters.
“This has enabled us to propose a higher distribution of 2.15 sen versus second quarter’s 2.05 sen,” she said.
Leong added the new tenancy at Axis Shah Alam DC 3 and the completion of the development of Bukit Raja Distribution Centre 2 will contribute positively to Axis-REIT’s income in the coming quarters.
“As we move forward, we remain steadfast to our investment objective of acquiring high quality accretive properties with strong recurring rental income.
“We shall continue to evaluate acquisition targets of Grade A logistics facilities and well-located manufacturing facilities with long leases, such as the acquisition of the manufacturing facility in Sendayan, Negeri Sembilan.
“This plus other acquisitions to come in the near future should boost yields and contribute to our growing portfolio of quality properties,” she added.
The income distribution reinvestment plan (IDRP), which allows Axis-REIT unitholders to reinvest their income distribution in new units, will apply to this third interim income distribution.
The new units to be issued pursuant to the IDRP application has been fixed at RM1.70 per new unit. This is after adjusting for a discount of RM0.1082, which is approximately 5.98% discount to the five-day volume weighted average market price of RM1.8082.
