KUALA LUMPUR: Axis Real Estate Investment Trust (REIT) saw a drop in its net profit, down 3.0 per cent to RM42.5 million in the third quarter (Q3) ended September 30, 2023 (FY23) versus RM43.81 million a year ago.
Revenue climbed 0.14 per cent to RM71.81 million from RM71.71 million in Q3 2022.
The realised net income from operations was RM37.3 million after deducting a total expenditure of RM34.51 million, of which RM10.74 million was attributable to property expenses and RM23.78 million to non-property expenses.
The company proposed to distribute 99 per cent of the realised income available for distribution generated from operations in Q3 2023.
The total net asset value stood at RM2.74 billion.
For the nine-month (9M) period, its net profit dropped to RM107.53 million from RM130.44 million in the same period last year.
Revenue was down to RM210.44 million compared to RM210.91 million a year ago.
Axis REIT Managers Bhd chief executive officer and executive director Leong Kit May said Q3 results improved by more than 10 per cent in net income before tax (realised) as compared to the two preceding quarters, which enabled the company to propose a higher distribution of 2.15 sen versus the second quarter's 2.05 sen.
"The new tenancy at Axis Shah Alam DC 3 and the completion of the development of Bukit Raja Distribution Centre 2 will undoubtedly contribute positively to Axis-REIT's income in the coming quarters.
"As we progress, we remain steadfast in 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," added Leong.
