Axis REIT 3Q NPI falls 2.8%, declares 2.35 sen DPU
Axis REIT's net property income fell 2.8% year-on-year to RM77.99 million in the third quarter ended Sept 30, 2026. The REIT declared a third interim distribution of 2.35 sen per unit, down from 2.65 sen a year earlier.
PETALING JAYA (Oct 30): Axis Real Estate Investment Trust’s (Axis REIT) net property income (NPI) fell 2.8% to RM77.99 mil in the third quarter ended Sept 30, 2026 (3QFY2026), from RM80.23 mil a year earlier, as property income declined and property expenses increased. Total trust income slipped 2.1% to RM90.78 mil from RM92.77 mil, according to a Bursa Malaysia filing on Thursday (Oct 29).
The REIT declared a third interim distribution of 2.35 sen per unit, compared with 2.65 sen a year earlier. It will be paid on Nov 30 to unitholders registered as at Nov 13, with the ex-date on Nov 12. The previous corresponding quarter’s distribution included 0.14 sen per unit from a property disposal gain.
Quarterly net profit rose 5.1% to RM54.80 mil from RM52.12 mil, supported by an unrealised gain of RM6.38 mil from fair value changes in derivatives, against a loss of RM118,000 a year earlier. Realised net income, however, declined 8.7% to RM47.59 mil from RM52.09 mil.
For the first nine months of FY2026, NPI fell 2.6% to RM231.31 mil from RM237.57 mil, while total trust income eased 1% to RM270.13 mil from RM272.89 mil. Nine-month net profit increased 4.1% to RM154.30 mil from RM148.20 mil, supported by unrealised derivative gains. Cumulative distribution per unit stood at 7.15 sen, compared with 7.80 sen a year earlier.
In its accompanying results presentation, the manager attributed the lower nine-month property income mainly to lease expiries at several properties and the suspension of rent at Wisma Kemajuan following a fire in February. It said Wisma Kemajuan was covered by fire and consequential loss takaful, including rental loss coverage. The insurance claim amount was pending confirmation before recognition in the financial statements.
New tenancies have helped fill some vacancies. Bukit Raja Distribution Centre reached 77% occupancy in 3QFY2026, with a further secured tenancy expected to lift occupancy to 91% in January 2027. Axis Shah Alam Distribution Centre 3 returned to full occupancy by the end of the quarter.
On a quarter-on-quarter basis, property income increased 2.9% to RM90.51 mil from RM87.94 mil, supported by newly acquired properties, new tenancies and positive rental reversions across the existing portfolio. Realised net income rose 1.3% from RM46.96 mil. During the quarter, Axis REIT completed the acquisitions of Axis Distribution Centre 1 @ Saujana Putra for RM128 mil and Axis Industrial Facility 3 @ Shah Alam for RM38 mil, expanding its portfolio to 72 properties from 70. Portfolio occupancy stood at 93% at end-September, with a weighted average lease expiry of 4.3 years. Its financing ratio increased to 35.1% from 32.4% at end-2025.
