Qualampur: The Axis Real Estate Investment Trust (Axis-Writ) is discovering the acquisition of assets specifically for data centers in addition to its traditional focus on industrial assets.
CEO and Executive Director Lyong Kit May said that the company is looking at the country’s data center market and development.
“Data centers business and operating are different from our industrial assets, as different factors have to be considered, such as the types of data centers such as electricity, utilities, tier 1 or tier 2, and other factors.
“The capitalization rate for data centers, which represents the ratio of net operating income for property value, is about 6% to 7%. So we have to take the right decision before acquiring any property for data centers, ”he told reporters and analysts in a briefing on the financial results of Axis-Rit on Friday.
For the financial year ending on 31 December 2024 (FY24), Axis-Rit earned a total trust of RM320.1 million, showing 12% year-to-year growth, while Net Trust’s income RM212.5 million.
This growth was mainly inspired by the new term in the newly acquired properties, the Axis Mega Distribution Center (Step 2) and the contribution of positive fare in its portfolio.
Considering the fair price adjustment on portfolio during the year, the net income was reduced before tax by RM2212.6 million in FY23 in FY24 before tax by Tax. This was due to a low profit in the fair price of investment assets. FY24 had a fair price profit in FY24 RM49.4 million, opposite RM81.3 million in FY23.
For Q4’24, AXIS-Reit reported a total trust of RM87.8 million, which represents an increase of 16% from RM75.6 million in the same quarter last year. Net Trust Income was RM93.5 million, reflecting a flexible portfolio performance.
“We shut down FY24 on a strong note. The strategic acquisition completed during the year and stable performance of our existing properties shows our attention on giving permanent returns to our unitholders. As we look ahead of 2025, we remain optimistic and focus on advancing opportunities in high quality assets to ensure frequent value construction, ”said Leong.
In Q4’24, Axis-Rit achieved important milestones including Axis Facility 3 @ Bookit Raja, Vylangor for RM313 million on 8 October. October 11, and Axis Facility 2 @ Pulau Indah, Selangore, for RM48.57 million on 26 November.
Additionally, the settlement of Johor for Axis Steel Center @ SILC, RM 162 million was completed on 12 December.
By December 31, 2024, the size of the portfolio expanded to a total of 69 by seven properties, with an additional 1.8 million square feet of space and a positive fare rate of 5.3%. By the end of 2024, the Axis-act portfolio included 69 properties with a nationwide appearance in Malaysia, including 56 properties on complete occupants.
Under the management, the company’s total assets were RM5.26 billion, with 15.15 million square feet. Its financing ratio was 33.3%. A solid industrial space segment in portfolio is 95% and 4.9 years with a weighted average lease expiry.
69 properties of Axis-Rit are strategically located in prime industrial regions, including Clang Valley, Johor, Penang, Pahg, Neeri Sembilan and Kedah. Geographical diversification is designed to capitalize on rapid development of the existing and emerging regional industrial hubs.
In 2008, regenerated as an Islamic REIT, Axis-Writ recorded a year-on-year-a-year-old distribution in a unit (DPU) per unit (DPU) in 2024 and acquired the market capitalization of RM 3.5 billion.
Canenanga Investment Bank BHD said in a report that the proposed acquisition of Axis-Act, which has been fully completed in FY 2014, will continue to support its FY25 income growth possibilities. It said that Axis-Rit acquired more than RM500 million assets in FY24, which exceeds its average historical acquisition records.
“Saying that, in view of the fact that industrial property is now experiencing yield compression due to increasing property prices due to landlords, which increases rapidly at the rate of rented ren. The Axis-Rit continued to acquire the property in FY25, as it was aggressively, ”in FY24.
