Qualampur: The Axis Real Estate Investment Trust (Axis-REIT) is searching for the acquisition of assets for data centers, especially in addition to its traditional focus on industrial properties.
In the CEO and Executive Director Leyong Kit, the company said that the company is focusing on the country’s data center market and development.
“Data centers business and operations are different from our industrial assets, as it has many factors to be considered, such as power, utilities, types of data centers such as Tier 1 or Tier 2 and other factors.
“The capitalization rate for data centers, which represents the ratio of net operating income for asset value, is about 6% to 7%. So we have to make the right decision before purchasing any property for data centers, “he told reporters and analysts in a briefing on the financial results of Axis-REIT on Friday.
For the financial year ended on December 31, 2024 (FY24), Axis-REIT earned a total trust of RM320.1 million, which shows an increase of 12% year-on, while net trust income RM212.5 Million was there.
The growth was mainly inspired by the contribution of newly acquired properties, new tenants at Axis Mega Distribution Center (Phase 2), and positive fares in its portfolio.
Keeping in view the fair price adjustment on portfolio during the year, the earlier net income declined to RM212.5 million in FY 24 compared to RM221.6 million in FY 2023. This happened due to low profit in the fair price of investment assets. FY24 had a fair price profit RM49.4 million, while in FY23 was RM81.3 million.
For Q4’24, Axis-REIT recorded a total trust of RM87.8 million, which shows an increase of 16% from RM75.6 million in the same quarter of the previous year. The net trust income was RM93.5 million, reflecting a flexible portfolio performance.
“We closed FY24 on a strong note. The strategic acquisition completed during the year and stable performance of our existing properties reflects our focus on giving permanent returns to our unit holders. As we are looking towards 2025, we remain optimistic and focus on advancing the opportunities for increasing high quality properties to ensure constant price creation, “said Leong.
In Q4’24, Axis-REIT achieved significant milestones, including Bookit Raja in RM313 million on 8 October, acquisition of Axis Facility 3 in Selangor. The company acquired RM110.08 million Axis Facility 1 at Pulau Indah, Selangore. October 11, and Axis Facility 2 @ Pulau Indah, Salangore, on 26 November in rm48.57 million.
Additionally, the disposal of RM162 million of Axis Steel Center @ SILC, Johor was completed on 12 December.
By December 31, 2024, the size of the portfolio had increased from seven properties to 69, with an additional 1.8 million square feet of space and a positive fare rate of 5.3% under management. By the end of 2024, the portfolio of Axis-REIT included 69 properties with nationwide appearance across Malaysia, with 56 assets running on full occupancy.
Under the management, the company’s total assets were RM5.26 billion, including 15.15 million square feet of space. Its financing ratio was 33.3%. Portfolio claims a solid industrial space segment with a overall occupation rate of 95% and a weighted average lease of 4.9 years.
69 properties of Axis-REIT are strategically located in major industrial areas, including Clang Valley, Johor, Penang, Pahang, Neeri Sembilan and Kedah. Geographical diversification is designed to take advantage of rapid development of existing and emerging regional industrial centers.
In 2008, rearfined as the Islamic REIT, Axis-REIT recorded a year-on-year distribution of 9.27 Sen per unit (DPU) in 2024 and acquired the market capitalization of RM 3.5 billion.
Cannon Investment Bank BHD said in a report that the proposed acquisition of Axis-REIT, which has been fully completed in FY 24, will continue to support the income growth possibilities of FY 2025. It states that Axis-REIT gained assets of more than RM500 million in FY 24, which exceeds its average historical acquisition records.
“After saying this, seeing the fact that industrial properties are now experiencing a decrease in yield due to rapid property prices by landlords, we do not think that Axis-REIT Finance In the year 2025, aggressively will continue to acquire assets. In FY24, “it was added.
