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Axis REIT aims to surpass RM2 billion mark, DPU rises by 2.1 sen
Corporate Digest | 05 September 2014

Calling all yield hungry investors, this is good news! With the acquisition of its five new properties, for RM472 million this year, Axis REIT expects to surpass the RM 2 billion mark and DPU to grow by 2.1 sen.

Listed on Bursa Malaysia on 3 August 2005, Axis Real Estate Investment Trust (Axis-REIT) is a Malaysia-based office/industrial real estate investment trust.

Axis-REIT focuses on Malaysian properties and owns a diversified portfolio of properties in the Klang Valley, Penang, Johor and Kedah, comprising commercial offices, office/industrial, buildings, warehouse/logistics centers, light industrial buildings and warehouse retail facilities.

  • In 1H14, Axis REIT posted a 3.1 percent year on year increase in net profit of RM43 million and a 16.5 percent year on year increase in DPU of 10.6 sen.
  • Axis REIT’s manager has assured investors that they do not buy real estate for the sake of growing and held back from acquiring real estate in 2013 where the market was overheated and asset prices were inflated with low yields.
  • Moving on, Axis REIT aims to surpass the US$1 billion mark, as only then it will be able to attract the interest of foreign investors and funds.

Despite the dampening view of REITs in view of recent rate hikes, Axis REIT has brought in positive news of a growing DPU.

However, would all these bode well for investors in the long term?

Regardless, we would like to caution investors that only with careful analysis of  and research on its fundamentals and business outlook would you then consider taking a position in Axis.

Maybe, by looking at its DPU growth over the years, leverage ratios and how long are its lease agreements could prove to be a start!

Happy Investing !

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