Axis REIT reports lower third-quarter NPI, distributes 2.35 sen per unit

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Axis REIT third-quarter NPI

Highlights

Axis REIT's third-quarter NPI fell 2.8% year-on-year to RM77.99 million, while revenue declined 2.1% to RM90.78 million.
Third-quarter net profit rose 5.1% to RM54.8 million, supported by an unrealised gain of RM6.38 million from changes in the value of financial derivatives.
Axis REIT declared a third interim distribution of 2.35 sen per unit, down from 2.65 sen a year earlier, while new acquisitions expanded its portfolio to 72 properties.

This article was translated from the original. Read the original version by our correspondent here.

Third-quarter results and new acquisitions

As reported by The Edge Malaysia, citing a filing with Bursa Malaysia, Axis REIT's NPI fell 2.8% year-on-year to RM77.99 million for the three months ended 30 Sept 2026, from RM80.23 million a year earlier, while revenue declined 2.1% to RM90.78 million from RM92.77 million.

Despite weaker property performance, net profit rose 5.1% to RM54.8 million from RM52.12 million. The increase was largely supported by an unrealised gain of RM6.38 million from changes in the value of financial derivatives, compared with a loss of RM118,000 in 3QFY2025.

Quarter-on-quarter, property income rose 2.9% to RM90.51 million from RM87.94 million, driven mainly by contributions from newly acquired assets, new tenants and higher rental rates at existing properties. Property expenses fell 1.9%, but non-property expenses increased 5.7%, mainly due to provisions for doubtful debts and financing costs related to new acquisitions.

During the quarter, Axis REIT completed the acquisitions of Axis Distribution Centre 1 @ Saujana Putra for RM128 million and Axis Industrial Facility 3 @ Shah Alam for RM38 million. This brought its portfolio to 72 properties as at the end of September, up from 70 previously.

Lower distribution and FY2026 outlook

The industrial property-focused REIT declared a third interim distribution of 2.35 sen per unit, down from 2.65 sen a year earlier. It will be paid on 30 Nov to unitholders registered as at 13 Nov.

For the first nine months of FY2026, NPI fell 2.6% to RM231.31 million from RM237.57 million in the corresponding period a year earlier, while revenue declined 1% to RM270.13 million from RM272.89 million. However, net profit for the nine-month period rose 4.1% to RM154.3 million from RM148.2 million, again supported by unrealised gains from financial derivatives.

Total distributions for the nine-month period stood at 7.15 sen per unit, compared with 7.80 sen a year earlier. At the same time, Axis REIT still has several acquisitions pending completion, including an industrial complex worth RM113 million in Kedah, an RM80 million warehouse facility in Port Klang and an RM34.61 million industrial facility in Senai, Johor.

Axis REIT's manager said it remains optimistic about maintaining its performance in FY2026, supported by its existing property portfolio and a strategy of acquiring quality assets that generate recurring rental income.

In our previous article on Sime Darby Property's transformation into a portfolio of recurring-income-generating assets, we outlined the company's shift from relying on township sales to expanding its industrial, logistics, retail and data centre assets under the SHIFT25 strategy. The coverage also discussed its approach to leveraging third-party institutional capital and extending its recurring-income model into new asset classes, showing how property players are prioritising stable rental income as they grow their portfolios.

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