Axis REIT’s 9MFY17 earnings within expectation

KUCHING: Axis Real Estate Investment Trust’s (Axis REIT) first nine months of financial year 2017 (9MFY17) earnings have come in within expectations, leading to analysts maintaining their earnings forecast.

As per the REIT’s filing on Bursa Malaysia, Axis REIT’s total comprehensive income for the current year to date ended September 30, 2017 amounted to RM78.47 million.

Axis REIT’s 9MFY17 core net income of RM68.6 million came in within the research arm of MIDF Amanah Investment Bank Bhd’s (MIDF Research) expectations, at 74 per cent and 71 per cent of its and consensus full year estimates respectively.

During the quarter, Axis REIT registered a revaluation gain of RM9.87 million, which MIDF Research has excluded from core net income.

According to MIDF Research, on top of the purchase completion of Kerry Warehouse at Pasir Gudang, Johor and the signing of the sales and purchase agreement (SPA) for the Kuantan pipe-coating facility, Axis REIT has accepted a letter of offer to buy an industrial facility at Senawang, Negeri Sembilan for RM18.5 million on October 20.

“We believe that Axis will continue to focus on its mainstay of industrial assets,” the research arm said.

On forecasts, MIDF Research kept its earnings estimates for FY17 as results came in within expectation.

The research arm also maintained its FY18 earnings forecast as the development of the Nestle Distribution Centre is on track.