Axis REIT targets more than 10 pct AUM growth this year
KUALA LUMPUR: Axis REIT Managers Bhd, which plans to acquire four new assets this year, is targeting more than 10 per cent growth of its assets under management (AUM).
The acquisition is in line with our plan to expand our asset portfolio in 2017, as there are opportunities to grow in the current softening economic environment. Leong Kit May, Axis REIT Managers Bhd CEO and finance director
Chief executive officer and finance director Leong Kit May said the assets included industrial facilities in Petaling Jaya, Sepang, Kuantan and Nusajaya.
“The acquisition is in line with our plan to expand our asset portfolio in 2017, as there are opportunities to grow in the current softening economic environment.
“Currently, our AUM stands at RM2.24 billion and we hope with the future acquisition, it will increase our growth,” she told a press conference on the group’s performance for the financial year ended on Dec 31, 2016 (FY16).
She said the development of the Nestle National Distribution Centre, a 515,000-sq ft distribution warehouse facility which began in December 2016,would also contribute to the group’s AUM growth.
“This development is below 10 per cent of the total AUM. Upon completion, it will increase the total AUM to RM2.4 billion.
“With a long-term lease in place, we aim to derive rental income of RM19.22 million per year from the centre, effective from 2018, “she added.
Leong said the group was optimistic of maintaining its performance in the current quarter and for FY17, in view of the satisfactory performance of its investment portfolio, AUM, tenant management and acquisitions.
For FY16, Axis Real Estate Investment Trust recorded a pre-tax profit of RM122.29 million, up from RM96.63 million in FY15, while revenue increased to RM167.36 million from RM163.82 million previously. — Bernama