[%JJcE%] 
Research by Public Investment
HOLD – TP RM1.96

"No Surprises"

Axis REIT’s (AXREIT) 2QFY24 realised net profit came in at RM39.4m (+17.1% YoY, -7.0% QoQ) which is largely within our and consensus expectations. In 1HFY24, Group realised net profit of RM79.3m (+20.0% YoY) constitutes about 48% of our and consensus full year estimates. Net property income (NPI) in 1HFY24 is higher by 11.5% YoY mainly due to commencement of lease for Bukit Raja Distribution Centre 2 (lease started in August 2023 with a monthly rental of RM1.35m), positive rental reversion recorded in FY23 and acquisition of Axis Hypermarket @ Temerloh completed on 16 January 2024. However, Group profits were weighed by the loss of rental income from termination of lease agreement at Axis Steel Centre @ SiLC, with vacant possession of the property taken back on 7 June 2023 though it managed to offload the asset in April 2024 for RM162m to a data center operator. All told, we keep our earnings estimates unchanged and maintain our Neutral call with DDM-derived TP unchanged at RM1.96.

Analyst:
Tan Siang Hing
603 2268 3000
603 2268 3014
[%SxuH%]

$KLSE-AXREIT 
Research by Public Investment
HOLD – TP RM1.96

"No Surprises"

Axis REIT’s (AXREIT) 2QFY24 realised net profit came in at RM39.4m (+17.1% YoY, -7.0% QoQ) which is largely within our and consensus expectations. In 1HFY24, Group realised net profit of RM79.3m (+20.0% YoY) constitutes about 48% of our and consensus full year estimates. Net property income (NPI) in 1HFY24 is higher by 11.5% YoY mainly due to commencement of lease for Bukit Raja Distribution Centre 2 (lease started in August 2023 with a monthly rental of RM1.35m), positive rental reversion recorded in FY23 and acquisition of Axis Hypermarket @ Temerloh completed on 16 January 2024. However, Group profits were weighed by the loss of rental income from termination of lease agreement at Axis Steel Centre @ SiLC, with vacant possession of the property taken back on 7 June 2023 though it managed to offload the asset in April 2024 for RM162m to a data center operator. All told, we keep our earnings estimates unchanged and maintain our Neutral call with DDM-derived TP unchanged at RM1.96.

Analyst:
Tan Siang Hing
603 2268 3000
603 2268 3014
research@publicinvestbank.com.my

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)