Saham: KLSE-AXREIT - PT. Axis Real Estate Investment Trust

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by Maybank

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by PBIV

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by HLIB

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by Kenanga

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by Public
Neutral – TP RM1.96

" Raising Up to RM455m Cash”
Axis REIT (AXREIT) proposed to raise up to RM455m, assuming the maximum number of placement units are issued at an issue price of RM1.73 per unit, representing a discount of about 3.20% to recent fair market price of RM1.7872. The proceeds will mainly be used to pare down its debt. Assuming RM455m is raised, RM450m will be used to reduce its financing ratio from about 0.42x (post completion of new asset acquisitions) to about 0.34x, giving it adequate debt headroom in the event of more asset acquisitions in the future. Pending the completion which is expected by 4QFY24, we keep our earnings unchanged for now. Maintain our Neutral call with TP unchanged at RM1.96.

Analyst:
Tan Siang Hing
research@publicinvestbank.com.my

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by Maybank
BUY – TP RM 2.12

" Proposes placement”

We are neutral on Axis’ proposed placement exercise. Axis’ enlarged balance sheet and lower gearing level post exercise will provide for more M&A opportunities for its medium-to-longer growth, although the exercise could dilute EPU by 7-9%. We maintain our earnings forecasts and DDMbased TP of MYR2.12 (Ke: 6.9%) for now. Axis expects to record the highest acquisition in FY24E, totalling MYR684.4m. Maintain BUY (sector top pick)

Analyst:
Nur Farah Syifaa
nurfarahsyifaa.mohamadfuad@maybank-ib.com

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by Maybank
Buy - TP RM2.12

"Acquiring two adjoining properties at Klang"

We are mildly positive on Axis’ proposed purchase of two adjoining industrial properties within Klang. We estimate the purchase to be yield accretive, with an estimated 5.9% net property yield. No change to our earnings forecasts and DDM-TP of MYR2.12 (Ke: 6.9%). Axis expects to record the highest value in acquisitions in FY24E, totalling MYR684.4m. Maintain BUY (sector top pick).

Analyst:
Nur Farah Syifaa
nurfarahsyifaa.mohamadfuad@maybank-ib.com

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by RHB
Buy – TP RM 2.11

"Purchasing Two Warehouses Near Port Klang; Still BUY”

Maintain BUY, with new DDM-derived MYR2.11 TP from MYR2.09, 17% upside and c.6% FY25F yield. Axis REIT has made its fifth announcement of the year regarding new acquisitions – this time for two adjoining properties for a lump-sum cash consideration of MYR158.6m. The properties provide a gross yield of 6.2% and is expected to be completed by 4Q24. We continue to like the REIT for its inorganic growth prospects in the resilient industrial property segment..

Analyst:
Wan Muhammad Ammar Affan
ammaraffan@rhbgroup.com
Loong Kok Wen CFA
loong.kok.wen@rhbgroup.com

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by MIDF
BUY – TP RM2.14

"Industrial Asset Acquisition”
• Industrial asset acquisition
• Expanding industrial asset portfolio
• Earnings forecast revised
• Maintain BUY with a revised TP of RM2.14

Analyst:
Jessica Low Jze Tieng
jessica.low@midf.com.my

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period [AXREIT]

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST) / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by MIDF
BUY – TP RM2.12

"Stable Earnings in 1HFY24"

■ 1HFY24 earnings within expectations
■ Stable earnings in 1HFY24
■ Earnings forecast maintained
■ Maintain BUY with an unchanged TP of RM2.12

Analyst:
Jessica Low Jze Tieng
jessica.low@midf.com.my

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST) / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by HLIB
BUY – TP RM2.03

"Earnings to sustain into 2H24"

Axis REIT’s 2Q24 core net profit of RM39.6m (-1.1% QoQ, +17.2% YoY) brought 1H24 sum to RM79.6m. The results were within ours and consensus estimates at 48%. DPU of 2.25 sen was declared for 2Q24. Axis should continue to see sustained earnings in the subsequent quarters on the back of (i) 3 recently completed acquisitions; (ii) 2 pending acquisitions and a disposal; and (iii) stable occupancy rates. After including contributions from the recently completed acquisitions, our FY24/25 forecasts increase by +3.7%/+1.9% respectively. Reiterate BUY but with a slightly lower TP of RM2.03.

Analyst:
Tan Je Jyne
JJTan@hlib.hongleong.com.my
(603) 2083 1727

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by Kenanga
Market Perform – TP RM1.82

"Brighter Industrial Rental Outlook in Johor"

AXREIT’s 1HFY24 results and distribution were within expectations. Its 1HFY24 core net profit rose 20% YoY due to maiden contribution from Bukit Raja Distribution Centre 2 and positive rental reversion. On an improved industrial rental outlook in Johor, we raise our FY25F earnings forecast by 4%, lift our TP by 6% to RM1.82 (from RM1.72) but maintain our MARKET PERFORM call.

Analyst:
Clement Chua
clement.chua@kenanga.com.my

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST) / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by RHB
BUY – TP RM2.09

"A Busy Year Bearing Fruit; Maintain BUY"

Maintain BUY and DDM-derived MYR2.09 TP, 12% upside and c.6% FY25F
yield. Axis REIT’s 1H24 earnings were in line with expectations with a strong
20% increase in earnings mainly led by the commencement of new leases. We
remain positive on the REIT’s earnings prospects as it has picked up the pace
of acquisitions YTD, and maintains a healthy MYR220m in acquisition target
moving forward, with a focus on Grade A logistics facilities and warehouses
suitable for last-mile distribution.

Analyst:
Wan Muhammad Ammar Affan
+603 2302 8103
ammaraffan@rhbgroup.com

Loong Kok Wen CFA
+603 2302 8116
loong.kok.wen@rhbgroup.com

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
Research by Maybank IB
BUY – TP RM2.12

"2Q24: Within estimates"

2Q24 results were in-line, with 1H24 core net profit at 47%/48% of our/consensus’ FY24E. A 2 nd gross DPU of 2.55sen was declared, bringing 1H24 DPU to 4.55sen (1H23: 4.10sen). We trim our FY24/25/26E earnings by -1%/-8%/-7% respectively. Consequently, our DDM-TP is lowered to MYR2.12 (-5sen, Ke: 6.9%). Maintain BUY (sector top pick). We remain upbeat on Axis’ active asset acquisition strategy for industrial assets, which generally entail resilient rental income and lower occupancy risks.

Analyst:
Nur Farah Syifaa
nurfarahsyifaa.mohamadfuad@maybank-ib.com
(603) 2297 8675

$AXREIT / 5106 (AXIS REAL ESTATE INVESTMENT TRUST)
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)