Axis REIT pays 2.35 sen for 3Q; four buys still pending

Axis REIT (Bursa: AXREIT, 5106) will pay 2.35 sen a unit for July to September 2026, it said on 29 October, taking its payout for the first nine months to 7.15 sen. It owned 72 properties with 15.8 million sq ft at 30 September after completing two purchases in the quarter. See our full Axis REIT profile.

The quarter

• Completed: Axis Distribution Centre 1 @ Saujana Putra, let to City-Link Express for 15 years, for RM128 million on 27 August, and Axis Industrial Facility 3 @ Shah Alam for RM38 million on 30 September (our report). With the RM50 million Northport factory in January, RM216 million of purchases have completed this year
• Income: net property income was RM77.3 million, 2.7% lower than a year earlier, after leases ended at several Selangor and Negeri Sembilan properties and rent was suspended at Wisma Kemajuan after a fire in February
• Balance sheet: total assets RM5.58 billion; gearing 35.1%, up from 32.4% at end-2025; net asset value RM1.69 a unit, with the units trading 7% above it
• Payout: 2.35 sen a unit, ex-date 12 November, paid 30 November

Still to complete

• Padang Meha, Kulim, Kedah: RM113 million for an industrial complex of 340,047 sq ft on 13.28 acres of freehold land, due in the first quarter of 2027
• Telok Gong, Port Klang: RM80 million for a 259,310 sq ft warehouse on 10.19 acres, due in the fourth quarter of 2026
• Pulau Indah: RM61 million for three warehouses, due in the first quarter of 2027 (our report)
• Senai, Johor: RM34.6 million for a 115,363 sq ft factory being built, due in the fourth quarter of 2027
• Building: Axis Facility 4 @ Bukit Raja, a 180,000 sq ft factory costing about RM40 million, due in the first half of 2027, and a 74,000 sq ft extension at Pasir Gudang Logistics Warehouse 2, about RM22 million, due by end-2026. Axis says it is studying about RM250 million of further buys

Empty space

• Empty at 30 September: Axis Industrial Facility 1 @ Northport (being refurbished), Axis Shah Alam Distribution Centre 5 (new tenant signed, 82% let by the fourth quarter) and Senawang Industrial Facility (looking for a tenant)
• Partly let: Menara Axis 60%; Axis Industrial Facility 1 @ Shah Alam and Bukit Raja Distribution Centre 77% each, the latter expected to reach 91% by January 2027
• Renewals: of 2.70 million sq ft of leases due in 2026, 60% were renewed and another 760,298 sq ft re-let

Penang

Axis owns five Penang properties. It lists 205,151 sq ft of Penang leases expiring in 2026 and 543,210 sq ft in 2027. By our reading, those figures match the floor area of the Bayan Lepas Distribution Centre, let to DHL, and of the three Seberang Prai warehouses let to DSV, LF Logistics and R&R Logistics. Axis does not name the properties.