KUALA LUMPUR: Axis Real Estate Investment Trust's (Axis REIT) net profit for the second quarter ended June 30, 2024 (Q2 2024) came in within Public Investment Bank Bhd's (PublicInvest Research) and consensus' expectations.
Axis REIT logged a realised net profit of RM39.4 million in the quarter under review, up 17.1 per cent year-on-year (YoY), pushing its first half earnings to RM79.3 million.
The research firm noted the results constituted about 48 per cent of its full year estimates as well as consensus'.
Net property income (NPI) in the first half of 2024 (1H24) is higher by 11.5 per cent YoY mainly due to commencement of lease for Bukit Raja Distribution Centre 2, positive rental reversion recorded in financial year 2023 (FY23), and acquisition of Axis Hypermarket @ Temerloh completed on 16 January 2024.
However, group profits were weighed by the loss of rental income from the termination of the lease agreement at Axis Steel Centre @ SiLC.
The firm kept its earnings estimates for the company unchanged and maintained a 'neutral' call on the stock with a target price of RM1.96.
Axis REIT's investment properties stood at RM4.56 billion while portfolio size increased to a total of 64 properties as of June 30, 2024, further increasing to 67 properties as of July 23, 2024.