KUALA LUMPUR: Axis Actual Property Funding Belief (REIT) stands to achieve from its proposed acquisition of a logistics warehouse facility as it would increase the REIT’s portfolio dimension above that of its friends within the sector.
“Given the sheer dimension of this asset, it would make it a a lot greater, extra liquid, and investable industrial/industrial REIT in Malaysia a – considerably forward of its present friends in the identical section.
“Whereas we perceive that some retail REITs have additionally began exploring alternatives within the industrial section, we proceed to love Axis REIT – that is given its entrenched place within the industrial REIT section,” mentioned RHB Analysis in a observe.
In response to the analysis agency, the acquisition will elevate Axis REIT’s asset portfolio dimension to about RM4bil from the about RM3.6bil.
“Our FY22F-24F earnings are adjusted by 1-3%, making an allowance for the anticipated greater curiosity bills after the acquisition.
“Our new TP has included a 4% ESG premium, given our ESG rating of three.20 for Axis REIT,” it added, whereas reiterating its “purchase” name on the inventory.
The REIT introduced yesterday that it was proposing to accumulate an industrial facility situated inside the Port of Tanjung Pelepas Free Commerce Zone from Equalbase PTP.
This facility will then be leased again to EPSB for a hard and fast time period of 10 years. The property has a complete web lettable space of about 1.15 million sq ft.
RHB believes the placement of the ability to be optimum with hyperlinks to main sea ports the place delivery commerce lanes converge whereas additionally it is close to the Malaysia-Singapore Second Hyperlink Expressway, offering easy accessibility to the island republic.