Axis REIT in Bursa saham Malaysia

Q: Good morning, Christine! You mentioned planning to invest in KLCCP REITs - have you moved forward with that investment decision yet?

A: Yesterday, I invested in Axis Reit instead of KLCCP because of better capital appreciation probability.

Q:That's a smart move! Axis REIT has shown great potential; what do you like most about their growth strategy?

A:  Axis Reit's Growth Strategy centers on actively pursuing high-quality, yield-attractive acquisitions primarily in the logistics and industrial asset classes, alongside business parks, due to limited opportunities in the office market. They focus on assets with long-term tenants and strategic locations across Malaysia. The aim is to significantly expand its portfolio and assets under management, with a recent acquisition target raised to RM430 million, enhancing their holdings to 69 properties valued at over RM5 billion in total assets.

Q: Wow, that sounds like a well-thought-out strategy! It's impressive how they're focusing on logistics and industrial assets, especially with the growing demand in that sector.

A: Furthermore, Axis Reit employs a capital recycling strategy that involves disposing of non-core assets to generate proceeds for new acquisitions, thereby supporting portfolio enhancement. They also diversify their funding sources, including the utilization of Sukuk, Islamic bonds, and successful reward placements, such as the $449.7 million raised in 2024 to reduce borrowing costs and increase capital headroom for future growth.

Q:That's a really strategic approach! I admire how they're diversifying their funding sources; it definitely seems like they have a solid plan for future growth.

A:  Operationally, the reit maintains a high portfolio occupancy of 97%, drives positive rental diversions, and invests in property maintenance and enhancement to sustain income growth. These elements together form a disciplined growth approach, combining acquisition-led expansion, capital management, and portfolio optimization to drive decision-making and distribution to unique holders.

A: In summary, the Axis Reit Growth Strategy is a focused expansion of acquisition reit for logistics and industrial properties with strong tenants, supported by flexible capital management and portfolio enhancement initiatives to sustain robust income growth and returns for investors.

A:I believe Axis REIT is better than KLCCP because of its earning growth, asset focus, portfolio, and occupancy, as well as its active acquisition and development. Axis Reit's investments are considered more favorable due to recent strong earning growth, strategic positioning in the growing logistics industry, and proactive acquisition and development activities. In contrast, KLCCP REIT provides a solid and stable income base primarily from office and retail properties, but with more moderate growth prospects compared to the asset focus on industrial sectors. Depending on investors' preferences for growth versus stability and asset type exposure, Axis REIT may be regarded as superior because of its emphasis on rapidly growing industrial assets and demonstrated earnings.

Q: You make a compelling argument! It really comes down to the individual investor’s goals, whether they prioritize growth or stability. Have you had any previous experiences with investments that shaped your current strategy?

A: My previous investments in public bank stocks have likely shaped my investment approach towards Axis REIT strategies in the following ways. First, there is an emphasis on stability and dividend growth. Public banks are favored for their steady earnings, robust balance sheets, and consistent dividend payouts, making them suitable for conservative long-term investors. This experience has developed a strong appreciation for income-generating assets, prompting a focus on metrics like asset-backed returns, regular distributions, and stable growth. The mindset of focusing on well-managed investments means investing in fundamentally sound banks instills discipline and encourages clear decision-making based on a strong track record.

Axis REIT strategies offer similar prudent financial management. Public bank long-term performance is driven by strict credit standards and asset quality. This background leads me to seek out the priorities, prioritize high-quality, yield-accretive properties and long-term tenants, aligning well with the Axis reit growth and acquisition strategy.

Q: How about your portfolios diversification strategy?

A: Speaking about portfolio diversification strategy, after benefiting from the financial sector’s defensive qualities and dividend reliability, it makes sense to diversify into another sector, such as real estate, which provides both steady income and exposure to growing industrial and logistical trends. This helps balance my portfolio’s overall allocation.

Q: That makes perfect sense! Diversifying into real estate to capture growth in the logistics sector while maintaining income stability is a wise strategy.

A: I also wish to leverage Axis reit's banking relationships. Reserch shows reits with strong banking relationships enjoy better loan terms, lower costs, and more financial flexibility. An investor familiar with the banking sector will better recognize the importance of Axis reit prudent capital management and access to financing. For example, using Sukok and private placements demonstrates how financial discipline underpins growth.

Q: It's smart to see banking relationships of Axis reit for better loan terms and financial flexibility—access to financing can make a big difference.

A:  In short, my background in public bank stocks has shaped my asset rate investment strategy by instilling a preference for steady income, quality assets, risk mitigation, prudent financial management, and the value of strong banking relationships, all core pillars in Acis REIT strategy.

A: Axis Reit have never had a consistent distribution per unit, most recently rising by 9% year-on-year in Q1 2025, with Q2 2024 full-year dividends growing by 7.2%. If we focus on the resident sectors, the reit has shifted its focus almost completely to logistic warehouses and industrial manufacturing facilities, making up 82% of portfolio sectors that show robust demand and are less exposed to office or retail volatility.

Q: It's impressive to see such strong year-on-year growth in distributions! Focusing on logistics and industrial sectors really seems like a smart move, especially given the current market trends and demands.

A:Axis REIT regularly maintains high occupancy, close to above 95%, stable cost structures and strong property location throughout Peninsular Malaysia.

Thank you