KUALA LUMPUR (Jan 30): Axis Real Estate Investment Trust (Axis REIT) may consider tapping the equity market should its gearing level approach 40%, as the trust continues to actively expand its industrial and logistics property portfolio across Malaysia.
Speaking at an earnings briefing, chief executive officer Leong Kit May said the REIT is currently comfortable with its financial position, with its debt-to-asset ratio standing at approximately 32% following recent acquisitions. While discussions on new deals are ongoing, she indicated that any equity fundraising would be carefully timed to coincide with asset injections that materially raise leverage.
“Our approach is very much about timing. If gearing moves beyond 40% when new properties are ready to be injected, we may look at a small equity issuance, if required,” she said.
Axis REIT has several acquisitions in the pipeline, including an RM80 million warehouse in Telok Gong, Port Klang, which is expected to be completed by the fourth quarter of 2026. The Port Klang acquisition reinforces the REIT’s exposure to industrial property in Selangor, particularly in logistics-driven locations near major ports.
In addition, the trust is in the process of acquiring industrial assets in Seberang Perai Tengah, Penang, valued at RM800 million, as well as an industrial facility in Senai, Johor, costing RM34.6 million. Both transactions are targeted for completion in 2027, further strengthening Axis REIT’s regional industrial footprint.
Following these acquisitions, Axis REIT’s portfolio comprises 69 properties across industrial, logistics, office, and hypermarket segments, with a combined asset value exceeding RM5 billion. The trust manages approximately 15 million square feet of net lettable area, supported by total borrowings of RM1.73 billion.
The most recent additions to the portfolio include Axis Industrial Facility 1 @ Northport, Selangor, acquired for RM50 million in January 2026, and Axis Facility 4 @ Bukit Raja, Klang, purchased for RM38.8 million in December 2025. These assets underline the REIT’s continued focus on well-located industrial land in Selangor and established logistics clusters.
Beyond industrial assets, Axis REIT also maintains exposure to commercial property in KL and selected office assets, benefiting from diversified income streams across the Klang Valley, including areas near office space in Bukit Jalil and key industrial corridors linked to factory operations in Puchong and the Subang area.
At the time of writing on Thursday, Axis REIT units were trading two sen lower, or down 1.03%, at RM1.93, giving the trust a market capitalisation of approximately RM4.03 billion.
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