Axis Real Estate Investment Trust (Axis REIT) has confirmed that Wisma Kemajuan, one of its assets in the Klang Valley, sustained partial damage following a fire that broke out at a neighbouring furniture factory in the Sea Park area.
In a filing, Axis REIT Managers Bhd reported that no injuries or fatalities were linked to the incident. The affected building is covered by comprehensive insurance, including fire takaful and consequential loss protection, which also compensates for rental income lost during the repair period.
According to the manager, Wisma Kemajuan accounts for approximately 1.4% of the REIT’s total revenue, and the overall financial effect on net property income and asset valuation is expected to be minimal.
Portfolio Performance Remains Strong
Axis REIT continues to report solid financial performance. For the financial year ended Dec 31, 2025, the trust recorded revenue of RM364.2 million, representing growth of nearly 14% compared with the previous year. Net property income increased to RM316.21 million, reflecting stable occupancy and continued demand across its portfolio, which includes logistics, warehouse and business space assets.
Market sentiment toward the REIT has remained positive, with its units recently closing at RM2.09, giving the trust a market capitalisation of over RM4 billion and a year-to-date gain approaching 9%.
Resilience in Industrial and Commercial Property Segments
Incidents such as this highlight the importance of risk management, insurance coverage and maintenance planning across income-generating properties. These factors are especially relevant in sectors such as industrial property in Selangor, where warehouses, factories and logistics facilities often operate in close proximity to one another.
For investors and occupiers evaluating commercial property in KL or managed office space in Bukit Jalil, building safety standards, fire protection systems and insurance arrangements are increasingly key considerations in asset selection.
The Klang Valley remains one of Malaysia’s most active markets for business premises, with ongoing demand for factories in Puchong and modern industrial property in the Subang area, driven by manufacturing, e-commerce and regional distribution activities. As more companies expand operations, the ability of property owners and REITs to manage risk and maintain operational continuity plays a growing role in preserving asset value and tenant confidence.
Despite the temporary disruption at Wisma Kemajuan, Axis REIT’s diversified portfolio and insurance safeguards appear to have limited the broader financial impact, reinforcing the stability that many investors seek in income-producing real estate.
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