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AME REITs NPI Increases 14.4% To RM11.5 Mil In Q3 FY24

KUALA LUMPUR: Industrial real estate investment trust (REIT) AME Real Estate Investment Trust (AME REIT) recorded net property income (NPI) of RM11.5 million for the third quarter (Q3) ended December 31 2023 (FY24), up 14.4 per cent from the NPI of RM10.1 million in the same quarter last year.

Photo From: AME Reit

The positive earnings came from rental income which increased by 14.6 per cent to RM12.4 million from RM10.8 million previously. The improved Q3 results were also driven by additional contributions from three industrial properties acquired by AME REIT from its sponsor, AME Elite Consortium Bhd, post-listing in September 2022.

The company’s acquisitions of the industrial properties, namely Plot 15 at i-Park @ Indahpura, Plot 43 at i-Park @ Senai Airport City, and Plot 16 at i-Park @ Indahpura were completed in 2023. With this strong results, AME REIT will distribute 99.6 per cent of its RM9.9 million distributable income for Q3, equivalent to a distribution per unit (DPU) of 1.88 sen.

The distributable income is after adjustments for fair value gain on investment properties net of its deferred tax expenses, in addition to management fees payable in units, amortisation of capitalised financing costs, and unbilled lease income receivables. AME REIT chief executive officer and executive director of I REIT Managers Sdn Bhd Chan Wai Leo said the firm results in Q3 FY24 are underpinned by the full occupancy rate of its property portfolio, complemented by the completion of post-listing acquisitions.

“Tenancy renewals sustained a positive momentum with a renewal rate of 83 per cent with existing tenants and a new replacement tenant, resulting in total renegotiated space of 92 per cent. “The increasing number of high-profile multinational corporations in our portfolio bolsters our status as a premier industrial-focused REIT, and we also stand to benefit from Malaysia’s resurgent status as a magnet for foreign direct investment,” he said in a recent statement.

Chan said with the recent success of three industrial property acquisitions, AME REIT intends to further expand its portfolio by exploring acquisition opportunities in Johor and other industrial hubs across Peninsular Malaysia to continue providing our unitholders with stable and growing total returns. For the nine months (9M) FY24, AME REIT posted an NPI of RM33.0 million on the back of a revenue of RM35.5 million. As AME REIT was listed on the main market of Bursa Malaysia on September 20, 2022, the financial results covered for September 20, 2022, to December 31, 2022 only and are therefore not comparable.

The Q3 FY24 distribution is payable on March 18, 2024 to unitholders. AME REIT’s current properties under management stood at RM669.3 million compared to RM640.3 million as of September 30, 2023, following the acquisition of Plot 16 at i-Park @
Indahpura from AME Elite Consortium Bhd in October 2023 and other property enhancement works.

Its current portfolio consists of 34 industrial properties with an agreed lettable area of approximately 1.9 million sq ft and 3 industrial-related properties of workers’ dormitories.

AME REIT’s properties are mainly situated across three industrial parks of AME Group in Iskandar Malaysia, namely i-Park @ Indahpura in Kulai, i-Park @ Senai Airport City in Senai, and i-Park @ SILC in Iskandar Puteri.

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