Axis REIT: Below Expectations

KUALA LUMPUR – Axis Real Estate Investment Trust’s (Axis REIT) 3QFY26 realised net profit came in at RM47.6 million, marking a 9.0% decline year-on-year despite a 2.4% gain quarter-on-quarter, falling short of market expectations.

For the cumulative nine-month period, the group achieved a realised net profit of RM144.5 million (-6.3% YoY), accounting for roughly 68% and 67% of full-year forecasts, according to Public Investment Bank Bhd (PIB). PIB noted that year-to-date performance was dragged down by a rental suspension at Wisma Kemajuan following a February 2026 fire, alongside lower average occupancy after lease expiries at Bukit Raja Centre in 4QFY25.

Axis REIT

However, tenancies at Bukit Raja Centre have been secured progressively, boosting occupancy to 77% in 3QFY26 with an expectation to reach 91% by January 2027.

PIB added that earnings were further impacted by expired tenancies at Axis Shah Alam Distribution Centre 3, Axis Shah Alam Distribution Centre 5, and Senawang Industrial Facility. While Axis Shah Alam Distribution Centre 3 returned to 100% occupancy by late 3QFY26 and a new tenant at Distribution Centre 5 is expected to raise occupancy to 82% by 4QFY26, marketing efforts remain ongoing for Senawang Industrial Facility.

Following the results, PIB revised its FY26 and FY27 earnings forecasts downward by 6% and 3% respectively, while maintaining its ‘Neutral’ rating and target price of RM1.96.

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