Malaysian REITs Axis and YTL Post Earnings Updates and Outlook

Axis REIT reported a 2Q FY26 core net income of RM47 million, down 6% quarter‑on‑quarter, bringing first‑half earnings to RM96.9 million. The decline was driven by lower rental income after the tenancy at Shah Alam Distribution Centre 3 expired, reducing occupancy to 49%, and a rental suspension at Wisma Kemajuan following a February fire, while property and administrative expenses rose. The REIT expects earnings to recover in the second half of FY26, projecting occupancy of 71% by Q3 FY26 and full occupancy by January 2027, and announced a RM113 million acquisition of a fully tenanted industrial complex in Kedah.

YTL Hospitality REIT posted a 62.1% increase in FY2026 net profit, with revenue rising 4% to RM570.35 million and net property income up 7.5% to RM313.97 million. It declared a total distribution of 8 sen per unit, up from 7.75 sen the previous year, maintaining a 100% payout ratio. Growth was helped by new rental income from AC Hotel Ipoh and AC Hotel Puchong, while Q4 revenue slipped 0.6% but net property income rose 3.5%. The REIT’s NAV per unit improved to RM1.8269 and it recorded a RM292 million revaluation surplus, leaving roughly RM959 million of debt headroom for future acquisitions, including the Moxy Niseko development in Japan.