AME REIT's 1QFY25 (Mar) earnings were in line with expectations, recording stable earnings growth from its fully occupied properties. The REIT also announced that it is acquiring four new properties from its sponsor for MYR119m. RHB said it upgrades to a BUY as the group turns more positive on its inorganic growth opportunities, on top of the long-term viability of existing properties.
Results in line. 1QFY25 core profit of MYR8.9m (-1% QoQ, +2.9% YoY) is in line with expectations at 24% of our full-year forecasts. Revenue grew 8% YoY mainly from the contribution of Plot 16 Indahpura which was acquired in Oct 2023, but dropped 1% QoQ as two properties were temporarily vacant before a new lease commenced in June. YoY, earnings only increased 3% due to both lower NPI margins and higher financing costs following the acquisition. The REIT proposed a DPU of 1.84 sen (1QFY24: 1.80 sen).
Four new acquisitions. AME REIT announced that it has entered into sale and purchase agreements (SPA) with AME Elite for the proposed acquisition of four industrial properties for a total cash consideration of MYR119.5m; a 2% discount from its market value of MYR122m. The acquisitions for i-TechValley 46 and i-Park SAC 60 & 61 are expected to be completed in 1Q25. Meanwhile, i-Park SAC 60 & 61 and iTechValley 34 are still under construction, hence the acquisition should only
be completed in 3Q25.
Yield accretive. With a combined gross yield of 7%, strategic location within Iskandar Malaysia, and long-term leases, we are positive on the proposed acquisitions. The leases are for a period of five to ten years with built-in rental escalations between 2.9% to 10% per annum. There is also an option to renew for a further period of three to five years. A key risk would be a non-issuance of Certificate of Completion and Compliance (CCC) for three of the properties which could delay or terminate the SPAs.
Gearing would increase to 27% from just 14.8% as at 1QFY25 following the completion of the acquisitions. At that level, we estimate that the REIT would have a financing headroom of MYR380m before reaching the 50% gearing limit.
Earnings estimates. RHB adjusts its FY26-27F earnings estimates by 3-4% after factoring the acquisitions and the related financing costs. TP it said incorporates a 2% ESG premium, based on ESG score of 3.1 for the REIT. Key risks: Delayed acquisitions, slowdown in economic growth, and lowerthan-expected rental reversions.
AME REIT 25财年第一季度(3月)的收益符合预期,其完全入驻物业的收益实现了稳定增长。房地产投资信托基金还宣布,它将以11900万令吉的价格从赞助商那里收购四处新房产。RhB表示,除了现有物业的长期可行性外,该集团对其无机增长机会持更加乐观的态度,因此升级为买入。
业绩一致。1QFY25 核心利润为890万马币(环比下降1%,同比增长2.9%)符合预期,为我们全年预测的24%。收入同比增长8%,主要来自于2023年10月收购的Indahpura地块的出资,但由于两处房产在6月新租约开始之前暂时空置,环比下降了1%。由于NPI利润率下降和收购后融资成本的增加,收益同比仅增长了3%。房地产投资信托基金提议的每股收益率为1.84仙(1QFY24:1.80仙)。
四项新收购。AME房地产投资信托基金宣布,它已与AME Elite签订了买卖协议(SPA),拟议收购四处工业地产,总现金对价为1.195亿马币;比其12200万马币的市值折扣2%。对i-TechValley 46和i-Park SAC 60和61的收购预计将在25年第一季度完成。同时,i-Park SAC 60和61以及iTechValley 34仍在建设中,因此此次收购应该只有
将于 25 年第 3 季度完成。
增产量。总收益率为7%,位于马来西亚依斯干达的战略位置以及长期租赁,我们对拟议的收购持乐观态度。租期为五到十年,内置租金每年上涨2.9%至10%。也可以选择再续订三至五年。关键风险将是未签发其中三处房产的竣工与合规证书(CCC),这可能会延迟或终止SPA。
收购完成后,资产负债率将从 1QFY25 时的仅14.8%增加到27%。在这个水平上,我们估计,在达到50%的资产负债上限之前,房地产投资信托基金的融资余量为38000万令吉。
收益估计。在考虑收购和相关融资成本后,RhB将其FY26-27F 收益预期调整了3-4%。它表示,根据房地产投资信托基金的ESG得分为3.1,TP包含2%的ESG溢价。主要风险:收购延迟、经济增长放缓以及租金回报率低于预期。