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財年第一季度(3月)的收益符合預期，其完全入駐物業的收益實現了穩定增長。房地產投資信託基金還宣佈，它將以11900萬令吉的價格從贊助商那裏收購四處新房產。RhB表示，除了現有物業的長期可行性外，該集團對其無機增長機會持更加樂觀的態度，因此升級爲買入。
業績一致。1QFY25 核心利潤爲890萬馬幣（環比下降1％，同比增長2.9％）符合預期，爲我們全年預測的24％。收入同比增長8％，主要來自於2023年10月收購的Indahpura地塊的出資，但由於兩處房產在6月新租約開始之前暫時空置，環比下降了1％。由於NPI利潤率下降和收購後融資成本的增加，收益同比僅增長了3％。房地產投資信託基金提議的每股收益率爲1.84仙（1QFY24：1.80仙）。
四項新收購。AME房地產投資信託基金宣佈，它已與AME Elite簽訂了買賣協議（SPA），擬議收購四處工業地產，總現金對價爲1.195億馬幣；比其12200萬馬幣的市值折扣2％。對i-TechValley 46和i-Park SAC 60和61的收購預計將在25年第一季度完成。同時，i-Park SAC 60和61以及iTechValley 34仍在建設中，因此此次收購應該只有
將於 25 年第 3 季度完成。
增產量。總收益率爲7％，位於馬來西亞依斯干達的戰略位置以及長期租賃，我們對擬議的收購持樂觀態度。租期爲五到十年，內置租金每年上漲2.9％至10％。也可以選擇再續訂三至五年。關鍵風險將是未簽發其中三處房產的竣工與合規證書（CCC），這可能會延遲或終止SPA。
收購完成後，資產負債率將從 1QFY25 時的僅14.8％增加到27％。在這個水平上，我們估計，在達到50％的資產負債上限之前，房地產投資信託基金的融資餘量爲38000萬令吉。
收益估計。在考慮收購和相關融資成本後，RhB將其FY26-27F 收益預期調整了3-4％。它表示，根據房地產投資信託基金的ESG得分爲3.1，TP包含2％的ESG溢價。主要風險：收購延遲、經濟增長放緩以及租金回報率低於預期。
