2025 marked the 20th year of Axis‑REIT’s listing on Bursa Securities. In commemorating this milestone, we reflect on the Fund’s remarkable journey thus far, having grown from our initial public offering (IPO) as Malaysia’s first listed REIT with just five properties close to 1 million sq. ft. of net lettable area (NLA) in 2005, to the leading industrial/office REIT it is today. Axis REIT’s portfolio of 69 strategically‑located, predominantly industrial properties boasts over 15 million sq. ft. of NLA with an expansive geographic footprint in the high‑growth industrial corridors of Peninsular Malaysia.
Over the years, the Fund has built an impressive tenant base comprising multinational corporations, as well as fast-growing businesses, and has garnered considerable property development expertise, having completed five property development projects to-date.
Fittingly, 2025 was a year of records for Axis-REIT. We continued to deliver record performance metrics, as the Fund posted a 14% year-on-year increase in net property income to RM316.2 million. At the bottom line, net income growth outpaced revenue, surging 34% to deliver a record net income of RM282.1 million for FYE2025. The stellar performance enabled the Fund to raise returns to Unitholders, declaring a cumulative Distribution Per Unit (DPU) of 10.55 sen for FYE2025 – a 14% increase from the previous year and the Fund’s highest annual distribution to date.
We note that these remarkable results were achieved amid considerable external macroeconomic uncertainties that defined 2025. Geopolitical tensions and evolving global trade policies, including the imposition of cross border tariffs, created a challenging environment for companies involved in global supply chains. The Fund’s record performance against this backdrop underscored solid fundamentals, a resilient portfolio, operational agility, and excellent capital discipline in successfully navigating these headwinds.
Axis-REIT’s strong strategic positioning and high-quality portfolio continued to deliver robust operating results. Portfolio occupancy remained resilient, at 94% as at 31 December 2025, supported by lease renewals for 73% of tenancies (by NLA) that had come up for renewal during 2025. In addition, the Real Estate Team successfully secured new tenancies for 11% of the vacated space, locking in rental rates that are up to 15% higher than previous tenancies in some instances, which demonstrates the appeal and demand of Axis-REIT’s portfolio.
Our operating focus is anchored on ensuring superior tenant satisfaction, by delivering real estate solutions that are future-ready to support the needs of our tenants. Toward this end, we continue to build collaborative tenant relationships to understand their operational requirements, expansion plans, and space optimisation strategies. We also work with our extensive network of real estate agents, business leaders, authorities, and other stakeholders to position Axis-REIT as the partner of choice for business space needs.
The success of these efforts are reflected in Axis-REIT’s high tenant satisfaction ratings, with the annual Tenant Satisfaction survey returning an average score of 76% against our target score of 70%, and our Hello Axis Service Request Satisfaction Ratings of 85% against our target score of 80%
Axis-REIT delivered record financial results in FYE2025, reaping the rewards of strategic investments in a solid portfolio, property development projects, and tenant partnerships over the years. We believe this was a remarkable result, given broad macroeconomic headwinds from a weak external sector.
Reported record financial results, with revenue of
in 2025 (up 13% from FYE2024)
and realised net income of
RM203.3 million
(up 26% from FYE2024).
Revenue rose 13.3% to RM365.0 million in FYE2025 – the Fund’s highest on record – driven by full year contributions from property acquisitions and the development project completed in 2024. This was further supplemented by positive rental reversions across the portfolio, which offset an uptick in vacancy rates in the fourth quarter of 2025.
Axis-REIT’s net property income of RM316.2 million for FYE2025, also a record, rose 14.3% from the prior year’s RM276.6 million. The uplift was underpinned by an improving cost-to-revenue ratio, which strengthened to 13.5% compared with 14.3% in 2024.
The record financial results enabled the Fund to declare a DPU of 10.55 sen for FYE2025, an increase from 9.27 sen in 2024. The DPU, which represented a payout ratio of 99.8%, translated to an annual distribution yield of 5.5% based on the Fund’s closing Unit price of RM1.92 as at 31 December 2025.
In its pursuit of growth, the Fund continued to maintain capital discipline while ensuring sufficient liquidity to meet our growth ambitions. We are pleased to report that we achieved all sustainability performance targets (SPTs) predefined in our financing facilities, and received the rebates as scheduled. In addition to total financing amounting to RM1.73 billion as at 31 December 2025, the Fund secured RM100.0 million in sustainability-linked financing during the year. We also established an Islamic Notes Issuance Programme with a nominal value of up to RM3.0 billion (Sukuk Programme Two). The Fund has issued Senior Sukuk under the programme of RM300.0 million on 15 August 2025 and RM240.0 million on 5 January 2026. The Senior Sukuk Issuances are rated AA2(s) by RAM Rating Services Berhad, which is premised on Axis REIT's credit profile.
Axis-REIT has long been a champion of sustainability, and over the years, we have successfully integrated this into the Fund’s processes and operations. These efforts have paid off, securing the Fund’s first green certified building in 2022 and then growing the portfolio of green-certified buildings to seven across six properties, proactively setting and working to achieve our sustainability targets for energy, water conservation, and waste reduction, as well as establishing an Environmental Policy in 2022
We are pleased to have sustained this momentum in 2025 with the development of the Fund’s Carbon Neutrality by 2050 Roadmap – a plan that maps out the Fund’s specific initiatives towards achieving our greenhouse gases (GHG) targets, designed to ensure measurable impact, accountability, and continuous improvement as we progress towards carbon neutrality by 2050.
During the year, we also completed our climate scenario analysis – a structured assessment on the impact of potential climate-related risks, such as rapid decarbonisation, regulatory changes, and extreme weather scenarios, on the Fund’s portfolio and operations.
Following these initiatives, we updated our operational sustainability targets, and now aim to achieve a 25% reduction in GHG emissions in five years (between 2026 and 2030), along with a 1% reduction in energy consumption over the same period. In order to achieve these targets, we will also leverage Malaysia’s green energy tariff (GET) programme to offset our carbon footprint towards achieving carbon neutrality by 2030.
Our commitment to sustainability is also underscored by continuous improvements in sustainability reporting, which has evolved from the publication of Axis-REIT’s inaugural sustainability report in 2016, to the Fund’s adoption of integrated reporting in 2020. In 2024, we further strengthened our disclosures by aligning with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which has since been incorporated into IFRS S2.
In 2025, we took proactive steps to align our reporting with emerging regulatory requirements by adopting the NSRF. Through this, we enhanced the Fund’s alignment with IFRS S1 and IFRS S2, in support of Malaysia’s national shift towards ISSB aligned reporting under the NSRF. This positions Axis-REIT to meet upcoming sustainability reporting requirements, while reinforcing our commitment to integrate stakeholder priorities and sustainability considerations into our business strategy.
In our adoption of Scope 3 reporting, we aim to address the largest and most significant portion of our carbon footprint emissions across the value chain, ensuring that the Fund has a comprehensive view of climate-related risks and opportunities. Toward this end, we reviewed all Scope 3 categories and identified seven that are material to Axis-REIT’s operations. In 2025, we meaningfully expanded our disclosures from two categories in 2024 to four categories, which now include Category 13, Downstream Leased Assets. This category accounts for the largest share of our total Scope 3 emissions, reflecting the nature of our operations as a landlord.
Going forward, with our commitment to NSRF, sustainability considerations will remain central to our operations and portfolio strategy. Key initiatives in the coming year include the application of the GET programme to meet the Fund’s GHG reduction targets, in line with our Carbon Neutrality by 2050 Roadmap. Concurrently, we will continue to collaborate with the Energy Commission to obtain Building Energy Intensity (BEI) star ratings for nine multi tenanted buildings. We will also continue our internal practices of collecting energy, water, and waste data from tenants, and will expand Scope 3 GHG disclosures to include supply chain data. We will continue enhancing our portfolio with green features where suitable, such as EV charging stations, renewable energy integration, and rainwater harvesting tanks, maintaining our annual target of obtaining at least one additional green building certification.
IFRS S1 and S2 embed risk management as a core reporting requirement, requiring that organisations disclose the processes for identifying, assessing, and managing sustainability-related and climate-related risks.
In adopting IFRS S1 and S2 requirements, we have strengthened the Fund’s risk management approach, mapping the SROs to the Fund’s 15 material sustainability matters and our Enterprise Risk Management (ERM) framework. We prioritised critical SROs and identified the material information required under IFRS standards, covering governance, strategy, risk management, and metrics and targets.
This process of embedding SRO analysis into the materiality process supports proactive risk management, and elevates the rigour, transparency, and comparability of our reporting. The integration of these insights into our everyday operations and forward looking strategic plans enhances long-term value creation and ensures the preservation of stakeholder trust.
In managing Axis-REIT, we recognise the importance of community partnerships, working alongside our industry peers, tenants, surrounding communities, and other stakeholders for the betterment of the industry and to support the communities in which we operate.
MRMA has been instrumental in the development of the REIT industry in Malaysia. As a founding member, we are proud of having always taken an active role in the association’s efforts, frequently collaborating, exchanging ideas, and engaging with regulators and Bursa Securities to build a stronger and more resilient REIT industry. This has been critical in building professional capacity and competencies, winning the trust of tenants and investors alike. Throughout our CEO's tenure as MRMA Chairman in 2024-2026, we have continued to advocate for the integration of ESG considerations into Malaysian REIT’s strategies and disclosures, encouraging members to align their practices with the principles of leading frameworks and standards to strengthen transparency and accountability and keep pace with the evolving investor and regulatory landscape.
Concurrently, we also engage our surrounding communities to better understand and support their needs. Our initiatives aim to strengthen community well-being and deliver meaningful, positive outcomes. These efforts include targeted investments in health and education initiatives that address community priorities and contribute to long-term positive impacts.
Looking ahead, Malaysia is poised for resilient economic growth, with the Ministry of Finance projecting gross domestic product (GDP) to grow between 4.0% and 4.5% in 2026. The external trade environment appears to have stabilised, and businesses have adapted well after the numerous external uncertainties faced in 2025. Against this backdrop we remain focused on strategically aligning Axis REIT’s portfolio and operations to capture opportunities in key growth sectors.
In pursuing our target to grow Axis-REIT’s Assets Under Management (AUM) to RM10 billion by the end of 2030, we will continue to seek portfolio expansion opportunities, particularly in high-growth sectors and key industrial hubs throughout Peninsular Malaysia. We will ensure sufficient liquidity to fund these ambitions, and at the same time, aim to convert the Fund’s remaining facilities to sustainability-linked financing, and explore opportunities for further green-financing/ sustainability-linked Sukuk issuances. To ensure alignment with sustainability-linked financing criteria and to qualify for applicable rebates, we will work towards achieving the predefined green building certification targets.
On the regulatory front, we are actively engaged in negotiations with policymakers and stakeholders for the renewal of the 10% withholding tax concession that had previously been granted to REITs, to protect the attractiveness of Malaysian REITs as an asset class. We will continue to strongly advocate for a resolution that supports the long-term stability and competitiveness of the sector as a whole.
We are grateful to our media partners, industry associations, and the broader business community, whose recognition of our efforts and achievements in the past 20 years highlights the strength and dedication of our team, as well as that of the entire industry. This year, we are honoured to celebrate the following prestigious awards, which are a reflection of our unwavering commitment to growth and innovation, and our continued pursuit of excellence into the future.
The awards also underscore the high level of scrutiny we face as corporate citizens – a responsibility we uphold with pride, encouraging the industry and our stakeholders to keep us aligned with our ambitions.
We extend our sincere appreciation to our esteemed stakeholders – Unitholders, tenants, contractors, suppliers, service providers, real estate agents, surrounding communities, and business partners – for your continued confidence in the Fund. We also wish to acknowledge our fellow Board members for their invaluable insights, guidance, and contributions, as well as the dedicated employees of the Manager, whose commitment, loyalty, and excellence have been instrumental to our success over the past 20 years. Collectively, your efforts have been the cornerstone of Axis-REIT’s achievements, and we look forward to building upon this foundation to reach even greater milestones in the years to come.
Looking ahead, we remain steadfast in our pursuit of growth. As we embark on the next 20 years and beyond, we do so with renewed determination, supported by the foundations of a solid property portfolio and team that we have established to ensure sustainable progress and long-term value creation.
Dato’ Carl Gunnar Myhre @ Dato’ Abas Carl Gunnar Bin Abdullah
Executive Chairman
Leong Kit May
Chief Executive Officer/Executive
Director
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