DEVIATION OF UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007 BY MORE THAN 10% FROM THE PROJECTIONS CONTAINED IN THE PROSPECTUS DATED 30 JUNE 2005
| AXIS REAL ESTATE INVESTMENT TRUST |
| Type | Announcement |
| Subject | DEVIATION OF UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007 BY MORE THAN 10% FROM THE PROJECTIONS CONTAINED IN THE PROSPECTUS DATED 30 JUNE 2005 |
| Contents | In the Prospectus dated 30 June 2005 (“Prospectus”), Axis-REIT had projected RM23.8 million of Earnings After Tax (realised) for the year ended 31 December 2007 whereas the unaudited results for the year ended 31 December 2007 were RM28.0 million. The positive deviation of RM4.2 million representing 17.6% between the projections and unaudited results were contributed by:- 1. Net Property Income from the 5 IPO properties has exceeded the Prospectus projection by RM677,000. 2. The 9 properties subsequently acquired after the IPO have contributed to an increase of RM8,562,000 in Net Property Income. 3. Reduction in interest income by RM1,199,000 as more borrowings are utilised to acquire new properties during the year 2007. 4. Increase in Non Property Expenses of RM4,235,000 due to increase in Manager’s Fee from 0.70.% p.a. to 1.0% p.a. effective 1 July 2006, revaluation fees of properties to comply with accounting standards, borrowing cost incurred to secure new borrowing facilities and increase in interest expenses in meeting the financing need of Axis-REIT to acquire new properties. 5. Reversal of RM384,000 in taxation expenses as pursuant to the amendment of Section 61A of the Income Tax Act 1967, Axis-REIT will not incur any tax expense in year 2007 as it distributes more than 90% of its total income. However there is an unprojected overprovision of year 2006 tax expense of RM3,000 adjusted in year 2007 financials. This announcement is dated 7 January 2008. |
Announcement Info
| Company Name | AXIS REAL ESTATE INVESTMENT TRUST |
| Stock Name | AXREIT |
| Date Announced | 7 Jan 2008 |
| Category | General Announcement |
| Reference No | CC-080107-41133 |
