On 19 October 2015, the Board of Directors of Axis REIT Managers Berhad (“Board”), the management company of Axis Real Estate Investment Trust (“Axis-REIT”) (“Manager”), has announced the quarterly results for the financial period ended 30 September 2015 and proposed a third interim income distribution in respect of the period from 1 July 2015 to 30 September 2015 of 2.20 sen per unit (of which 2.10 sen per unit is taxable and 0.10 sen per unit is non-taxable in the hands of unitholders) (“2015 Third Interim Income Distribution”).
The Board has determined that the IDRP, which allows unitholders of Axis-REIT to reinvest their income distribution in new units, will apply to the 2015 Third Interim Income Distribution, in which the gross electable portion of 1.00 sen per unit out of the 2015 Third Interim Income Distribution of 2.20 sen per unit (which is taxable in the hands of unitholders) (“Electable Portion”) can be elected to be reinvested in new units and the remaining portion of 1.20 sen per unit (of which 1.10 sen per unit is taxable and 0.10 sen per unit is non-taxable in the hands of unitholders) will be paid in cash.
The IDRP also provides the unitholders the option to reinvest the entire Electable Portion or part of the Electable Portion based on the proportion as determined by the Board. In this regard, the Board has also determined the proportion of the Electable Portion in which the unitholders can elect to reinvest in new units will be 0.50 sen per unit (which is taxable in the hands of unitholders) of the Electable Portion, and the remaining 0.50 sen per unit (which is taxable in the hands of unitholders) of the Electable Portion will be paid in cash. If the unitholders elect not to participate in the IDRP, then the Electable Portion will be paid wholly in cash.
The Board wishes to announce that the issue price of new units to be issued pursuant to the IDRP applicable to the 2015 Third Interim Income Distribution has been fixed today (“Price Fixing Date”) at RM1.59 per new unit. The issue price is based on the five (5)-day volume weighted average market price (“VWAMP”) of the units up to and including 16 October 2015, being the last trading day immediately prior to the Price Fixing Date of RM1.6875 per unit, and after adjusting for a discount of RM0.0975 which is approximately 5.8% discount to the five (5)-day VWAMP of RM1.6875 per unit.
The Board has also announced on even date that the book closure date pursuant to the 2015 Third Interim Income Distribution and the IDRP has been fixed for 2 November 2015.
Barring any unforeseen circumstances, the new units arising from the exercise of IDRP will be listed on the Main Market of Bursa Malaysia Securities Berhad on 10 December 2015.
This announcement is dated 19 October 2015.
