AXIS Real Estate Investment Trust (Axis-REIT), which will be the first REIT to be listed on Bursa Malaysia, expects to offer a gross dividend yield of at least 8% every year.

''Investors can look forward to a very attractive dividend yield of 8.02% for the current financial year ending Dec 31,'' Axis REIT Managers Bhd executive director Stewart LaBrooy told a media conference before the launch of the company's prospectus in Kuala Lumpur yesterday.

He added that the REIT, scheduled to be listed on the main board on July 29, would provide yields of 8.63% and 8.93% in 2006 and 2007, respectively.

The company has established a policy of distributing at least 95% of its income as dividend for the next three years. LaBrooy said this policy was announced in its prospectus to assure investors of Axis-REIT's transparency although it was not specified in the listing guidelines.

''We expect to continue with this dividend policy after the specified three years. Most of our tenants have signed long lease tenures and this will allow us to continue giving dividends even during an economic downturn,'' he said.

As the trust depends on its tenants for rental income, the management carefully selects tenants that are mostly made up of multinational corporations as well as ensures that its properties meet thetenants' needs, said LaBrooy.

The company expects to grow by acquiring new properties located in the Klang Valley early next year.

''By investing a small capital outlay in Axis-REIT, the man-in-the-street can own professionally managed offices in excellent locations. As property prices always go up, investors will see their capital investment appreciating,'' LaBrooy added.

A total of 98.4 million Axis-REIT units are offered for subscription, consisting of 81.4 million units for institutional investors at a price to be determined via a book building exercise, 15 million units for the public, and 2 million units for eligible directors of Axis REIT Managers and Axis Development Sdn Bhd, at an indicative retail price of RM1.25 each.

Source : The Star  01/07/2005