KUALA LUMPUR: Axis Real Estate Investment Trust's (Axis Reit) earnings outlook is expected to remain positive, said MIDF Research. 

This will be supported by steady growth for industrial assets on the back of solid demand for industrial space.

"(Axis Reit's) earnings growth is also expected to be driven by contribution from potential asset acquisitions target with a total estimated value of RM120 million," it said.

MIDF Research said Axis-Reit's first quarter (Q1) FY22 core net earnings of RM39.1 million came in within expectations, due to contributions from three newly-acquired assets. 

Besides, earnings growth was also driven by positive rental reversion as demand for industrial space remains stable.

The firm said the RM39.1 million made up 27.6 per cent and 26.1 per cent of its and consensus full-year earnings estimates respectively.

MIDF Research has maintained its "Buy" call on the stock with an unchanged target price of RM2.08. 

"We maintain our Buy call on Axis Reit as we like their exposure to industrial assets which will drive steady earnings growth. Meanwhile, distribution yield is estimated at 4.6 per cent," it said.