Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q2 2024 Earnings Presentation
40 slides from Axis Real Estate Investment Trust's earnings presentation, Jul 23, 2024
Slide 1: Results Presentation 2Q2024
Aw%lS AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 2Q2024 23 July 2024
Slide 2: Highlights, Portfolio Overview, Financial Overview, Stock Information
HIGHLIGHTS PORTFOLIO FINANCIAL STOCK OVERVIEW OVERVIEW INFORMATION
Slide 3: Highlights
HIGHLIGHTS Asses
Slide 4: Highlights
HIGHLIGHTS A 64 properties on portfolio @xgp Portfolio Occupancy of 89% (as at 30/6/2024) =a 51 properties with 100% occupancy (ir Weighted Average Lease Expiry of 4.9 years * . : . Total Assets Under Management ) Reclassified as Islamic REIT in 2008 RM4.69 billion ffl Distribution Per Unit 1H2024 l
Slide 5: 1H2024 Highlights
1H2024 HIGHLIGHTS Investment properties currently stands at RM4.56 billion. Traded at a premium of 13.2% to NAV as at 30 June 2024. Total of 4.55 sen DPU declared for 1H2024 Portfolio size increased by 2 to a total of 64 properties as at 30 June 2024 and further increased to 67 properties as at 23 J
Slide 6: 1H2024 Highlights
1H2024 HIGHLIGHTS Signed the Sale and Purchase Agreement to acquire an industrial facility in Petaling Jaya, Selangor for the proposed purchase consideration of RM69,000,000 on 23 May 2024. The acquisition completed on 15 July 2024 and the property is now known as Axis Vista 2. Signed the Sale and P
Slide 7: Environment, Social, Governance
✓Efficient energy management: ✓Donated an ambulance to ✓Best practices: Environment Social • Replacing conventional lighting with SJAM for emergency • Complied with 30% female energy efficient lighting ambulance services in representation on Board with • Leasing roof space to install solar Kota Kina
Slide 8: Portfolio Overview
PORTFOLIO OVERVIEW Asses
Slide 9: Portfolio Overview
PORTFOLIO OVERVIEW As at 30 June 2024, the portfolio has 64 assets comprising 14,153,562 sq. ft. and 177 tenants. No. of Properties 64 Realised Property Income (RM‘000) 151,538 Property Expenses (RM’‘000) 22,378 Realised Net Property Income (RM’‘000) 129,160 Occupancy 89% Portfolio Efficiency Ratio
Slide 10: Space Under Management
(sq fi) PORTFOLIO OVERVIEW Space Under Management (sq ft) 16,000,000 14,153,562 14,000,000 13,351,168 12,726,260 12,000,000 11,374,703 10,478,726 10,000,000 9,537,666 9,349,267 8,087,781 “me 7,606,863 6,859,474 7,015,242 6,000,000 5,463,599 4,288,054 4,449,580 5,464,124 4,000,000 3,679,796 2,858,121
Slide 11: Portfolio Diversification by Location
PORTFOLIO OVERVIEW Y Our 64 properties are strategically located in prime industrial areas such as Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah. Y Focus areas for pipeline acquisitions include key industrial hubs of: * Selangor * Johor * Penang Y This geographical diversification i
Slide 12: Portfolio Diversification by Sector, Occupancy and Asset Type
PORTFOLIO OVERVIEW Portfolio Diversification by Industry Sector (on NLA) m Services m™ Consumer Products = Manufacturing B Logistics m Vacant Portfolio Diversification by Occupancy Type (on NLA) Portfolio Diversification by Asset Type (on NLA) @ Office/ Industrial m= Logistic Warehouse § Office m= H
Slide 13: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 30 JUNE 2024 Fonte sx Axis Industrial Facility 1 @ Shah Alam. Wisma Academy Parcel ‘Axis Business Campus Wisma Kemajuan The Annex Menara Axis Axis Mega Distribution Centre Axis Steel Centre @ SILC Notes: 1. Vacant space in Fonterra HQ is b
Slide 14: Lease Expiry by Location
Lease Expiry By Location PORTFOLIO OVERVIEW Year % of % of Rental Year % of % of Rental Year % of % of Rental Property 2024 TotalNLA __Income/month 2025 TotalNLA __Income/month 2026 TotalNLA _Income/month Petaling Jaya 588,693 4.16 7.12 740,859 5.23 9.28 393,114 2.78 462| Subang - - - 30,250 021 0.5
Slide 15: Established Nationwide Footprint and Top 10 Tenants
PORTFOLIO OVERVIEW ESTABLISHED NATIONWIDE FOOTPRINT \ Kedah (1%) Penang (5%) * SungaiPetani * Bayan Lepas * SeberangPerai * Batu Kawan Pahang (4%) * Kuantan Selangor (51%) * Shah Alam Petaling Jaya 4 Johor (34%) Klang * Pasir Gudang Rawang * Gelang Patah Subang f * Iskandar Puteri * Kulaijaya Negeri
Slide 16: Completed Development: Axis Mega Distribution Centre (Phase 2)
PORTFOLIO OVERVIEW COMPLETED DEVELOPMENT Axis Mega Distribution Centre (Phase 2) Lettable Area Occupancy Land Area Land Tenure Est. Development Cost Tenant cm ccc certified Obtained : 509,040 sq. ft. building 27 March 2024 : 25% as at 23 July 2024 : Approx. 20.0 acres : Freehold : Approx. RM180.0 mi
Slide 17: Completed Acquisition: Axis Hypermarket @ Temerloh
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Hypermarket @ Temerloh, Pahang Completion Date : 16 January 2024 Net Lettable Area d Approx. 93,854 sq. ft. Land Area : Approx. 1.85 acres Land Tenure : Freehold Occupancy : 100% Purchase Price : RM25.75 million WALE at Acquisition : 20 years Tenant : TF
Slide 18: Property Views
(Front view of Property) (Rear view of Property)
Slide 19: Completed Acquisition: Axis Vista
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Vista 2 Completion Date $ 15 July 2024 Net Lettable Area : 156,000 sf. Land Area $ Approx. 2.36 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM69.0 million WALE at Acquisition : 10 years \7 Tenant : Cycle & Carriage Bintang Berhad AX I
Slide 20: Completed Acquisition: Axis Industrial Facility @ Batu Caves
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Industrial Facility @ Batu Caves Completion Date Net Lettable Area Land Area Land Tenure Occupancy Purchase Price WALE at Acquisition Tenant 15 July 2024 71,000 sf. Approx. 4.09 acres Leasehold 100% RM56.0 million 10 years Cycle & Carriage Bintang Berhad
Slide 21: Completed Acquisition: Axis Industrial Facility @ Sendayan
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Industrial Facility @ Sendayan Completion Date Net Lettable Area Land Area Land Tenure Occupancy Purchase Price WALE at Acquisition Tenant 23 July 2024 105,310 sq. ft. Approx. 14.63 acres Freehold 100% RM48.0 million Approx. 6 years Sandvik Equipment Sdn
Slide 22: Ongoing Acquisition: Bukit Raja, Klang
PORTFOLIO OVERVIEW ONGOING ACQUISITION Manufacturing Facility and Storage Yard in Bukit Raja, Klang Property 1 Target Completion Date : Net Lettable Area Land Area Land Tenure Occupancy Purchase Price WALE at Acquisition 2H2024 924,000 sq. ft. Approx. 59.96 acres Leasehold 100% RM313.0 million Appro
Slide 23: Aerial View of Properties and Vicinity
(Aerial view of Properties and its vicinity, Source: Google Maps)
Slide 24: Total Estimated Value of Acquisition Targets RM220 million
✓ ✓ ✓ Total Estimated Value of Acquisition Targets RM220 million
Slide 25: Financial Overview
FINANCIAL OVERVIEW Asses
Slide 26: Snapshot as at June 2024
FINANCIAL OVERVIEW SNAPSHOT AS AT 30 JUNE 2024 RM4.69 billion RM1.69 billion RM2.83 billion Total Assets Total Financing Total Unitholder’s Funds =5¢ RM1.62 36.1% 1Q2024: 2.30 sen ER Net Asset Value Per Unit Financing Ratio 2Q2024: 2.25 sen Distribution per unit
Slide 27: Income Statement 2Q2024 vs 2Q2023
FINANCIAL OVERVIEW INCOME STATEMENT 2Q2024 vs 2Q2023 2Q2024 2Q2023 Changes / (RM‘000) (RM‘000) Movement No. of Properties 64 62 +2 Property Income 76,261 68,065 +12% - Property income before lease incentive adjustment 76,064 67,943 +12% - Lease incentive adjustment (non-distributable) 197 122 Proper
Slide 28: Income Statement 1H2024 vs 1H2023
FINANCIAL OVERVIEW INCOME STATEMENT 1H2024 vs 1H2023 1H2024 1H2023 Changes / (RM‘000) (RM‘000) Movement No. of Properties 64 62 +2 Property Income — Note 1 151,538 137,816 +10% - Property income before lease incentive adjustment 151,242 137,597 +9,9% - Lease incentive adjustment (non-distributable)
Slide 29: Income Statement Notes
FINANCIAL OVERVIEW INCOME STATEMENT 1H2024 vs 1H2023 - NOTES Note 1 - Property Income Property income is higher as compared to preceding year corresponding period mainly due to: = Commencement of lease for Bukit Raja Distribution Centre 2 in August 2023 with a monthly rental of RM1.35 million = Posi
Slide 30: Distribution per Unit
FY2020 FY2021 FY2022 FY2023 1H2024 2.41 2.33 2.25 2.40 2.45 2.45 2.25 2.15 2.40 2.55 2.25 2.15 2.05 2.10 2.23 2.42 2.05 2.30 FY2020 FY2021 FY2022 FY2023 1H2024 FY2020 FY2021 FY2022 FY2023 FY2024
Slide 31: Portfolio Yield by Asset Types
FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Net Yield (%) Gross Yield (%) Office 6.9 9.6 Office Industrial 7.1 97 Logistics Warehouse 79 8.8 Manufacturing Facilities 78 8.7 Hypermarket 8.2 8.9 javenge | 7] tt
Slide 32: Financial Position
FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties— Note 1 4,405,355 4,444,120 -38,765 Fixed Assets 1,283 1,391 -108 Asset Classified as Held for Sale- Note 1 159,000 - +159,000 Other Assets - Note 2 122,256 77,382 +44,874 TOTAL ASSETS 4,687,894 4,522,893 +165,001 Financing - Note 3 1,690,2
Slide 33: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 - Investment Properties During the period, a total of RM44.1 million was spent on capital expenditure as below: * —RMB8.5 million for enhancement of existing properties, * —RM35.6 million for the development project Axis Mega Distribution Centre (
Slide 34: Note 3: 5-Year Financing Profile
FINANCIAL OVERVIEW NOTE 3: 5-YEAR FINANCING PROFILE Total Financing (RM’000) 1,112,183 1,184,593 1,546,020 1,554,974 690,210 Total Assets (RM’000) 3,364,083 3,838,760 4,255,673 4,522,893 4,687,894 Financing Ratio 33.06% 30.86% 36.33% 34.38% 36.05% Effective Profit Rate 3.89% 3.63% 3.87% 4.19% 4.13%
Slide 35: Financing Ratio
FINANCIAL OVERVIEW FINANCING RATIO Placements Undertaken [J 36% | 330 34% 35% 34% | > PP > ‘a Sa SS SS PP SF PF SM SF 40% 37% 29% 30% | 31% 094 ) “) o ~~ iy oe oe 38% Se 33%33% 33% 24% ~ & > <\ Ss Sy SY Ss & Ss 41S 5:
Slide 36: Unitholders' Capital
RM mil FINANCIAL OVERVIEW UNITHOLDERS’ CAPITAL 4,687.9 4,522.9 4591.8 4,255.7 ia a a oe =Total Asset ™ Unitholders' Capital A®AlS ..
Slide 37: Stock Information
STOCK INFORMATION Asses
Slide 38: Top Unitholders
STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 8.42% 2 EMPLOYEES PROVIDENT FUND BOARD 5.62% 3 LEMBAGA TABUNG HAJI 5.28% 4 AMANAH SAHAM BUMIPUTERA 4.58% 5 PUBLIC ITTIKAL SEQUEL FUND 3.97% 6 EMPLOYEES PROVIDENT FUND BOARD (ISLAMIC) 3.37% 7 TEW PENG
Slide 39: 14,000 12,227 12,247 12,010 12,000 10,521 10,000 8,000 6,776 5,715 6,000 4,585 3,891 4,184
14,000 12,227 12,247 12,010 12,000 10,521 10,000 8,000 6,776 5,715 6,000 4,585 3,891 4,184 4,000 3,611 2,000 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 1H2024
Slide 40: Thank You
THANK YOU Asses
Axis Real Estate Investment Trust — Q2 2024 Earnings Presentation on 6ix