Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q3 2020 Earnings Presentation
38 slides from Axis Real Estate Investment Trust's earnings presentation, Oct 21, 2020
Slide 1: Results Presentation 3Q2020
A415 REAL ESTATE INVESTMENT TRUST Results Presentation 3Q2020 21 October 2020
Slide 2: Agenda
AGENDA
Slide 3: 3Q2020 Highlights
Avis 3Q2020 HIGHLIGHTS
Slide 4: Highlights: Portfolio Summary
aaa + o ie Aeals REAL ESTATE INVESTMENT TRUST HIGHLIGHTS PORTFOLIO SUMMARY 51 properties on portfolio 39 properties with 100% occupancy Total Assets Under Management RM3.3 billion Space Under Management 10.2 million sq ft Financing Ratio 32% Solid industrial space portfolio 92% of properties on indu
Slide 5: YTD 3Q2020 Highlights - Portfolio Performance
Angels YTD 3Q2020 HIGHLIGHTS — PORTFOLIO PERFORMANCE Total of 6.50 sen DPU declared for YTD 3Q2020. Investment properties currently stands at RM3.15 billion. Realised net income increased by 8.2% for YTD 3Q2020 as compared to YTD 3Q2019. The Axis Facility @ Batu Kawan development project has been su
Slide 6: YTD 3Q2020 Highlights - Portfolio Performance (continued)
Angels YTD 3Q2020 HIGHLIGHTS — PORTFOLIO PERFORMANCE Successfully signed the Sale & Purchase Agreement to acquire a warehouse facility for RM95.0 million, located in Section 15, Shah Alam, Selangor. Successfully signed the Sale & Purchase Agreement to acquire a warehouse facility for RM11.87 million
Slide 7: Portfolio Overview
Angels PORTFOLIO OVERVIEW |
Slide 8: Diversified and Expanding Portfolio: Space Under Management
(sq ft) 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 1,186,590 [| AWSels REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Space Under Management (sq ft) 2005 10,152,416 9,349,267 9.537.666 8,087,781 7,606,863 6,859,4747,015,242 5,463,599 5,464,124
Slide 9: Diversified and Expanding Portfolio by Location
AWS EAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Y Our 51 properties are strategically located in prime industrial areas such as Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah. v Pipeline acquisitions include additions in key industrial hubs in:
Slide 10: Portfolio Diversification by Tenant Industry, Asset Type, Occupancy
AWS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Portfolio Diversification Portfolio Diversification Portfolio Diversification by Tenant's Industry (on NLA) by Asset Type (on NLA) by Occupancy Type (on NLA) m Services m= Consumer Products *Industrial title prop
Slide 11: High Occupancy Rate with Income Visibility
AWls REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW HIGH OCCUPANCY RATE WITH INCOME VISIBILITY As at 30 September 2020, the portfolio has 51 assets comprising 10,152,416 sq. ft. and 148 tenants. No. of Properties 51 Property Income (RM‘000) 166,691 Property Expenses (RM’000) 25,071 Net Property Inc
Slide 12: Lease Expiry by Location and Asset Type
AWls REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW Lease Expiry By Location HIGH OCCUPANCY RATE WITH INCOME VISIBILITY of ‘% of Rental % of % of Rental Year of % of Rental Property TotalNLA _ Income/month Total NLA Income/month 2022 Total NLA Income/month Petaling Jaya 614,795 6.06 10.03 554,458 5
Slide 13: Properties with Occupancy Below 90%
Axis Business Park Fonterra HQ Crystal Plaza Wisma Kemajuan Menara Axis Axis Business Campus Quattro West Wisma Academy Parcel The Annex Axis Technology Centre Axis Industrial Facility@ Rawang AWls REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 30 SEPTEMBER
Slide 14: Established Nationwide Footprint and Top 10 Tenants
Penang (7.8%) Bayan Lepas * Seberang Perai Selangor (52.5%) Shah Alam (18.3%) Petaling Jaya (19.5%) Klang (9.9%) Rawang (3. Subang (1.8% Negeri Sembilan (6.8%) * Nilai * Senawang AaSels REAL ESTATE INVESTMENT TRUS PORTFOLIO OVERVIEW ESTABLISHED NATIONWIDE FOOTPRINT Top 10 Tenants Kedah (1.4%) Sungai
Slide 15: Completed Development: Axis Facility @ Batu Kawan
AWls REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW COMPLETED DEVELOPMENT Axis Facility @ Batu Kawan Net Lettable Area : 44,000 sq. ft. Land Area : Approx. 2.5 acres Land Tenure : Leasehold Tenant : Federal Express Services (M) Sdn Bhd Occupancy : 100% WALE : 10 years Construction Time : 5 months L
Slide 16: Completed Acquisitions (1-2)
AWS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 1. Axis Facility 2 @ Nilai, Negeri Sembilan 2. Axis Facility 2 @ Bukit Raja, Klang Completion Date : 28 February 2020 Completion Date : 17 March 2020 Net Lettable Area : 246,500 sq. ft. Nett Lettable Area : 199,890 sq. ft. La
Slide 17: Completed Acquisitions (3)
AWls REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 3. D37c Logistics Warehouse, PTP Johor Completion Date : 9 June 2020 Net Lettable Area : 222,723 sq. ft. Land Area : Approx. 8.2 acres Land Tenure : Sublease Occupancy : 100% Purchase Price : RM65.0 million WALE : Approx.8 y
Slide 18: Ongoing Acquisitions (1-2)
AWS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 1. One Total Logistics Warehouse, Seksyen15,Shah Alam —2. Manufacturing Facility, Seksyen 15, Shah Alam Target Completion Date : 2H2020 Target Completion Date : 2H2020 Net Lettable Area : 285,249 sq. ft. Net Lettable Area : 41,
Slide 19: Ongoing Acquisitions (3-4)
AWS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 3. Bayan Lepas Industrial Facility 1, Penang 4. Manufacturing Facility 1, iPark @ Indahpura Target Completion Date : 2H2020 Target Completion Date : 2H2020 Net Lettable Area : 78,024 sq. ft. Net Lettable Area : 24,949 sq. ft. L
Slide 20: Ongoing Acquisitions (5-6)
PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 5. Manufacturing Facility 2, iPark @ Indahpura Target Completion Date : 2H2020 Net Lettable Area : 35,339 sq. ft. Land Area : Approx. 1.2 acres Land Tenure : Freehold Occupancy : 100% Purchase Price : RM8.54 million WALE : Approx. 4 years 20 AWS REAL ESTATE IN
Slide 21: Total Estimated Value of Acquisition Targets
Total Estimated Value of Acquisition Targets RM195 million
Slide 22: Financial Overview
Angels FINANCIAL OVERVIEW | 22
Slide 23: Snapshot as at September 2020
Angels FINANCIAL OVERVIEW — SNAPSHOT AS AT 30 SEPTEMBER 2020 RM3.32 bn RM1.06 bn RM2.14bn Total Assets N Total Financings Total Unitholder’s Funds Sy==7& RM1.48 32% 3Q2020: 2.25 sen ER Net Asset Value Per Unit Financing Ratio 2Q2020: 2.15 sen 1Q2020: 2.10 sen Distribution Per Unit 23
Slide 24: Return Comparatives
6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% FINANCIAL OVERVIEW RETURN COMPARATIVES 5.45% AWls REAL ESTATE INVESTMENT TRUST 4.01% 2.63% Axis-REIT Distribution EPF Dividend Return 2019 10-yr MGS. 12 Months FD Rate OPR Yield (as at 16 Oct 2020) (as at 30 Sept 2020) 24
Slide 25: Income Statement 3Q2020 vs 3Q2019
FINANCIAL OVERVIEW INCOME STATEMENT 3Q2020 vs 3Q2019 3Q2020 3Q2019 Changes / (RM‘000) (RM‘000) Movement No. of Properties 51 47 +4 Property Income 57,010 53,635 - Property income before lease incentive adjustment 57,248 54,047 +5.9% - Lease incentive adjustment (non-distributable) (238) (412) Proper
Slide 26: Income Statement YTD 3Q2020 vs YTD 3Q2019
FINANCIAL OVERVIEW INCOME STATEMENT YTD 3Q2020 vs YTD 3Q2019 YTD 3Q2020 YTD 3Q2019 Changes / (RM‘000) (RM‘000) Movement No. of Properties 51 47 +4 Property Income- NOTE 1 166,691 160,952 - Property income before lease incentive adjustment 167,146 161,598 +3.4% - Lease incentive adjustment (non-distr
Slide 27: Income Statement Notes
Avzels meas INCOME STATEMENT YTD 3Q2020 vs YTD 3Q2019 - NOTES Note 1 - Property Income Increase in property income as compared to preceding year corresponding period was mainly due to the commencement of lease on Axis Facility @ Batu Kawan on 1 March 2020 and rental from newly acquired properties co
Slide 28: Income and Distribution Trends FY2016 to YTD 3Q2020
250,000 200,000 200,000 150,000 150,000 100,000 100,000 50,000 50,000 - - FY2016 FY2017 FY2018 FY2019 YTD 3Q2020 FY2016 FY2017 FY2018 FY2019 YTD 3Q2020 140,000 10.00 9.00 120,000 8.00 2.20 2.10 1.94 2.45 100,000 7.00 6.00 2.35 80,000 2.25 5.00 2.05 2.00 2.35 60,000 4.00 2.17 2.36 3.00 2.05 2.00 2.15
Slide 29: Portfolio Yield by Asset Types
AWSels REAL ESTATE INVESTMENT TRUST FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Net Yield (%) Gross Yield (%) Office 6.6 9.1 Office Industrial 6.3 8.9 Warehouse Logistics 8.5 94 Manufacturing Facilities 75 8.4 Hypermarket 8.2 8.8 Pm ss 29
Slide 30: Financial Position
Investment Properties — Note 1 Fixed Assets Other Assets - Note 2 TOTAL ASSETS Borrowings Other Payables Deferred Tax Liability TOTAL LIABILITIES NET ASSET VALUE (NAV) Unitholders' Capital - Note 3 Undistributed Distributable Income Non-Distributable Reserve TOTAL UNITHOLDERS' FUND GEARING NAV/UNIT
Slide 31: Notes - Financial Position
Avzels meas FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 - Investment Properties Total acquisitions of RM154.7 million including Axis Facility 2 @ Nilai, Axis Facility 2 @ Bukit Raja and D37c Logistics Warehouse were completed on 28 February 2020, 17 March 2020 and 9 June 2020 respectively.
Slide 32: 5-Year Debt Profile
Total Financing (RM‘000) Total Assets (RM’000) Gearing Effective Profit Rate Percentage of short term financing- Maturity < 1 Year Percentage of medium/ long term financing (maturity more than 1 year) Percentage of floating rate financing Percentage of fixed rate financing Total unencumbered assets
Slide 33: Gearing and Placements Undertaken
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% FINANCIAL OVERVIEW Allowable threshold of 50% will be increased to 60% effective from 12 August 2020 until 31 December 2022 Placements Undertakerlill AWS REAL ESTATE INVESTMENT TRUST 36% | 27% 40% 38% 36% 36% 33% 31% 33% 33% 33% 320% 27% 29% 30% 31% | | | )
Slide 34: Unitholders' Capital
RM mil 3,500.0 3,000.0 2,500.0 2,000.0 1,500.0 1,000.0 339.6 411.8 581.8 726.4 AWS REAL ESTATE INVESTMENT TRUST FINANCIAL OVERVIEW UNITHOLDERS’ CAPITAL 3,274.9 33218 31-Dec-05 31-Dec-07 3,085,7 31538 2,840.5 21415 *2hO 57 1,589.4 1,616.5 .8 [1,595.5 1,595.5 [1,595.5 1,240. - 1epse 1,044. 1,060, 907.
Slide 35: Stock Information
Asels STOCK INFORMATION |
Slide 36: Top Unitholders
AWls REAL ESTATE INVESTMENT TRUST STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 9.52% 2 EMPLOYEES PROVIDENT FUND BOARD 8.69% 3 LEMBAGA TABUNG HAJI 4.83% 4 TEW PENG HWEE @ TEOH PENG HWEE 3.91% 5 AMANAH SAHAM BUMIPUTERA 3.74% 6 ALEX LEELAO 3.72% 7
Slide 37: Investor Visibility & Liquidity
AWSels REAL ESTATE INVESTMENT TRUST STOCK INFORMATION INVESTOR VISIBILITY & LIQUIDITY Number of CDS Accounts 5,715 5,591 5,740 5913 5,217 i 4.1gq 11907 4579 4,632 4,585 4,581 4,787 gp103309 3611 3790 3,718 3,790 3891 3.934 4,011 4,098 ® 3,176 3,200 , 2,850 3,009 3,176 3,200 3, 2,420 2702 2010 2011 2
Slide 38: Thank You
Avis THANK YOU | www.axis-reit.com.my 38
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