Axis Real Estate Investment Trust · MYX:AXREIT

Axis Real Estate Investment Trust — Q1 2022 Earnings Presentation

33 slides from Axis Real Estate Investment Trust's earnings presentation, Apr 20, 2022

  1. Slide 1: Results Presentation 1Q2022

    AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 1Q2022 20 April 2022

  2. Slide 2: Highlights, Portfolio Overview, Financial Overview, Stock Information

    PORTFOLIO FINANCIAL STOCK HIGHLIGHTS OVERVIEW OVERVIEW INFORMATION 1

  3. Slide 3: Highlights

    HIGHLIGHTS 2

  4. Slide 4: Highlights

    HIGHLIGHTS 60 properties on portfolio Portfolio Occupancy of 96% (as at 31/3/2022) 49 properties with 100% occupancy Weighted Average Lease Expiry of 5.2 years 1 property under development Total Assets Under Management Reclassified as Islamic REIT in 2008 RM3.76 billion Space Under Management Distri

  5. Slide 5: 1Q2022 Highlights

    1Q2022 HIGHLIGHTS ► Declared 1st interim 2022 DPU of 2.42 sen. ► Portfolio size increased by 2 to a total of 60 properties. ► Investment properties currently stands at RM3.7 billion. ► Announced the implementation of the Income Distribution Reinvestment Plan in conjunction with the payment of 2022 f

  6. Slide 6: Portfolio Overview

    PORTFOLIO OVERVIEW 5

  7. Slide 7: Space Under Management

    PORTFOLIO OVERVIEW Space Under Management (sq ft) 12,000,000 11,374,703 11,383,441 10,478,726 10,000,000 9,349,267 9,537,666 8,087,781 8,000,000 7,606,863 6,859,474 7,015,242 ( sq ft) 6,000,000 5,463,599 5,464,124 4,288,054 4,449,580 4,000,000 3,679,796 2,858,121 2,175,522 2,000,000 1,656,943 1,186,

  8. Slide 8: Portfolio Diversification by Location

    PORTFOLIO OVERVIEW ✓ Our 60 properties are strategically located in prime industrial areas such as Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah. ✓ Pipeline acquisitions include additions in key industrial hubs of: • Penang • Selangor • Johor ✓ This geographical diversification is a

  9. Slide 9: Portfolio Diversification by Sector, Asset Type and Occupancy

    PORTFOLIO OVERVIEW Portfolio Diversification Portfolio Diversification Portfolio Diversification by Industry Sector (on NLA) by Asset Type (on NLA) by Occupancy Type (on NLA) Services Consumer Products Single Tenant Multi Tenants Manufacturing Logistics Vacant Office Office/ Industrial 4% Hypermarke

  10. Slide 10: Portfolio Overview: Properties and Efficiency Ratio

    PORTFOLIO OVERVIEW As at 31 March 2022, the portfolio has 60 assets comprising 11,383,441 sq. ft. and 154 tenants. 1Q2022 No. of Properties 60 000) 66,480 000) 8,760 000) 57,720 Occupancy 96% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 1Q2022 2021 2020 2019 2018 13.18% 1

  11. Slide 11: Properties with Occupancy Below 90%

    PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 31 MARCH 2022 Fonterra HQ 85% Axis Business Park 81% Axis Ind. Facility 1@Shah Alam (fka Axis MRO Hub) 78% Axis Business Campus 75% Wisma Academy Parcel 74% Wisma Kemajuan 70% Crystal Plaza 63% The Annex 60% Menara Axis 58% Axis Technology

  12. Slide 12: Lease Expiry by Location and Type

    PORTFOLIO OVERVIEW Lease Expiry By Location Year % of % of Rental Year % of % of Rental Year % of % of Rental Property 2022 Total NLA Income/month 2023 Total NLA Income/month 2024 Total NLA Income/month Petaling Jaya 572,265 5.03 2.82 469,068 4.12 2.08 433,338 3.81 2.23 Shah Alam 566,072 4.97 1.67 6

  13. Slide 13: Top Tenants

    PORTFOLIO OVERVIEW Top 10 Tenants ESTABLISHED NATIONWIDE FOOTPRINT YTD top ten tenants accounted for 43.79% of the total revenue Kedah (1%) Penang (7%) • Sungai Petani 1. Nestle Products Sdn Bhd • Bayan Lepas • Seberang Perai 2. LF Logistics Services (M) Sdn Bhd • Batu Kawan 3. Schenker Logistics (M

  14. Slide 14: Ongoing Development

    PORTFOLIO OVERVIEW ONGOING DEVELOPMENT Bukit Raja Distribution Centre 2 Gross Built-up Area : 620,096 sq. ft. Land Area : Approx. 20.75 acres Land Tenure : Freehold Lessee : Shopee Express Malaysia Sdn. Bhd. WALE : 15 years Lease Commencement : No later than 31 August 2023 Development Value : Approx

  15. Slide 15: Completed Acquisitions

    PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 1. Pasir Gudang Logistics Warehouse 2, Johor 2. Indahpura Facility 4, Johor Completion Date : 7 March 2022 Completion Date : 8 March 2022 Net Lettable Area : 276,000 sq. ft. Net Lettable Area : 59,956 sq. ft. Land Area : Approx. 12.80 acres Land Area : Appro

  16. Slide 16: Ongoing Acquisitions

    PORTFOLIO OVERVIEW ONGOING ACQUISITIONS DW1 Logistics Warehouse, Johor Target Completion Date : 1H2022 Net Lettable Area : 1,150,391 sq. ft. Land Area : Approx. 18.4 acres Land Tenure : Approx. 33 years Sublease Occupancy : 100% Purchase Price : RM390.0 million WALE at Acquisition : 10 years 15

  17. Slide 17: Acquisitions Strategy

    PORTFOLIO OVERVIEW ACQUISITIONS STRATEGY The Manager continues to aggressively source and evaluate potential acquisition targets that are deemed investable by Axis-REIT. The selection of properties continue to focus on below: ✓ Grade A logistics facilities and manufacturing facilities with long leas

  18. Slide 18: Financial Overview

    FINANCIAL OVERVIEW 17

  19. Slide 19: Snapshot as at March 2022

    FINANCIAL OVERVIEW SNAPSHOT AS AT 31 MARCH 2022 RM3.76 billion RM1.11 billion RM2.53 billion Total Assets Total Financing RM1.55 29% 1Q2022: 2.42 sen Net Asset Value Per Unit Financing Ratio Distribution Per Unit 18

  20. Slide 20: Return Comparatives

    FINANCIAL OVERVIEW RETURN COMPARATIVES 7.00% 6.10% 6.00% 5.20% 5.00% 4.00% 4.00% 3.00% 2.00% 1.75% 1.75% 1.00% 0.00% Axis-REIT Distribution EPF Dividend Return 2021 10-yr MGS 12 Months FD Rate OPR Yield (as at 8 April 2022) (as at 8 April 2022) (based on RM1.86 closing price) 19

  21. Slide 21: Income Statement 1Q2022 vs 1Q2021

    FINANCIAL OVERVIEW INCOME STATEMENT 1Q2022 vs 1Q2021 1Q2022 1Q2021 Changes / Movement No. of Properties 60 57 +3 Property Income Note 1 66,480 57,378 Property Income - Property income before lease incentive adjustment 66,159 57,690 +14.7 - Lease incentive adjustment (non-distributable) 321 (312) Pro

  22. Slide 22: Income Statement Notes

    FINANCIAL OVERVIEW INCOME STATEMENT 1Q2022 vs 1Q2021 - NOTES Note 1 Property Income Increase in property income as compared to preceding year corresponding period was mainly due to: • rental from newly acquired properties • commencement of new tenancies at Axis Industrial Facility @ Rawang and D8 Lo

  23. Slide 23: 5-Year Performance

    FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Net Property Income (RM'000)* Revenue (RM'000)* 300,000 250,000 209,433 208,291 242,747 241,605 250,000 224,712 200,000 185,249 184,219 190,996 190,348 203,637 216,005 214,975 224,064 175,810 169,415 200,000 197,242 150,000 150,000 100,000 100,000 66,159 66,480

  24. Slide 24: Yield by Asset Types

    FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 6.1 8.6 Office Industrial 6.8 8.7 Logistics Warehouse 8.0 8.8 Manufacturing Facilities 8.1 8.9 Hypermarket 8.3 8.9 Average 7.7 8.8 23

  25. Slide 25: Financial Position

    FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 3,668,947 3,614,230 +54,717 Fixed Assets 2,263 2,410 -147 Other Assets Note 2 91,039 222,120 -131,081 TOTAL ASSETS 3,762,249 3,838,760 -76,511 Financing Note 3 1,107,731 1,184,593 -76,862 Other Payables 110,137 114,049 -3,912 Deferre

  26. Slide 26: Notes - Financial Position

    FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the period, a total of RM5.4 million was spent on capital expenditure on existing properties, of which RM2.7 million was incurred for the ongoing development project of Bukit Raja Distribution Centre 2. Total acquisiti

  27. Slide 27: Note 3: 5-Year Financing Profile

    FINANCIAL OVERVIEW NOTE 3: 5-YEAR FINANCING PROFILE 2018 2019 2020 2021 1Q2022 1,059,367 885,859 1,112,183 1,184,593 1,107,731 2,840,463 3,085,681 3,364,083 3,838,760 3,762,249 Financing Ratio 37.30% 28.71% 33.06% 30.86% 29.44% Effective Profit Rate 4.32% 4.37% 3.89% 3.63% 3.90% Percentage of short

  28. Slide 28: Financing Ratio

    FINANCIAL OVERVIEW FINANCING RATIO Allowable threshold of 50% has been increased to 60% Placements Undertaken effective from 12 August 2020 until 31 December 2022 50% 45% 40% 40% 38% 37% 36% 36% 36% 35% 33% 33% 33% 33% 31% 31% 29% 30% 29% 30% 27% 27% 25% 24% 20% 15% 10% 5% 0% 27

  29. Slide 29: Total Assets and Unitholders' Capital

    FINANCIAL OVERVIEW 4,000.0 3,838.8 3,762.2 3,500.0 3,364.1 3,085.7 3,000.0 2,840.5 2,549.6 2,500.0 2,244.0 2,141.5 2,085.7 1,934.3 1,934.3 2,000.0 RM mil 1,589.4 1,616.5 1,583.8 1,595.5 1,500.0 1,298.4 1,240.3 1,247.1 1,208.9 1,044.7 1,052.3 1,060.0 1,000.0 907.7 726.4 728.2 735.4 751.0 581.8 540.3

  30. Slide 30: Stock Information

    STOCK INFORMATION 29

  31. Slide 31: Stock Information: Top Unitholders

    STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 EMPLOYEES PROVIDENT FUND BOARD 9.45% 2 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 8.85% 3 LEMBAGA TABUNG HAJI 4.66% 4 AMANAH SAHAM BUMIPUTERA 3.87% 5 TEW PENG HWEE @ TEOH PENG HWEE 3.50% 6 ALEX LEE LAO 3.30% 7 EMPLOYEES PROVIDENT FUND BOARD (

  32. Slide 32: Stock Information: Unitholder Accounts and Holdings

    STOCK INFORMATION 12,000 Number of CDS Accounts 10,521 11,022 10,000 8,000 6,776 5,715 6,000 4,585 3,891 4,184 4,000 3,611 2,850 3,009 3,176 2,000 - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1Q2022 Units Held 1Q2022 Units Held 4Q2021 Movement Total no. of unitholders 11,022 10,521 501 Total

  33. Slide 33: Thank You

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