Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q1 2012 Earnings Presentation
75 slides from Axis Real Estate Investment Trust's earnings presentation, Apr 16, 2012
Slide 1: Presentation of 1Q 2012 Results
Presentation of 1Q 2012 Results April 16, 2012
Slide 2: Highlights
S 2 REAL ESTATE INVESTMENT TRUST
Slide 3: A Quick Snapshot
A Quick Snapshot YTD 31 MAR 2012 Total Net Income (RM' 000) 20,961 Income Available for Distribution ("Realised") (RM' 000)# 19,855 Earnings per Unit ("EPU") ("Realised") (Sen) 4.38 Income Distribution Declared (RM'000) 19,514 Distribution per Unit* ("DPU") (Sen) 4.30 Number of Investment Properties
Slide 4: Unit Price Performance continues to improve
Unit Price Performance continues to improve 4
Slide 5: Outperformed the KLSE in 1Q 2012
Outperformed the KLSE in 1Q 2012 AXIS REIT vs KLCI (April 2011- March 2012) Price & Volume Statistics Current Price : RM2.73 Average Monthly Volume in the last 12 : 3,710,650 months Highest Monthly Volume in the last 12 : 6,455,700 months @April 2011 Lowest Monthly Volume in the last 12 : 1,197,600
Slide 6: Financial Results – Income Statement
Financial Results – Income Statement Net Property Income exceeds 1Q2011 by 16.71% Changes / 1Q2012 1Q2011 Movement No. of Properties 29 27 +2 Property Income (RM’000) 32,236 27,248 + 18.31% Net Property Income (RM’000) 27,444 23,514 + 16.71% Income Before Taxation (RM’000) 19,855 16,205 + 22.52% Ear
Slide 7: Financial Results – Balance Sheet
Financial Results – Balance Sheet Trading at premium to NAV of 29.38% 31 MARCH 2012 31 DEC 2011 (RM ‘000) (RM’000) Total Assets 1,411,083 1,298,431 Investment Properties 1,392,984 1,276,180 Borrowings 406,531 311,338 Net Asset Value 959,274 944,097 Unitholders’ Capital 728,217 728,217 Gearing 28.81%
Slide 8: First Quarter 2012 Results
First Quarter 2012 Results
Slide 9: Financial Results – Income Statement
Financial Results – Income Statement 1Q 2012 1Q 2011 Changes / (RM ‘000) (RM’000) Movement No. of Properties 29 27 +2 Property Income 32,236 27,248 + 18.31% Property Expenses (4,792) (3,734) + 28.33% Net Property Income 27,444 23,514 + 16.71% Interest Income 50 - - Non-Property Expenses (2,937) (2,1
Slide 10: Financial Results – Income Statement
Financial Results – Income Statement 1Q2012 4Q2011 Changes / (RM ‘000) (RM’000) Movement No. of Properties 29 27 +2 Property Income – Note 1 32,236 29,526 + 9.18% Property Expenses – Note 2 (4,792) (4,597) + 4.24% Net Property Income 27,444 24,929 + 10.09% Interest Income 50 279 Non-Property Expense
Slide 11: Notes to Financial Results – Income Statement
Notes to Financial Results – Income Statement Note 1 – Property Income Increase in property income as compared to last preceding quarter is due to:- a) Contribution of proceeds from 2 new acquisitions completed in the current financial year; Seberang Perai Warehouse 3 and Bayan Lepas Distribution Ce
Slide 12: Notes to Financial Results – Income Statement
Notes to Financial Results – Income Statement Note 3 – Non-Property Expenses The increase in non-property expenses is due to the increase in the Net Asset Value (“NAV”) of the Fund driven mainly from the equity placement exercise towards the end of 4Q2011. The annualised Management Expenses Ratio (‘
Slide 13: Notes to Financial Results – Income Available For Distribution
Notes to Financial Results – Income Statement Note 5-Income Available For Distribution +22.5% RM(million) 4Q 2011 13
Slide 14: Notes to Financial Results – Units in issuance
Notes to Financial Results – Income Statement Note 6 – Units in issuance/ Unitholders’ base 500.000 Units in issuance increased by 20.7% in December 2012. 480.000 460.000 453.815 453.815 2011 placement and IDRP 440.000 420.000 million 400.000 375.901 375.901 380.000 360.000 340.000 320.000 300.000 O
Slide 15: Balance Sheet Highlights (RM'000)
Balance Sheet Highlights (RM’000) 31/03/12 31/12/11 Changes Investment Properties 1,392,984 1,276,180 + 116,804 Fixed Assets 614 102 + 512 Other Assets 17,485 22,149 - 4,664 TOTAL ASSETS 1,411,083 1,298,431 + 112,652 Borrowings 406,531 311,338 + 95,193 Other Payables 45,278 42,996 + 2,282 TOTAL LIAB
Slide 16: Summary of EPU (Realised) and DPU
Summary of EPU (Realised) and DPU Increasing DPU y-o-y since listing 1Q 16
Slide 17: Detailed Property Performance Analysis (RM'000)
Detailed Property Performance Analysis (RM’000) Book Value Fair Value Acq Cost + Annualised Gross Yield (a) Adjust (b) Enhancement (c) Revenue(d) (d) / (c) ABP 108,364 22,033 86,331 11,136 12.90% Axis Plaza 31,000 8,403 22,597 3,062 13.55% Crystal Plaza 101,792 39,540 62,252 10,279 16.51% Infinite C
Slide 18: Borrowings
Borrowings 2006 2007 2008 2009 2010 2011 2012(1Q) Total Borrowings 88,089 209,816 230,456 308,932 416,609 311,338 406,531 (RM’000) Total Assets 411,781 581,857 726,371 907,745 1,208,897 1,298,431 1,411,083 (RM’000) Gearings 21.39% 36.06% 31.73% 34.03% 34.46% 23.98% 28.81% Effective Interest 4.38% 4.
Slide 19: Gearing Levels
Gearing Levels Placements Undertaken 19
Slide 20: Management Expense Ratio (MER)
1,300 1,200 1,100 1,000 Management Expense Ratio (“MER”) MER= Total administrative expenses incl. Manager and Trustee’s fees Average net asset value of the Fund. 20
Slide 21: Total Assets and Unitholders' Funds
Total Assets and Unitholders’ Funds 21
Slide 22: Asset Enhancement & Appreciation of Values
Asset Enhancement & Appreciation of Values • As at 31 March 2012, only Axis Steel Centre (“ASC”) has undergone a full revaluation, as it is mandatory for the management to have a full valuation done every 3 years for each investment property. ASC’s market value has increased by RM300k to RM75.30 mil
Slide 23: Investor Relations
Investor Relations AtzelS REAL ESTATE INVESTMENT TRUST
Slide 24: > 1 Million Unitholders – Key Points
> 1 Million Unitholders – Key Points Top 10 Unitholders 1 EMPLOYEES PROVIDENT FUND BOARD 2 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 3 TEW PENG HWEE @ TEOH PENG HWEE AMANAH RAYA TRUSTEES BERHAD 4 SKIM AMANAH SAHAM BUMIPUTERA 5 ALEX LEE LAO 6 ABAS CARL GUNNAR BIN ABDULLAH CITIGROUP NOMINEES (TEMPATAN)
Slide 25: > 1 Million Unitholders – Key Points
> 1 Million Unitholders – Key Points Notable mentions of changes in CDS shareholdings 1.Public Smallcap Fund has added 4.94 million units to move up from 19th to 14th place 2.Hwang Select Dividend Fund has added 1.23 million units to move up from 35th to 27th place 3.Kumpulan Wang Persaraan (Diperba
Slide 26: > 1 Million Unitholders – Key Points
> 1 Million Unitholders – Key Points * Denotes Consolidated numbers of CDS accounts with similar names 26
Slide 27: Improving Investor Visibility and Liquidity
Improving Investor Visibility and Liquidity No. of Unitholders 3000 2702 2711 2597 2420 2500 2230 2109 1959 2000 1652 1500 1370 1166 1000 500 0 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Mar-12 Total foreign holdings stand at 12.26%. Related party 8.75% ; non-related party 3.50
Slide 28: Volume Performance
Volume Performance Significant improvement in the liquidity of the stock - Volume traded in 1Q2012 increased by 52% compared to volume traded in 4Q2011 1Q2012 – 12.2 million units transacted; compared to 17.7 million units transacted in 1Q2011 28
Slide 29: Bursa Market Chat
Bursa Market Chat Bursa Market Chat was held in a number of venues at different dates in 2012, e.g. on the 10th of March 2012 in Klang, whereby approximately 120 attendees were present. Axis REIT will continue to be supportive towards the upcoming ‘Market Chat’ roadshows to be organised by Bursa M
Slide 30: Other Events & Happenings
Other Events & Happenings NST RED Interview Date: 23 March 2012 Topic discussed: “Defensive REITs are a good play during uncertain times” Stewart LaBrooy and Sunway REIT CEO, Datuk Jeffrey Ng talked to NST RED on several issues for NST article, in the section – Real Estate & Décor (Cover Story colum
Slide 31: Business Development
Business Development AtzelS REAL ESTATE INVESTMENT TRUST
Slide 32: Logistics Warehouse at Bayan Lepas, Penang
Logistics Warehouse at Bayan Lepas, Penang Land Area : 7.61 acres (331,709 sq ft) Gross Built Up : 205,150 sq ft Land Tenure : Leasehold Occupancy : 100% Tenancy/lease period : 5+5 years Tenants : DHL Purchase Price : RM48.5 million Valuation : RM 48.5 million Projected Net Yield : 8.0% 32
Slide 33: Logistics Warehouse Bukit Tengah, Seberang Prai
Logistics Warehouse Bukit Tengah, Seberang Prai Land Area : 13.7 acres (596,800 sq ft) Gross Built Up : 380,000 sq ft Land Tenure : Leasehold Occupancy : 100% Tenancy/lease period : 3+2 years Tenants : DB Schenker Purchase Price : RM59.0 million Valuation : RM 62 million Projected Net Yield : 10.2%
Slide 34: Emerson Facility at Nilai, Seremban
Emerson Facility at Nilai, Seremban Land Area : 7.27 acres (316,863 sq ft) Gross Built Up : 192,677 sq ft Land Tenure : Leasehold (84 years unexpired) Occupancy : 100% Tenancy/lease period : 3+3+3 years Tenants : Emerson Process Management Manufacturing & K Plastics Industries Purchase Price : RM 26
Slide 35: Total Size of Pipeline for 2012
Total Size of Pipeline for 2012 1 Logistics DC in Bayan Lepas (Value R48,500,000) Completed 1 Logistics DC in Prai (Value, RM59,000,000) Completed An Industrial Facility in Nilai (Value RM 27,000,000) SPA Signed Completed and in progress – RM 134,500,000 Under Negotiation An Office/Industrial Fa
Slide 36: Property Report
Property Report AtzelS REAL ESTATE INVESTMENT TRUST
Slide 37: Income Growth – Rental Reversions in Q1 2012
Income Growth – Rental Reversions in Q1 2012 Space Renegotiated Properties (Sq. Ft.) % Movement Axis Business Park 10,796 +1.61% Axis Plaza 26,164 No Change Wisma Kemajuan 5,252 +3.16% Infinite Centre 9,250 +4.55% Kayangan Depot 2,609 No Change Axis Eureka 19,768 2.33% The Manager has successfully
Slide 38: Income Growth- Increasing Occupancy Rates for 2012
Income Growth- Increasing Occupancy Rates for 2012 As at 31st Dec 2011 97.22% As at 31st March 2012 97.82%
Slide 39: Occupancy Rates – 31st March 2012
Occupancy Rates – 31st March 2012 Vacant 2.18% As at 31st March 2012 Axis REIT has only 3 out of 29 properties that carry vacancy below 97%. 23 properties enjoy 100% occupancy Occupied 97.82% This is only 2.18% of NLA
Slide 40: Occupancy Rates
Occupancy Rates Occupancy rates of properties below 97% as of 31st March 2012 Axis Plaza 89.25% Wisma Kemajuan 78.72% Kayangan Depot 70.89% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% Occupancy %
Slide 41: Weighted Average Lease Expiry (WALE)
Weighted Average Lease Expiry (“WALE”) The Weighted Average Lease Expiry For the Portfolio is: By Net lettable Area = 5.64 years By Rental = 5.19 years
Slide 42: Risk management - Top Ten Tenants
Risk management -Top Ten Tenants -Strong Rental Covenants 1. Konsortium Logistik Bhd 2. LF Logistics Services (M) Sdn Bhd (Formerly known as IDS Logistics Services (M) Sdn Bhd) 3. Schenker Logistics (M) Sdn Bhd 4. Tesco Stores (M) Sdn Bhd 5. Tenaga Nasional Bhd 6. Fuji Xerox Asia Pacific Pte Ltd 7.
Slide 43: Risk Management- Keeping Occupancy Levels High
Risk Management- Keeping Occupancy Levels High
Slide 44: Risk Management- Keeping a Diverse Portfolio
Risk Management- Keeping a Diverse Portfolio Portfolio Diversification by Type and NLA Portfolio Diversification by Geographical and NLA Cyberjaya 2% 3% Kedah 3% Penang Petaling 12% Jaya 15% 35% Johor 47% 31% 20% Klang Shah Alam 8% 17% 7% Ofiice Office/Industrial Warehouse Retail Warehouse Logistic
Slide 45: Risk Management- Keeping a Diverse Portfolio
Risk Management- Keeping a Diverse Portfolio Single Tenant Vs Multi-Tenants 37% 63% Single Tenant Multi Tenants
Slide 46: Risk Profile – Manageable Lease Expiry Profiles
Risk Profile – Manageable Lease Expiry Profiles
Slide 47: Axis Facilities Management Sdn Bhd
Own + Maintain + Manage + Enhance Axis Facilities Management Sdn Bhd “Towards a World Class Asset Management Team”
Slide 48: The Real Estate Team
The Real Estate Team David Aboud Head of Development and Real Estate A team of 32 Real Estate Professionals takes excellent care of the Axis Portfolio
Slide 49: Continuous Asset Enhancement Programs
Continuous Asset Enhancement Programs Creating Value
Slide 50: Summary of Projects
Summary of Projects Project Budget Description Status Crystal Plaza - Refurbishment Main project completed and CAPEX Total CAPEX = RM6, 587,765.81 approved on 21st November 2011 completed. Subang Hi-Tech – Built to Suit Total CAPEX =RM3, 365,882.75. Project Completed Fonterra Handed over to Fonterra
Slide 51: Crystal Plaza Enhancement
Crystal Plaza Enhancement View from Federal Highway
Slide 52: Crystal Plaza Enhancement
Crystal Plaza Enhancement New Drop off and Canopy
Slide 53: Subang Hi-Tech – Built to Suit for Fonterra
Subang Hi-Tech – Built to Suit for Fonterra Projects Completed
Slide 54: Subang Hi-Tech – Built to Suit for Fonterra
Subang Hi-Tech – Built to Suit for Fonterra Projects Completed Main Frontage Side View from the Front
Slide 55: Subang Hi-Tech – Built to Suit for Fonterra
Subang Hi-Tech – Built to Suit for Fonterra Projects Completed Rear view – covered car park
Slide 56: Subang Hi-Tech
Subang Hi-Tech Project now completed Board presentation : 25th July 2011 √ Tendering exercise : 3rd Oct 2011 (completed and interview in progress) √ MBPJ approval :13th February 2012 √ Letter of award : 25th November 2011 √ Site Possession by Main Contractor : 25th November 2011 √ Current status as
Slide 57: Subang Hi-Tech
Subang Hi-Tech Project Deliverables – Value to the Fund The sitting tenant indicated they wanted to quit the premises and were agreeable to us secure an alternative tenant to release them from their obligations (they had 2.5 years remaining on the lease) We identified a new tenant, Fonterra Brands
Slide 58: Infinite Centre – existing site
Infinite Centre – existing site Projects Planned
Slide 59: Infinite Centre – New Enhancement
Infinite Centre – New Enhancement Projects Planned Perspective View:
Slide 60: Infinite Centre – New Enhancement
Infinite Centre – New Enhancement Projects Planned Perspective View:
Slide 61: Infinite Centre - New Enhancement
Infinite Centre - New Enhancement Projects Planned Project Status: Board presentation : 25th July 2011 √ : 30th January 2012 Architectural drawing preparation √ (100% drawing completed) MBPJ submission : 2nd April 2012 √ Tender completed : 16th March 2012 √ Contractors Award : 30th April 2012 Site P
Slide 62: Infinite Centre - New Enhancement
Infinite Centre - New Enhancement Projects Deliverables – Value to the Fund Current building is 30 years old. The age of the building was an impediment in getting traction in rental rates. This street has seen the new Jaya One development up the road raise standards and rentals in the area. Current
Slide 63: Wisma Bintang –Existing Site
Wisma Bintang –Existing Site Projects Planned Current Building Complex
Slide 64: Wisma Bintang Proposed Enhancement
Wisma Bintang Proposed Enhancement High Performance Building– Target MSC / Cyber Centre Status Axis Business Campus
Slide 65: Wisma Bintang Proposed Enhancement
Wisma Bintang Proposed Enhancement High Performance Building– Target MSC / Cyber Centre Status Perspective View:
Slide 66: Wisma Bintang Proposed Enhancement
Wisma Bintang Proposed Enhancement New Block and F&B arrangements
Slide 67: Wisma Bintang Proposed Enhancement
Wisma Bintang Proposed Enhancement Projects Deliverables - Value to the Fund Currently the building is leased to Cycle & Carriage on a sale and leaseback arrangement and this expires in June 2012. The Enhancement will add additional office space and refurbish existing office & warehouse space effect
Slide 68: Asset Enhancements- Axis Eureka Proposal
Asset Enhancements- Axis Eureka Proposal Projects Planned Present Building Complex
Slide 69: Asset Enhancements- Axis Eureka Proposal
Asset Enhancements- Axis Eureka Proposal Projects Planned New Building Proposal
Slide 70: Asset Enhancements- Axis Eureka Proposal
Asset Enhancements- Axis Eureka Proposal Projects Planned New Building Proposal
Slide 71: Asset Enhancements- Axis Eureka Proposal
Asset Enhancements- Axis Eureka Proposal Projects Planned New Main Lobby
Slide 72: Asset Enhancements- Axis Eureka Proposal
Asset Enhancements- Axis Eureka Proposal Projects Planned New F&B layout
Slide 73: Asset Enhancements- Axis Eureka Proposal
Asset Enhancements- Axis Eureka Proposal Projects Planned Top Floor conversion into lettable area
Slide 74: Asset Enhancements- Axis Eureka Proposal
Asset Enhancements- Axis Eureka Proposal Projects Planned Top floor office concept
Slide 75: Thank You
REAL ESTATE INVESTMENT TRUST Thank You
Axis Real Estate Investment Trust — Q1 2012 Earnings Presentation on 6ix