Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q1 2024 Earnings Presentation
37 slides from Axis Real Estate Investment Trust's earnings presentation, Apr 23, 2024
Slide 1: Axis Real Estate Investment Trust Results Presentation 1Q2024
AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 1Q2024 23 April 2024
Slide 2: Highlights, Portfolio Overview, Financial Overview, Stock Information
HIGHLIGHTS PORTFOLIO FINANCIAL STOCK OVERVIEW OVERVIEW INFORMATION 2
Slide 3: Highlights
HIGHLIGHTS Asses
Slide 4: Highlights
HIGHLIGHTS 63 properties on portfolio Portfolio Occupancy of 89%* (as at 31/3/2024) 49 properties with 100% occupancy Weighted Average Lease Expiry of 5 years Total Assets Under Management Reclassified as Islamic REIT in 2008 RM4.59 billion Distribution Per Unit 1Q2024 Space Under Management 2.30 se
Slide 5: 1Q2024 Highlights
1Q2024 HIGHLIGHTS ➢ Investment properties currently stands at RM4.51 billion. ➢ Traded at a premium of 11.9% to NAV as at 31 March 2024. ➢ Declared 1st interim 2024 income distribution of 2.30 sen. ➢ Portfolio size increased by 1 to a total of 63 properties. ➢ Space under management increased by 602
Slide 6: 2024 Highlights
2024 HIGHLIGHTS ➢ Signed the Sale and Purchase Agreement to acquire a manufacturing facility in Kawasan Perindustrian Bukit Raja, Selangor for the proposed purchase consideration of RM313,000,000 on 22 April 2024. ➢ Signed the Sale and Purchase Agreement to acquire a storage yard in Kawasan Perindus
Slide 7: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS ✓Efficient energy management: ✓Donated an ambulance to ✓Best practices: Environment Governance Social • Replacing conventional lighting with SJAM for emergency • Complied with 30% female energy efficient lighting ambulance services in representation on Board with • Leasing
Slide 8: Portfolio Overview
PORTFOLIO OVERVIEW Asses
Slide 9: Portfolio Overview
PORTFOLIO OVERVIEW As at 31 March 2024, the portfolio has 63 assets comprising 13,954,062 sq. ft. and 172 tenants. 1Q2024 No. of Properties 63 Realised 000) 75,277 000) 11,090 Realised 000) 64,187 Occupancy 89% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 1Q2024 2023 2022
Slide 10: Space Under Management
PORTFOLIO OVERVIEW Space Under Management (sq ft) 16,000,000 13,954,062 14,000,000 13,351,168 12,726,260 12,000,000 11,374,703 10,478,726 10,000,000 9,349,267 9,537,666 8,087,781 ( sq ft) 8,000,000 7,606,863 6,859,474 7,015,242 6,000,000 5,463,599 5,464,124 4,449,580 4,288,054 4,000,000 3,679,796 2,
Slide 11: Portfolio Diversification by Location
PORTFOLIO OVERVIEW ✓ Our 63 properties are strategically located in prime industrial areas such as Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah. ✓ Focus areas for pipeline acquisitions include key industrial hubs of: • Selangor • Johor • Penang ✓ This geographical diversification i
Slide 12: Portfolio Diversification by Sector, Asset Type, 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 Office Office/ Industrial Single Tenant Multi Tenants Manufacturing Logistics Hypermarket Logistic
Slide 13: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 31 March 2024 Axis Business Park 87% Fonterra HQ 85% Axis Industrial Facility 1 @ Shah Alam 76% Wisma Academy Parcel 75% Axis Business Campus 75% Wisma Kemajuan 74% The Annex 60% Menara Axis 54% Axis Mega Distribution Centre 50% Axis Steel
Slide 14: 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 2024 Total NLA Income/month 2025 Total NLA Income/month 2026 Total NLA Income/month Petaling Jaya 588,693 4.22 7.16 719,446 5.16 9.12 344,398 2.47 3.99 Subang - - - 30,250 0.22 0.52
Slide 15: Top Tenants
PORTFOLIO OVERVIEW Top 10 Tenants YTD top ten tenants accounted for 49.1% ESTABLISHED NATIONWIDE FOOTPRINT of the monthly revenue 1. Equalbase PTP Sdn Bhd Kedah (1%) Penang (6%) • Sungai Petani 2. Nestle Products Sdn Bhd • Bayan Lepas • Seberang Perai 3. LF Logistics Services (M) Sdn Bhd • Batu Kawa
Slide 16: Completed Development: Axis Mega Distribution Centre Phase 2
PORTFOLIO OVERVIEW COMPLETED DEVELOPMENT Axis Mega Distribution Centre (Phase 2) Nestle DC Phase 2 CCC Obtained 27 March 2024 Green Lettable Area : 509,040 sq. ft. certified Land Area : Approx. 20.0 acres building Land Tenure : Freehold Development Cost : Approx. RM180.0 million (incl. land) 16
Slide 17: Completed Acquisition: Axis Hypermarket @ Temerloh
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Hypermarket @ Temerloh, Pahang Completion Date : 16 January 2024 Net Lettable Area : 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 17
Slide 18: Ongoing Acquisition: Sendayan Manufacturing Facility
PORTFOLIO OVERVIEW ONGOING ACQUISITION Manufacturing Facility in Sendayan, Negeri Sembilan Target Completion Date : 1H2024 Net Lettable Area : 105,310 sq. ft. Land Area : Approx. 14.63 acres Land Tenure : Freehold Occupancy : 100% Purchase Price : RM48.0 million WALE at Acquisition : Approx. 6 years
Slide 19: Ongoing Acquisition: Bukit Raja Manufacturing Facility
PORTFOLIO OVERVIEW ONGOING ACQUISITION Manufacturing Facility in Bukit Raja, Klang (Front view of Property) (Rear view of Property) Target Completion Date : 1H2024 Net Lettable Area : 199,500 sq. ft. Land Area : Approx. 7.98 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM49.0 mill
Slide 20: Ongoing Acquisition: Facility and Storage Yard, Bukit Raja
PORTFOLIO OVERVIEW ONGOING ACQUISITION Manufacturing Facility and Storage Yard in Bukit Raja, Klang Property 1 Property 2 Target Completion Date : 2H2024 VP Delivery Date - end 2025, Completion - end 2026 Net Lettable Area : Approx. 924,000 sq. ft. Not applicable (property utilized as storage yard)
Slide 21: Ongoing Acquisition: Aerial View
PORTFOLIO OVERVIEW ONGOING ACQUISITION Manufacturing Facility and Storage Yard in Bukit Raja, Klang (Aerial view of Properties and its vicinity, Source: Google Maps) 21
Slide 22: 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 lea
Slide 23: Financial Overview
FINANCIAL OVERVIEW Asses
Slide 24: Financial Overview: Snapshot as at March 2024
FINANCIAL OVERVIEW SNAPSHOT AS AT 31 MARCH 2024 RM4.59 billion RM1.61 billion RM2.83 billion Total Assets Total Financing RM1.62 35.1% 1Q2024: 2.30 sen Net Asset Value Per Unit Financing Ratio Distribution per unit 24
Slide 25: Income Statement 1Q2024 vs 1Q2023
FINANCIAL OVERVIEW INCOME STATEMENT 1Q2024 vs 1Q2023 1Q2024 1Q2023 Changes / Movement No. of Properties 63 62 +1 Property Income Note 1 75,277 69,751 +7.9% Property Income - Property income before lease incentive adjustment 75,178 69,654 +7.9% - Lease incentive adjustment (non-distributable) 99 97 P
Slide 26: Income Statement Notes
FINANCIAL OVERVIEW INCOME STATEMENT 1Q2024 vs 1Q2023 - NOTES Note 1 Property Income Property income is higher as compared to preceding year mainly due to: ▪ Commencement of lease for Bukit Raja Distribution Centre 2. The lease started in August 2023 with a monthly rental of RM1.35 million ▪ Positive
Slide 27: 5-Year Performance
FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Net Property Income (RM'000)* Revenue (RM'000)* 300,000 300,000 281,723 281,090 285,401 284,498 242,747 250,000 242,595 241,962 242,424 241,521 250,000 241,605 224,712 224,064 209,433 208,291 200,000 200,000 190,996 190,348 150,000 150,000 100,000 75,277 100,000
Slide 28: Portfolio Yield by Asset Types
FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 6.8 9.6 Office Industrial 7.1 9.6 Logistics Warehouse 7.9 8.8 Manufacturing Facilities 7.8 8.7 Hypermarket 8.3 8.9 Average 7.7 9.0 28
Slide 29: Financial Position
FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 4,508,792 4,444,120 +64,672 Fixed Assets 1,296 1,391 -95 Other Assets Note 2 81,698 77,382 +4,316 TOTAL ASSETS 4,591,786 4,522,893 +68,893 Financing Note 3 1,610,101 1,554,974 +55,127 Other Payables 137,050 123,613 +13,437 Deferred T
Slide 30: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the period, a total of RM38.4 million was spent on capital expenditure as below: • RM2.8 million for enhancement of existing properties, • RM35.6 million for the ongoing development project Axis Mega Distribution Centr
Slide 31: 5-Year Financing Profile
FINANCIAL OVERVIEW NOTE 3: 5-YEAR FINANCING PROFILE 2020 2021 2022 2023 1Q2024 1,112,183 1,184,593 1,546,020 1,554,974 1,610,101 3,364,083 3,838,760 4,255,673 4,522,893 4,591,786 Financing Ratio 33.06% 30.86% 36.33% 34.38% 35.06% Effective Profit Rate 3.89% 3.63% 3.87% 4.19% 4.27% Percentage of shor
Slide 32: Financing Ratio
FINANCIAL OVERVIEW FINANCING RATIO Placements Undertaken 50% 45% 40% 40% 38% 37% 36% 36% 36% 36% 35% 34% 35% 35% 33% 33% 33% 33% 33% 34% 31% 31% 30% 27% 29% 30% 29% 27% 25% 24% 20% 15% 10% 5% 0% 32
Slide 33: Total Assets and Unitholders' Capital
FINANCIAL OVERVIEW 5,000.0 4,522.9 4,591.8 4,500.0 4,255.7 4,000.0 3,838.8 3,500.0 3,364.1 3,085.7 3,000.0 2,840.5 2,549.6 2,500.0 RM mil 2,141.5 2,244.0 2,129.3 2,129.3 2,085.7 1,934.3 1,945.7 2,000.0 1,589.4 1,616.5 1,583.8 1,595.5 1,500.0 1,208.9 1,298.4 1,240.3 1,247.1 1,044.7 1,052.3 1,060.0 1,
Slide 34: Stock Information
STOCK INFORMATION Asses
Slide 35: 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 5.09% 4 AMANAH SAHAM BUMIPUTERA 4.58% 5 PUBLIC ITTIKAL SEQUEL FUND 3.47% 6 TEW PENG HWEE @ TEOH PENG HWEE 3.26% 7 ALEX LEE LAO 3.12%
Slide 36: Number of CDS Accounts
STOCK INFORMATION Number of CDS Accounts Units Held 1Q2024 Units Held 4Q2023 Movement Total no. of unitholders 12,305 12,247 58 Total foreign holdings 17.54% 17.50% 0.04% Foreign holdings related party 5.10% 5.10% 0% Foreign holdings non-related party 12.44% 12.40% 0.04% Promoters 8.98% 8.98% 0% 36
Slide 37: Thank You
THANK YOU Asses
Axis Real Estate Investment Trust — Q1 2024 Earnings Presentation on 6ix