Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — 2Q2022 Earnings Presentation
36 slides from Axis Real Estate Investment Trust's earnings presentation, Jul 20, 2022
Slide 1: Results Presentation 2Q2022
AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 2Q2022 20 July 2022
Slide 2: Highlights, Portfolio Overview, Financial Overview, Stock Information
PORTFOLIO FINANCIAL STOCK HIGHLIGHTS OVERVIEW OVERVIEW INFORMATION 1
Slide 3: Highlights
HIGHLIGHTS 2
Slide 4: Highlights
HIGHLIGHTS 61 properties on portfolio Portfolio Occupancy of 96% (as at 30/6/2022) 50 properties with 100% occupancy Weighted Average Lease Expiry of 5.6 years 1 property under development Total Assets Under Management Reclassified as Islamic REIT in 2008 RM4.16 billion Space Under Management Distri
Slide 5: 1H2022 Highlights
1H2022 HIGHLIGHTS ► Total of 4.97 sen DPU declared for 1H2022. ► Portfolio size increased by 3 to a total of 61 properties. ► Investment properties currently stands at RM4.07 billion. ► Net property income increased by 18% for 1H2022 as compared to 1H2021. ► Realised net income increased by 31% for
Slide 6: 1H2022 Highlights
1H2022 HIGHLIGHTS ► Embarked on the development of Bukit Raja Distribution Centre 2 into a 620,096 sq. ft. logistics warehouse, with a 15-year lease signed with Shopee Express Malaysia Sdn. Bhd. ► Completed the acquisition of Pasir Gudang Logistics Warehouse 2 for RM32.0 million on 7 March 2022. ► C
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW 6
Slide 8: Space Under Management
PORTFOLIO OVERVIEW Space Under Management (sq ft) 14,000,000 12,533,897 12,000,000 11,374,703 10,478,726 9,537,666 10,000,000 9,349,267 8,087,781 8,000,000 7,606,863 7,015,242 ( sq ft) 6,859,474 5,464,124 6,000,000 5,463,599 4,288,0544,449,580 4,000,000 3,679,796 2,858,121 2,175,522 2,000,000 1,656,
Slide 9: Portfolio Diversification by Location
PORTFOLIO OVERVIEW ✓ Our 61 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
Slide 10: 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) Single Tenant Multi Tenants Services Comsumer Products Office Office/ Industrial Manufacturing Logistics Vacant Hypermarkets
Slide 11: Portfolio Overview
PORTFOLIO OVERVIEW As at 30 June 2022, the portfolio has 61 assets comprising 12,533,897 sq. ft. and 159 tenants. 1H2022 No. of Properties 61 000) 138,779 000) 18,645 000) 120,134 Occupancy 96% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 2Q2022 2021 2020 2019 2018 13.44%
Slide 12: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 30 JUNE 2022 Fonterra HQ 85% Axis Business Park 82% Axis Ind. Facility 1@Shah Alam 78% Wisma Academy Parcel 76% Axis Business Campus 75% Wisma Kemajuan 70% The Annex 60% Menara Axis 55% Axis Technology Centre 55% Bukit Raja Distribution Ce
Slide 13: 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 4.57 1.35 501,076 4.00 1.08 471,220 3.76 1.14 Shah Alam 566,072 4.52 0.80 6
Slide 14: Top Tenants
PORTFOLIO OVERVIEW Top 10 Tenants ESTABLISHED NATIONWIDE FOOTPRINT YTD top ten tenants accounted for 48.7% of the total revenue Kedah (1%) 1. Equalbase PTP Sdn Bhd Penang (6%) • Sungai Petani 2. Nestle Products Sdn Bhd • Bayan Lepas • Seberang Perai 3. LF Logistics Services (M) Sdn Bhd • Batu Kawan
Slide 15: 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
Slide 16: 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
Slide 17: Completed Acquisitions
PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 3. DW1 Logistics Warehouse, Johor Completion Date : 25 April 2022 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 16
Slide 18: Ongoing Acquisitions
PORTFOLIO OVERVIEW ONGOING ACQUISITIONS Logistics Warehouse, Klang Targeted Completion Date: 2H2022 Net Lettable Area : 192,004 sq. ft. Land Area : Approx. 6.2 acres Land Tenure : Freehold Occupancy : 100% Purchase Price : RM41.0 million WALE at Acquisition : 3 years 17
Slide 19: 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
Slide 20: Financial Overview
FINANCIAL OVERVIEW 19
Slide 21: Snapshot as at June 2022
FINANCIAL OVERVIEW SNAPSHOT AS AT 30 JUNE 2022 RM4.07 billion RM1.48 billion RM2.55 billion Total Assets Total Financing RM1.55 36% 1Q2022: 2.42 sen Net Asset Value Per Unit Financing Ratio 2Q2022: 2.55 sen Distribution Per Unit 20
Slide 22: Return Comparatives
FINANCIAL OVERVIEW RETURN COMPARATIVES 7.00% 6.10% 6.00% 5.18% 5.00% 4.04% 4.00% 3.00% 2.25% 2.00% 2.00% 1.00% 0.00% Axis-REIT Distribution EPF Dividend Return 2021 10-yr MGS 12 Months FD Rate OPR Yield (as at 13 July 2022) (as at 13 July 2022) (based on RM1.92 closing price) 21
Slide 23: Income Statement 2Q2022 vs 2Q2021
FINANCIAL OVERVIEW INCOME STATEMENT 2Q2022 vs 2Q2021 2Q2022 2Q2021 Changes / Movement No. of Properties 61 57 +4 Property Income 72,299 60,252 Property Income - Property income before lease incentive adjustment 72,109 60,201 +19.8 - Lease incentive adjustment (non-distributable) 190 51 Property Expe
Slide 24: Income Statement 1H2022 vs 1H2021
FINANCIAL OVERVIEW INCOME STATEMENT 1H2022 vs 1H2021 1H2022 1H2021 Changes / Movement No. of Properties 61 57 +4 Property Income Note 1 138,779 117,630 Property Income - Property income before lease incentive adjustment 138,268 117,891 +17.3 - Lease incentive adjustment (non-distributable) 511 (261)
Slide 25: Income Statement 1H2022 vs 1H2021 - Notes
FINANCIAL OVERVIEW INCOME STATEMENT 1H2022 vs 1H2021 - 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
Slide 26: 5-Year Performance
FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Net Property Income (RM'000)* Revenue (RM'000)* 300,000 250,000 209,433 208,291 242,747 241,605 250,000 224,712 200,000 185,249 184,219 190,996 190,348 203,637 216,005 214,975 224,064 175,810 197,242 169,415 200,000 150,000 150,000 138,268 138,779 119,623 120,13
Slide 27: Yield by Asset Types
FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 6.4 9.0 Office Industrial 6.7 8.7 Logistics Warehouse 7.9 8.7 Manufacturing Facilities 8.1 9.0 Hypermarket 8.6 9.2 Average 7.7 8.8 26
Slide 28: Financial Position
FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 4,070,847 3,614,230 +456,617 Fixed Assets 2,146 2,410 -264 Other Assets Note 2 83,923 222,120 -138,197 TOTAL ASSETS 4,156,916 3,838,760 +318,156 Financing Note 4 1,478,846 1,184,593 +294,253 Other Payables 115,125 114,049 +1,076 Defe
Slide 29: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the period, a total of RM11.6 million was spent on capital expenditure on existing properties, of which RM7.0 million was incurred for the ongoing development of Bukit Raja Distribution Centre 2. Total acquisitions of
Slide 30: Note 4: 5-Year Financing Profile
FINANCIAL OVERVIEW NOTE 4: 5-YEAR FINANCING PROFILE 2018 2019 2020 2021 1H2022 1,059,367 885,859 1,112,183 1,184,593 1,478,846 2,840,463 3,085,681 3,364,083 3,838,760 4,156,916 Financing Ratio 37.30% 28.71% 33.06% 30.86% 35.58% Effective Profit Rate 4.32% 4.37% 3.89% 3.63% 3.86% Percentage of short
Slide 31: Financing Ratio
FINANCIAL OVERVIEW FINANCING RATIO Placements Undertaken 50% 45% 40% 40% 38% 37% 36% 36% 36% 36% 35% 33% 33% 33% 33% 31% 31% 29% 30% 29% 30% 27% 27% 25% 24% 20% 15% 10% 5% 0% 30
Slide 32: Total Assets and Unitholders' Capital
FINANCIAL OVERVIEW 4,500.0 4,156.9 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 RM mil 2,085.7 1,934.3 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 1,044.7 1,052.3 1,060.0 1,240.3 1,247.1 1,000.0 907.7 726.4 728.2
Slide 33: Stock Information
STOCK INFORMATION 32
Slide 34: Stock Information: Top Unitholders
STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 8.97% 2 EMPLOYEES PROVIDENT FUND BOARD 8.89% 3 LEMBAGA TABUNG HAJI 4.68% 4 AMANAH SAHAM BUMIPUTERA 4.20% 5 TEW PENG HWEE @ TEOH PENG HWEE 3.49% 6 ALEX LEE LAO 3.31% 7 EMPLOYEES PROVIDENT FUND BOARD (
Slide 35: Stock Information
STOCK INFORMATION Number of CDS Accounts Units Held 2Q2022 Units Held 1Q2022 Movement Total no. of unitholders 11,270 11,022 248 Total foreign holdings 15.37% 14.15% 1.22% Foreign holdings related-party 5.69% 5.68% 0.01% Foreign holdings non-related-party 9.68% 8.47% 1.21% Related-party holdings 9.8
Slide 36: Thank You
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Axis Real Estate Investment Trust — 2Q2022 Earnings Presentation on 6ix