Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q3 2018 Earnings Presentation
47 slides from Axis Real Estate Investment Trust's earnings presentation, Oct 22, 2018
Slide 1: Axis Real Estate Investment Trust Results Presentation 3Q2018
Axis Real Estate InvestmentT Results Presentation 3Q2018 22 October 2018
Slide 2: 3Q2018 Portfolio Highlights
3Q2018 Portfolio Highlights Abels v v v v REAL ESTATE INVESTMENT TRUST Portfolio size increased by 2 to a total of 44 properties. Investment properties currently stands at RM2.72 billion. Net property income increased by 30.6% for 3Q2018 as compared to 3Q2017. Declared 2.35 sen DPU for 3Q2018, which
Slide 3: 3Q2018 Return Comparatives
3Q2018 Return Comparatives Ais4ls REAL ESTATE INVESTMENT TRUST 7.00% + 6.90% 6.00% 1 5.71% 5.00% + 3.73% 4.00% + 3.50% 3.25% 3.00% | 2.00% + 1,00% + Axis-REIT EPF Dividend Return 10-yr MGS 12 Months FD Rate OPR Distribution Yield —__. wwvw.axis-reit-com.my
Slide 4: 3Q2018 Finance Report
AMAIS. 3Q2018 FINANCE REPORT
Slide 5: 3Q2018 Summary
3Q2018 Summary Total Net Income (“Realised”) (RM'000) Income Available for Distribution ("Realised") (RM'000) Earnings per Unit ("EPU") ("Realised") (Sen) Income Distribution Declared (RM'000) Distribution per Unit ("DPU") (Sen) Number of Investment Properties Units in Circulation (Units) Assets Und
Slide 6: Income Statement 3Q2018 vs 3Q2017
Income Statement 3Q2018 vs 3Q2017 AdS4lS REAL ESTATE INVESTMENT TRUST 3Q2018 3Q2017 Changes / (RM’000) (RM’000) Movement No. of Properties 44 39 +5 Property Income 52,129 41,865 +24.5% Property Expenses (6,794) (7,143) -4,.9% Net Property Income 45,335 34,722 +30.6% Profit Income / Other Income 219
Slide 7: Income Statement YTD 3Q2018 vs YTD 3Q2017
Income Statement YTD 3Q2018 vs YTD 3Q2017 Ais4ls REAL ESTATE INVESTMENT TRUST YTD 3Q2018 YTD3Q2017 Changes / (RM’000) (RM’000) Movement No. of Properties 44 39 +5 Property Income - Note 1 144,342 125,848 +14.7% Property Expenses — Note 2 (20,877) (19,905) +4.9% Net Property Income 123,465 105,943 +1
Slide 8: Income Statement YTD 3Q2018 vs YTD 3Q2017 Notes
Income Statement YTD 3Q2018 vs YTD 3Q2017 Absals REAL ESTATE INVESTMENT TRUST Note 1 - Property Income Increase in property income as compared to preceding year corresponding period was mainly due to the commencement of Nestle’s lease at Axis Mega DC on 1 June 2018 and rental from newly acquired pro
Slide 9: Income Statement Notes (cont'd)
Income Statement 1H2018 vs 1H2017 (cont'd) Absals REAL ESTATE INVESTMENT TRUST Note 4 - Islamic Financing Cost Increase in financing cost due to additional financing facilities to fund the new acquisitions. Additionally, the capitalisation of financing cost for Axis Mega DC had ceased upon completio
Slide 10: Investment Properties: Gross Yield
Investment Properties: Gross Yield Oo AON KAUN BRWN Nu - Oo un Bw N= = 3 ao oO ON OO 22 Crystal Plaza FCI Senai Wisma Kemajuan Strateq Data Centre D21 Logistics Warehouse D8 Logistics Warehouse Niro Warehouse Fonterra HQ Pasir Gudang Logistics Warehouse 1 Seberang Prai Logistic Warehouse 3 Bayan Lep
Slide 11: Investment Properties: Net Yield
Investment Properties: Net Yield a Average YTD net yield = 8.2% Oo AN A UB WN on Dun FWNYN | OC 19 Crystal Plaza FCI Senai Strateq Data Centre D8 Logistics Warehouse Niro Warehouse D21 Logistics Warehouse Wisma Kemajuan Fonterra HQ Seberang Prai Logistic Warehouse 3 Emerson Industrial Facility Nilai
Slide 12: Adjusted Income Before Taxation / Income Available For Distribution
30.00 Adjusted Income Before Taxation/ Income Available For Distribution 25.00 Gain on disposal 20.00 1.35 RM' million 15.00 29.40 24.00 24.70 23.26 23.34 22.60 22.12 10.00 5.00 0.00 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q2018 2Q2018 3Q2018 12
Slide 13: DPU and EPU (sen)
10.00 9.30 9.25 1.18 9.23 9.00 8.64 0.65 8.71 8.65 8.35 8.40 8.25 8.01 8.00 8.70 8.19 8.13 0.12 7.90 8.50 8.00 7.73 7.64 7.89 8.14 7.00 6.80 6.82 6.29 6.27 6.00 sen 5.00 4.00 3.00 2.00 1.00 - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Gain on disposal DPU EPU (realised) 13
Slide 14: Statement of Financial Position
Statement of Financial Position Investment Properties Fixed Assets Other Assets TOTAL ASSETS Borrowings Other Payables TOTAL LIABILITIES NET ASSET VALUE (NAV) Unitholders' Capital Undistributed Distributable Income Non-Distributable Reserve TOTAL UNITHOLDERS' FUND GEARING~ wae, (RM) No; of units in
Slide 15: Statement of Financial Position Notes
Statement of Financial Position AdS4lS REAL ESTATE INVESTMENT TRUST Note 1 - Investment Properties During the year, a total of RM6 million was spent on enhancement works of the properties in the portfolio and RM61 million (including the land lease of vacant land for Axis Aerotech Centre Project @ Su
Slide 16: Statement of Financial Position: Borrowings
Statement of Financial Position Borrowings P| 2009 | 2010 | 2011 | zora | 2013 | 2or4 | 201s | 2ore | 2017 | 2018 | 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
Slide 17: Gearing Levels and Placements Undertaken
Statement of Financial Position Ax S Gearing Levels mes i Placements Undertaken L | 40% 4 38% 36% 36% 36% 37% 37% 4 34% 35% 35% ™ 33% 33% 33% 32% 33% 31% 30% 4 29% 27% 20% 27% 25% + 24% 20% 4 15% + 10% | 5% 4 0% 4 LS $ © & & SS so oe ss os! Or PD ee S&S ° o A A © oe a> aS aS s S Yr SY SO SY <\ os we
Slide 18: Total Asset and Unitholders' Capital
RM mil Total Asset Unitholders' Capital 18
Slide 19: 4,080 3,766 3,057 2,679 2,311 2,269 1,304 1,051 367 296 285 266 230 (375)
4,080 3,766 3,057 2,679 2,311 2,269 1,304 1,051 818 816 587 367 296 285 266 230 (375) (2,008) (2,027) (3,269) 19
Slide 20: 3Q2018 Property Report
AMAIS. 3Q2018 PROPERTY REPORT
Slide 21: Overview
Overview Auge IS REAL ESTATE INVESTMENT TRUST As at 30 Sept 2018, the occupancy rate of Axis REIT’s portfolio stands at 94.8% with stable weighted average lease expiry period of 5.27 years (based on rental). The Manager achieved positive rental reversion of 6% for YTD 30 September 2018. With the acq
Slide 22: Key Portfolio Metrics
Key Portfolio Metrics Als REAL ESTATE INVESTMENT TRUST As at 30 September 2018, the portfolio has 44 assets comprising 9,022,278 sq. ft. and 153 tenants. No. of Properties Property Income (RM’‘000) 52,129 47,265 +10.30% Property Expenses (RM’000) 6,794 7,285 -6.70% Net Property Income (RM’‘000) 45,3
Slide 23: Space Under Management
Space Under Management 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 (sq 5,000, ,000 4,000,000 3,000,000 2,000,000 1,000,000 Space Under Management (sq ft) Aw%als REAL ESTATE INVESTMENT TRUST 9,022,278 8,087,781 7,606,863 6,859,474 7015,242 5,463,599 5:404,124 4,449,580 4,288,054 3,679,796 2,85
Slide 24: Portfolio Occupancy Rate
Portfolio Occupancy Rate Abs4lS REAL ESTATE INVESTMENT TRUST As at 30 September 2018, only 10 out of 44 properties carry vacancy, while one is undergoing development. 33 properties enjoy 100% occupancy. Occupancy As at 30 September 2018 Vacancy As at 30 September 2018 Space available Occupancy Multi
Slide 25: Properties Below 90% Occupancy
Properties Below 90% Occupancy Als REAL ESTATE INVESTMENT TRUST Occupancy rates of properties below 90% as at 30 September 2018 Fonterra HQ 85% Wisma Academy Parcel 81% Infinite Centre 78% Wisma Kemajuan 76% Axis Technology Centre 72% Menara Axis 68% Axis Business Park 66% Axis Business Campus 63% Q
Slide 26: Diversified Portfolio by Industry Sector
Diversified Portfolio Als REAL ESTATE INVESTMENT TRUST Portfolio Diversification by Industry Sector (on NLA) Services Others 506 Healthcare & Lifestyle 3% Engineering/Building Materials 22% Financial Services 1% Automotive eX 3% —__. wwwaxis-reitcom.my 26
Slide 27: Diversified Portfolio by Asset Type
Diversified Portfolio Als REAL ESTATE INVESTMENT TRUST Portfolio Diversification by Asset Type (on NLA) | 4A% § Office § Office/ Industrial AY = Hypermarkets \ = Warehouse Logistic n Im = Manufacturing Facilities - Light Industrial wwwaxis-reitcom.my 27
Slide 28: Portfolio Location
Portfolio Location Aw%ls REAL ESTATE INVESTMENT TRUST Portfolio Diversification by Geographical Location Johor Po 25.71% Petaling Jaya Shah Alam Klang Penang Kuantan Rawang Nilai Kedah = 1.53% LS 22.10% a 20.70% 9.47% [NN 8.29% NN 5.62% Breakdown by State (3.35% Selangor 52.27% 9 ba 3.23% re “329% O
Slide 29: Lease Expiry Profile
Lease Expiry Profile A®elS % of % of % of By Location Year % of Rental Year % of Rental Year % of Rental Income/ Income/ Income/ 2018 Total NLA_ month 2019 TotalNLA _ month 2020 TotalNLA month Petaling Jaya 400,111 4.43 6.86 513,801 5.69 11.02 507,784 5.63 8.82 Klang 2 = 4 - - 4 339,194 3.76 2.90 Sh
Slide 30: Top Tenants
Top 10 Tenants Auge IS REAL ESTATE INVESTMENT TRUST Nestle Products Sdn Bhd LF Logistics Services (M) Sdn Bhd = Yongnam Engineering Sdn Bhd Wasco Coatings Malaysia Sdn Bhd Tenaga Nasional Berhad Tesco Stores (Malaysia) Sdn. Bhd. POS Logistics Berhad Schenker Logistics (Malaysia) Sdn Bhd Teraju Sinar
Slide 31: 3Q2018 Property Development Report
AMAIS. 3Q2018 PROPERTY DEVELOPMENT REPORT
Slide 32: Axis Aerotech Centre @ Subang Aerotech Park
Axis Aerotech Centre @ Subang Aerotech Park Ads4ls
Slide 33: Axis Aerotech Centre @ Subang Aerotech Park
Axis Aerotech Centre @ Subang Aerotech Park A%@IS NOW 33
Slide 34: Axis Aerotech Centre @ Subang Aerotech Park
Axis Aerotech Centre @ Subang Aerotech Park A%:¢1S REAL ESTATE INVESTMENT TRUST a) Details of purchase of the sub-lease of land from MAHB Size : 7.02 acres Purchase price :RM19,876,428 (based on RM65 psf) Tenure : 49 years, expiring 31 December 2066 b) Details of lease agreement with Upeca Net Letta
Slide 35: 3Q2018 Investments Report
AMAIS. 3Q2018 INVESTMENTS REPORT
Slide 36: Completed Acquisitions
Completed Acquisitions Aw%ls REAL ESTATE INVESTMENT TRUST Axis Shah Alam Distribution Centre 4 - Seksyen 28, Shah Alam, Selangor Completion Date Land Area Land Tenure Occupancy Purchase Price ___ Starting Net Property Yield ru _ WALE 4 June 2018 Approx. 10.11 acres Freehold 100% RM87 million 7.0% 6
Slide 37: Completed Acquisitions
Completed Acquisitions Asal REAL ESTATE INVESTMENT TRUST Beyonics i-Park Campus Block E and Indahpura Facility 1, Kulaijaya Johor Completion Date : 9 August 2018 Land Area : Approx. 5.8 acres Land Tenure : Freehold A Occupancy : 100% aif 7 Purchase Price : RM38.7 million Starting Net Property Yield
Slide 38: Ongoing Acquisitions
Ongoing Acquisitions AdS4lS REAL ESTATE INVESTMENT TRUST Manufacturing Facility - Senawang, Negeri Sembilan Target Completion Date : 2H2018 Land Area : Approx. 4.21 acres Land Tenure : Freehold Occupancy : 100% A Purchase Price : RM18.5 million 7 Starting Net Property Yield : 7.7% | i WALE : Approx.
Slide 39: Ongoing Acquisitions
Ongoing Acquisitions Aw%ls REAL ESTATE INVESTMENT TRUST Manufacturing Facility - Bayan Lepas, Pulau Pinang Target Completion Date Land Area Land Tenure Occupancy Purchase Price WALE 1H2019 Approx. 2.07 acres Leasehold 100% RM20.5 million Approx. 2 years wwwaxis-reitcom.my 39
Slide 40: Total Estimated Value of Acquisition Targets
• • • Total Estimated Value of Acquisition Targets RM 160 million 40
Slide 41: 3Q2018 Investor Relations Report
AMAIS. 3Q2018 INVESTOR RELATIONS REPORT
Slide 42: Unit Price Performance
Unit Price Performance Abs4lS REAL ESTATE INVESTMENT TRUST 130% 5 KLCI vs AXREIT: 1 Jan 2014 - 30 Sept 2018 120% + 110% + 100% ~ 90% ~ 80% + 70% > 60% ~ A \ A DB nA A DAD N ASN RP PO PN oS o oS o oS oS o oS o HH OF ~ ~~ aS As) o» o» oS o» OS 42
Slide 43: Volume Movement
Volume Movement 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 Aw%ls REAL ESTATE INVESTMENT TRUST ] AXREIT: 1 Jan 2014 - 30 Sept 2018 40,208,000 39,783,200 33,826,000 | 32,708,200 27,806,000 27,347,800 | 23,451,900 23,438,700 2,491,600 21,0933609 |
Slide 44: Top Unitholders
Top 10 Unitholders Name of Unitholder CITIGROUP NOMINEES (TEMPATAN) SDN BHD EMPLOYEES PROVIDENT FUND AMANAHRAYA TRUSTEES BERHAD AMANAH SAHAM BUMIPUTERA KUMPULAN WANG PERSARAAN (DIPERBADANKAN) LEMBAGA TABUNG HAJI TEW PENG HWEE @ TEOH PENG HWEE ALEX LEE LAO PERMODALAN NASIONAL BERHAD AMANAHRAYA TRUSTE
Slide 45: Analysis of Unitholders with >2million Units
Analysis of Unitholders with >2million Units Top 5 Increases in Unitholdings Aw%ls REAL ESTATE INVESTMENT TRUST Changes vs Last Quarter KUMPULAN WANG PERSARAAN (DIPERBADANKAN) (MIDF ABSR EQ) GREAT EASTERN LIFE ASSURANCE (MALAYSIA) BERHAD (PAR 1) CIMB-PRINCIPAL ISLAMIC ASSET MANAGEMENT SDN BHD FOR LE
Slide 46: Investor Visibility & Liquidity
Investor Visibility & Liquidity Als REAL ESTATE INVESTMENT TRUST 5,000 No. of CDS Accounts 4,607 4,579 4,632 4,500 4,184 4oi1 4098 4 4,000 3611 3790 3,718 3,776 3,891 3,934 3,500 3,309 3,009 3,176 3,200 3,219 3,000 2,702 2,850 2,420 2,500 2,080 2,000 1,652 1,500 1,000 500 2 OD @ WN DB D a 0 2 Wo 0 n
Slide 47: Thank You
Avs THANK YOU www.axis-reit.com my
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