Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q1 2023 Earnings Presentation
34 slides from Axis Real Estate Investment Trust's earnings presentation, Apr 19, 2023
Slide 1: Axis Real Estate Investment Trust Results Presentation 1Q2023
AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 4Q2022 Results Presentation 1Q2023 19 April 18 January 2023 2023
Slide 2: Highlights, Portfolio Overview, Financial Overview, Stock Information
PORTFOLIO FINANCIAL STOCK HIGHLIGHTS OVERVIEW OVERVIEW INFORMATION
Slide 3: Highlights
HIGHLIGHTS
Slide 4: Highlights
HIGHLIGHTS 62 properties on portfolio 48 properties with 100% occupancy Portfolio Occupancy of 92.7% (as at 31/3/2023) 2 ongoing development projects Weighted Average Lease Expiry of 5.26 years Total Assets Under Management Reclassified as Islamic REIT in 2008 RM4.32 billion Space Under Management D
Slide 5: 1Q2023 Highlights
1Q2023 HIGHLIGHTS ► Declared 1st interim 2023 DPU of 2.05 sen ► Investment properties currently stands at RM4.24 billion. ► Traded at a premium of 20% to NAV as at 31 March 2023. ► Successfully completed the listing of 100 million new units on 4 January 2023 pursuant to a placement exercise. ► Accep
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW
Slide 7: Space Under Management
PORTFOLIO OVERVIEW Space Under Management (sq ft) 14,000,000 12,726,260 12,726,260 12,000,000 11,374,703 10,478,726 10,000,000 9,349,267 9:837.666 8,087,781 8,000,000 606,863, 6,859,474 701240” 6,000,000, 5,463,599 5,464,124 4,288,054 4,449,580 4,000,000 3,679,796 2,858,121 2.175522 1,656,943 ee a i
Slide 8: Portfolio Diversification by Location
PORTFOLIO OVERVIEW ✓ Our 62 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: • Penang • Selangor • Johor • Kedah ✓ This geographical diversifi
Slide 9: 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 Consumer Products Office Office/ Industrial Manufacturing Logistics Vacant Hypermarkets
Slide 10: Portfolio Overview: Properties, Occupancy and Efficiency
PORTFOLIO OVERVIEW As at 31 March 2023, the portfolio has 62 assets comprising 12,726,260 sq. ft. and 162 tenants. 1Q2023 No. of Properties 62 Realised 000) 69,751 000) 11,538 Realised 000) 58,213 Occupancy 92.7% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 1Q2023 2022 20
Slide 11: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 31 MARCH 2023 Fonterra HQ 85% Axis Business Park 84% Axis Technology Centre 81% Wisma Academy Parcel 78% Axis Industrial Facility 1 @ Shah Alam 75% Axis Business Campus 75% Wisma Kemajuan 69% The Annex 60% Menara Axis 51% Shah Alam Distrib
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 2023 Total NLA Income/month 2024 Total NLA Income/month 2025 Total NLA Income/month Petaling Jaya 582,765 4.58 8.18 502,795 3.95 8.21 554,597 4.36 9.47 Shah Alam 658,480 5.17 6.24 9
Slide 13: Top Tenants
PORTFOLIO OVERVIEW Top 10 Tenants ESTABLISHED NATIONWIDE FOOTPRINT Top ten tenants accounted for 51.5% of the monthly 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 4.
Slide 14: Asset Enhancement Initiative
PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVE Axis Industrial Facility 2 @ Bukit Raja Completed Major enhancements: Green features include: 1Q2023 • Roof replacement • LED lighting • Mechanical dock levellers • Water-efficient fittings Green • Replacement of building envelope • Rainwater harvestin
Slide 15: Ongoing Development: Bukit Raja Distribution Centre
PORTFOLIO OVERVIEW ONGOING DEVELOPMENT Bukit Raja Distribution Centre 2 Target completion 3Q2023 Gross Built-up Area : 620,096 sq. ft. Green Land Area : Approx. 20.75 acres certified Land Tenure : Freehold building Lessee : Shopee Express Malaysia Sdn. Bhd. WALE : 15 years Lease Commencement : No la
Slide 16: Ongoing Development: Axis Mega Distribution Centre Phase 2
PORTFOLIO OVERVIEW ONGOING DEVELOPMENT Axis Mega Distribution Centre (Phase 2) Nestle DC Phase 2 Target completion 1Q2024 Gross Built-up Area : 584,112 sq. ft. Green Land Area : Approx. 20.0 acres certified Land Tenure : Freehold building Construction Cost : Approx. RM130.0 million 15
Slide 17: Ongoing Acquisition: Warehouse in Kulim, Kedah
PORTFOLIO OVERVIEW ONGOING ACQUISITION Warehouse in Kulim, Kedah Target Completion Date : 1H2023 Net Lettable Area : 311,218 sq. ft. Land Area : Approx. 14.5 acres Land Tenure : Approx. 56 years Registered Lease Occupancy : 100% Purchase Price : RM92.0 million WALE at Acquisition : Approx. 5 years 1
Slide 18: 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 19: Financial Overview
FINANCIAL OVERVIEW
Slide 20: Snapshot as at March 2023
FINANCIAL OVERVIEW SNAPSHOT AS AT 31 MARCH 2023 RM4.32 billion RM1.44 billion RM2.74 billion Total Assets Total Financing RM1.57 33% 1Q2023: 2.05 sen Net Asset Value Per Unit Financing Ratio Distribution per unit 19
Slide 21: Income Statement 1Q2023 vs 1Q2022
FINANCIAL OVERVIEW INCOME STATEMENT 1Q2023 vs 1Q2022 1Q2023 1Q2022 Changes / Movement No. of Properties 62 60 +2 Property Income Note 1 69,751 66,480 +4.9% Property Income - Property income before lease incentive adjustment 69,654 66,159 +5.3 - Lease incentive adjustment (non-distributable) 97 321 P
Slide 22: Income Statement Notes
FINANCIAL OVERVIEW INCOME STATEMENT 1Q2023 vs 1Q2022 - NOTES Note 1 Property Income Property income marginally increased as compared to preceding year corresponding period mainly due to: • Rental from newly acquired properties in 2022 • Positive rental reversion recorded in 2022 This was partly offs
Slide 23: Income Statement Notes
FINANCIAL OVERVIEW INCOME STATEMENT 1Q2023 vs 1Q2022 - NOTES Note 3 Non-Property Expenses Increase was mainly due to a provision for doubtful debts of approximately RM3.5 million for Yongnam Engineering Sdn Bhd, the lessee of Axis Steel Centre @ SiLC in Johor in 1Q2023. Note 4 Islamic Financing Cost
Slide 24: 5-Year Performance
FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Net Property Income (RM'000)* Revenue (RM'000)* 300,000 281,723 281,090 300,000 242,747 241,605 242,595 241,962 250,000 250,000 216,005 214,975 224,712 224,064 190,996 190,348 209,433 208,291 200,000 200,000 185,249 184,219 150,000 150,000 100,000 100,000 69,654
Slide 25: Yield by Asset Types
FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 6.7 9.6 Office Industrial 6.7 9.2 Logistics Warehouse 7.4 8.3 Manufacturing Facilities 7.8 8.6 Hypermarket 8.8 9.5 Average 7.4 8.7 24
Slide 26: Financial Position
FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 4,237,788 4,186,020 +51,768 Fixed Assets 1,714 1,859 -145 Other Assets Note 2 76,507 67,794 +8,713 TOTAL ASSETS 4,316,009 4,255,673 +60,336 Financing Note 4 1,444,116 1,546,020 -101,904 Other Payables 120,800 123,334 -2,534 Deferred
Slide 27: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the period, a total of RM47.7 million was spent on capital expenditure as below: • RM3.6 million for enhancement of existing properties, • RM32.3 million for the ongoing development project Bukit Raja Distribution Cent
Slide 28: Note 4: 5-Year Financing Profile
FINANCIAL OVERVIEW NOTE 4: 5-YEAR FINANCING PROFILE 2019 2020 2021 2022 1Q2023 885,859 1,112,183 1,184,593 1,546,020 1,444,116 3,085,681 3,364,083 3,838,760 4,255,673 4,316,009 Financing Ratio 28.71% 33.06% 30.86% 36.33% 33.46% Effective Profit Rate 4.37% 3.89% 3.63% 3.87% 4.04% Percentage of short
Slide 29: Financing Ratio
FINANCIAL OVERVIEW FINANCING RATIO Placements Undertaken 50% 45% 40% 40% 38% 37% 36% 36% 36% 36% 36% 36% 35% 33% 33% 33% 33% 33% 31% 31% 30% 27% 29% 30% 29% 27% 25% 24% 20% 15% 10% 5% 0% 28
Slide 30: Total Assets and Unitholders' Capital
FINANCIAL OVERVIEW 4,316.0 4,500.0 4,255.7 4,156.94,162.6 4,000.0 3,838.83,762.2 3,500.0 3,364.1 3,085.7 3,000.0 2,840.5 2,549.6 2,500.0 2,244.0 2,118.6 2,141.5 RM mil 2,085.7 1,934.31,934.31,945.71,945.71,945.7 2,000.0 1,589.4 1,616.5 1,583.81,595.5 1,500.0 1,208.9 1,298.4 1,044.71,052.3 1,060.0 1,
Slide 31: Stock Information
STOCK INFORMATION
Slide 32: Stock Information: Top Unitholders
STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 8.45% 2 EMPLOYEES PROVIDENT FUND BOARD 8.42% 3 AMANAH SAHAM BUMIPUTERA 4.59% 4 LEMBAGA TABUNG HAJI 4.41% 5 TEW PENG HWEE @ TEOH PENG HWEE 3.29% 6 ALEX LEE LAO 3.12% 7 EMPLOYEES PROVIDENT FUND BOARD (
Slide 33: Stock Information: Number of CDS Accounts
STOCK INFORMATION Number of CDS Accounts Units Held 1Q2023 Units Held 4Q2022 Movement Total no. of unitholders 12,200 12,227 -27 Total foreign holdings 18.33% 19.04% -0.71% Foreign holdings related party 5.36% 5.69% -0.33% Foreign holdings non-related party 12.97% 13.35% -0.38% Promoters 9.27% 9.84%
Slide 34: Thank You
REAL ESTATE INVESTMENT TRUST THANK YOU
Axis Real Estate Investment Trust — Q1 2023 Earnings Presentation on 6ix