Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q2 2021 Earnings Presentation
36 slides from Axis Real Estate Investment Trust's earnings presentation, Jul 21, 2021
Slide 1: Axis Real Estate Investment Trust Results Presentation 2Q2021
AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 2Q2021 21 July 2021
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 57 properties on portfolio Portfolio Occupancy of 94% (as at 30/06/2021) 47 properties with 100% occupancy Weighted Average Lease Expiry of 5.2 years Total Assets Under Management Reclassified as Islamic REIT in 2008 RM3.52 billion Space Under Management Total Distribution Per Unit for 1H
Slide 5: 1H2021 Highlights
1H2021 HIGHLIGHTS ► Total of 4.63 sen DPU declared for 1H2021. ► Portfolio size increased by 4 to a total of 57 properties. ► Investment properties currently stands at RM3.44 billion. ► Net property income increased by 6% for 1H2021 as compared to 1H2020. ► Realised net income increased by 3% for 1H
Slide 6: 1H2021 Highlights
1H2021 HIGHLIGHTS ► Signed the Sale and Purchase Agreement to acquire a warehouse located in Pasir Gudang, Johor Bahru for RM75.0 million, on 15 March 2021. ► Acceptance of Letter of Offer to acquire a warehouse located in Pasir Gudang, Johor Bahru for RM32.0 million. ► Traded at a premium of 30% to
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW 6
Slide 8: Space Under Management (sq ft)
PORTFOLIO OVERVIEW Space Under Management (sq ft) 12,000,000 10,910,090 10,478,726 10,000,000 9,349,267 9,537,666 8,087,781 8,000,000 7,606,863 7,015,242 6,859,474 ( sq ft) 6,000,000 5,463,599 5,464,124 4,288,054 4,449,580 4,000,000 3,679,796 2,858,121 2,175,522 2,000,000 1,656,943 1,186,590 - 2005
Slide 9: Portfolio Diversification by Location
PORTFOLIO OVERVIEW Our 57 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 and 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 Single Tenant Multi Tenants Manufacturing Logistics Vacant Office Office/ Industrial Hypermarkets
Slide 11: Portfolio Overview: Properties, Tenants, Efficiency Ratio
PORTFOLIO OVERVIEW As at 30 June 2021, the portfolio has 57 assets comprising 10,910,090 sq. ft. and 153 tenants. 1H2021 No. of Properties 57 000) 117,630 000) 16,629 000) 101,001 Occupancy 94% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 1H2021 2020 2019 2018 2017 14.14%
Slide 12: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 30 JUNE 2021 Fonterra HQ 85% Axis Business Park 84% Axis Business Campus 75% Wisma Kemajuan 75% Menara Axis 73% Wisma Academy Parcel 72% The Annex 60% Axis Technology Centre 52% Axis Industrial Facility@ Rawang 48% Crystal Plaza 46% Notes:
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 2021 Total NLA Income/month 2022 Total NLA Income/month 2023 Total NLA Income/month Petaling Jaya 581,938 5.33 9.52 548,477 5.04 8.43 382,026 3.50 5.39 Shah Alam 612,547 5.61 5.56 8
Slide 14: Top Tenants
PORTFOLIO OVERVIEW Top 10 Tenants ESTABLISHED NATIONWIDE FOOTPRINT YTD top ten tenants account for 47% of the total revenue Kedah (1.3%) Penang (7.3%) • Sungai Petani 1. Nestle Products Sdn Bhd • Bayan Lepas • Seberang Perai 2. LF Logistics Services (M) Sdn Bhd • Batu Kawan 3. Schenker Logistics (Ma
Slide 15: Completed Acquisitions
PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 1. Indahpura Facility 2, Johor 2. Indahpura Facility 3, Johor Completion Date : 12 January 2021 Completion Date : 26 February 2021 Net Lettable Area : 35,339 sq. ft. Net Lettable Area : 24,949 sq. ft. Land Area : Approx. 1.2 acres Land Area : Approx. 1.25 ac
Slide 16: Completed Acquisitions
PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 3. Beyonics i-Park Campus Block F, Johor 4. Bukit Raja Distribution Centre 2, Shah Alam Completion Date : 3 March 2021 Completion Date : 31 March 2021 Net Lettable Area : 57,545 sq. ft. Gross Floor Area : 326,231 sq. ft. Land Area : Approx. 2.1 acres Land Ar
Slide 17: Ongoing Acquisitions
PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 1. Xin Hwa Warehouse @ Pasir Gudang, Johor 2. Logistics Warehouse @ Pasir Gudang, Johor Target Completion Date : 2H2021 Target Completion Date : 2H2021 Net Lettable Area : 464,613 sq. ft. Net Lettable Area : 240,000 sq. ft. Land Area : Approx. 16.2 acres Land
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 will continue to focus on: Grade A logistics facilities and manufacturing facilities with long lease
Slide 19: Financial Overview
FINANCIAL OVERVIEW 18
Slide 20: Snapshot as at June 2021
FINANCIAL OVERVIEW SNAPSHOT AS AT 30 JUNE 2021 RM3.52 billion RM1.28 billion RM2.13 billion Total Assets Total Financings RM1.47 36% 2Q 2021 : 2.40 sen Net Asset Value Per Unit Financing Ratio 1Q 2021 : 2.23 sen Distribution Per Unit 19
Slide 21: Return Comparatives
FINANCIAL OVERVIEW 6.00% RETURN COMPARATIVES 5.20% 5.00% 4.85% 4.00% 3.21% 3.00% 2.00% 1.75% 1.75% 1.00% 0.00% Axis-REIT Distribution Yield EPF Dividend Return 2020 10-yr MGS 12 Months FD Rate OPR (as at 16 July 2021) (as at 16 July 2021) (based on RM1.91 closing price) 20
Slide 22: Income Statement 2Q2021 vs 2Q2020
FINANCIAL OVERVIEW INCOME STATEMENT 2Q2021 vs 2Q2020 2Q2021 2Q2020 Changes / Movement No. of Properties 57 51 +6 Property Income 60,252 55,141 Property Income - Property income before lease incentive adjustment 60,201 55,023 +9.4% - Lease incentive adjustment (non-distributable) 51 118 Property Expe
Slide 23: Income Statement 1H2021 vs 1H2020
FINANCIAL OVERVIEW INCOME STATEMENT 1H2021 vs 1H2020 1H2021 1H2020 Changes / Movement No. of Properties 57 51 +6 Property Income Note 1 117,630 109,681 Property Income - Property income before lease incentive adjustment 117,891 109,898 +7.3% - Lease incentive adjustment (non-distributable) (261) (21
Slide 24: Income Statement 1H2021 vs 1H2020 - Notes
FINANCIAL OVERVIEW INCOME STATEMENT 1H2021 vs 1H2020 - 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 and commencement of new tenancies at Axis Industrial Facility @ Rawang and D8 Log
Slide 25: 5-Year Performance
FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Revenue (RM'000)* Net Property Income (RM'000)* 250,000 224,712 224,064 250,000 216,005 214,975 197,242 203,637 190,996 190,348 200,000 200,000 185,249 184,219 167,761 175,810 169,415 150,000 141,249 150,000 117,891 117,630 101,262 101,001 100,000 100,000 50,000
Slide 26: Yield by Asset Types
FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 6.0 8.4 Office Industrial 6.7 8.9 Logistics Warehouse 8.2 9.0 Manufacturing Facilities 7.6 8.3 Hypermarket 8.2 8.8 Average 7.6 8.7 25
Slide 27: Financial Position
FINANCIAL OVERVIEW FINANCIAL POSITION 30/6/21 Investment Properties Note 1 3,444,564 3,280,240 +164,324 Fixed Assets 2,671 2,870 -199 Other Assets Note 2 77,121 80,973 -3,852 TOTAL ASSETS 3,524,356 3,364,083 +160,273 Financing Note 4 1,280,237 1,112,183 +168,054 Other Payables 105,657 119,774 -14,11
Slide 28: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the year, a total of RM13.8 million was spent on enhancement works on the portfolio. Out of this amount, RM5.9 million was paid as part payment for the extension of lease of D21 Logistics Warehouse for another 30 years
Slide 29: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 2 Other Assets The average collection of trade receivables as at 30 June 2021 was 12 days. Note 3 Unitholders Capital A total of net proceeds of RM7.7 million raised from 4,150,222 new issued units pursuant to the IDRP applicable to the 2020 final i
Slide 30: Note 4: 5-Year Financing Profile
FINANCIAL OVERVIEW NOTE 4: 5-YEAR FINANCING PROFILE 2017 2018 2019 2020 1H2021 842,594 1,059,367 885,859 1,112,183 1,280,237 2,549,609 2,840,463 3,085,681 3,364,083 3,524,356 Financing Ratio 33.05% 37.30% 28.71% 33.06% 36.33% Effective Profit Rate 4.21% 4.32% 4.37% 3.89% 3.62% Percentage of short te
Slide 31: Financing Ratio
FINANCIAL OVERVIEW FINANCING RATIO Allowable threshold of 50% has been increased to 60% Placements Undertaken effective from 12 August 2020 until 31 December 2022 50% 45% 40% 40% 38% 36% 36% 36% 36% 36% 35% 33% 33% 33% 33% 33% 31% 29% 30% 30% 27% 27% 25% 24% 20% 15% 10% 5% 0% 30
Slide 32: Total Assets and Unitholders' Capital
FINANCIAL OVERVIEW 4,000.0 3,524.4 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 2,085.7 2,000.0 RM mil 1,583.8 1,595.5 1,603.2 1,589.4 1,616.5 1,500.0 1,298.4 1,240.3 1,247.1 1,208.9 1,044.7 1,052.3 1,060.0 1,000.0 907.7 726.4 728.2 735.4 751.0 411.8 581.8 540.3 500.0 339.
Slide 33: Stock Information
STOCK INFORMATION 32
Slide 34: Top Unitholders
STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 10.00% 2 EMPLOYEES PROVIDENT FUND BOARD 8.40% 3 LEMBAGA TABUNG HAJI 4.82% 4 TEW PENG HWEE @ TEOH PENG HWEE 3.95% 5 ALEX LEE LAO 3.73% 6 AMANAH SAHAM BUMIPUTERA 2.94% 7 EXEMPT AN FOR AIA BHD. 2.86% 8
Slide 35: Number of CDS Accounts
STOCK INFORMATION Number of CDS Accounts Units Held 2Q2021 Units Held 1Q2021 Movement Total no. of unitholders 9,353 8,637 716 Total foreign holdings 15.08% 14.87% 0.21% Foreign holdings related-party 6.41% 6.41% 0% Foreign holdings non-related-party 8.67% 8.46% 0.21% Related-party holdings 11.10% 1
Slide 36: axis-reit.com.my
A®4IS REAL ESTATE INVESTMENT TRUST axis-reit.com.my
Axis Real Estate Investment Trust — Q2 2021 Earnings Presentation on 6ix