Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q2 2020 Earnings Presentation
38 slides from Axis Real Estate Investment Trust's earnings presentation, Aug 26, 2020
Slide 1: Results Presentation 2Q2020
A415 REAL ESTATE INVESTMENT TRUST Results Presentation 2Q2020 26 August 2020
Slide 2: Agenda
AGENDA
Slide 3: 1H2020 Highlights
Avis 202020 HIGHLIGHTS
Slide 4: Highlights: Portfolio Summary
aaa + o ie Aeals REAL ESTATE INVESTMENT TRUST HIGHLIGHTS PORTFOLIO SUMMARY 51 properties on portfolio 39 properties with 100% occupancy Total Assets Under Management RM3.3 billion Space Under Management 10.2 million sq ft Financing Ratio 31% Solid industrial space portfolio 92% of properties on indu
Slide 5: 1H2020 Highlights – Portfolio Performance
Avis 1H2020 HIGHLIGHTS — PORTFOLIO PERFORMANCE Total of 4.25 sen DPU declared for 1H2020. Portfolio size increased by 3 to a total of 51 properties. Investment properties currently stands at RM3.15 billion. Realised net income increased by 5.5% for 1H2020 as compared to 1H2019. The Axis Facility @ B
Slide 6: 1H2020 Highlights
Avzels meas 1H2020 HIGHLIGHTS Successfully signed the Sale & Purchase Agreement to acquire a warehouse facility for RM95.0 million, located in Section 15, Shah Alam, Selangor. Acceptance of Letter of Offer to acquire a manufacturing facility for RM11.87 million, located in Shah Alam, Selangor. Accep
Slide 7: Portfolio Overview
Angels PORTFOLIO OVERVIEW |
Slide 8: Diversified and Expanding Portfolio – Space Under Management
12,000,000 10,000,000 8,000,000 6,000,000 (sq ft) 4,000,000 2,000,000 1,186,590 LI AWSels REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Space Under Management (sq ft) 10,152,638 9,349,267 9/537,666 8,087,781 7,606,863 6,859,474 7,015,242 5,463,599 5,464,124 4,28
Slide 9: Diversified and Expanding Portfolio – Location
AWS EAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Y Our 51 properties are strategically located in prime industrial areas such as Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah. v Pipeline acquisitions include additions in key industrial hubs in:
Slide 10: Portfolio Diversification by Tenant, Asset Type, Occupancy
AWS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Portfolio Diversification Portfolio Diversification Portfolio Diversification by Tenant's Industry (on NLA) by Asset Type (on NLA) by Occupancy Type (on NLA) m Services m= Consumer Products *Industrial title prop
Slide 11: High Occupancy Rate with Income Visibility
AWls REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW HIGH OCCUPANCY RATE WITH INCOME VISIBILITY As at 30 June 2020, the portfolio has 51 assets comprising 10,152,638 sq. ft. and 147 tenants. No. of Properties 51 Property Income (RM‘000) 109,681 Property Expenses (RM’‘000) 16,328 Net Property Income
Slide 12: Lease Expiry By Location
Lease Expiry By Location PORTFOLIO OVERVIEW HIGH OCCUPANCY RATE WITH INCOME VISIBILITY % of % of Rental % of % of Rental % of AWls REAL ESTATE INVESTMENT TRUST % of Rental Income/month Total NLA Income/month Total NLA Income/month Total NLA Petaling Jaya 614,795 6.06) 10.38 545,043 5.37 9.91] 477,86
Slide 13: Properties with Occupancy Below 90%
Axis Business Campus Fonterra HQ Axis Business Park Crystal Plaza Menara Axis Wisma Kemajuan Wisma Academy Parcel The Annex Quattro West Axis Technology Centre Axis Industrial Facility@ Rawang AWSels REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 30 JUNE 20
Slide 14: Established Nationwide Footprint
Penang (7.8%) Bayan Lepas Sebera Selangor (52.5%) Shah Alam (18.3%) Petaling Jaya (19. Klang (9.9%) Rawang (3.0! Subang (1 Negeri Sembilan (6.8%) * Nilai * Senawang ANSAIS REAL ESTATE INVESTMENT TRUS PORTFOLIO OVERVIEW ESTABLISHED NATIONWIDE FOOTPRINT Kedah (1.4%) Sungai Peta Pahang (5.0%) * Kuantan
Slide 15: Completed Development
AWls REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW COMPLETED DEVELOPMENT Axis Facility @ Batu Kawan Net Lettable Area : 44,000 sq. ft. Land Area : Approx. 2.5 acres Land Tenure : Leasehold Tenant : Federal Express Services (M) Sdn Bhd Occupancy : 100% WALE : 10 years Construction Time : 5 months L
Slide 16: Completed Acquisitions
AWS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 1. Axis Facility 2 @ Nilai, Negeri Sembilan 2. Axis Facility 2 @ Bukit Raja, Klang Completion Date : 28 February 2020 Completion Date : 17 March 2020 Net Lettable Area : 246,500 sq. ft. Nett Lettable Area : 199,890 sq. ft. La
Slide 17: Completed Acquisitions
AWls REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 3. D37c Logistics Warehouse, PTP Johor Completion Date : 9 June 2020 Net Lettable Area : 222,723 sq. ft. Land Area : Approx. 8.2 acres Land Tenure : Sublease Occupancy : 100% Purchase Price : RM65.0 million WALE : Approx.8 y
Slide 18: Ongoing Acquisitions
AWls REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 1. Bayan Lepas Industrial Facility 1, Penang 2. One Total Logistics Warehouse, Seksyen 15, Shah Alam Target Completion Date : 2H2020 Target Completion Date : 2H2020 Net Lettable Area : 78,024 sq. ft. Net Lettable Area : 285,24
Slide 19: Ongoing Acquisitions
Target Completion Date : Net Lettable Area Land Area Land Tenure Occupancy Purchase Price WALE PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 3. Manufacturing Facility, Shah Alam, Selangor 2H2020 41,061 sq. ft. Approx. 2.2 acres Leasehold 100% RM11.87 million Approx. 3 years 19 AWS REAL ESTATE INVESTMENT T
Slide 20: Ongoing Acquisitions
AWS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 5. Manufacturing Facility 2, iPark @ Indahpura 6. Manufacturing Facility 3, iPark @ Indahpura Target Completion Date : 2H2020 Target Completion Date : 2H2020 Net Lettable Area : 24,949 sq. ft. Net Lettable Area : 35,339 sq. ft.
Slide 21: Total Estimated Value of Acquisition Targets RM120 million
Total Estimated Value of Acquisition Targets RM120 million
Slide 22: Financial Overview
Angels FINANCIAL OVERVIEW | 22
Slide 23: Snapshot as at June 2020
Angels FINANCIAL OVERVIEW — SNAPSHOT AS AT 30 JUNE 2020 RM3.27 bn RM1.01 bn RM2.14bn Total Assets N Total Financings Total Unitholder’s Funds Sy==7& RM1.48 31% 202020: 2.15 sen ER Net Asset Value Per Unit Financing Ratio 1Q2020: 2.10 sen Distribution Per Unit 23
Slide 24: Return Comparatives
Anis reais FINANCIAL OVERVIEW RETURN COMPARATIVES 6.00% > 5.45% 5.00% > 4.13% 4.00% ~ 3.89% 3.00% > 2.00% 2.00% > 1.75% | L 0.00% = Axis-REIT Distribution EPF Dividend Return 2019 10-yr MGS 12 Months FD Rate OPR Yield (as at 30 June 2020) 24
Slide 25: Income Statement 2Q2020 vs 2Q2019
FINANCIAL OVERVIEW INCOME STATEMENT 2Q2020 vs 2Q2019 2Q2020 2Q2019 Changes / (RM‘000) (RM‘000) Movement No. of Properties 51 45 +6 Property Income 55,141 53,760 - Property income before lease incentive adjustment 55,023 53,676 +2.5% - Lease incentive adjustment (non-distributable) 118 84 Property Ex
Slide 26: Income Statement 1H2020 vs 1H2019
FINANCIAL OVERVIEW INCOME STATEMENT 1H2020 vs 1H2019 1H2020 1H2019 Changes / (RM‘000) (RM‘000) Movement No. of Properties 51 45 +6 Property Income- NOTE 1 109,681 107,317 - Property income before lease incentive adjustment 109,898 107,551 42.2% - Lease incentive adjustment (non-distributable) (217)
Slide 27: Income Statement 1H2020 vs 1H2019 – Notes
Avzels meas FINANCIAL OVERVIEW INCOME STATEMENT 1H2020 vs 1H2019- NOTES Note 1 - Property Income Increase in property income as compared to preceding year corresponding period was mainly due to the commencement of lease on Axis Facility @ Batu Kawan on 1 March 2020 and rental from 5 newly acquired p
Slide 28: Property Income, Net Income and DPU Trends
250,000 214,975 200,000 175,810 184,219 203,637 200,000 150,000 150,000 109,681 100,000 93,353 100,000 50,000 50,000 - - FY2016 FY2017 FY2018 FY2019 1H2020 FY2016 FY2017 FY2018 FY2019 1H2020 140,000 116,209 10.00 8.25 8.26 8.74 9.26 4.25 120,000 113,442 115,179 107,047 8.00 2.20 100,000 90,186 90,79
Slide 29: Portfolio Yield by Asset Types
AWSels REAL ESTATE INVESTMENT TRUST FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Net Yield (%) Gross Yield (%) Office 6.6 9.1 Office Industrial 6.5 8.9 Warehouse Logistics 8.6 94 Manufacturing Facilities 75 8.3 Hypermarket 8.2 8.8 Pm | 29
Slide 30: Financial Position
Investment Properties - Note 1 Fixed Assets Other Assets - Note 2 TOTAL ASSETS Borrowings Other Payables Deferred Tax Liability TOTAL LIABILITIES NET ASSET VALUE (NAV) Unitholders' Capital - Note 3 Undistributed Distributable Income Non-Distributable Reserve TOTAL UNITHOLDERS' FUND GEARING NAV/UNIT
Slide 31: Notes – Financial Position
Avzels meas FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 - Investment Properties Total acquisitions of RM154.7 million including Axis Facility 2 @ Nilai, Axis Facility 2 @ Bukit Raja and D37c Logistics Warehouse were completed on 28 February 2020, 17 March 2020 and 9 June 2020 respectively.
Slide 32: Note 3 – 5-Year Debt Profile
FINANCIAL OVERVIEW 2 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 more than 1 year) Percentage of floating rate financing Percentage of fixed rate financing Total u
Slide 33: Gearing Levels
50% 45% FINANCIAL OVERVIEW AWS REAL ESTATE INVESTMENT TRUST GEARING LEVELS Placements Undertaken jj Allowable threshold of 50% will be increased to 60% effective from 12 August 2020 until 31 December 2022 40% ] 38% 40% 35% 30% 25% 20% 15% 10% 5% 0% 36% | 27% 33% ) 27% ) 24% 33% 330% 36% ) 33% 4Q2007
Slide 34: Unitholders' Capital
RM mil 3,500.0 3,000.0 2,500.0 2,000.0 1,500.0 1,000.0 500.0 AWS REAL ESTATE INVESTMENT TRUST FINANCIAL OVERVIEW UNITHOLDERS’ CAPITAL 3,2749 3,085.7 3,153.8 2) 5 2; 6 2,244.0 2,141.5 2,085.7 1,589.4 1,616.5 83.8 95.5 95.5 18.4 1,208.9 240. 247.1 044. 052.3) 1,060. 907.7 726.4 728.2 735.4) 751.0 581.
Slide 35: Stock Information
Asels STOCK INFORMATION |
Slide 36: Top Unitholders
AWls REAL ESTATE INVESTMENT TRUST STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 9.52% 2 EMPLOYEES PROVIDENT FUND BOARD 8.77% 3 LEMBAGA TABUNG HAJI 4.83% 4 AMANAH SAHAM BUMIPUTERA 4.00% 5 TEW PENG HWEE @ TEOH PENG HWEE 3.91% 6 ALEX LEELAO 3.72% 7
Slide 37: Investor Visibility & Liquidity
AWSels REAL ESTATE INVESTMENT TRUST STOCK INFORMATION INVESTOR VISIBILITY & LIQUIDITY Number of CDS Accounts 7,000 6,000 5,715 5,591 3747 5217 5,000 4,607 4,579 4,632 4,585 4,581 4,787 4,184 4,000 3611 3790 3,718 3,790 3891 3.934 4011 ee 3,219 3309 © 2860 3,009 3,176 3,200 3,. 3,000 2,420 2,702 2,00
Slide 38: Thank You
Avis THANK YOU | www.axis-reit.com.my 38
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