Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q3 2009 Earnings Presentation
33 slides from Axis Real Estate Investment Trust's earnings presentation, October 2009
Slide 1: Axis REIT Third Quarter 2009 Financial Performance
Axis REIT Third Quarter 2009 Financial Performance
Slide 2: Disclaimer
Disclaimer This the information contained in this document is provided for information purposes only and in no way constitutes an offer of services or solicitation. Past performance is not indicative of future performance We decline any responsibility with respect to direct or indirect damages or co
Slide 3: A Quick Snapshot
A Quick Snapshot Approved Fund Size 307,081,200 units Manager Axis REIT Managers Bhd Assets Under Management 728.78 million Market Capitalisation RM546.60 million (as at 30 September 2009) Unit Price RM1.78 (as at 30 September 2009) Gearing RM212.02 million (27.26% of Total Asset Value a
Slide 4: Financial Results - Income Statement (Unaudited) 3Q2009
Financial Results ‐ Income Statement (Unaudited) Excluding unrealised earnings 3Q2009 3Q2008 Changes / due to changes in fair value of (RM ‘000) (RM’000) Movement investment properties No. of Properties 19 18 +1 Property Income – Note 1 17,520 16,367 + 7.04% Property Expenses – Note 2 (2,997) (2,559
Slide 5: Financial Results - Income Statement (Unaudited) YTD
Financial Results ‐ Income Statement (Unaudited) Excluding unrealised earnings YTD Sept 2009 YTD Sept 2008 Changes / due to changes in fair value of (RM ‘000) (RM’000) Movement investment properties No. of Properties 19 18 +1 Property Income 52,211 46,469 + 12.36% Property Expenses (8,430) (7,238) +
Slide 6: Notes to 3rd Qtr Financial Results - Income Statement
Notes to 3rd Qtr Financial Results – Income Statement Note 1 – Property Income Increase in property income is due to contribution of rental income from property acquisition completed since the 3rd quarter of 2008. Note 2 – Property Expenses Increase in property expenses is due to additional property
Slide 7: Notes to 3rd Qtr Financial Results - Income Statement (Cont'd)
Notes to 3rd Qtr Financial Results – Income Statement Cont’d.) Note 5 – Interest/ Islamic Financing Cost The increase in the interest / Islamic financing cost for the current quarter and year to‐date (“YTD”) as compared to last year’s corresponding quarter and YTD is due to increase in gearing of th
Slide 8: Balance Sheet Highlights (Unaudited)
Balance Sheet Highlights (Unaudited) 30/09/09 31/12/08 Changes RM '000 RM '000 Investment Properties 728,785 723,100 + 5,685 Other Assets 48,863 3,271 + 45,592 TOTAL ASSETS 777,648 726,371 + 51,277 Borrowings 212,022 230,456 ‐ 18,434 Other Payables 32,551 48,069 ‐ 15,518 TOTAL LIABILITIES 244,573 27
Slide 9: Detailed Property Performance Analysis
Detailed Property Performance Analysis – 30.9.2009 (RM’000) Book Fair Value Acq Cost + 12 Months Gross Value Adjustment Enhancement Annualised Yield (a) (b) (c) Revenue (d) (d) / (c) 1 ABP 102,581 17,536 85,045 11,188 13.16% 2 Axis Plaza 30,700 8,198 22,502 2,794 12.42% 3 Crystal Plaza 89,828 33,304
Slide 10: Summary of EPU (Realised) and DPU
Summary of EPU (Realised) and DPU 18.00 16.00 15.46 15.27 14.00 13.60 13.63 12.82 12.95 12.80 12.06 12.00 Sen/ unit 10.00 EPU (realised) 8.00 DPU 6.00 4.87 4.70 4.00 2.00 ‐ 2005 2006 2007 2008 3Q 2009 EPU(realised) = Income available for distribution 10
Slide 11: Total Assets & Unitholders' Funds
Total Assets & Unitholders’ Funds 777.6 800.0 726.4 732.9 700.0 658.2 600.0 533.1 518.9 500.0 447.9 450.3 411.8 416.8 423.2 402.3 RM mil 400.0 339.6 334.7 277.9 286.5 294.1 294.2 300.0 200.0 100.0 ‐ 31‐Dec‐05 30‐Jun‐06 31‐Dec‐06 30‐Jun‐07 31‐Dec‐07 30‐Jun‐08 31‐Dec‐08 30‐Jun‐09 30‐Sep‐09 Total Asset
Slide 12: No. of Unitholders
Improved Investor Visibility and Liquidity 2,200 2,000 2,038 1,800 1,959 1,778 1,600 1,652 No. of Unitholders 1,400 1,200 1,370 1,000 1,166 1,034 800 941 600 400 200 ‐ Dec'06 Jun'07 Dec'07 Jun'08 Dec'08 Mar'09 Jun'09 Sept'09 Since the reclassification to being Shariah compliant, there is an increase
Slide 13: Private Placement
AS41S Private Placement REAL ESTATE INVESTMENT TRUST
Slide 14: Private Placement - 51,180,200 New Units
Private Placement – 51,180,200 New Units • The new units were listed on 10 September 2009. • The private placement received strong response from the existing Unitholders. The Placement was oversubscribed by 2.03x. • The placement price was based on a 5‐day VWAMP up to 24 August 2009 of RM1.75. • The
Slide 15: New Acquisition for 2009
AS41S New Acquisition for 2009 REAL ESTATE INVESTMENT TRU:
Slide 16: Axis Steel Centre, North Port
Addition for 2009 – Warehouse/Logistics Axis Steel Centre, North Port Port Klang 16
Slide 17: Axis Steel Centre - Data Sheet
Axis Steel Centre – Data Sheet Address Lot 19, Lebuh Sultan Hishamuddin 1, North Port, Port Klang. Land Area 16.42 Acres (715,262 sq ft) Built Up 366,839 sq ft Land tenure 99 year leasehold with 93 years remaining Tenant Konsortium Logistik Berhad Occupancy 100% Tenure 5 year lease with a 3 year opt
Slide 18: Impact on Assets Under Management
Impact on Assets Under Management (AUM ) 900.0 803.80 800.0 728.1 728.8 723.1 724.6 700.0 Book Value (RM mil) 600.0 570.4 500.0 408.3 400.0 332.2 300.0 200.0 100.0 ‐ 2005 2006 2007 2008 1Q2009 2Q2009 3Q2009 2009* * Inclusion of Axis Steel Centre 18
Slide 19: Impact on Space Under Management
Impact on Space Under Management 3,500,000 3,224,960 24 2,858,121 2,858,121 2,858,121 22 3,000,000 20 20 19 19 19 2,500,000 18 2,175,522 16 Net Lettable Area (sq ft) No. of Properties 2,000,000 14 14 1,656,943 12 1,500,000 1,186,052 10 9 8 1,000,000 6 6 500,000 4 2 0 ‐ Dec'05 Dec'06 Dec'07 Dec'08 Ma
Slide 20: Property Portfolio
AS41S Property Portfolio REAL ESTATE INVESTMENT TRUST
Slide 21: Property Portfolio - Office
Property Portfolio ‐ Office Crystal Plaza, Petaling Jaya Nestle House, Petaling Jaya Menara Axis, Petaling Jaya 21
Slide 22: Property Portfolio - Office Industrial
Property Portfolio – Office Industrial Axis Business Park, Petaling Jaya Axis Plaza, Shah Alam Infinite Centre, Petaling Jaya Wisma Kemajuan, Petaling Jaya Kayangan Depot, Shah Alam Wisma Bintang, Petaling Jaya Kompakar, Petaling Jaya Nestle Office & Warehouse, Shah Alam Axis Vista, Petaling Jaya 22
Slide 23: Property Portfolio - Warehouse/Logistics
Property Portfolio – Warehouse/Logistics BMW Asia Technology Centre Tanjung Pelepas, Johor Niro Warehouse Pasir Gudang, Johor North Port Logistics Centre 1, Klang Delphi Cocoa Warehouse Pasir Gudang, Johor Axis Shah Alam DC1, Shah Alam 23
Slide 24: Light Industrial & Warehouse Property Portfolio - Retail Facilities
Light Industrial & Warehouse Property Portfolio – Retail Facilities FCI Connectors Malaysia Sdn Bhd Senai, Johor Giant Hypermarket Sg Petani, Kedah 24
Slide 25: Portfolio Diversification - Type of Properties
Portfolio Diversification ‐ Type of Properties Portfolio Diversification by Type and NLA Portfolio Diversification by Geographical and NLA 4.83% Office 14.71% 20.86% 16.92% Light Industrial Johor 24.63% 4.78% 4.83% Office/Industrial Kedah 4.69% Klang Warehousing/Logistics 54.91% Petaling Jaya 48.83%
Slide 26: Occupancy Rate
Occupancy Rate 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 98% 100% 93% 91% 93.6% 90% 85% 81% 80% 76% 70% % Area Occupied 60% 50% 37% 40% 30% 20% 10% 0% Current occupancy is 93.6% with the inclusion of Axis Steel Center. Axis North Logistic Center was the cause for the drop in o
Slide 27: Lease Expiry Profile
Lease Expiry Profile Year % of % of Rental Year % of % of Rental Year % of % of Rental Property 2009 Total NLA Income /mth 2010 Total NLA Income /mth 2011 Total NLA Income /mth Menara Axis 51,510 1.80% 3.11% 58,002 2.03% 4.92% 14,034 0.49% 1.48% Crystal Plaza 24,856 0.87% 1.63% 169,002 5.91% 9.68% 9
Slide 28: Maintaining Positive Rental Reversions
Maintaining Positive Rental Reversions Multi Tenanted Properties Space Negotiated % Movement Menara Axis 38,959 +10.2% Crystal Plaza 12,433 ‐1.4% Axis Business Park 34,693 + 7.6% Infinite Centre 31,912 ‐1.5% Axis Plaza 5,939 No change Wisma Kemajuan 30,174 +2.2% Kayangan Depot 2,609 No change North
Slide 29: Nestle House (Quattro West) Refurbishment
Nestle House (Quattro West) Refurbishment 29
Slide 30: Nestle House Enhancement
Nestle House Enhancement Before After Nestle House will be upgraded at the end of A World Class Grade A Boutique Office 2009/10 from a 70’s design to: ‐ Building‐ Design elements o Refurbishment of exterior planned o Upgrade of lift lobbies o New lobbies o New covered drop off zone and F&B facilitie
Slide 31: Nestle House Enhancement - Timetable
Nestle House Enhancement‐ Timetable Time Table Nestle cease Operations at site 23rd October 2009 Work Commences on Exterior 26th October 2009 Work Commences on Interior 9th November 2009 Work Complete 12th February 2010 Ready for Occupancy March 2010 The asset enhancement consists of conve
Slide 32: Nestle House Enhancement - Snapshot
Nestle House Enhancement ‐Snapshot Current Yield (Gross) : 9.5% (2008) Nestle rental expiry : 30th Nov 2009 Nestle migration : 23rd Oct 2009 Estimated project cost : RM7.5mil Projected Yield (Gross) : 10.2% Ready for occupancy : March 2010 32
Slide 33: Thank You
REAL ESTATE INVESTMENT TRUST Thank You
Axis Real Estate Investment Trust — Q3 2009 Earnings Presentation on 6ix