Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q4 2018 Earnings Presentation
56 slides from Axis Real Estate Investment Trust's earnings presentation, Jan 23, 2019
Slide 1: Results Presentation 4Q2018
Results Presentation 4Q2018 23 January 2019
Slide 2: 2018 Portfolio Highlights
2018 Portfolio Highlights Abels REAL ESTATE INVESTMENT TRUST 1Q 2018 ¥ Completed the acquisition of Wasco Land 2 located at Kuantan, Pahang for RM35.0 million on 9 February 2018. 2Q 2018 ¥ Completed the acquisition of Shah Alam DC 4 located at Shah Alam, Selangor for RM87.0 million on 4 June 2018. ¥
Slide 3: 2018 Financial Highlights
2018 Financial Highlights Abels v Investment properties currently stands at RM2.84 billion. v Net property income increased by 25% for FYE 2018 as compared to FYE 2017. v DPU increased by 6% to 8.74 sen for YTD 2018 (DPU for YTD 2017 was 8.26 sen). v Successfully implemented the Income Distribution
Slide 4: 2018 Return Comparatives
2018 Return Comparatives AdS4lS REAL ESTATE INVESTMENT TRUST 7.00% 4 6.90% 6.00% | 5.60% 5.00% + 4.00% + 3.73% 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 (2017) wwwaxis-reitcom.my
Slide 5: Finance Report
AMAIS. 4Q2018 FINANCE REPORT
Slide 6: 2018 Summary
2018 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 Under
Slide 7: Income Statement 4Q2018 vs 4Q2017
Income Statement 4Q2018 vs 4Q2017 No. of Properties Property Income Property Expenses Net Property Income Profit Income / Other Income Non-Property Expenses Islamic Financing Cost Net Income DPU (sen) No. of Units in Issuance Note: mene financials excludes unrealised gains or losses. 7 4Q2018 (RM’00
Slide 8: Income Statement 2018 vs 2017
Income Statement 2018 vs 2017 AdS4lS REAL ESTATE INVESTMENT TRUST 2018 2017 Changes / (RM’000) (RM’000) Movement No. of Properties 45 40 +5 Property Income - Note 1 203,637 167,761 +21.4% Property Expenses — Note 2 (27,827) (26,512) +5.0% Net Property Income 175,810 141,249 +24.5% Profit Income / Ot
Slide 9: Income Statement 2018 vs 2017 Notes
Income Statement 2018 vs 2017 Abs4lS 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, rental from newly acquired properties and ren
Slide 10: Income Statement 2018 vs 2017 (cont'd)
Income Statement 2018 vs 2017 (cont’d) Abs4lS REAL ESTATE INVESTMENT TRUST Note 4 - Islamic Financing Cost Increase in financing cost due to additional financing facilities to fund the new acquisitions. The capitalisation of financing cost for Axis Mega DC had ceased upon completion of the project i
Slide 11: Investment Properties: Gross Yield and Net Yield by Asset Type
Investment Properties: IX IS Gross Yield and Net Yield by Asset Type se sae SMES Net Yield (%) Gross Yield (%) Office 8.5 10.9 Office Industrial 74 9.6 Warehouse Logistics 8.7 96 Manufacturing Facilities 8.1 8.9 Hypermarket 8.6 9.3 Average 8.2 9.5 www.axis-reit-com.my 11
Slide 12: Income Available for Distribution
Income Available for Distribution Abels REAL ESTATE INVESTMENT TRUST Adjusted Income Before Taxation/ Income Available For Distribution 35.00 9 30.00 25.00 + § 20.00 + € = = 15.00 | 29.40 24.70 . 23.34 2212 Dy) 10.00 + 5.00 | 0.00 4 A 10 2017 2Q 2017 3Q 2017 4Q 2017 102018 202018 302018 402018 wwwan
Slide 13: Summary of Realised EPU and DPU
sen Summary of Realised EPU and DPU 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 8.64 9.10 9.30 .65 9.2: 9.23 5 8 8.71 8.35 840 .70 Aw%ls REAL ESTATE INVESTMENT TRUST 9.20 8.25 8.19 8.13 949 | 2008 65 799 8.01 8.00 0 4 773 7.64 7.89 | 2 2009 2010 2011 ™ Gain on disposal 2012 mDPU 2013 2014 ™ E
Slide 14: Statement of Financial Position
eae \/ Statement of Financial Position AvAlS REAL ESTATE INVESTMENT TRUST Investment Properties —- Note 1 2,798,500 2,482,200 +316,300 Fixed Assets 3,021 2,477 +544 Other Assets — Note 2 38,942 64,932 -25,990 TOTAL ASSETS 2,840,463 2,549,609 290,854 Financings — Note 3 1,059,367 842,594 +216,773 Oth
Slide 15: Statement of Financial Position
Statement of Financial Position AdS4lS REAL ESTATE INVESTMENT TRUST Note 1 - Investment Properties During the year, a total of RM7.5 million was spent on enhancement works on the portfolio and a further RM68.0 million was incurred for both the development projects ie. Nestle@Axis Mega Distribution C
Slide 16: Statement of Financial Position: Financings
Statement of Financial Position Note 3 - Financings Abels REAL i INVESTMENT TRUST Taxon | aro [ats ata [ans | ane [ais [ate ir a 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 financin
Slide 17: Financings Update and Debt Maturity Profile
Statement of Financial Position AdS4lS Financings (Update) <cmrararme On 7 January 2019, Axis-REIT issued RM240 million unrated Sukuk of 7 years as part of the strategy to further strengthen its debt maturity profile. The debt maturity profile and summary of fixed and floating financing rates post t
Slide 18: Gearing Levels
Statement of Financial Position Ax S Gearing Levels mess Placements Undertaken 40% > 38% 37% 37% 36% 36% 36% 37% 4 34% 35% 33% 33% 339% 33% 31% 30% + 29% 29% 27% 25% + 24% 20% + 15% + 10% + 5% + 0% + <\ & 2) 2) S “ N &® & ) A A X) XJ SF FF Fh gh gh oo 8° Sg gs gs? _ gs? ss _ gs? os? _ os” a5 FFF FFF
Slide 19: Unitholders' Capital
Unitholders’ Capital AdS4lS REAL ESTATE INVESTMENT TRUST 3,000.0 4 2,500.0 4 2,244.0 2,141.5 2,085.7 2,000.0 4 1,589.4 1616.5 1,500.0 4 mi ° 1,240.3) (1,247.1 1,044.77 4052.3) |1,060.0 1,000.0 + ; 726.4 728.2 7354 751.0 581.8 ; 500.0 4 4118 406.9 339.6 323.3 : a 234.9 34.9 31-Dec-05 31-Dec-07 31-Dec
Slide 20: Property Report
AMA IS. 4Q2018 PROPERTY REPORT
Slide 21: Overview
Overview Auge IS REAL ESTATE INVESTMENT TRUST As at 31 December 2018, the occupancy rate of Axis-REIT’s portfolio stands at 94% with stable weighted average lease expiry period of 5.57 years (based on rental). The Manager achieved positive rental reversion of 5% for YTD 31 December 2018. In 2018, th
Slide 22: Key Portfolio Metrics
Key Portfolio Metrics Als REAL ESTATE INVESTMENT TRUST As at 31 December 2018, the portfolio has 45 assets comprising 9,349,267 sq. ft.and 152 tenants. re ay _| ee No. of Properties Property Income (RM’‘000) 203,637 167,761 +21% Property Expenses (RM’000) 27,827 26,512 +5% Net Property Income (RM’‘0
Slide 23: Space Under Management
Space Under Management AdS4lS REAL ESTATE INVESTMENT TRUST Space Under Management (sq ft) 10,000,000 9,349,267 9,000,000 8,087,781 8,000,000 7,606,863 6,859,474 7,015,242 7,000,000 5,464,124 6,000,000 5,463,599 5,000,000 4,449,580 (sqft) 4,288,054 4,000,000 3,679,796 3,000,000 2,858,121 2,175,522 2,
Slide 24: Portfolio Occupancy Rate
Portfolio Occupancy Rate As at 31 December 2018, only 11 out of 45 properties carry vacancy. 34 properties enjoy 100% occupancy. Occupancy As at 31 December 2018 Vacancy As at 31 December 2018 Space available Occupancy Multi-tenant properties Single tenant properties 94% 6% 563,947 sq. ft. 79.60% 99
Slide 25: Properties Below 90% Occupancy
Properties Below 90% Occupancy Als REAL ESTATE INVESTMENT TRUST Occupancy rates of properties below 90% as at 31 December 2018 Infinite Centre 87% Fonterra HQ 85% Wisma Academy Parcel 77% Wisma Kemajuan 72% Crystal Plaza 71% Axis Business Campus 69% Axis Business Park 68% Menara Axis 68% The Annex 6
Slide 26: Diversified Portfolio by Occupancy Type
Diversified Portfolio Als REAL ESTATE INVESTMENT TRUST Portfolio Diversification by Occupancy Type (on NLA) m Single Tenant m Multi Tenants 26
Slide 27: Diversified Portfolio by Industry Sector
Diversified Portfolio Als REAL ESTATE INVESTMENT TRUST Portfolio Diversification by Industry Sector (on NLA) Others Services 4% Healthcare & Lifestyle 2% Engineering/Building Materials 21% Consumer Products 9% Financial Services 1% IT/Electronics 9% N ‘ Logistics os Automotive 9 5% 32% id wwwaxis-re
Slide 28: Diversified Portfolio by Asset Type
Diversified Portfolio Als REAL ESTATE INVESTMENT TRUST Portfolio Diversification by Asset Type (on NLA) "| 44% = Office § Office/ Industrial A = Hypermarkets { \ = Warehouse Logistic | 4 = Manufacturing Facilities UI —__. wwwaxis-reitcom.my 28
Slide 29: Portfolio Location
Portfolio Location Aw%ls REAL ESTATE INVESTMENT TRUST Johor a 24.81% Petaling Jaya Shah Alam Klang Penang Kuantan Negeri Sembilan Rawang Subang Kedah 9.14% NN 8.00% I «45.42% NN 4.70% NN 3.23% (1.91% = 1.48% LLL 21.33% LS 19.98% Breakdown by State Selangor 55.59% Johor 24.81% Penang 8.00% Others 11.
Slide 30: Lease Expiry Profile
Adsals REAL ESTATE INVESTMENT TRUST Lease Expiry Profile By Location Year % of % of Rental Year % of % of Rental Year % of % of Rental Income/ Income/ Income/ 2019 Total NLA month 2020 Total NLA month 2021 Total NLA month 349,701 Petaling Jaya 555,759 Klang - - Shah Alam 526,567 5.63 161,280 1.73 1.
Slide 31: Top Tenants
Top 10 Tenants Auge IS REAL ESTATE INVESTMENT TRUST 1. Nestle Products Sdn Bhd 2. LF Logistics Services (M) Sdn Bhd 3. | Yongnam Engineering Sdn Bhd 4. Wasco Coatings Malaysia Sdn Bhd 5. | Upeca Aerotech Sdn Bhd 6. Tesco Stores (Malaysia) Sdn. Bhd. 7. POS Logistics Berhad 8. Schenker Logistics (Mala
Slide 32: 2018 Asset Enhancement Initiatives
AMA IS. 2018 ASSET ENHANCEMENT INITIATIVES
Slide 33: Crystal Plaza: Lobby & Washroom Enhancement Works
CRYSTAL PLAZA Ais4ls Lobby 3 & Washroom Enhancement Works 33
Slide 34: Crystal Plaza: Rooftop Waterproofing
CRYSTAL PLAZA Rooftop - Waterproofing
Slide 35: Crystal Plaza: Driveway Enhancement
CRYSTAL PLAZA Ais4ls REAL ESTATE INVESTMENT TRUST Driveway Enhancement
Slide 36: Crystal Plaza: Building Facade Enhancement
CRYSTAL PLAZA A®41S REAL ESTATE INVESTMENT TRU! Building Fagade Enhancement 36
Slide 37: Wisma Academy: Building Facade Enhancement
WISMA ACADEMY AdS4lS REAL ESTATE INVESTMENT TRUST Building Fagade Enhancement 37
Slide 38: Property Development Report
AMA IS. 4Q2018 PROPERTY DEVELOPMENT REPORT
Slide 39: Completed: Nestle DC@Axis Mega Distribution Centre
COMPLETED Aa%lS Nestle DC@Axis Mega Distribution Centre wun
Slide 40: Nestle DC@Axis Mega Distribution Centre (Phase 1)
COMPLETED Als Nestle DC@Axis Mega Distribution Centre — (Phase 1) NLA : 515,000 sf Rental Rate : Starting rental of RM19.2 million per annum Tenure : 10 years with option of 2 terms of 3 years each Handover date : 2 February 2018 Lease Commencement : 1 June 2018 Cost incurred up to 31 December 2018
Slide 41: Ongoing: Axis Aerotech Centre@Subang
ONGOING Avs Axis Aerotech Centre@Subang Was |. 4 «2 o on t wn ct a
Slide 42: Ongoing: Axis Aerotech Centre@Subang
ONGOING AXIS Axis AerotechCentre@Subang j= }—.| 42
Slide 43: Axis Aerotech Centre@Subang
ONGOING Axis Aerotech Centre@Subang AW%lS REAL ESTATE INVESTMENT TRUST a) Details of purchase of the sub-lease of land from MAHB Size Purchase price Tenure : 7.02 acres :RM19,876,428 (based on RM65 psf) : 49 years, expiring 31 December 2066 b) Details of lease agreement with Upeca Net Lettable Area
Slide 44: Investments Report
AMA IS. 4Q2018 INVESTMENTS REPORT
Slide 45: Completed Acquisitions
Completed Acquisitions AdS4lS REAL ESTATE INVESTMENT TRUST Axis Shah Alam Distribution Centre 4 - Seksyen 28, Shah Alam, Selangor Completion Date : 4 June 2018 Land Area : Approx. 10.11 acres Land Tenure : Freehold AX Occupancy : 100% at Purchase Price : RM87 million | ___ Starting Net Property Yiel
Slide 46: Completed Acquisitions
Completed Acquisitions AgalS AEAL 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 47: Ongoing Acquisitions
Ongoing Acquisitions Aw%ls REAL ESTATE INVESTMENT TRUST Senawang Industrial Facility - Senawang, Negeri Sembilan Completion Date Land Area Land Tenure Occupancy Purchase Price Starting Net Property Yield WALE 5 December 2018 Approx. 4.21 acres Freehold 100% RM18.5 million 7.7% Approx. 8 years 47 wwv
Slide 48: 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 48
Slide 49: Total Estimated Value of Acquisition Targets
• • • Total Estimated Value of Acquisition Targets RM 200 million 49
Slide 50: Investor Relations Report
AMA IS. 4Q2018 INVESTOR RELATIONS REPORT
Slide 51: Unit Price Performance
Unit Price Performance Abs4lS 130% 5 120% - 110% - 100% ~ 90% 80% + 70% + 60% ~ 50% REAL ESTATE INVESTMENT TRUST KLCI vs AXREIT: 1 Jan 2014 - 31 Dec 2018 —kKLCl ——AXREIT 302A RU AD EDAD ROI DA 31 RD TD 28D OO ROTO OY 25 HAVO OUD RO 2 OID TENOR 3, Unit Price Summary Closing Unit Price 4Q2018: RM1.56
Slide 52: 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 - 52
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 - 52
Slide 53: Top Unitholders
Top 10 Unitholders Ke} Holdings Breakdown Name of Unitholder CITIGROUP NOMINEES (TEMPATAN) SDN BHD EMPLOYEES PROVIDENT FUND BOARD AMANAHRAYA TRUSTEES BERHAD AMANAH SAHAM BUMIPUTERA KUMPULAN WANG PERSARAAN (DIPERBADANKAN) LEMBAGA TABUNG HAJI TEW PENG HWEE @ TEOH PENG HWEE ALEX LEE LAO PERMODALAN NASI
Slide 54: Analysis of Unitholders with >2million Units
Analysis of Unitholders with >2million Units Aw%als REAL ESTATE INVESTMENT TRUST Top 5 Increases in Unitholdings Changes vs Last Quarter AMANAH SAHAM MALAYSIA 3 AMANAH SAHAM BUMIPUTERA GREAT EASTERN LIFE ASSURANCE (MALAYSIA) BERHAD (DR) KUMPULAN WANG PERSARAAN (DIPERBADANKAN) (MIDF ABSR EQ) KUMPULAN
Slide 55: Investor Visibility & Liquidity
Investor Visibility & Liquidity Aw%als REAL ESTATE INVESTMENT TRUST No. of CDS Accounts 5,000 4607 4579 4632 4585 4,500 4,184 4,098 . 4,000 3611 2790 3,718 3776 3a 3934 SON 3,500 joo9 37178 3200 3.219 3,309 3,000 2,702 2,850 ' 2500 2,420 2,080 2,000 | 1,652 1,500, 1,000 500 2008 2009 2010 2011 2012
Slide 56: Thank You
Avs THANK YOU www.axis-reit.com my
Axis Real Estate Investment Trust — Q4 2018 Earnings Presentation on 6ix