Axis Real Estate Investment Trust · MYX:AXREIT

Axis Real Estate Investment Trust — Q3 2022 Earnings Presentation

37 slides from Axis Real Estate Investment Trust's earnings presentation, Oct 19, 2022

  1. Slide 1: Results Presentation 3Q2022

    AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 3Q2022 19 October 2022

  2. Slide 2: Highlights, Portfolio Overview, Financial Overview, Stock Information

    PORTFOLIO FINANCIAL STOCK HIGHLIGHTS OVERVIEW OVERVIEW INFORMATION 1

  3. Slide 3: Highlights

    HIGHLIGHTS 2

  4. Slide 4: Highlights

    HIGHLIGHTS 61 properties on portfolio 48 properties with 100% occupancy Portfolio Occupancy of 95% (as at 30/9/2022) 1 property under development Weighted Average Lease Expiry of 5.4 years 1 property under major enhancement Total Assets Under Management Reclassified as Islamic REIT in 2008 RM4.16 bi

  5. Slide 5: YTD 3Q2022 Highlights

    YTD 3Q2022 HIGHLIGHTS ► Total of 7.42 sen DPU declared for YTD 3Q2022. ► Portfolio size increased by 3 to a total of 61 properties. ► Investment properties currently stands at RM4.08 billion. ► Net property income increased by 16% for YTD 3Q2022 as compared to YTD 3Q2021. ► Realised net income incre

  6. Slide 6: YTD 3Q2022 Highlights

    YTD 3Q2022 HIGHLIGHTS ► Embarked on the development of Bukit Raja Distribution Centre 2 into a 620,096 sq. ft. logistics warehouse, with a 15-year lease signed with Shopee Express Malaysia Sdn. Bhd. ► Completed the acquisition of Pasir Gudang Logistics Warehouse 2 for RM32.0 million on 7 March 2022.

  7. Slide 7: Portfolio Overview

    PORTFOLIO OVERVIEW 6

  8. Slide 8: Space Under Management (sq ft)

    PORTFOLIO OVERVIEW Space Under Management (sq ft) 14,000,000 12,533,897 12,000,000 11,374,703 10,478,726 10,000,000 9,349,267 9.537.665 8,087,781 8,000,000 7,606,863 6,859,474 7.015,242 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 2,000,000 1,656,943 2010

  9. Slide 9: Portfolio Diversification by Location

    PORTFOLIO OVERVIEW ✓ Our 61 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 ✓ This geographical diversification i

  10. Slide 10: 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

  11. Slide 11: Portfolio Overview

    PORTFOLIO OVERVIEW As at 30 September 2022, the portfolio has 61 assets comprising 12,533,897 sq. ft. and 156 tenants. YTD 3Q2022 No. of Properties 61 000) 210,294 000) 29,161 000) 181,133 Occupancy 95% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 3Q2022 2021 2020 2019 20

  12. Slide 12: Properties with Occupancy Below 90%

    PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 30 SEPTEMBER 2022 Fonterra HQ 85% Axis Business Park 81% Axis Ind. Facility 1@Shah Alam 78% Wisma Academy Parcel 77% Axis Business Campus 75% Wisma Kemajuan 68% The Annex 60% Axis Technology Centre 52% Menara Axis 48% Axis Facility 2 @ Buk

  13. Slide 13: Lease Expiry

    PORTFOLIO OVERVIEW Lease Expiry By Location Year % of % of Rental Year % of % of Rental Year % of % of Rental Property 2022 Total NLA Income/month 2023 Total NLA Income/month 2024 Total NLA Income/month Petaling Jaya 572,265 4.57 0.88 544,355 4.34 0.76 480,260 3.83 0.76 Shah Alam 566,072 4.52 0.52 6

  14. Slide 14: Top Tenants

    PORTFOLIO OVERVIEW Top 10 Tenants ESTABLISHED NATIONWIDE FOOTPRINT YTD top ten tenants accounted for 51.6% of the total 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

  15. Slide 15: Ongoing Asset Enhancement Initiative

    PORTFOLIO OVERVIEW ONGOING ASSET ENHANCEMENT INITIATIVE Axis Facility 2 @ Bukit Raja Before Enhancement Post- Target completion Major enhancements: Green features include: end January • Roof replacement • LED lighting 2023 • Mechanical dock levellers • Water-efficient fittings • Replacement of build

  16. Slide 16: Ongoing Development

    PORTFOLIO OVERVIEW ONGOING DEVELOPMENT Bukit Raja Distribution Centre 2 Gross Built-up Area : 620,096 sq. ft. Land Area : Approx. 20.75 acres Land Tenure : Freehold Lessee : Shopee Express Malaysia Sdn. Bhd. WALE : 15 years Lease Commencement : No later than 31 August 2023 Development Value : Approx

  17. Slide 17: Completed Acquisitions

    PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 1. Pasir Gudang Logistics Warehouse 2, Johor 2. Indahpura Facility 4, Johor Completion Date : 7 March 2022 Completion Date : 8 March 2022 Net Lettable Area : 276,000 sq. ft. Net Lettable Area : 59,956 sq. ft. Land Area : Approx. 12.80 acres Land Area : Appro

  18. Slide 18: Completed Acquisitions

    PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 3. DW1 Logistics Warehouse, Johor Completion Date : 25 April 2022 Net Lettable Area : 1,150,391 sq. ft. Land Area : Approx. 18.4 acres Land Tenure : Approx. 33 years Sublease Occupancy : 100% Purchase Price : RM390.0 million WALE at Acquisition : 10 years 17

  19. Slide 19: Ongoing Acquisitions

    PORTFOLIO OVERVIEW ONGOING ACQUISITIONS Manufacturing Facility, Klang Targeted Completion Date: 2H2022 Net Lettable Area : 192,004 sq. ft. Land Area : Approx. 6.2 acres Land Tenure : Freehold Occupancy : 100% Purchase Price : RM41.0 million WALE at Acquisition : 3 years 18

  20. Slide 20: 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

  21. Slide 21: Financial Overview

    FINANCIAL OVERVIEW 20

  22. Slide 22: Snapshot as at September 2022

    FINANCIAL OVERVIEW SNAPSHOT AS AT 30 SEPTEMBER 2022 RM4.16 billion RM1.49 billion RM2.55 billion Total Assets Total Financing RM1.56 36% 1Q2022: 2.42 sen Net Asset Value Per Unit Financing Ratio 2Q2022: 2.55 sen 3Q2022: 2.45 sen Distribution Per Unit 21

  23. Slide 23: Return Comparatives

    FINANCIAL OVERVIEW RETURN COMPARATIVES 7.00% 6.10% 6.00% 5.23% 5.00% 4.46% 4.00% 3.00% 2.60% 2.50% 2.00% 1.00% 0.00% Axis-REIT Distribution EPF Dividend Return 2021 10-yr MGS 12 Months FD Rate OPR Yield (as at 12 October 2022) (as at 12 October 2022) (based on RM1.89 closing price) 22

  24. Slide 24: Income Statement 3Q2022 vs 3Q2021

    FINANCIAL OVERVIEW INCOME STATEMENT 3Q2022 vs 3Q2021 3Q2022 3Q2021 Changes / Movement No. of Properties 61 57 +4 Property Income 71,515 61,417 Property Income - Property income before lease incentive adjustment 72,006 61,795 +16.5 - Lease incentive adjustment (non-distributable) (491) (378) Property

  25. Slide 25: Income Statement YTD 3Q2022 vs YTD 3Q2021

    FINANCIAL OVERVIEW INCOME STATEMENT YTD 3Q2022 vs YTD 3Q2021 YTD 3Q2022 YTD 3Q2021 Changes / Movement No. of Properties 61 57 +4 Property Income Note 1 210,294 179,047 Property Income - Property income before lease incentive adjustment 210,274 179,686 +17.0 - Lease incentive adjustment (non-distribu

  26. Slide 26: Income Statement Notes

    FINANCIAL OVERVIEW INCOME STATEMENT YTD 3Q2022 vs YTD 3Q2021 - 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 • commencement of new tenancies at Axis Industrial Facility @ Rawang a

  27. Slide 27: 5-Year Performance

    FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Net Property Income (RM'000)* Revenue (RM'000)* 300,000 250,000 209,433 208,291 242,747 241,605 250,000 224,712 200,000 185,249 184,219 190,996 190,348 203,637 216,005 214,975 224,064 175,810 181,113 181,133 210,274 210,294 169,415 200,000 197,242 150,000 150,00

  28. Slide 28: Yield by Asset Types

    FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 6.6 9.3 Office Industrial 6.6 8.8 Logistics Warehouse 7.9 8.7 Manufacturing Facilities 8.1 8.9 Hypermarket 8.7 9.3 Average 7.7 8.9 27

  29. Slide 29: Financial Position

    FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 4,079,702 3,614,230 +465,472 Fixed Assets 2,006 2,410 -404 Other Assets Note 2 80,903 222,120 -141,217 TOTAL ASSETS 4,162,611 3,838,760 +323,851 Financing Note 4 1,488,925 1,184,593 +304,332 Other Payables 108,774 114,049 -5,275 Defe

  30. Slide 30: Notes - Financial Position

    FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the period, a total of RM20.0 million was spent on capital expenditure on existing properties, of which RM11.0 million was incurred for the ongoing development of Bukit Raja Distribution Centre 2. Total acquisitions of

  31. Slide 31: Note 4: 5-Year Financing Profile

    FINANCIAL OVERVIEW NOTE 4: 5-YEAR FINANCING PROFILE 2018 2019 2020 2021 YTD 3Q2022 1,059,367 885,859 1,112,183 1,184,593 1,488,925 2,840,463 3,085,681 3,364,083 3,838,760 4,162,611 Financing Ratio 37.30% 28.71% 33.06% 30.86% 35.77% Effective Profit Rate 4.32% 4.37% 3.89% 3.63% 3.86% Percentage of sh

  32. Slide 32: Financing Ratio

    FINANCIAL OVERVIEW FINANCING RATIO Placements Undertaken 50% 45% 40% 40% 38% 37% 36% 36% 36% 36% 36% 35% 33% 33% 33% 33% 31% 31% 30% 27% 29% 30% 29% 27% 25% 24% 20% 15% 10% 5% 0% 31

  33. Slide 33: Total Assets and Unitholders' Capital

    FINANCIAL OVERVIEW 4,500.0 4,156.9 4,162.6 4,000.0 3,838.8 3,762.2 3,500.0 3,364.1 3,085.7 3,000.0 2,840.5 2,549.6 2,500.0 2,244.0 2,141.5 RM mil 2,085.7 1,934.3 1,934.3 1,945.7 1,945.7 2,000.0 1,589.4 1,616.5 1,583.8 1,595.5 1,500.0 1,208.9 1,298.4 1,044.7 1,052.3 1,060.0 1,240.3 1,247.1 1,000.0 90

  34. Slide 34: Stock Information

    STOCK INFORMATION 33

  35. Slide 35: Stock Information: Top Unitholders

    STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 8.97% 2 EMPLOYEES PROVIDENT FUND BOARD 8.61% 3 LEMBAGA TABUNG HAJI 4.68% 4 AMANAH SAHAM BUMIPUTERA 4.02% 5 TEW PENG HWEE @ TEOH PENG HWEE 3.49% 6 ALEX LEE LAO 3.31% 7 EMPLOYEES PROVIDENT FUND BOARD (

  36. Slide 36: Stock Information: CDS Accounts and Holdings

    STOCK INFORMATION 14,000 Number of CDS Accounts 11,642 12,000 11,022 11,270 10,521 9,812 10,000 9,353 8,637 8,000 6,776 5,715 5,591 5,740 5,913 6,000 5,217 4,607 4,579 3,790 4,585 4,581 4,787 4,011 4,098 4,184 4,000 3,611 3,891 3,934 2,850 3,009 3,176 2,000 - 2012 2013 2014 2015 2016 1Q2017 2Q2017 3

  37. Slide 37: Thank You

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