Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q2 2019 Earnings Presentation
40 slides from Axis Real Estate Investment Trust's earnings presentation, Jul 25, 2019
Slide 1: Results Presentation 2Q2019
AXIS AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 2Q2019 m — > lis co 25 July 2019
Slide 2: Agenda
Abels REAL ESTATE INVESTMENT TRUST AGENDA 2019 PORTFOLIO FINANCIAL STOCK HIGHLIGHTS fe/3\714"7 OVERVIEW | [izeiiiuile) t | WEEE ——) : a i il ll iw II I| Y y
Slide 3: 2Q2019 Highlights
Angels 2Q2019 HIGHLIGHTS i Sale
Slide 4: 2019 Highlights: Portfolio Summary
ra 4n 3 2019 HIGHLIGHTS ANAS PORTFOLIO SUMMARY 45 properties on portfolio 34 properties with 100% occupancy Total Assets Under Management RM2.9 billion Space Under Management 9.3 million sq ft Gearing 38% Solid industrial space portfolio 91% of properties on industrial titles Portfolio Occupancy of
Slide 5: 1H2019 Highlights: Portfolio Performance
1H2019 HIGHLIGHTS ANAS PORTFOLIO PERFORMANCE Investment properties currently stands at RM2.8 billion. Net property income increased by 18% for 1H2019 as compared to 1H2018. Total of 4.71 sen DPU declared for 1H2019. Traded at a premium of 30% to NAV as of 30 June 2019. Entered into a build-to-lease
Slide 6: 1H2019 Highlights: Portfolio Performance
1H2019 HIGHLIGHTS ANAS PORTFOLIO PERFORMANCE Acceptance of Letters of Offer to acquire two manufacturing facilities for RM55.8 million located in Nusajaya, Johor. Acceptance of Letters of Offer to acquire two manufacturing facilities for RM55.8 million located in Shah Alam, Selangor. Acceptance of L
Slide 7: Portfolio Overview
Angels 2Q2019 ZC PORTFOLIO OVERVIEW | 1 ST Se
Slide 8: Portfolio Overview
PORTFOLIO OVERVIEW .. Diversified and expanding portfolio 2 High occupancy rate with income visibility Sustainable distributions 4 Established nationwide footprint Aggressive pipeline targets A®,@|S REAL ESTATE INVESTMENT TRUST www.axis-reit.com.my
Slide 9: Diversified and Expanding Portfolio
PORTFOLIO OVERVIEW ANAS DIVERSIFIED AND EXPANDING PORTFOLIO a Y Our 45 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 of: * Bayan Lepas, Penang * N
Slide 10: Space Under Management
10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 ( sq {900.000 4,000,000 3,000,000 2,000,000 1,000,000 PORTFOLIO OVERVIEW Avals DIVERSIFIED AND EXPANDING PORTFOLIO | Space Under Management (sq ft) 9,349,267 9,347,530 8,087,781 7,606,863 6,859,474 70015,242 5,463,599 5,464,124 4,288,054 4,449,580 3
Slide 11: Portfolio Diversification
PORTFOLIO OVERVIEW Avals DIVERSIFIED AND EXPANDING PORTFOLIO oe [ Portfolio Diversification E Portfolio Diversification 3) Portfolio Diversification by Industry Sector (on NLA) by Asset Type (on NLA) by Occupancy Type (on NLA) mServices m Consumer Products ® Manufacturing m Logistics m™ Vacant *Indu
Slide 12: High Occupancy Rate with Income Visibility
PORTFOLIO OVERVIEW Avals HIGH OCCUPANCY RATE WITH INCOME VISIBILITY As at 30 June 2019, the portfolio has 45 assets comprising 9,347,530 sq. ft. and 154 tenants. No. of Properties 45 Property Income (RM‘000) 107,317 Property Expenses (RM’000) 14,764 Net Property Income (RM’‘000) 92,553 Occupancy 95%
Slide 13: Lease Expiry by Location and Type
SZ PORTFOLIO OVERVIEW AXelS HIGH OCCUPANCY RATE WITH INCOME VISIBILITY Lease Expiry By Location Year % of % of Rental Year % of % of Rental Year % of % of Rental Property 2019 TotalNLA _ Income/month 2020 TotalNLA _ Income/month 2021 TotalNLA _ Income/month Petaling Jaya 602,715 6.45 12.22 671,660 7
Slide 14: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW Assails HIGH OCCUPANCY RATE WITH INCOME VISIBILITY Properties with Occupancy Below 90% as at 30 June 2019 Fonterra HQ 85% Axis Business Park 82% Wisma Academy Parcel 78% Menara Axis 75% Wisma Kemajuan 74% Crystal Plaza 71% Axis Business Campus 67% The Annex 60% Quattro West 50% Ax
Slide 15: Established Nationwide Footprint and Top 10 Tenants
Penang (8.0%) * Bayan Lepas * Seberang Perai Selangor (55.6%) Shah Alam (19.9' Petaling Jaya (21.3 Klang (9.1%) Rawang (3.2% Subang (1.99 Negeri Sembilan (4.7%) + Nilai * Senawang PORTFOLIO OVERVIEW Atels ESTABLISHED NATIONWIDE FOOTPRINT Pahang (5.4%) * Kuantan Johor (24.8%) Pasir Gudang Gelang Pata
Slide 16: Asset Enhancement Initiatives
PORTFOLIO OVERVIEW ANAS ASSET ENHANCEMENT INITIATIVES Wisma Academy Parcel Axis Business Park Enhancement of washrooms Installation of new above ground hydrant system www.axis-reit.com.my
Slide 17: Pipeline Targets: Completed Project
PORTFOLIO OVERVIEW ANAS AGGRESSIVE PIPELINE TARGETS: COMPLETED PROJECT Axis Aerotech Centre @ Subang Net Lettable Area: 179,978 sq ft Handover Date: 13 February 2019 Construction Time: 8 months Lease Commencement: 16 December 2018 fi & THE OfpagAL LAU x 3 oon qd ' “~y d 1] y ry Market Value (as at 3
Slide 18: Pipeline Targets: Development Project
PORTFOLIO OVERVIEW Avals AGGRESSIVE PIPELINE TARGETS: DEVELOPMENT PROJECT . FedEx Batu Kawan Distribution Centre a) Details of purchase of sub-lease of land from Penang Development Corporation (PDC) Size: 2.5 acres Purchase Price: RM3,916,479.60 (based on RM36 psf) Tenure: 30 years b) Details of lea
Slide 19: Pipeline Targets: Ongoing Acquisitions
vy, PORTFOLIO OVERVIEW AXelS AGGRESSIVE PIPELINE TARGETS: ONGOING ACQUISITIONS 1. Bayan Lepas Industrial Facility 1, Pulau Pinang 2. Manufacturing Facilities, Nusajaya, Johor Target Completion Date : 2H2019 Target Completion Date : 2H2019 Land Area : Approx. 2.07 acres Land Area : Approx. 5.2 acres
Slide 20: Pipeline Targets: Ongoing Acquisitions
PORTFOLIO OVERVIEW Avals REAL ESTATE INVESTMENT TRUST AGGRESSIVE PIPELINE TARGETS: ONGOING ACQUISITIONS 3. Manufacturing Facility, Kota Kinabalu, Sabah 4. Manufacturing Facilities, Shah Alam, Selangor Target Completion Date : 2H2019 Target Completion Date : 2H2019 Land Area : Approx. 21.63 acres Lan
Slide 21: Pipeline Targets: Ongoing Acquisitions
vy, PORTFOLIO OVERVIEW AXelS AGGRESSIVE PIPELINE TARGETS: ONGOING ACQUISITIONS 5. Manufacturing Facility, Nilai, Negeri Sembilan Target Completion Date : 2H2019 Land Area : Approx. 8.75 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RMS50.0 million WALE : 10 years 21 www.axis-reit.c
Slide 22: Total Estimated Value of Acquisition Targets
Total Estimated Value of Acquisition Targets RM200 million
Slide 23: Financial Overview
Angels 2Q2019 CN FINANCIAL OVERVIEW | 1 Sale
Slide 24: Snapshot as at June 2019
FINANCIAL OVERVIEW ANAS SNAPSHOT AS AT 30 JUNE 2019 RM2.88bn Total Assets 2Q2019: 2.36 sen 1Q2019: 2.35 sen Distribution Per Unit RM1.11bn RM1.66bn Total Financings Total Unitholder’s Funds Net Asset Value Per Unit Net Gearing 24 > www.axis-reit.com.my
Slide 25: Return Comparatives
7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% FINANCIAL OVERVIEW RETURN COMPARATIVES 6.15% 5.38% 3.89% 3.50% | sc Axis-REIT EPF Dividend 10-yr MGS 12 Months FD Rate OPR Distribution Yield Return 2017 25 AWls REAL ESTATE INVESTMENT TRUST www.axis-reit.com.my
Slide 26: Income Statement 2Q2019 vs 2Q2018
\Z FINANCIAL OVERVIEW Assails INCOME STATEMENT 2Q2019 vs 2Q2018 2Q2019 2Q2018 Changes / (RM‘000) (RM‘000) Movement No. of Properties 45 42 +3 Property Income # 53,760 47,265 +13.7% Property Expenses (7,302) (7,285) +0.2% Net Property Income 46,458 39,980 +16.2% Profit Income / Other Income 434 185 N
Slide 27: Income Statement 1H2019 vs 1H2018
SZ FINANCIAL OVERVIEW AXelS INCOME STATEMENT 1H2019 vs 1H2018 1H2019 1H2018 Changes / (RM’‘000) (RM’‘000) Movement No. of Properties 45 42 +3 Property Income - Note 1# 107,317 92,213 +16.4% Property Expenses - Note 2 (14,764) (14,083) +4.8% Net Property Income 92,553 78,130 +18.5% Profit Income / Ot
Slide 28: Income Statement 1H2019 vs 1H2018 - Notes
FINANCIAL OVERVIEW ANAS INCOME STATEMENT 1H2019 vs 1H2018 - 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 Mega DC on 1 June 2018, Axis Aerotech Centre @ Subang on 16 December 2018 and
Slide 29: 5-Year Performance
FINANCIAL OVERVIEW Alzels 5-YEAR PERFORMANCE 250,000 Revenue (RM'000)* Net Property Income (RM'000)* 203,637 200,000 175,810 200,000 166,685 167,761 : 163,077 ’ ’ 150,000 139,331 139,637 141,249 150,000 107,317 i 92,553 100,000 100,000 50,000 50,000 FY2015 FY2016 FY2017 FY2018# 1H2019# FY2015 FY2016
Slide 30: Portfolio Yield by Asset Types
FINANCIAL OVERVIEW Assails PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 7A 97 Office Industrial 7.2 9.4 Warehouse Logistics 8.6 94 Manufacturing Facilities 8.2 9.1 Hypermarket 8.4 9.1 Average 8.1 9.3 30 www.axis-reit.com.my
Slide 31: Financial Position
Investment Properties - Note 1 Fixed Assets Other Assets — Note 2 TOTAL ASSETS Borrowings — Note 3 Other Payables TOTAL LIABILITIES NET ASSET VALUE (NAV) Unitholders' Capital Undistributed Distributable Income Non-Distributable Reserve TOTAL UNITHOLDERS' FUND GEARING NAV/UNjT (RM) jin issuance FINAN
Slide 32: Notes - Financial Position
FINANCIAL OVERVIEW ANAS NOTES - FINANCIAL POSITION Note 1 - Investment Properties During the period ended 30 June 2019, a total of RM4.1 million was spent on enhancement works of the properties in the portfolio and RM6.4 million was incurred for the development project. Note 2 - Other Assets The ave
Slide 33: Note - 5-Year Debt Profile
FINANCIAL OVERVIEW Assails NOTE 3 - 5-YEAR DEBT PROFILE Total Financing (RM’000) 731,814 780,665 842,594 1,059,367 Total Assets (RM’000) 2,141,493 2,244,274 2,549,609 2,840,463 Gearing 34.17% 34.78% 33.05% 37.30% 38.41% Effective Profit Rate 4.28% 4.25% 4.21% 4.32% Percentage of short term financing
Slide 34: Gearing Levels
FINANCIAL OVERVIEW ANAS GEARING LEVELS Placement Undertaken Hi Allowable threshold 50% 10% + 38% 36% 38% 36% 37% 37% 38% 33% 33% 33% 33% 30% 31% 27% 27% | 24% 2 © “S oO 2 ev we > www.axis-reit.com.my
Slide 35: Unitholders' Capital
RM mil 3,000.0 2,500.0 2,000.0 1,500.0 1,000.0 500.0 FINANCIAL OVERVIEW ANAS UNITHOLDERS’ CAPITAL 2,883.4 65 8.9 1.2403) 1,247.1} 12471 1,044.7) 1,052.3) | 1,060.0 907.7 726.4 751.0 381.8 540.3 | 48 406.9 339.6 3033 i ri 2349 31-Dec-05 31-Dec-07 31-Dec-09 31-Dec-11 31-Dec-13 31-Dec-15 31-Dec-17 30-J
Slide 36: Stock Information
Angels 2Q2019 ZC STOCK INFORMATION — 1 ST Se
Slide 37: Top Unitholders
STOCK INFORMATION Avals TOP 10 UNITHOLDERS . Name of Unitholder % 1 EMPLOYEES PROVIDENT FUND BOARD 10.53% 2. KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 7.95% 3. AMANAH SAHAM BUMIPUTERA 7.17% 4 LEMBAGA TABUNG HAJI 5.11% 5 TEW PENG HWEE @ TEOH PENG HWEE 4.57% 6 ALEX LEE LAO 4.28% 7 EXEMPT AN FOR AIA BHD.
Slide 38: Analysis of Unitholders with >2 Million Units
STOCK INFORMATION Avals ANALYSIS OF UNITHOLDERS WITH >2 MILLION UNITS . EXEMPT AN FOR AIA BHD. 1.6% EMPLOYEES PROVIDENT FUND BOARD (AMUNDI) 1.2% EMPLOYEES PROVIDENT FUND BOARD (ASIANISLAMIC) 0.3% PUBLIC SMALLCAP FUND 0.3% EMPLOYEES PROVIDENT FUND BOARD (F.TEMISLAMIC) 0.3% AMANAH SAHAM BUMIPUTERA -2.
Slide 39: Investor Visibility & Liquidity
STOCK INFORMATION Assails INVESTOR VISIBILITY & LIQUIDITY Number of CDS Accounts 6,000 5,000 4,787 4607 4579 4,632 4,585 4,581 4098 4,184 3,934 4,011 4,000 3,790 3,718 3,776 3891 3,611 3,309 3,009 3,176 3,200 3,219 3,000 2,000 1,000 2008 2009 2010 2011 2012 2013 2014 102015 202015 3Q2015 4Q2015 1020
Slide 40: Thank You
Angels ea ves THANK YOU For more information, please visit: ll www.axis-reit.com.my al | => = — | ii II II YOUR Business pace 7 PARTNER
Axis Real Estate Investment Trust — Q2 2019 Earnings Presentation on 6ix