Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q3 2023 Earnings Presentation
36 slides from Axis Real Estate Investment Trust's earnings presentation, Oct 19, 2023
Slide 1: Results Presentation 3Q2023
AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 4Q2022 Results Presentation 3Q2023 19 October 27 January 2023 2023
Slide 2: Highlights, Portfolio Overview, Financial Overview, Stock Information
PORTFOLIO FINANCIAL STOCK HIGHLIGHTS OVERVIEW OVERVIEW INFORMATION
Slide 3: Highlights
HIGHLIGHTS
Slide 4: Highlights
HIGHLIGHTS 62 properties on portfolio 51 properties with 100% occupancy Portfolio Occupancy of 92% (as at 30/9/2023) 1 ongoing development project Weighted Average Lease Expiry of 5.22 years Total Assets Under Management Reclassified as Islamic REIT in 2008 RM4.43 billion Space Under Management Dist
Slide 5: YTD 3Q2023 Highlights
YTD 3Q2023 HIGHLIGHTS ► Total of 6.25 sen DPU declared for YTD 3Q2023 ► Investment properties currently stands at RM4.36 billion. ► Traded at a premium of 16.8% to NAV as at 30 September 2023. ► Successfully completed the listing of 100 million new units on 4 January 2023 pursuant to a placement exe
Slide 6: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS ✓Efficient energy management: ✓Donated an ambulance to SJAM ✓Best practices: Governance Environment Social Replacing conventional lighting for emergency ambulance Complied with 30% female with energy efficient lighting services in Kota Kinabalu, Sabah representation on Boar
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW
Slide 8: Portfolio Overview
PORTFOLIO OVERVIEW As at 30 September 2023, the portfolio has 62 assets comprising 13,347,443 sq. ft. and 169 tenants. YTD 3Q2023 No. of Properties 62 Realised 000) 209,301 000) 32,556 Realised 000) 176,745 Occupancy 92% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income YTD 3Q
Slide 9: Space Under Management
PORTFOLIO OVERVIEW Space Under Management (sq ft) 16,000,000 14,000,000 13,347,443 12,726,260 12,000,000 11,374,703 10,478,726 10,000,000 9,537,666 9,349,267 8,087,781 ( sq ft) 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 2,1
Slide 10: Portfolio Diversification by Location
PORTFOLIO OVERVIEW ✓ Our 62 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
Slide 11: 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) Services Comsumer Products Office Office/ Industrial Single Tenant Multi Tenants Manufacturing Logistics Hypermarkets Logisti
Slide 12: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 30 SEPTEMBER 2023 Fonterra HQ 85% Axis Business Park 83% Axis Technology Centre 81% Wisma Academy Parcel 79% Axis Business Campus 75% Axis Ind. Facility 1@Shah Alam 75% Wisma Kemajuan 74% The Annex 60% Menara Axis 54% Axis Steel Centre @ S
Slide 13: Lease Expiry by Location and Type
PORTFOLIO OVERVIEW Lease Expiry By Location Year % of % of Rental Year % of % of Rental Year % of % of Rental Property 2023 Total NLA Income/month 2024 Total NLA Income/month 2025 Total NLA Income/month Petaling Jaya 582,765 4.37 6.50 545,586 4.09 7.03 606,651 4.55 8.14 Subang - - - - - - 30,250 0.2
Slide 14: Top Tenants
PORTFOLIO OVERVIEW Top 10 Tenants ESTABLISHED NATIONWIDE FOOTPRINT YTD top ten tenants accounted for 50% of the monthly 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
Slide 15: Completed Development: Bukit Raja Distribution Centre
PORTFOLIO OVERVIEW COMPLETED DEVELOPMENT Bukit Raja Distribution Centre 2 Completed with CCC Gross Built-up Area: 620,096 sq. ft. August 2023 Land Area : Approx. 20.75 acres Green Land Tenure : Freehold certified Lessee : SPX Xpress (Malaysia) Sdn Bhd building (fka Shopee Express Malaysia Sdn Bhd) W
Slide 16: Ongoing Development: Axis Mega Distribution Centre Phase 2
PORTFOLIO OVERVIEW ONGOING DEVELOPMENT Axis Mega Distribution Centre (Phase 2) Phase 2 Nestle DC Target completion 1Q2024 Green Gross Built-up Area : 584,112 sq. ft. certified Land Area : Approx. 20.0 acres building Land Tenure : Freehold Development Cost : Approx. RM180.0 million (incl. land) 15
Slide 17: Ongoing Acquisition: Manufacturing Facility in Sendayan
PORTFOLIO OVERVIEW ONGOING ACQUISITION Manufacturing Facility in Sendayan, Negeri Sembilan Target Completion Date : 1H2024 Net Lettable Area : 105,311 sq. ft. Land Area : Approx. 14.63 acres Land Tenure : Freehold Occupancy : 100% Purchase Price : RM48.0 million WALE at Acquisition : Approx. 6 years
Slide 18: Ongoing Acquisition: Hypermarket in Temerloh
PORTFOLIO OVERVIEW ONGOING ACQUISITION Hypermarket in Temerloh, Pahang Target Completion Date : 1Q2024 Net Lettable Area : Approx. 106,711 sq. ft. Land Area : Approx. 1.85 acres Land Tenure : Freehold Occupancy : 100% Purchase Price : RM25.75 million 17
Slide 19: 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
Slide 20: Financial Overview
FINANCIAL OVERVIEW
Slide 21: Snapshot as at September 2023
FINANCIAL OVERVIEW SNAPSHOT AS AT 30 SEPTEMBER 2023 RM4.43 billion RM1.54 billion RM2.74 billion Total Assets Total Financing RM1.58 34.6% 1Q2023: 2.05 sen Net Asset Value Per Unit Financing Ratio 2Q2023: 2.05 sen 3Q2023: 2.15 sen Distribution Per Unit 20
Slide 22: Quarterly Results Highlights
FINANCIAL OVERVIEW Results highlights for current quarter compared to preceding quarter: • Property Income increased by 6% 3Q2023 RM72,057,000 2Q2023 RM67,943,000 1Q2023 RM69,654,000 • Property income has shown improvement as compared to the previous 2 preceding quarters due to: ➢ Completion of the
Slide 23: Income Statement 3Q2023 vs 3Q2022
FINANCIAL OVERVIEW INCOME STATEMENT 3Q2023 vs 3Q2022 3Q2023 3Q2022 Changes / Movement No. of Properties 62 61 +1 Property Income 71,485 71,515 Property Income - Property income before lease incentive adjustment 72,057 72,006 +0.1% - Lease incentive adjustment (non-distributable) (572) (491) Property
Slide 24: Income Statement YTD 3Q2023 vs YTD 3Q2022
FINANCIAL OVERVIEW INCOME STATEMENT YTD 3Q2023 vs YTD 3Q2022 YTD 3Q2023 YTD 3Q2022 Changes / Movement No. of Properties 62 61 +1 Property Income Note 1 209,301 210,294 -0.5% Property Income - Property income before lease incentive adjustment 209,654 210,274 -0.3% - Lease incentive adjustment (non-di
Slide 25: Income Statement Notes
FINANCIAL OVERVIEW INCOME STATEMENT YTD 3Q2023 vs YTD 3Q2022 - NOTES Note 1 Property Income Property income was marginally lower as compared to preceding year mainly due to lower property income in 1H2023. However, this has improved in 3Q2023 due to higher occupancy rate since August 2023. In 2022,
Slide 26: 5-Year Performance
FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Net Property Income (RM'000)* Revenue (RM'000)* 300,000 281,723 281,090 300,000 242,747 241,605 242,595 241,962 250,000 250,000 216,005 214,975 224,712 224,064 209,654 209,301 190,996 190,348 209,433 208,291 200,000 200,000 185,249 184,219 177,098 176,745 150,00
Slide 27: Yield by Asset Types
FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 6.7 9.6 Office Industrial 6.8 9.3 Logistics Warehouse 7.6 8.6 Manufacturing Facilities 7.9 8.7 Hypermarket 8.8 9.4 Average 7.6 8.8 26
Slide 28: Financial Position
FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 4,359,601 4,186,020 +173,581 Fixed Assets 1,489 1,859 -370 Other Assets Note 2 73,523 67,794 +5,729 TOTAL ASSETS 4,434,613 4,255,673 +178,940 Financing Note 4 1,535,847 1,546,020 -10,173 Other Payables 141,835 123,334 +18,501 Deferre
Slide 29: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the period, a total of RM169.5 million was spent on capital expenditure as below: • RM7.8 million for enhancement of existing properties, • RM83.9 million for the completed development project Bukit Raja Distribution C
Slide 30: Note 4: 5-Year Financing Profile
FINANCIAL OVERVIEW NOTE 4: 5-YEAR FINANCING PROFILE 2019 2020 2021 2022 YTD 3Q2023 885,859 1,112,183 1,184,593 1,546,020 1,535,847 3,085,681 3,364,083 3,838,760 4,255,673 4,434,613 Financing Ratio 28.71% 33.06% 30.86% 36.33% 34.63% Effective Profit Rate 4.37% 3.89% 3.63% 3.87% 4.18% Percentage of sh
Slide 31: Financing Ratio
FINANCIAL OVERVIEW FINANCING RATIO Placements Undertaken 50% 45% 40% 40% 38% 37% 36% 36% 36% 36% 35% 33% 33% 33% 33% 33% 34% 35% 31% 31% 30% 27% 29% 30% 29% 27% 25% 24% 20% 15% 10% 5% 0% 30
Slide 32: Total Assets and Unitholders' Capital
FINANCIAL OVERVIEW 4,434.6 4,500.0 4,316.0 4,395.1 4,255.7 4,000.0 3,838.8 3,500.0 3,364.1 3,085.7 3,000.0 2,840.5 2,549.6 2,500.0 2,244.0 2,118.6 2,118.6 2,118.6 2,141.5 RM mil 2,085.7 1,934.3 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 1,044.71,052.3 1,060.0 1,240.31,24
Slide 33: Stock Information
STOCK INFORMATION
Slide 34: Stock Information: Top Unitholders
STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 8.41% 2 EMPLOYEES PROVIDENT FUND BOARD 8.41% 3 AMANAH SAHAM BUMIPUTERA 4.59% 4 LEMBAGA TABUNG HAJI 4.41% 5 TEW PENG HWEE @ TEOH PENG HWEE 3.27% 6 ALEX LEE LAO 3.12% 7 EMPLOYEES PROVIDENT FUND BOARD (
Slide 35: Stock Information: Number of CDS Accounts
STOCK INFORMATION Number of CDS Accounts Units Held 3Q2023 Units Held 2Q2023 Movement Total no. of unitholders 12,233 12,216 17 Total foreign holdings 17.30% 17.30% 0% Foreign holdings related party 5.28% 5.35% -0.07% Foreign holdings non-related party 12.03% 11.95% 0.08% Promoters 9.16% 9.23% -0.07
Slide 36: Thank You
REAL ESTATE INVESTMENT TRUST THANK YOU
Axis Real Estate Investment Trust — Q3 2023 Earnings Presentation on 6ix