Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q4 2024 Earnings Presentation
51 slides from Axis Real Estate Investment Trust's earnings presentation, Jan 24, 2025
Slide 1: Axis Real Estate Investment Trust Results Presentation 4Q2024
AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 4Q2024 24 January 2025
Slide 2: Highlights, Portfolio Overview, Financial Overview, Stock Information
HIGHLIGHTS PORTFOLIO FINANCIAL STOCK OVERVIEW OVERVIEW INFORMATION 2
Slide 3: Highlights
HIGHLIGHTS Asses
Slide 4: Highlights
HIGHLIGHTS 69 properties on portfolio Portfolio Occupancy of 95% (as at 31/12/2024) 56 properties with 100% occupancy Weighted Average Lease Expiry of 4.9 years Total Assets Under Management Reclassified as Islamic REIT in 2008 RM5.26 billion Distribution Per Unit YTD2024 Space Under Management 9.27
Slide 5: 2024 Financial Highlights
2024 FINANCIAL HIGHLIGHTS ➢ Successfully completed the 10th placement exercise with listing of 263,000,000 new units on 18 November 2024. ➢ DPU increased by 7% to 9.27 sen for YTD2024 (DPU for YTD2023 was 8.65 sen). ➢ NAV per unit increased by 2% to RM1.6409. ➢ Traded at a premium of 5% to NAV as at
Slide 6: 2024 Portfolio Highlights
2024 PORTFOLIO HIGHLIGHTS 1Q2024 ➢ Completed the acquisition of Axis Hypermarket @ Temerloh, Pahang for RM25,750,000 on 16 January 2024. ➢ Axis Mega Distribution Centre (Phase 2) development project was successfully completed and obtained Certificate of Completion and Compliance on 27 March 2024. 2Q
Slide 7: 2024 Portfolio Highlights
2024 PORTFOLIO HIGHLIGHTS 4Q2024 ➢ Completed the acquisition of Axis Facility 3 @ Bukit Raja, Selangor for RM313,000,000 on 8 October 2024. ➢ Completed the acquisition of Axis Facility 1 @ Pulau Indah, Selangor for RM110,075,000 on 11 October 2024. ➢ Completed the acquisition of Axis Facility 2 @ Pu
Slide 8: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS ✓Efficient energy management: ✓Donated dialysis and ✓Best practices: Environment Governance Social • Replacing conventional lighting with ultrasound machines to • Complied with 30% female energy efficient lighting the National Kidney Fund. representation on Board with • Lea
Slide 9: Portfolio Overview
PORTFOLIO OVERVIEW Asses
Slide 10: Portfolio Overview
PORTFOLIO OVERVIEW As at 31 December 2024, the portfolio has 69 assets comprising 15,155,305 sq. ft. and 177 tenants. YTD2024 No. of Properties 69 Realised 000) 318,480 000) 45,537 Realised 000) 272,943 Occupancy 95% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 2024 2023
Slide 11: Space Under Management
PORTFOLIO OVERVIEW Space Under Management (sq ft) 16,000,000 15,155,305 14,000,000 13,351,168 12,726,260 12,000,000 11,374,703 10,478,726 10,000,000 9,537,666 9,349,267 ( sq ft) 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,
Slide 12: Portfolio Diversification by Location
PORTFOLIO OVERVIEW ✓ Our 69 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: • Selangor • Johor • Penang ✓ This geographical diversification i
Slide 13: 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 Consumer Products Office Office/ Industrial Single Tenant Multi Tenants Manufacturing Logistics Hypermarket Logistic
Slide 14: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 31 DECEMBER 2024 Crystal Plaza 86% Fonterra HQ 85% Axis Industrial Facility 1 @ Shah Alam 76% Wisma Academy Parcel 76% Axis Business Campus 75% Axis Mega Distribution Centre 69% Wisma Kemajuan 64% The Annex 60% Menara Axis 54% Notes: 1. Cr
Slide 15: 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 2024 Total NLA Income/month 2025 Total NLA Income/month 2026 Total NLA Income/month Petaling Jaya 588,693 3.88 6.09 740,078 4.88 7.89 411,878 2.72 4.15 Subang - - - 30,250 0.20 0.44
Slide 16: Top Tenants
PORTFOLIO OVERVIEW Top 10 Tenants YTD top ten tenants accounted for 48.7% ESTABLISHED NATIONWIDE FOOTPRINT of monthly revenue 1. Equalbase PTP Sdn Bhd Kedah (1%) Penang (5%) • Sungai Petani 2. Amsteel Mills Sdn Bhd • Bayan Lepas • Seberang Perai 3. Nestle Products Sdn Bhd • Batu Kawan 4. LF Logistic
Slide 17: Asset Enhancement Initiatives: Shah Alam Distribution Centre 3
PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES Shah Alam Distribution Centre 3 Constructed a new TNB substation with additional 1200 amps supply 17
Slide 18: Shah Alam Distribution Centre flood mitigation
Shah Alam Distribution Centre 3 Construction of flood mitigation wall, flood shutter and flood discharge pumps 18
Slide 19: Shah Alam Distribution Centre firefighting upgrades
Shah Alam Distribution Centre 3 i) Upgraded firefighting systems from Ordinary Hazard to High Hazard to support in-rack sprinkler systems ii) Installation of additional water tank, increasing water storage capacity from 10,000 to 40,000 litres iii) Repurpose old firefighting system water tank to rai
Slide 20: Axis Business Campus and Axis Technology Centre
Axis Business Campus and Axis Technology Centre Upgraded conventional carpark system to cashless parking system 20
Slide 21: Axis Technology Centre
Axis Technology Centre Constructed a ramp to improve disabled persons’ access
Slide 22: Axis Mega Distribution Centre (Phase 2)
Axis Mega Distribution Centre (Phase 2) Installed a new license plate recognition (LPR) and cashless carpark system 22
Slide 23: Completed Development: Axis Mega Distribution Centre (Phase 2)
PORTFOLIO OVERVIEW COMPLETED DEVELOPMENT Axis Mega Distribution Centre (Phase 2) CCC Obtained Green certified 27 March 2024 Lettable Area : 509,040 sq. ft. building Land Area : Approx. 22.4 acres Land Tenure : Freehold Occupancy : 69% (100% on 1 January 2025) Development Cost : Approx. RM121 million
Slide 24: Completed Acquisition: Axis Hypermarket @ Temerloh
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Hypermarket @ Temerloh, Pahang Completion Date : 16 January 2024 Net Lettable Area : Approx. 93,854 sq. ft. Land Area : Approx. 1.85 acres Land Tenure : Freehold Occupancy : 100% Purchase Price : RM25.75 million WALE at Acquisition : 20 years Tenant : TF
Slide 25: Completed Acquisition: Axis Facility @ Bukit Raja
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Facility 1 @ Bukit Raja (Front view of Property) (Rear view of Property) Completion Date : 31 May 2024 Net Lettable Area : 199,500 sq. ft. Land Area : Approx. 7.98 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM49.0 million WALE at Acq
Slide 26: Completed Acquisition: Axis Vista
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Vista 2 Completion Date : 15 July 2024 Net Lettable Area : 156,000 sq. ft. Land Area : Approx. 2.36 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM69.0 million WALE at Acquisition : 10 years Tenant : Cycle & Carriage Bintang Berhad 26
Slide 27: Completed Acquisition: Axis Industrial Facility @ Batu Caves
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Industrial Facility @ Batu Caves Completion Date : 15 July 2024 Net Lettable Area : 71,000 sq. ft. Land Area : Approx. 4.09 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM56.0 million WALE at Acquisition : 10 years Tenant : Cycle & Car
Slide 28: Completed Acquisition: Axis Industrial Facility @ Sendayan
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Industrial Facility @ Sendayan Completion Date : 23 July 2024 Net Lettable Area : 105,310 sq. ft. Land Area : Approx. 14.63 acres Land Tenure : Freehold Occupancy : 100% Purchase Price : RM48.0 million WALE at Acquisition : Approx. 6 years Tenant : Sandv
Slide 29: Completed Acquisition: Axis Facility @ Bukit Raja, Klang
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Facility 3 @ Bukit Raja, Klang Completion Date : 8 October 2024 Net Lettable Area : 924,000 sq. ft. Land Area : 59.96 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM313.0 million WALE at Acquisition : Approx. 6 years Tenant : Amsteel M
Slide 30: Completed Acquisition: Axis Facility @ Pulau Indah
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Facility 1 @ Pulau Indah Target Completion Date : 11 October 2024 Net Lettable Area : 301,228 sq. ft. Land Area : Approx. 10.89 acres Land Tenure : Leasehold Occupancy : 100% Purchaser Price : RM110.0 million WALE at Acquisition : 9 years Tenant : Malcon
Slide 31: Completed Acquisition: Axis Facility @ Pulau Indah
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Facility 2 @ Pulau Indah Completion Date : 26 November 2024 Net Lettable Area : 132,214 sq. ft Land Area : Approx. 4.51 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM48.6 million WALE at Acquisition : 5 years Tenant : Malconrep Depot
Slide 32: Ongoing Acquisition: Storage Yard in Bukit Raja
PORTFOLIO OVERVIEW ONGOING ACQUISITION Storage Yard in Bukit Raja, Klang Target Completion Date : Vacant Possession Delivery Date end 2025, Completion end 2026 Net Lettable Area : Not applicable (property utilized as storage yard) Land Area : Approx. 7.13 acres Land Tenure : Leasehold Occupancy : Un
Slide 33: Axis Facility 1, 2, and Storage Yard in Bukit Raja
PORTFOLIO OVERVIEW ONGOING ACQUISITION Axis Facility 1, 2, 3 and Storage Yard in Bukit Raja, Klang (Aerial view of Properties and its vicinity, Source: Google Maps) 33
Slide 34: 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 lea
Slide 35: Financial Overview
FINANCIAL OVERVIEW Asses
Slide 36: Financial Overview: Snapshot as at December 2024
FINANCIAL OVERVIEW SNAPSHOT AS AT 31 DECEMBER 2024 RM5.26 billion RM1.75 billion RM3.3 billion Total Assets Total Financing RM1.64 33.3% FY2024: 9.27 sen Net Asset Value Per Unit Financing Ratio Distribution Per Unit 36
Slide 37: 5-Year Performance
FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Net Property Income (RM'000)* Revenue (RM'000)* 350,000 300,000 273,497 272,943 319,034 318,480 300,000 281,723 281,090 285,401 284,498 250,000 242,595 241,962 242,424 241,521 209,433 208,291 250,000 242,747 241,605 224,712 224,064 200,000 190,996 190,348 200,00
Slide 38: Income Statement 4Q2024 vs 4Q2023
FINANCIAL OVERVIEW INCOME STATEMENT 4Q2024 vs 4Q2023 4Q2024 4Q2023 Changes / Movement No. of Properties 69 62 +7 Property Income 86,925 75,197 +15.6% - Property income before lease incentive adjustment 87,427 75,747 +15.4% - Lease incentive adjustment (non-distributable) (502) (550) Property Expense
Slide 39: Income Statement YTD 2024 vs YTD 2023
FINANCIAL OVERVIEW INCOME STATEMENT YTD 2024 vs YTD 2023 YTD 2024 YTD 2023 Changes / Movement No. of Properties 69 62 +7 Property Income Note 1 318,480 284,498 +11.9% - Property income before lease incentive adjustment 319,034 285,401 +11.8% - Lease incentive adjustment (non-distributable) (554) (90
Slide 40: Income Statement YTD 2024 vs YTD 2023 - Notes
FINANCIAL OVERVIEW INCOME STATEMENT YTD 2024 vs YTD 2023 - NOTES Note 1 Property Income Property income is higher as compared to preceding year mainly due to: ▪ Lease commencement of Bukit Raja Distribution Centre 2 in August 2023 with a monthly rental of RM1.35 million ▪ Positive rental reversion o
Slide 41: Income Statement YTD 2024 vs YTD 2023 - Notes
FINANCIAL OVERVIEW INCOME STATEMENT YTD 2024 vs YTD 2023 - NOTES Note 3 Loss on Disposal Disposal price 162,000 Less: Carrying value (159,000) 3,000 Less: Incidental costs (include RPGT) (5,985) Loss on disposal recognised in income statement (2,985) Add: Realisation unrealised fair value gain upon
Slide 42: Portfolio Yield by Asset Types
FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 6.7 9.6 Office Industrial 6.9 9.2 Logistics Warehouse 7.8 8.6 Manufacturing Facilities 8.2 9.0 Hypermarket 8.2 8.9 Average 7.7 8.9 42
Slide 43: Financial Position
FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 5,090,820 4,444,120 +646,700 Fixed Assets 1,112 1,391 -279 Asset Classified as Held for Sale Note 1 23,000 - +23,000 Other Assets Note 2 143,626 77,382 +66,244 TOTAL ASSETS 5,258,558 4,522,893 +735,665 Financing Note 3 1,750,444 1,55
Slide 44: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the year, a total of RM49.1 million was spent on capital expenditure as below: • RM18.2 million for enhancement of existing properties; and • RM30.9 million for the development project Axis Mega Distribution Centre (Ph
Slide 45: Note 3: 5-Year Financing Profile
FINANCIAL OVERVIEW NOTE 3: 5-YEAR FINANCING PROFILE 2020 2021 2022 2023 2024 1,112,183 1,184,593 1,546,020 1,554,974 1,750,444 3,364,083 3,838,760 4,255,673 4,522,893 5,258,558 Financing Ratio 33.06% 30.86% 36.33% 34.38% 33.29% Effective Profit Rate 3.89% 3.63% 3.87% 4.19% 4.26% Percentage of short
Slide 46: Financing Ratio
FINANCIAL OVERVIEW FINANCING RATIO Placements Undertaken 50% 45% 40% 40% 38% 37% 39% 36% 36% 36% 36% 33% 34% 35% 34% 35% 36% 35% 33% 33%33% 33% 33% 31% 31% 30% 27% 29% 30% 29% 27% 25% 24% 20% 15% 10% 5% 0% 46
Slide 47: Total Assets and Unitholders' Capital
FINANCIAL OVERVIEW 6,000.0 5,258.6 5,000.0 4,868.6 4,591.8 4,687.9 4,522.9 4,255.7 4,000.0 3,838.8 3,364.1 3,085.7 3,000.0 2,840.5 RM mil 2,574.2 2,549.6 2,141.52,244.0 2,129.3 2,129.3 2,129.3 2,129.3 1,934.31,945.7 2,085.7 2,000.0 1,589.4 1,616.5 1,583.81,595.5 1,208.9 1,298.4 1,240.31,247.1 1,044.
Slide 48: Stock Information
STOCK INFORMATION Asses
Slide 49: Top Unitholders
STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 7.22% 2 EMPLOYEES PROVIDENT FUND BOARD 6.03% 3 LEMBAGA TABUNG HAJI 5.19% 4 EMPLOYEES PROVIDENT FUND BOARD (ISLAMIC) 4.30% 5 PUBLIC ITTIKAL SEQUEL FUND 4.12% 6 AMANAH SAHAM BUMIPUTERA 3.98% 7 TEW PENG
Slide 50: Number of CDS Accounts
STOCK INFORMATION Number of CDS Accounts Units Held 4Q2024 Units Held 3Q2024 Movement Total no. of unitholders 12,460 12,005 455 Total foreign holdings 16.89% 18.78% -1.89% Foreign holdings related party 4.44% 5.10% -0.66% Foreign holdings non-related party 12.45% 13.68% -1.23% Promoters 8.05% 9.25%
Slide 51: Thank You
THANK YOU Asses
Axis Real Estate Investment Trust — Q4 2024 Earnings Presentation on 6ix