Axis Real Estate Investment Trust · MYX:AXREIT

Axis Real Estate Investment Trust — Q4 2012 Earnings Presentation

103 slides from Axis Real Estate Investment Trust's earnings presentation, January 2013

1. Slide 1: Presentation for Axis-REIT's Unaudited Results 4Q 2012

   Presentation for Axis-REIT’s Unaudited Results 4Q 2012

2. Slide 2: Highlights for 2012

   Highlights for 2012

3. Slide 3: Highlights 2012

   Highlights 2012  Achieved the highest DPU of 18.6 sen for 2012  Provided our unitholders with a total return for 2012 of 26.56%  A total of RM24 million revaluation gain has been recorded in year 2012.  Launched our first RM 110 million 10 year Sukuk at a very attractive coupon of 4.6%  Used RM

4. Slide 4: Highlights 2012

   Highlights 2012 We won the APREA Emerging Markets Highly Commended Award This is the 3rd year running Axis REIT has scored tops in Corporate Governance in Asia 4 Pacific.

5. Slide 5: Return Comparatives

   Return Comparatives % 0 5 10 15 20 25 30 Axis-REIT Total Return* 26.56 Axis-REIT Distribution Yield 5.94 EPF Dividend Yield 6.00 10-yr MGS 3.50 12 Months FD Rate 3.15 Saving Deposits Rate 2.30 OPR 3.00 *Total Return = (Movement in share price for FY2012 + Dividend)/(FY2011 Closing Share Price) 5

6. Slide 6: Our Strategy

   Our Strategy

7. Slide 7: Our Strategy

   Our Strategy  Targeting Growth in our asset class  Leading the Malaysian REIT Managers Association to drive Regulatory and Tax Reform  To build on our SUKUK presence in the market  Continue to enhance existing assets to drive value and income  Trading of assets to reward our Unit holders  Best

8. Slide 8: Axis-REIT Financials for December 2012

   Axis- REIT Financials for 31 December 2012

9. Slide 9: Unaudited Financial Results – Income Statement 4Q 2011 vs 4Q 2012

   Unaudited Financial Results – Income Statement 4Q 2011 vs 4Q 2012 4Q 2012 4Q 2011 Changes / (RM ‘000) (RM’000) Movement No. of Properties 31* 27 +4 Property Income 34,906 29,526 + 18.22% Property Expenses (5,393) (4,597) + 17.32% Net Property Income 29,513 24,929 + 18.39% Gain on Disposal of Investm

10. Slide 10: Financial Results – Income Statement y-o-y

    Financial Results – Income Statement y-o-y 2012 2011 Changes / (RM ‘000) (RM’000) Movement No. of Properties 31 27 +4 Property Income 132,673 114,311 +16.06% Property Expenses (20,125) (17,359) + 15.93% Net Property Income 112,548 96,952 + 16.09% Accounting gain/(loss) on disposal 1,012 (258) Intere

11. Slide 11: Notes to Financial Results – Income Statement

    Notes to Financial Results – Income Statement Adjusted Income Before Taxation/ Income Available For Distribution: Earnings by Quarter (FY2012 4 Quarters vs Previous 4 Quarters in FY2011) 30.00 Income available for distribution 25.73 25.00 19.86 19.81 19.41 RM(million) 20.00 16.20 16.60 16.20 16.80 1

12. Slide 12: Balance Sheet Highlights (RM'000)

    Balance Sheet Highlights (RM’000) 31/12/12 31/12/11 Changes Investment Properties 1,519,519 1,276,180 + 243,339 Fixed Assets 521 102 + 419 Other Assets 69,368 22,149 +47,219 TOTAL ASSETS 1,589,408 1,298,431 + 290,977 Borrowings 548,920 311,338 + 237,582 Other Payables 50,783 42,996 + 7,787 TOTAL LIA

13. Slide 13: Capital Return and Dividend Return

    Capital Return and Dividend Return 280% 241% 240% 200% 91% 160% 120% 123% 120% 34% 46% 80% 80% 150% 21% 40% 89% 36% 74% 8% 59% 28% 0% IPO @ RM1.25 Placement '08 @ Placement '09 @ Placement '10 @ Placement '11 @ RM1.80 RM1.66 RM1.97 RM2.45 Capital Return Distribution Return 13

14. Slide 14: Summary of EPU (Realized) and DPU

    Summary of EPU (Realized) and DPU Increasing DPU y-o-y 20.00 since listing 18.60 18.60 18.00 17.28 17.20 15.7715.80 16.01 16.00 16.00 15.46 15.27 13.6013.63 12.82 12.95 14.00 12.00 10.00 8.00 6.00 4.87 4.70 4.00 2.00 - 2005 2006 2007 2008 2009 2010 2011 2012 EPU (realised) DPU 14

15. Slide 15: Gross Yield Of Investment Properties

    Gross Yield Of Investment Properties 18.00% 16.00% Average gross yield : 10.52% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 15

16. Slide 16: Net Yield Of Investment Properties/Cost

    Net Yield Of Investment Properties/ Cost 16% 14% Average net yield for the portfolio is 8.9% 12% 10% 8% 6% 4% 2% 0%

17. Slide 17: Borrowings

    Borrowings 2006 2007 2008 2009 2010 2011 2012 Total Borrowings 88,089 209,816 230,456 308,932 416,609 311,338 548,920 (RM’000) Total Assets 411,781 581,857 726,371 907,745 1,208,897 1,298,431 1,589,408 (RM’000) Gearings 21.39% 36.06% 31.73% 34.03% 34.46% 23.98% 34.54% Effective Interest 4.38% 4.39%

18. Slide 18: Gearing Levels

    Gearing Levels Placements Undertaken 45.0% 40.0% 38.2% 37.5% 36.1% 36.0% 35.4% 36.0% 34.5% 34.0% 34.5% 34.2% 35.0% 33.0% 33.1% 31.2% 31.8% 31.7% 31.3% 30.0% 30.0% 29.1% 28.8% 26.8% 27.3% 25.0% 25.0% 23.7% 23.5% 24.0% 22.4% 21.4% 20.0% 15.0% 14.0% 11.8% 10.8% 10.0% 5.0% 0.0% 18

19. Slide 19: Total Assets and Management Expense Ratio

    Management Expense Ratio (“MER”) MER= Total administrative expenses incl. Manager and Trustee’s fees 1,700 Average net asset value of the Fund. 10.00 1,589 1,600 1,500 1,435 1,400 1,298 1,300 1,267 1,209 1,200 Total Assets (RM'000) 1,100 % of NAV 1,000 953 908 900 800 726 733 700 658 582 600 500 417

20. Slide 20: Total Assets and Unitholders' Funds

    Total Assets and Unitholders’ Funds 1,800.0 1,589.4 1,600.0 1,411.1 1,434.8 1,400.0 1,281.6 1,208.9 1,200.0 989.7 1,000.0 952.6 959.3 959.0 907.7 RM mil 800.0 726.4 732.9 755.2 751.2 658.2 581.8 565.2 600.0 550.0 423.2 447.9 450.3 402.3 411.8 416.8 400.0 339.6 334.7 277.9 286.5 294.1 294.2 200.0 - 3

21. Slide 21: Asset Enhancement & Appreciation of Values

    Asset Enhancement & Appreciation of Values • A total of RM24 million revaluation gain has been recorded in year 2012. • Overall the Portfolio has recorded a favorable gain in fair value of RM222.8million to date. Properties Appreciation Value as at 31 December 2012 120,000 100,000 80,000 RM'000 60,0

22. Slide 22: Revaluation on Properties

    Revaluation on Properties Atals REAL ESTATE INVESTMENT THRUST

23. Slide 23: Recent revaluation surplus on properties

    Recent revaluation surplus on properties The Portfolio recorded a surplus of RM 24,278,000 for 2012 8,000 7,000 6,000 RM ,000 5,000 4,000 3,000 2,000 1,000 0 23

24. Slide 24: Recent revaluation deficit on properties

    Recent revaluation deficit on properties 0 -500 RM ,000 -1,000 -1,500 -2,000 -2,500 -3,000 24

25. Slide 25: Disposal of Assets

    Disposal of Assets

26. Slide 26: The Axis REIT Advantage

    The Axis REIT Advantage  The Manager has always felt that Unit holders should benefit from the capital gains from the portfolio from time to time.  As the portfolio gets larger we now have the ability to dispose those assets that have achieved a significant capital gain and matured as far as retur

27. Slide 27: The Disposal of Kayangan Depot

    The Disposal of Kayangan Depot Land Area : 3 acres (132,697 sq ft), Leasehold 99 yrs expiring on Jan 2086 Gross Built Up : 173,582 sq ft Sale Process : By way of open tender Successful Bidder : Exceptional Landmark Sdn Bhd Sale Price : RM23.6 million Valuation : RM 22.0 million ( as per Valuation re

28. Slide 28: Capital Management

    Capital Management Atals REAL ESTATE INVESTMENT THRUST

29. Slide 29: Capital Management: Corporate Exercise on Placement

    Capital Management a) Corporate Exercise on Placement • Proposed placement of 90,762,819 new units; • Issuance of 2.0 mil units for payment of management fee in units • Approval for directors (including person relating to the director) of ARMB to subscribe for the units: Maximum subscription Dato’ A

30. Slide 30: IDRP

    IDRP The application of the IDRP in conjunction with the 2012 2nd interim income distribution was successful carried out and had achieved a subscription rate of 79%. The Board has decided that future the IDRP be only done for the 1 st and 3rd Quarter distributions. (April and October)

31. Slide 31: Total Return for 2012 IDRP

    Total Return for 2012 IDRP 2012 IDRP 20% over 3.5 months 20.0% 3.7% Exercise Price: RM2.68 Discount to 5-day VWAMP: 5.08% Subscription rate : 79% Total Return to-date Unitholders who 16.8% opted for the IDRP: 20% 2.0% 2012 IDRP @ RM2.68 Capital Return Distribution Return

32. Slide 32: 2012 Sukuk

    2012 Sukuk “Axis-REIT has successfully issued RM110.0 million in nominal value Sukuk via its wholly-owned subsidiary Axis REIT Sukuk Berhad; a company incorporated by Axis-REIT to facilitate the establishment of a RM300.0 million in nominal value Sukuk programme.” -- announcement dated 16 July 2012

33. Slide 33: Why SUKUK?

    2012 Sukuk Why SUKUK?  Matches cash-flow profile of the secured properties  a standby funding facility during the term of the programme period  no stamp duty and commitment fee  flexible as REIT can tap the debt capital market according to its funding needs – issue either short-tenured CPs for i

34. Slide 34: 2012 Sukuk Issue Details

    2012 Sukuk Issue Details: First Sukuk Rating Issue Amount Periodic Expected Issue (RM’ mil) Distribution Maturity Rate Class A AAA 95 4.50% 13 July 2022 Class B AA1 5 4.95% 13 July 2022 Class C AA2 5 5.30% 13 July 2022 Class D AA3 5 5.60% 13 July 2022 Total =110 Blended all–in 4.61% p.a fixed for 10

35. Slide 35: Manager Fees In Units

    Manager Fees In Units The SC has approved the application for Manager Fees in units be allowed in future but the Manager would not be exercising their rights for 2012.

36. Slide 36: Updates on the REIT Guidelines

    Updates on the REIT Guidelines

37. Slide 37: Updates to Guidelines on REITs

    Updates to Guidelines on REITs The highlights of the latest updates to the Guidelines on Real Estate Investment Trusts issued by the Securities Commission effective on 28 December 2012 • Insertion of definitions on ‘accounts’, ‘consolidated accounts and financial statements’. • Requirement to call a

38. Slide 38: Real Estate Report

    » £ fe) rom J) a o 2 © s wn lu © a) a

39. Slide 39: Key Metrics

    Key Metrics Portfolio Size: As at 31st December 2012 the Portfolio have 31 assets comprising 5,463,599 sq. ft. and 135 tenants Occupancy: The Portfolio has an occupancy of 96.21% as at 31st December 2012. This is an increase from 93.41% as at 30th September 2012 Gross Income Our Gross Income was RM1

40. Slide 40: Space Under Management (Sq. Ft.)

    Space Under Management (Sq. Ft.) 6,000,000 5,463,599 5,000,000 4,449,580 4,288,054 4,000,000 3,679,796 ( sq ft) 3,000,000 2,858,121 2,175,522 2,000,000 1,656,943 1,186,052 1,000,000 - 2005 2006 2007 2008 2009 2010 2011 2012

41. Slide 41: Income Growth – Rental Reversions in 2012

    Income Growth – Rental Reversions in 2012 Space Renegotiated Properties (Sq. Ft.) % Movement Menara Axis - +7.14% Crystal Plaza 12,433 +10.56% Axis Business Park 34,142 +3.62% Infinite Centre 14,200 +3.11% Axis Plaza 50,192 +0.05% Wisma Kemajuan 14,575 +6.45% FCI 136,619 +25.00% Axis Technology Cent

42. Slide 42: Occupancy Rates – 31st December 2012

    Occupancy Rates – 31st December 2012 Vacant As at 31st December 2012 Axis REIT has only 3.79% 7 out of 31 properties that carry vacancy. 24 properties enjoy 100% full occupancy Occupancy As at 31st Dec, 2011 97.22% As at 31st Dec, 2012 96.21% Occupied This is only 3.79% vacant of total NLA 96.21% Fo

43. Slide 43: Occupancy Rates – 31st December 2012

    Occupancy Rates – 31st December 2012 120.00 100.00 96.21% 80.00 60.00 40.00 20.00 -

44. Slide 44: Risk Management- Keeping a Diverse Portfolio

    Risk Management- Keeping a Diverse Portfolio Portfolio Diversification by Type and NLA Portfolio Diversification by Geographical and NLA Cyberjaya Nilai 8% 11% 2% 5% Penang Kedah 14% Petaling Jaya 31% 3% 37% 43% Johor 18% Klang Shah Alam 7% 8% 13% Office Office/Industrial Warehouse Retail Warehouse

45. Slide 45: Occupancy Rates

    Occupancy Rates Occupancy rates of properties below 90% as of 31st December 2012 Occupancy % Fonterra HQ 84.96 Axis Business Campus 15.74 Wisma Kemajuan 87.96 Axis Plaza 89.27 Note: * Vacant space Fontera HQ is built for their future expansion *Axis Business Campus (formerly Wisma Bintang) is underg

46. Slide 46: Risk Profile – Manageable Lease Expiry Profiles

    Risk Profile – Manageable Lease Expiry Profiles Year % of % of Rental Year % of % of Rental Year % of % of Rental Property 2013 Total NLA Income/month 2014 Total NLA Income/month 2015 Total NLA Income/month Menara Axis 74,636 1.37 2.56 54,587 1.00 2.20 - - 0.03 Crystal Plaza 120,358 2.20 4.00 11,153

47. Slide 47: Weighted Average Lease Expiry (WALE)

    Weighted Average Lease Expiry (“WALE”) The Weighted Average Lease Expiry For the Portfolio is: Q4/2012 Q3/2012 By NLA 4.43 5.41 By Rental 4.17 5.11 Note : Fall in Wale is due to newly acquired Wisma Academy having 2 to 3 years tenancies.

48. Slide 48: Efficiency Ratio (ER)

    Efficiency Ratio (“ER”) The Efficiency Ratio of the Operating Cost for the Portfolio is: 2012 2011 15.17% 15.19%

49. Slide 49: Risk Management - Top Ten Tenants

    Risk Management -Top Ten Tenants - Strong Rental Covenants 1. Konsortium Logistik Bhd 2. LF Logistics Services (M) Sdn Bhd 3. Schenker Logistics (M) Sdn Bhd 4. Tenaga Nasional Bhd 5. Tesco Stores (M) Sdn Bhd 6. Fuji Xerox Asia Pacific Pte Ltd 7. Strateq Data Center Sdn Bhd 8. DHL Properties (M) Sdn

50. Slide 50: Enhancements: The Value Add Strategy

    Enhancements: The Value Add Strategy

51. Slide 51: Asset Enhancement

    Asset Enhancement The aim of asset enhancement is to assess the REIT’s portfolio from a “property player’s” perspective. We employ our experience as a group to enhance and reposition these assets to increase their Revenue and Value - the key performance drivers of a REIT.

52. Slide 52: Asset Enhancement: Quattro West

    Asset Enhancement In 2010 it was Quattro West

53. Slide 53: Asset Enhancement: Menara Axis

    Asset Enhancement In 2011 it was Menara Axis Previously unused area comprising 6,700sf, has been converted to grade A office space with high grade toilets and fittings.

54. Slide 54: Asset Enhancement Menara Axis Penthouse

    Asset Enhancement Menara Axis Penthouse Board Room Breakout Area Main Workstations CEO’s Office

55. Slide 55: Asset Enhancement: Crystal Plaza

    Asset Enhancement In 2011 it was Crystal Plaza Before After

56. Slide 56: Crystal Plaza Projects Deliverables – Value to the Fund

    Asset Enhancement Crystal Plaza Projects Deliverables – Value to the Fund The building was under rented due to the old condition of the building Currently we are achieving an average rental of RM3.77psf. Timing is fortunate. We now have a newly refurbished building, next to the LRT. We will target a

57. Slide 57: Summary of Projects Completed 2012

    Summary of Projects Completed 2012 Fonterra Brands (M) Sdn Bhd Project completed – Property handed over to the Tenant on March 6 , 2012 Axis Eureka Building awarded MSC Malaysia Designated Premises by Ministry of Science, Technology and Innovation (MOSTI) on 11th December 2012. Strateq Data Centre P

58. Slide 58: Summary of Projects In Progress in 2012

    Summary of Projects In Progress in 2012 Infinite Centre Total budget approved RM7,376,275.39. Works awarded: 16th July 2012 Target completion: 14th February 2013 Axis Business Campus (formerly Wisma Bintang) Budget of RM 20,940,740 approved MBPJ approval for West and South Blocks has been received f

59. Slide 59: Summary of Projects In Progress in 2012

    Summary of Projects In Progress in 2012 MSC Application for Menara Axis Budget of RM4.43 million approved by EXCO on 22nd October 2012. Letter of Intent submitted to MDEC in December 2012

60. Slide 60: Fonterra HQ Before Enhancement

    Fonterra HQ Before Enhancement Project Aims:  We had an asset that was facing 100% vacancy in 18 months time– tenant leaving  We secured a new tenant Fonterra Brands Malaysia Sdn Bhd and completed a Build to Suit (BTS) for them  Executed a long term lease and achieved higher yields

61. Slide 61: Fonterra HQ Project Completed

    Fonterra HQ Project Completed Main Frontage Main Frontage

62. Slide 62: Fonterra HQ Project Completed

    Fonterra HQ Project Completed Main Lobby Bistro Office Area Breakout Area

63. Slide 63: Infinite Centre Enhancement

    Infinite Centre Enhancement Perspective View – Main Frontage:

64. Slide 64: Infinite Centre Enhancement: Before Enhancement

    Infinite Centre Enhancement Before Enhancement:

65. Slide 65: Infinite Centre Enhancement: The New Infinite Centre

    Infinite Centre Enhancement The New Infinite Centre

66. Slide 66: Infinite Centre Enhancement Update

    Infinite Centre Enhancement Update as at 17th January 2013 Upgrading of Toilets Energy efficient lighting specified in the Modern Designs upgrading

67. Slide 67: Infinite Centre Enhancement

    Infinite Centre Enhancement Modern designs for the Ground floor lift lobby Ground floor lobby

68. Slide 68: Infinite Centre Enhancement Project Deliverables

    Infinite Centre Enhancement Project Deliverables The current building is over 30 years old and has served us well. It continues to be a consistently high yielding asset. With the development of the surrounding areas and the rising prices this enhancement enables us to re-position the property to obt

69. Slide 69: Axis Business Campus Proposed Enhancement

    Axis Business Campus Proposed Enhancement Current Current Building Complex

70. Slide 70: Axis Business Campus Proposed Enhancement Upon Completion

    Axis Business Campus Proposed Enhancement Upon Completion

71. Slide 71: Axis Business Campus Proposed Enhancement

    Axis Business Campus Proposed Enhancement Perspective View South Block:

72. Slide 72: Axis Business Campus Proposed Enhancement

    Axis Business Campus Proposed Enhancement Project aim:  Aggressive Aim – This is a “Product Re-positioning” play  Rebranding the building as “Axis Business Campus”  We are enhancing to unlock the potential value from 5 acre development of prime PJ land. We anticipate a significant increase in ren

73. Slide 73: MRMA Report

    MRMA Report

74. Slide 74: MRMA Report: Membership

    MRMA Report Membership I am pleased to report that we have added one member to the membership roll – Pintar Projek Sdn Bhd (Starhill REIT) represented by their Company Secretary Ho Say Keng To date we have a total of 15 REIT managers and 1 Bank as members. Election At the AGM Dato’ Stewart LaBrooy w

75. Slide 75: MRMA Report

    MRMA Report Website. This is now live and the URL is www.mrma.my Members Meeting 4Q 2012 & AGM The members met for their 4th Quarterly meeting and AGM at the KL Hilton on the 14th December 2012. It was a breakfast meeting of members and a joint meeting with the APREA Malaysia Chapter. The meeting ha

76. Slide 76: CSR Report

    CSR Report

77. Slide 77: CSR Report

    CSR Report Refurbishment of the HQ for the Malaysian Association of the Blind

78. Slide 78: CSR Report: Project Description

    CSR Report Project Description The project is a proposal to carry out internal and external re-painting works of Malaysian Association for the Blind (MAB) main activity block and other related areas such as fencing and staircases. Project Cost Total project cost was RM 50,000.00 including labour and

79. Slide 79: CSR Report: The Rat Race

    CSR Report The Rat Race Axis REIT sent in a team to participate in the 2012 Edge Bursa Rat Race held on the 25th September 2012. We came 14th out of a field of 50 much larger companies. The Fund contributed RM 18,000 to support several deserving charities in the Country.

80. Slide 80: Investor Relations

    Investor Relations Atals REAL ESTATE INVESTMENT THRUST

81. Slide 81: Unit Price Performance - Continues to trend upwards

    Unit Price Performance - Continues to trend upwards Month-end Closing Price (Dec 2011 - Nov 2012) 3.4 3.2 3.12 3.16 3.1 3.06 3 3 2.85 2.8 2.8 2.75 2.73 2.74 2.71 2.68 2.6 2.62 2.4 2.2 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 17th Jan 2012 • Unit price close

82. Slide 82: Outperformed the KLSE in FY 2012

    Outperformed the KLSE in FY 2012 AXIS REIT vs KLCI ( Jan 2012 to Dec 2012 ) Price & Volume Statistics 125% Current Price (17 Jan : RM3.16 120% 2013) 115% Average Monthly Volume : 4,435,150 in the last 12 months 110% KLCI 105% AXREIT Highest Monthly Volume in the last 12 months : 9,839,600 100% @Dec

83. Slide 83: Top 10 Unitholders

    Top 10 Unitholders 1 EMPLOYEE PROVIDENT FUND 2 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 3 TEW PENG HWEE @ TEOH PENG HWEE 4 SKIM AMANAH SAHAM BUMIPUTERA 5 ALEX LEE LAO 6 DATO’ ABAS CARL GUNNAR BIN ABDULLAH 7 AMERICAN INTERNATIONAL ASSURANCE BERHAD 8 AMANAH RAYA TRUSTEES BERHAD AS 1MALAYSIA 9 AMANAH RA

84. Slide 84: ROD analysis

    ROD analysis Top unitholders’percentage holdings 1.Top 5 CDS accounts hold 36% of total units 2.Top 10 unitholders hold 55% of total units 3.> 1 million unitholders’total shareholding = 85% Number of unitholders 1.Total number of unit holders increased by 77 to 2,850 Interesting Changes in Unitholdi

85. Slide 85: ROD analysis

    ROD analysis Most Notable Increase in Unitholdings % of Total Q2 No. Unitholder No. of Units Units 1 KUMPULAN WANG PERSARAAN 5,991,837 1.31% 2 EPF 1,118,400 0.24% 3 SKIM AMANAH SAHAM BUMIPUTERA 782,900 0.17% Most Notable Decrease in Unitholdings % of Total Q2 No. Unitholder No. of Units Units 1 UNI.

86. Slide 86: Improving Investor Visibility and Liquidity

    Improving Investor Visibility and Liquidity Number of Unitholders 3,000 2,850 2,702 2,745 2,597 2,500 2,420 2,230 2,080 1,959 2,000 1,652 1,500 1,000 500 - @ 31 Dec'08 @30 JUN '09 @ 31 Dec'09 @30 Jun'10 @31 Dec'10 @30 Jun'11 @ 31 Dec '11 @29 Jun '12 @31 Dec '12  Total foreign holdings is recorded a

87. Slide 87: Volume Performance

    Volume Performance 11 Monthly Volume Traded 9.84 10 9 8 7.39 Millions Units 7 6 5.14 5.31 5 4.13 4.50 4.05 4 3.08 3.19 2.96 2.77 3 2.12 2 0.86 1 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 10th Jan 2013  13.9 million units were traded in Q4, which is 32% higher than total volumes in Q3 (10.3

88. Slide 88: Investor & Fund Manager Meetings

    Investor & Fund Manager Meetings 2012 Investor Relations Outreach Program • Jan 6th 2012 – BFM interview on “The Property Show” on “REIT Fees and Cash Calls.” • 9th March 2012—Axis REIT Managers Bhd (ARMB) \ met with Kenanga Islamic Investor’s Chief Investoment Officer. • 10th March 2012 – Stephanie

89. Slide 89: Investor & Fund Manager Meetings

    Investor & Fund Manager Meetings 2012 Investor Relations Outreach Program (con’t) • Axis REIT was nominated for five categories in the Small Cap category at the Malaysian Investor Relations Association Award ceremony held at the Istana Hotel, KL. Best Company for Investor Relations Best CEO for IR B

90. Slide 90: Investor & Fund Manager Meetings

    Investor & Fund Manager Meetings 2012 Investor Relations Outreach Program (con’t) • The Edge Billion Ringgit Club The Billion Ringgit Club Award Ceremony was held on 16th July 2012 The BRC List of members was published in the date on 23rd July 2012 • 24th July 2012. ARMB met with Mondrian Investment

91. Slide 91: Investor & Fund Manager Meetings

    Investor & Fund Manager Meetings 2012 Investor Relations Outreach Program (con’t) • 17th Sept 2012. BNI Capital conducts a property visit to Giant Sungai Petani • 31st October 2012. Hwang DBS Lunch Meeting- 31st Oct 2012. • Q&A and Property Visits by Investors: EPF Property Visits in Johor – 19th Oc

92. Slide 92: Unitholders' Meetings

    Unitholders’ Meetings 1st Unitholders Meeting The 1st Unitholder Meeting was held on 27 September 2012 at The Westin Kuala Lumpur. The following proposals were approved:  Proposed acquisition of Wisma Academy parcels  Proposed acquisition of the Annex  Proposed renewal of IDRP Vote cast on a poll

93. Slide 93: Unitholders' Meetings

    Unitholders’ Meetings 2nd Unitholders’ Meeting The 2nd Unitholders’ Meeting was held on 13th December 2012 at The Westin Kuala Lumpur. The following proposal was approved:  Proposed disposal of Kayanagan Depot 1. A comprehensive presentation was given on the reasons for disposal. 2. Unit holders we

94. Slide 94: Media Appreciation Night

    Media Appreciation Night Approximately 40 attendees from the press and media attended this event 94

95. Slide 95: Media Coverage

    Media Coverage REITs: High yields a magnet for investors Values of Malaysian REITs emerge 2012: A near-perfect balancing act? Axis-REIT plans RM350m inet. ¢ property acquisitions next year Why building maintenance and compliance are essential 95

96. Slide 96: Acquisitions

    Acquisitions

97. Slide 97: Bayan Lepas Distribution Centre, Penang

    Bayan Lepas Distribution Centre, Penang Land Area : 7.61 acres (331,709 sq ft) Gross Built Up : 205,150 sq ft Land Tenure : Leasehold Occupancy : 100% Tenancy/lease period : 5+5 years Tenants : DHL Purchase Price : RM48.5 million Valuation : RM 48.5 million Projected Net Yield : 8.0% 97

98. Slide 98: Seberang Prai Logistics Warehouse, Penang

    Seberang Prai Logistics Warehouse, Penang Land Area : 13.7 acres (596,800 sq ft) Gross Built Up : 380,000 sq ft Land Tenure : Leasehold Occupancy : 100% Tenancy/lease period : 3+2 years Tenants : DB Schenker Purchase Price : RM59.0 million Valuation : RM 62 million Projected Net Yield : 10.2% 98

99. Slide 99: Emerson Facility at Nilai, Seremban

    Emerson Facility at Nilai, Seremban Land Area : 7.27 acres (316,863 sq ft) Gross Built Up : 192,677 sq ft Land Tenure : Leasehold (84 years unexpired) Occupancy : 100% Tenancy/lease period : 3+3+3 years Tenants : Emerson Process Management Manufacturing & K Plastics Industries Purchase Price : RM 26

100. Slide 100: Wisma Academy & The Annex, Petaling Jaya

     Wisma Academy & The Annex, Petaling Jaya Land Area : 3.5 acres (152,269 sq ft) Gross Built Up : 411,256 sq ft Land Tenure : Leasehold Occupancy : 100% Tenancy/Term : Multiple tenancies with various tenancy terms Major Tenants : Dataprep Holdings, Ban Leong Technologies, TNB Purchase Price : RM85.0 m

101. Slide 101: 2013 Potential Acquisitions Pipeline

     2013 Potential Acquisitions Pipeline

102. Slide 102: Summary of Target Acquisitions for 2013

     Summary of Target Acquisitions for 2013  A newly built warehouse in North Port, Port Klang.  Factory at SLiC Johor  3 Warehouses in Shah Alam  Great Avenue Warehouses in Shah Alam  Logistics Warehouse in Shah Alam  Factory in Senai JB  A Hypermarket in Melaka  A DC in Sepang  A Logistics wa

103. Slide 103: Thank You

     Thank You

Axis Real Estate Investment Trust — Q4 2012 Earnings Presentation on 6ix