Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — 2Q2023 Earnings Presentation
35 slides from Axis Real Estate Investment Trust's earnings presentation, Jul 19, 2023
Slide 1: Results Presentation 2Q2023
AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 4Q2022 Results Presentation 2Q2023 19 July 26 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 48 properties with 100% occupancy Portfolio Occupancy of 89% (as at 30/6/2023) 1 ongoing development project Weighted Average Lease Expiry of 4.96 years Total Assets Under Management Reclassified as Islamic REIT in 2008 RM4.4 billion Space Under Management Distr
Slide 5: 1H2023 Highlights
1H2023 HIGHLIGHTS ► Total of 4.10 sen DPU declared for 1H2023 ► Investment properties currently stands at RM4.32 billion. ► Traded at a premium of 16% to NAV as at 30 June 2023. ► Successfully completed the listing of 100 million new units on 4 January 2023 pursuant to a placement exercise. ► Accept
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 June 2023, the portfolio has 62 assets comprising 12,727,347 sq. ft. and 166 tenants. 1H2023 No. of Properties 62 Realised 000) 137,816 000) 21,820 Realised 000) 115,996 Occupancy 89% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 1H2023 2022 202
Slide 9: Space Under Management
PORTFOLIO OVERVIEW Space Under Management (sq ft) 14,000,000 12,726,260 12,727,347 12,000,000 11,374,703 10,478,726 10,000,000 9,349,267 9,537,666 8,087,781 8,000,000 7,606,863 6,859,4747.015,242 | (sq ft) 6,000,000 5,463,599 5,464,124 4,288,054 4,449,580 14,000,000 3,679,796 2,858,121 2,175,522 1,6
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 and 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 Hypermarkets Logisti
Slide 12: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 30 JUNE 2023 Notes: 1. Vacant space in Fonterra HQ is built for their future expansion 2. Bukit Raja Distribution Centre 2 development obtained CPC on 26 June 2023 and anticipate to be handed over to lessee in August 2023. 3. Axis Steel Ce
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 4.58 7.12 515,066 4.05 7.30 574,349 4.52 8.29 Subang - - - - - - 30,250 0.2
Slide 14: Top Tenants and Nationwide Footprint
PORTFOLIO OVERVIEW Top 10 Tenants ESTABLISHED NATIONWIDE FOOTPRINT YTD top ten tenants accounted for 50.3% 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 Kawa
Slide 15: Completed Development: Bukit Raja Distribution Centre 2
PORTFOLIO OVERVIEW COMPLETED DEVELOPMENT Bukit Raja Distribution Centre 2 Completed with CPC Gross Built-up Area: 620,096 sq. ft. June 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) WAL
Slide 16: Ongoing Development: Axis Mega Distribution Centre Phase 2
PORTFOLIO OVERVIEW ONGOING DEVELOPMENT Axis Mega Distribution Centre (Phase 2) Nestle DC Phase 2 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: Warehouse in Kulim, Kedah
PORTFOLIO OVERVIEW ONGOING ACQUISITION Warehouse in Kulim, Kedah Target Completion Date : 2H2023 Net Lettable Area : 311,218 sq. ft. Land Area : Approx. 14.5 acres Land Tenure : Approx. 56 years Registered Lease Occupancy : 100% Purchase Price : RM92.0 million WALE at Acquisition : Approx. 5 years 1
Slide 18: 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 19: Financial Overview
FINANCIAL OVERVIEW
Slide 20: Snapshot as at June 2023
FINANCIAL OVERVIEW SNAPSHOT AS AT 30 JUNE 2023 RM4.4 billion RM1.49 billion RM2.74 billion Total Assets Total Financing RM1.57 34% 1Q2023: 2.05 sen Net Asset Value Per Unit Financing Ratio 2Q2023: 2.05 sen Distribution per unit 19
Slide 21: Income Statement 2Q2023 vs 2Q2022
FINANCIAL OVERVIEW INCOME STATEMENT 2Q2023 vs 2Q2022 2Q2023 2Q2022 Changes / Movement No. of Properties 62 61 +1 Property Income 68,065 72,299 -5.9% Property Income - Property income before lease incentive adjustment 67,943 72,109 -5.8% - Lease incentive adjustment (non-distributable) 122 190 Proper
Slide 22: Income Statement 1H2023 vs 1H2022
FINANCIAL OVERVIEW INCOME STATEMENT 1H2023 vs 1H2022 1H2023 1H2022 Changes / Movement No. of Properties 62 61 +1 Property Income Note 1 137,816 138,779 Property Income - Property income before lease incentive adjustment 137,597 138,268 -0.5% - Lease incentive adjustment (non-distributable) 219 511 P
Slide 23: Income Statement 1H2023 vs 1H2022 - Notes
FINANCIAL OVERVIEW INCOME STATEMENT 1H2023 vs 1H2022 - NOTES Note 1 Property Income Property income was lower as compared to preceding year corresponding period mainly due to: • Lower occupancy for Axis Shah Alam Distribution Centre 3 from one of the tenancies that expired in December 2022. • Termin
Slide 24: Income Statement 1H2023 vs 1H2022 - Notes
FINANCIAL OVERVIEW INCOME STATEMENT 1H2023 vs 1H2022 - NOTES Note 2 Property Expenses Increase in property expenses was due to the increased number of properties in the portfolio and higher one-off building expenses for the portfolio in 1Q2023. Note 3 Non-Property Expenses Increase was mainly due to
Slide 25: 5-Year Performance
FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Net Property Income (RM'000)* Revenue (RM'000)* 300,000 281,723 281,090 300,000 242,747 241,605 242,595 241,962 250,000 250,000 216,005 214,975 224,712 224,064 190,996 190,348 209,433 208,291 200,000 200,000 185,249 184,219 150,000 137,597 137,816 150,000 115,77
Slide 26: Yield by Asset Types
FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 6.7 9.6 Office Industrial 6.7 9.3 Logistics Warehouse 7.3 8.1 Manufacturing Facilities 7.9 8.7 Hypermarket 8.8 9.4 Average 7.4 8.7 25
Slide 27: Financial Position
FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 4,319,188 4,186,020 +133,168 Fixed Assets 1,582 1,859 -277 Other Assets Note 2 74,373 67,794 +6,579 TOTAL ASSETS 4,395,143 4,255,673 +139,470 Financing Note 4 1,492,722 1,546,020 -53,298 Other Payables 152,297 123,334 +28,963 Deferre
Slide 28: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the period, a total of RM129.1 million was spent on capital expenditure as below: • RM5.2 million for enhancement of existing properties; • RM83.5 million for the ongoing development project Bukit Raja Distribution Cen
Slide 29: Note 4: 5-Year Financing Profile
FINANCIAL OVERVIEW NOTE 4: 5-YEAR FINANCING PROFILE 2019 2020 2021 2022 1H2023 885,859 1,112,183 1,184,593 1,546,020 1,492,722 3,085,681 3,364,083 3,838,760 4,255,673 4,395,143 Financing Ratio 28.71% 33.06% 30.86% 36.33% 33.96% Effective Profit Rate 4.37% 3.89% 3.63% 3.87% 4.15% Percentage of short
Slide 30: Financing Ratio
FINANCIAL OVERVIEW FINANCING RATIO Placements Undertaken 50% 45% 40% 40% 38% 37% 36% 36% 36% 36% 36% 36% 35% 33% 33% 33% 33% 33% 34% 31% 31% 30% 27% 29% 30% 29% 27% 25% 24% 20% 15% 10% 5% 0% 29
Slide 31: Total Assets and Unitholders' Capital
FINANCIAL OVERVIEW 4,395.1 4,500.0 4,316.0 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 2,141.5 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 1,044.7 1,052.3 1,060.0 1,240.3 1,247.1 1,000.0 90
Slide 32: Stock Information
STOCK INFORMATION
Slide 33: Top Unitholders
STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 EMPLOYEES PROVIDENT FUND BOARD 8.56% 2 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 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 34: Number of CDS Accounts
STOCK INFORMATION Number of CDS Accounts Units Held 2Q2023 Units Held 1Q2023 Movement Total no. of unitholders 12,216 12,200 16 Total foreign holdings 17.30% 18.33% -1.03% Foreign holdings related party 5.35% 5.36% -0.01% Foreign holdings non-related party 11.95% 12.97% -1.02% Promoters 9.23% 9.24%
Slide 35: Thank You
REAL ESTATE INVESTMENT TRUST THANK YOU
Axis Real Estate Investment Trust — 2Q2023 Earnings Presentation on 6ix