Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q3 2019 Earnings Presentation
41 slides from Axis Real Estate Investment Trust's earnings presentation, Oct 21, 2019
Slide 1: Results Presentation 3Q2019
AXIS AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 3Q2019 m == — > lis co 21 October 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: 3Q2019 Highlights
Angels 3Q2019 HIGHLIGHTS i Sale
Slide 4: 2019 Highlights: Portfolio Summary
ra 4n 3 2019 HIGHLIGHTS ANAS PORTFOLIO SUMMARY 47 properties on portfolio 35 properties with 100% occupancy Total Assets Under Management RM3.0 billion Space Under Management 9.5 million sq ft Gearing 40% Solid industrial space portfolio 91% of properties on industrial titles Portfolio Occupancy of
Slide 5: YTD 3Q2019 Highlights
YTD 3Q2019 HIGHLIGHTS ANAS PORTFOLIO PERFORMANCE — Portfolio size increased by 2 to a total of 47 properties. Investment properties currently stands at RM2.9 billion. Net property income increased by 13.2% for YTD 3Q2019 as compared to YTD 3Q2018. Total of 7.06 sen DPU declared for YTD 3Q2019. Trade
Slide 6: YTD 3Q2019 Highlights
YTD 3Q2019 HIGHLIGHTS PORTFOLIO PERFORMANCE Successfully signed a Sale & Purchase Agreement to acquire a warehouse facility for RM65.0 million located at Port of Tanjung Pelepas, Johor on 14 October 2019. Acceptance of a Letter of Offer to acquire a manufacturing facility for RM37.0 million located
Slide 7: 3Q2019 Portfolio Overview
Angels 3Q2019 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: Space Under Management
(sq ft) 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 1,186,590 | PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO AWSels REAL ESTATE INVESTMENT TRUST Space Under Management (sq ft) 2005 9,349,267 9493,666 8,087,781 7,606,863 6,859,474 700
Slide 10: Diversified and Expanding Portfolio
PORTFOLIO OVERVIEW ANAS DIVERSIFIED AND EXPANDING PORTFOLIO Y Our 47 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 * Sha
Slide 11: Portfolio Diversification
PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Portfolio Diversification Portfolio Diversification by Industry Sector (on NLA) by Asset Type (on NLA) mServices ™ Consumer Products ™ Manufacturing m Logistics m Vacant “Industrial title properties ™ Office ™ Office/Industrial m Hypermarkets =
Slide 12: High Occupancy Rate with Income Visibility
PORTFOLIO OVERVIEW Avals HIGH OCCUPANCY RATE WITH INCOME VISIBILITY . As at 30 September 2019, the portfolio has 47 assets comprising 9,493,666 sq. ft. and 155 tenants. YTD 3Q2019* No. of Properties 47 Property Income (RM‘000) 160,952 Property Expenses (RM’000) 22,573 Net Property Income (RM’‘000) 1
Slide 13: Lease Expiry by Location
PORTFOLIO OVERVIEW Avals REAL ESTATE INVESTMENT TRUST HIGH OCCUPANCY RATE WITH INCOME VISIBILITY Lease Expiry by Location % of % of Rental % of % of Rental % of % of Rental Total NLA___Income/month Total NLA___Income/month Total NLA___Income/month Petaling Jaya 602,715] 6.35} 12.51 555,293) 5.85 0.9
Slide 14: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW AWSels REAL ESTATE INVESTMENT TRUST HIGH OCCUPANCY RATE WITH INCOME VISIBILITY Axis Business Campus Fonterra HQ Wisma Kemajuan Axis Business Park Menara Axis Wisma Academy Parcel Crystal Plaza The Annex Axis Technology Centre Quattro West Axis Industrial Facility@ Rawang Propertie
Slide 15: Established Nationwide Footprint
Penang (7.9%) * Bayan Lepas * Seberang Perai Selangor (54.7%) * Shah Alam (19.6 * Petaling Jaya (21.0%) * Klang (9.0%) * Rawang (3. * Subang (1.99 Negeri Sembilan (4.6%) + Nilai * Senawang PORTFOLIO OVERVIEW ANAS ESTABLISHED NATIONWIDE FOOTPRINT Sungai Peta Pahang (5.3%) * Kuantan Johor (26.0%) Pasi
Slide 16: Asset Enhancement Initiatives
PORTFOLIO OVERVIEW AXelS ASSET ENHANCEMENT INITIATIVES Shah Alam Distribution Centre 2 Pasir Gudang Warehouse 1 Fire Fighting System upgraded Enhancement of warehouse with LED lighting 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 Photo taken as at 9 October 2019 REAL ESTATE INVESTMENT TRUST 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: RM3.92 mi
Slide 19: Pipeline Targets: Completed Acquisitions
vy, PORTFOLIO OVERVIEW AXelS AGGRESSIVE PIPELINE TARGETS: COMPLETED ACQUISITIONS Nusajaya Tech Park Facility 1 and Nusajaya Tech Park Facility 2, Johor Completion Date : 30 September 2019 Net Lettable Area : 146,762 sq. ft. Land Area : Approx. 5.2 acres Land Tenure : Freehold Occupancy : 100% Purcha
Slide 20: Pipeline Targets: Ongoing Acquisitions
vy, PORTFOLIO OVERVIEW AXelS AGGRESSIVE PIPELINE TARGETS: ONGOING ACQUISITIONS 1. Bayan Lepas Industrial Facility 1, Pulau Pinang 2. K-Plastics Facility, Nilai, Negeri Sembilan Target Completion Date : 2H2019 Target Completion Date : 2H2019 Net Lettable Area : 78,024 sq. ft. Net Lettable Area : 246,
Slide 21: Pipeline Targets: Ongoing Acquisitions
vy, PORTFOLIO OVERVIEW AXelS AGGRESSIVE PIPELINE TARGETS: ONGOING ACQUISITIONS 3.D37c Warehouse, PTP Johor 4. Manufacturing Facility, Kota Kinabalu, Sabah Target Completion Date : 1H2020 Target Completion Date : 1H2020 Net Lettable Area : 222,723 sq. ft. Gross Floor Area : 444,180 sq. ft. Land Area
Slide 22: Pipeline Targets: Ongoing Acquisitions
vy, PORTFOLIO OVERVIEW AXelS AGGRESSIVE PIPELINE TARGETS: ONGOING ACQUISITIONS 5. Manufacturing Facility, Bukit Raja, Klang 6. Manufacturing Facilities, Shah Alam, Selangor Target Completion Date : 2H2019 Target Completion Date : 1H2020 Gross Floor Area : 199,890 sq. ft. Gross Floor Area : 251,068 s
Slide 23: Total Estimated Value of Acquisition Targets RM135 million
Total Estimated Value of Acquisition Targets RM135 million
Slide 24: 3Q2019 Financial Overview
Angels 3Q2019 CN FINANCIAL OVERVIEW | 1 Sale
Slide 25: Snapshot as at September 2019
FINANCIAL OVERVIEW Assels SNAPSHOT AS AT 30 SEPTEMBER 2019 RM1.19bn RM1.66bn Total Financings Total Unitholder’s Funds RM1.34 2 40% 3Q2019: 2.35 sen Net Asset Value Per Unit Net Gearing 2Q2019: 2.36 sen 1Q2019: 2.35 sen Distribution Per Unit RM2.95bn Total Assets 25 > www.axis-reit.com.my
Slide 26: Return Comparatives
FINANCIAL OVERVIEW Alzels RETURN COMPARATIVES 7.00% > 6.15% 6.00% ~ 5.09% 5.00% ~ 3.89% 4.00% ~ 3.50% 3.00% 3.00% + 2.00% ~ 1,00% ~ 0.00% Axis-REIT Distribution EPF Dividend Return 10-yr MGS 12 Months FD Rate OPR Yield 2018 26 www.axis-reit.com.my
Slide 27: Income Statement 3Q2019 vs 3Q2018
\Z FINANCIAL OVERVIEW Assails INCOME STATEMENT 3Q2019 vs 3Q2018 3Q2019 3Q2018 Changes / (RM’‘000) (RM’‘000) Movement No. of Properties 47 44 +3 Property Income # 53,635 52,129 +2.9% Property Expenses (7,809) (6,794) +14.9% Net Property Income 45,826 45,335 +1.1% Profit Income / Other Income 229 219
Slide 28: Income Statement YTD 3Q2019 vs YTD 3Q2018
SZ FINANCIAL OVERVIEW AXelS INCOME STATEMENT YTD 3Q2019 vs YTD 3Q2018 YTD 3Q2019 YTD3Q2018 Changes/ (RM’‘000) (RM’‘000) Movement No. of Properties 47 44 +3 Property Income #- Note 1 160,952 144,342 +11.5% Property Expenses - Note 2 (22,573) (20,877) +8.1% Net Property Income 138,379 123,465 +12.1% P
Slide 29: Income Statement Notes
FINANCIAL OVERVIEW Adsels INCOME STATEMENT YTD 3Q2019 vs YTD 3Q2018 - 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
Slide 30: Distribution Per Unit
10.00 9.00 8.40 8.26 8.74 8.00 2.00 2.10 1.94 2.45 7.06 7.00 6.00 2.35 5.00 2.20 2.05 2.00 2.35 4.00 2.17 2.36 3.00 2.15 2.05 2.00 2.00 1.00 2.05 2.05 2.15 1.94 2.35 0.00 1st Interim 2nd Interim 3rd Interim Final
Slide 31: Portfolio Yield by Asset Types
FINANCIAL OVERVIEW Assails PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 71 9.5 Office Industrial 73 9.5 Warehouse Logistics 8.4 94 Manufacturing Facilities 79 8.7 Hypermarket 8.4 9.0 Average 7.9 9.2 31 www.axis-reit.com.my
Slide 32: Financial Position
Investment Properties - Note 1 Fixed Assets Other Assets — Note 2 TOTAL ASSETS Borrowings — Note 3 Other Payables Deferred tax liability TOTAL LIABILITIES NET ASSET VALUE (NAV) Unitholders' Capital Undistributed Distributable Income Non-Distributable Reserve TOTAL UNITHOLDERS' FUND GEARIN NoJof unit
Slide 33: Notes - Financial Position
FINANCIAL OVERVIEW ANAS NOTES - FINANCIAL POSITION Note 1 - Investment Properties The acquisition of Nusajaya Tech Park Facility 1 and 2 was completed on 30 September 2019 at RM55.8 million. During the period ended 30 September 2019, a total of RM7.8 million was spent on enhancement works of the pro
Slide 34: Note - 5-Year Debt Profile
FINANCIAL OVERVIEW NOTE 3 - 5-YEAR DEBT PROFILE Total Financing (RM’000) Total Assets (RM’000) Gearing Effective Profit Rate Percentage of short term financing-Maturity < 1 Year Percentage of medium/ long term financing (maturity more than 1 year) Percentage of floating rate financing Percentage of
Slide 35: Gearing Levels
FINANCIAL OVERVIEW ANAS GEARING LEVELS Allowable threshold 50% 36% Placements Undertaken Hi 40% 38% 37% 37% 38% 36% 35% 37% | 33% | | , ) a Ca www.axis-reit.com.my 27% 35
Slide 36: Unitholders' Capital
3,000.0 2,500.0 339.6 31-Dec-05 FINANCIAL OVERVIEW ANAS UNITHOLDERS’ CAPITAL 2,954.4 2,840.5 2,549.6 2,244.0 7 : 1,589.4 1,616.5 1,208.9 84 1,240.3 f 1,247.1 f 11,247.1 : 1,044.7 | j1,052.3 | | 1,060.0 907.7 7264 7282 | | 735.4 | |751.0 581.8 4118 oo te re Da” 2349 | e233 31-Dec-07 31-Dec-09 31-Dec-
Slide 37: Stock Information
Angels 3Q2019 ZC STOCK INFORMATION — 1 ST Se
Slide 38: Top Unitholders
STOCK INFORMATION Avals TOP 10 UNITHOLDERS . Name of Unitholder % 1 EMPLOYEES PROVIDENT FUND BOARD 9.97% 2. KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 9.03% 3. LEMBAGA TABUNG HAJI 5.11% 4 TEW PENG HWEE @ TEOH PENG HWEE 4.57% 5 ALEXLEELAO 4.28% 6 EXEMPT AN FOR AIA BHD. 3.52% 7 | AMANAH SAHAM BUMIPUTERA
Slide 39: Analysis of Unitholders with >2 Million Units
vy, STOCK INFORMATION AXelS ANALYSIS OF UNITHOLDERS WITH >2 MILLION UNITS Top 5 Increases in Unitholdings Changes vs Last Quarter KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 1.1% MTRUSTEE BERHAD FOR CIMB ISLAMIC DALI EQUITY GROWTH FUND 1.1% EMPLOYEES PROVIDENT FUND BOARD (AMUNDI) 0.9% EXEMPT AN FOR AIA
Slide 40: Investor Visibility & Liquidity
STOCK INFORMATION Assails INVESTOR VISIBILITY & LIQUIDITY Number of CDS Accounts 6,000 5,217 5,000 4,607 4,579 4632 4,585 4581 4787 4,098 4,184 ™” 3,611 3,790 3,718 3,776 3,891 3,934 4,011 2850 3009 3176 3200 3,219 3,309 3,000 2,420 2,702 2,080 2,000 | 1,652 1,000 2008 ©2009-2010. 2011.- 2012-2013 2
Slide 41: 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
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