Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q1 2010 Earnings Presentation
32 slides from Axis Real Estate Investment Trust's earnings presentation, April 2010
Slide 1: Axis REIT 1Q2010 Financial Performance
Axis REIT 1Q2010 Financial Performance
Slide 2: Disclaimer
Disclaimer This the information contained in this document is provided for information purposes only and in no way constitutes an offer of services or solicitation. Past performance is not indicative of future performance We decline any responsibility with respect to direct or indirect damages or co
Slide 3: A Quick Snapshot
A Quick Snapshot Approved Fund Size 307,081,200 units Manager Axis REIT Managers Bhd Investment Properties 915.69 million Market Capitalisation RM614.16 million (as at 31 March 2010) Unit Price RM2.00 (as at 31 March 2010) Gearing RM328.36 million (35.43% of Total Asset Value as at 31 Ma
Slide 4: Financial Highlights – Income Statement (Unaudited)
Financial Highlights – Income Statement (Unaudited) Net Property Income exceeds 1Q2009 by 14.35% 1Q2010 1Q2009 Changes / (RM ‘000) (RM’000) Movement No. of Properties 23 19 +4 Property Income 19,797 17,329 + 14.25% Net Property Income 16,722 14,624 + 14.35% Profit before Taxation 11,713 10,424 + 12.
Slide 5: Financial Highlights – Balance Sheet (Unaudited)
Financial Highlights – Balance Sheet (Unaudited) Trading at premium to NAV of 10.38% 2010 2009 (RM ‘000) (RM’000) Total Assets 926,778 907,745 Investment Properties 915,687 884,962 Borrowings 328,358 308,932 Net Asset Value 556,328 550,357 Unitholders’ Funds 556,328 550,357 Gearing 35.43% 34.03% NAV
Slide 6: 31 March 2010 Financial Results
31 March 2010 Financial Results 6
Slide 7: Financial Results - Income Statement (Unaudited)
Financial Results ‐ Income Statement (Unaudited) Excluding unrealised earnings 1Q2010 4Q2009 Changes / due to changes in fair value of (RM ‘000) (RM’000) Movement investment properties No. of Properties 23 21 +2 Property Income Note 1 19,797 19,387 + 2.11% Property Expenses Note 2 (3,075) (3,231) -
Slide 8: Financial Results - Income Statement (Unaudited)
Financial Results ‐ Income Statement (Unaudited) Excluding unrealised earnings 1Q2010 1Q2009 Changes / due to changes in fair value of (RM ‘000) (RM’000) Movement investment properties No. of Properties 23 19 +4 Property Income 19,797 17,329 + 14.24% Property Expenses (3,075) (2,705) + 13.68% Net Pr
Slide 9: Notes to Financial Results – Income Statement
Notes to Financial Results – Income Statement Note 1 – Property Income Property income increased by 2% as compared to immediate preceding quarter is due to additional contribution of rental income from the newly acquired properties ie the 2 Seberang Prai logistic warehouses and the Bukit Raja Distri
Slide 10: Notes to Financial Results – Income Statement (Cont’d)
Notes to Financial Results – Income Statement (Cont’d) Note 3 – Non‐ Property Expenses The non‐property expenses register a drop of 6.84% due to bad debts recovered in the current quarter amounted to RM108,000. Note 4 – Interest/Islamic financing cost The increase in the interest/Islamic financing c
Slide 11: Summary of EPU (Realised) and DPU
Summary of EPU (Realised) and DPU 18.00 15.7715.80 16.00 15.4615.27 14.00 13.6013.63 12.8212.95 Sen/ unit 12.00 EPU (realised) 10.00 DPU 8.00 6.00 4.87 4.70 3.81 3.70 4.00 2.00 - 2005 2006 2007 2008 2009 1Q 2010 EPU(realised) = Income available for distribution 11
Slide 12: Detailed Property Performance Analysis – 31.3.2010
Detailed Property Performance Analysis – 31. 3.2010 (RM’000) Book Value FV Adj Acq Cost + 12 Mths annualised Gross Yield (a) (b) Enhancement (c) Revenue (d) (d) / (c) 1 ABP 105,900 20,855 85,045 11,335 13.33% 2 Axis Plaza 29,500 6,998 22,502 2,771 12.31% 3 Crystal Plaza 89,800 33,263 56,537 9,177 16
Slide 13: Management Expense Ratio (MER)
Management Expense Ratio (“MER”) MER: Total administrative expenses incl. Manager and Trustee’s fees Average net asset value of the Fund. 1,000 4.00 927 908 900 3.50 800 726 733 3.00 700 658 Total Assets (RM'000) 582 2.50 600 % of NAV 500 2.00 417 400 1.47 1.50 1.38 1.37 1.35 300 1.29 1.22 1.15 1.00
Slide 14: Balance Sheet Highlights (Unaudited)
Balance Sheet Highlights (Unaudited) 31/3/10 31/12/09 Changes RM '000 RM '000 Investment Properties 915,687 884,962 + 30,725 Other Assets 11,091 22,783 ‐ 11,692 TOTAL ASSETS 926,778 907,745 + 19,033 Borrowings 328,358 308,932 + 19,426 Other Payables 42,092 48,456 ‐ 6,364 TOTAL LIABILITIES 370,450 35
Slide 15: 2010 Acquisition
AX%41S 2010 Acquisition REAL ESTATE INVESTMENT TRUST
Slide 16: 2010 Acquisition – PTP D8, Johor
2010 Acquisition – PTP D8, Johor • Sale & Purchase Agreement signed on 20 April 2010 • Estimated Completion Date : October 2010 • The purchase price of RM30 million is at 3.23% discount to the market value providing Unitholders with a capital gain of approximately RM0.5 million • Tenant – Nippon Exp
Slide 17: PTP D8 – Financial Impact
PTP D8 – Financial Impact ¾ The Acquisition will be by means of bank borrowings. ¾ Funds for the Proposed Acquisition has been secured with an average interest of 4%. ¾ The acquisition is yield accretive. ¾ The Proposed Acquisition will have the following financial impact : • No impact to NAV • Incr
Slide 18: Impact on Assets Under Management (AUM)
Impact on Assets Under Management (AUM ) 1,200.00 1,000.00 957.78 907.74 926.78 800.00 726.37 732.91 658.22 RM mil 600.00 518.86 402.27 411.78 416.75 400.00 339.63 200.00 ‐ 31‐Dec‐05 30‐Jun‐06 31‐Dec‐06 30‐Jun‐07 31‐Dec‐07 30‐Jun‐08 31‐Dec‐08 30‐Jun‐09 31 Dec 09 31 Mar 09 31 Mar 09* Note * : assumes
Slide 19: Impact on Space Under Management
Impact on Space Under Management 4,026,103 28 4,000,000 3,839,103 3,679,797 26 3,500,000 24 24 23 22 21 3,000,000 2,858,121 2,858,121 2,858,121 20 Net Lettable Area (sq ft) 19 19 19 18 No. of Properties 2,500,000 2,175,522 16 2,000,000 14 14 1,656,943 12 1,500,000 10 1,186,052 9 8 1,000,000 6 6 4 50
Slide 20: Portfolio Performance 2010
Portfolio Performance 2010 20
Slide 21: Occupancy Levels
Occupancy Levels 100% 98% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 93% 93% 95.6 % 90% 87% 82% 80% 75% Under Refurbishment Under Refurbishment 68% 70% 60% % Area Occupied 50% 40% 30% 20% 10% 0% • SADC1 – Currently under refurbishment to cater for new tenant. Signed up a lease of 5y
Slide 22: Top Ten Tenants (by revenue RM)
Top Ten Tenants (by revenue RM) 2,000,000.00 1,800,000.00 1,600,000.00 1,400,000.00 1,200,000.00 RM 1,000,000.00 800,000.00 600,000.00 400,000.00 200,000.00 - Konsortium IDS Fuji Xerox Tenaga BMW Asia Kompakar Scope GCH Retail Cycle & Fujifilm (M) Logistik Logistics Asia Pacific Nasional Technology
Slide 23: Lease Expiry Profile 2010-2012
Lease Expiry Profile 2010‐2012 Year % OF TOTAL Year % OF TOTAL Year % OF TOTAL Property 2010 % of NLA RENTAL 2011 % of NLA RENTAL 2012 % of NLA RENTAL MENARA AXIS 58,002 1.58% 4.07% 14,034 0.38% 1.21% ‐ ‐ ‐ CRYSTAL PLAZA 169,146 4.60% 7.93% 9,118 0.25% 0.53% 12,433 0.34% 0.68% AXIS BUSINESS PARK 40,
Slide 24: Maintaining Positive Rental Reversions
Maintaining Positive Rental Reversions Multi Tenanted Properties Space Negotiated % Movement Menara Axis 35,723 + 6.2% Crystal Plaza 61,313 + 2.9% Axis Business Park 21,353 + 3.2% Infinite Centre 36,749 + 5.7% Axis Plaza 32,873 No change Wisma Kemajuan 23,463 + 7.3% Kayangan Depot 76,278 ‐ 6.5% Nort
Slide 25: Occupancy Levels: Good News on Quattro West
Occupancy Levels And for the Good News on Quattro West [formerly Nestle House] Currently has 3 tenants totaling 84% of space signed up. Rental income commences from 1 July 2010 escalating through 2010. Target 100% tenanted out by June 2010 Occupancy – Our Marketing Efforts 25
Slide 26: Portfolio Diversification
Portfolio Diversification Portfolio Diversification by Type and NLA Portfolio Diversification by Geographical and NLA 4% 4% 13% 15% 41% 45% 13% 38% 23% 4% Petaling Jaya Shah Alam Klang Johor Kedah Penang Ofiice Office/Industrial Warehouse Retail Warehouse Logistic 44% 56% Single vs Multi Tenants Sin
Slide 27: Portfolio Diversification by Sector and Revenue
Portfolio Diversification Portfolio Diversification by Sector and Revenue Services Healthcare & Lifestyle Engineering/Building Materials Financial Services Logistics Automotive IT/Electronics Retail Consumer Products Others 4% 6% 1% 8% 23% 8% 8% 8% 24% 10% 27
Slide 28: Asset Enhancements
Ad@|S Asset Enhancements REAL ESTATE INVESTMENT TRUST
Slide 29: Portfolio Enhancement Projects Underway
Portfolio Enhancement Projects Underway Quattro West A complete refurbishment to reposition asset and increase revenue Crystal Plaza A major upgrade is being undertaken to improve retention. Planning submission only at this stage. 29
Slide 30: Quattro West Enhancement
Quattro West Enhancement The Building . . . . . . 30
Slide 31: Best Redevelopment in Malaysia
And some further Good News on Nestle House [now Quattro West] On Friday, 17th April, 2010 in an awards ceremony in Hong Kong, we were awarded a 5 star award for the; Best Redevelopment in Malaysia by the International Property Awards in Association with Bloomberg Television 31
Slide 32: Thank You
Ase lS Thank You REAL ESTATE INVESTMENT TRUST
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