Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — FY2019 Earnings Presentation
43 slides from Axis Real Estate Investment Trust's earnings presentation, Jan 21, 2020
Slide 1: Results Presentation 2019
AXIS AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 2019 m == — > lis co 21 January 2020
Slide 2: Agenda
Abels REAL ESTATE INVESTMENT TRUST AGENDA 2019 PORTFOLIO FINANCIAL STOCK HIGHLIGHTS OWsAyia OVERVIEW | [izeiiiuile) t | WEEE ——) : a i il ll iw II I| Y y
Slide 3: 2019 Highlights
Anis reais 2019 HIGHLIGHTS i S| ae
Slide 4: 2019 Highlights: Portfolio Summary
ra 4n 3 2019 HIGHLIGHTS ANAS PORTFOLIO SUMMARY _ 48 properties on portfolio 36 properties with 100% occupancy Total Assets Under Management RM3.1 billion Space Under Management 9.5 million sq ft Gearing 29% Solid industrial space portfolio 91% of properties on industrial titles Portfolio Occupancy o
Slide 5: 2019 Highlights
2019 HIGHLIGHTS ANAS DPU increased by 6% to 9.26 sen for YTD 2019 (DPU for YTD 2018 was 8.74 sen). NAV per unit increased by 8% to RM1.4484. Traded at a premium of 22% to NAV on 31 December 2019. Investment properties currently stand at RM3.0billion. Net property income increased by 5% for FYE 2019
Slide 6: 2019 Highlights
2019 HIGHLIGHTS Portfolio size increased by 3 to a total of 48 properties. Registered take-up rate of 96% on spaces expiring for 2019 with positive rental reversion of 2%. Entered into a build-to-lease agreement to construct a warehouse facility for Federal Express Services (M) Sdn Bhd (“FedEx”) in
Slide 7: 2019 Highlights
2019 HIGHLIGHTS ANAS Successfully completed the acquisitions of Nusajaya Tech Park facility 1 and Nusajaya Tech Park Facility 2 on 30 September 2019. Signed the Sale & Purchase Agreement to acquire a manufacturing facility for RM20.5million, located in Bayan Lepas, Penang. Signed the Sale & Purchase
Slide 8: Portfolio Overview
Angels 2019 LC» PORTFOLIO OVERVIEW | 1 Sale
Slide 9: 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 10: Diversified and Expanding Portfolio: Space Under Management
(sq A) 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 AWls REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Space Under Management (sq ft) 9,349,267 987.666 8,087,781 7,606,863 6,959,474 7,015,242 5,463,599 5,46
Slide 11: Diversified and Expanding Portfolio
PORTFOLIO OVERVIEW ANAS DIVERSIFIED AND EXPANDING PORTFOLIO Y Our 48 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 12: Diversified and Expanding Portfolio
PORTFOLIO OVERVIEW Avals DIVERSIFIED AND EXPANDING PORTFOLIO oe Portfolio Diversification Portfolio Diversification Portfolio Diversification by Industry Sector (on NLA) by Asset Type (on NLA) by Occupancy Type (on NLA) mServices m Consumer Products ® Manufacturing m Logistics m™ Vacant “Industrial
Slide 13: High Occupancy Rate with Income Visibility
PORTFOLIO OVERVIEW Avals HIGH OCCUPANCY RATE WITH INCOME VISIBILITY As at 31 December 2019, the portfolio has 48 assets comprising 9,537,666 sq. ft.and 152 tenants. No. of Properties 48 Property Income (RM‘000) 214,975 Property Expenses (RM’000) 30,756 Net Property Income (RM’‘000) 184,219 Occupancy
Slide 14: Lease Expiry by Location
PORTFOLIO OVERVIEW ANAS HIGH OCCUPANCY RATE WITH INCOME VISIBILITY Lease Expiry By Location % of Rental % of % of Rental % of % of Rental Income/month Total NLA Income/month Total NLA Income/month Petaling Jaya 602,715 6.35 12.18 595,064 6.27 10.33, 476711 5.02 9.03 Shah Alam 526,567 5.55 5.06 412,0
Slide 15: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW Assails HIGH OCCUPANCY RATE WITH INCOME VISIBILITY Properties with Occupancy Below 90% as at 31 December 2019 Axis Business Campus | 85% Fortec A LLL 85% Mer. A LL 78% Cyst Le LL 77% Wiser eg LLL 76% Wisrrva Academy Parcel LLL 70% Dae A LLL 60% Axis Technology Centre SSS 50% Quatt
Slide 16: Established Nationwide Footprint
PORTFOLIO OVERVIEW ANAS ESTABLISHED NATIONWIDE FOOTPRINT eg Kedah (1.5%) Penang (7.9%) Sungai Peta Bayan Lepas 1 * Seberang Perai Top 10 Tenants YTD top ten tenants account for 46.36% of the total revenue Nestle Products Sdn Bhd * Petaling Jaya (21.0%) . Johor (26.0%) * Klang (9.0%) + Pasir Gudang *
Slide 17: Asset Enhancement Initiatives: Menara Axis
PORTFOLIO OVERVIEW AXelS ASSET ENHANCEMENT INITIATIVES Menara Axis Building Facade ImprovementWorks: RC slab waterproofing and epoxy treatment www.axis-reit.com.my
Slide 18: Asset Enhancement Initiatives: Seberang Prai Logistics Warehouse 3
PORTFOLIO OVERVIEW ANAS ASSET ENHANCEMENT INITIATIVES Seberang Prai Logistics Warehouse 3 Enhancement of sewer, electrical and mechanical system 18 www.axis-reit.com.my
Slide 19: Pipeline Targets: Completed Project
PORTFOLIO OVERVIEW 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 Fixed term of 20 years and option of 12 years Market Value (as at 31 Dec 2
Slide 20: Pipeline Targets: Development Project
PORTFOLIO OVERVIEW Avals AGGRESSIVE PIPELINE TARGETS: DEVELOPMENT PROJECT . 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: RM3,916,479.60 (based on RM36 psf) Tenure: 30 years b) Details of lea
Slide 21: Pipeline Targets: Completed Acquisitions
vy, PORTFOLIO OVERVIEW AXelS AGGRESSIVE PIPELINE TARGETS: COMPLETED ACQUISITIONS Nusajaya Techpark Facil Nusajaya Techpark Facility 2, Johor rere Completion Date : 30 September 2019 Net Lettable Area : 146,762 sq. ft. Land Area : Approx. 5.2 acres Land Tenure : Freehold Occupancy : 100% Purchase Pri
Slide 22: 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 : 1H2020 Target Completion Date : 1H2020 Net Lettable Area : 78,024 sq. ft. Net Lettable Area : 246,
Slide 23: Pipeline Targets: Ongoing Acquisitions
vy, PORTFOLIO OVERVIEW AXelS AGGRESSIVE PIPELINE TARGETS: ONGOING ACQUISITIONS 3. D37c Warehouse, PTP Johor 4. Lion Steelworks Facility, Bukit Raja, Klang Target Completion Date : 1H2020 Target Completion Date : 1H2020 Net Lettable Area : 222,723 sq. ft. Gross Floor Area : 149,605 sq. ft. Land Area
Slide 24: Pipeline Targets: Ongoing Acquisitions
vy, PORTFOLIO OVERVIEW AXelS AGGRESSIVE PIPELINE TARGETS: ONGOING ACQUISITIONS 5. Manufacturing Facility, Kota Kinabalu, Sabah 6. Manufacturing Facilities, Shah Alam, Selangor Target Completion Date : 2H2020 Target Completion Date : 1H2020 Gross Floor Area : 444,180 sq. ft. Gross Floor Area : 251,06
Slide 25: Total Estimated Value of Acquisition Targets RM135 million
Total Estimated Value of Acquisition Targets RM135 million
Slide 26: Financial Overview
Angels 2019 LC» FINANCIAL OVERVIEW | 1 Sale
Slide 27: Snapshot as at December 2019
FINANCIAL OVERVIEW Angels SNAPSHOT AS AT 31 DECEMBER 2019 RM886 mil RM2.08bn Total Financings Total Unitholder’s Funds RM3.09bn Total Assets 4 RM1.45 29% FY2019: 9.26 sen 3] Net Asset Value Per Unit Net Gearing Distribution Per Unit 1Q2019: 2.35 sen 2Q2019: 2.36 sen 3Q2019: 2.35 sen 4Q2019: 2.20 sen
Slide 28: Return Comparatives
FINANCIAL OVERVIEW Alzels RETURN COMPARATIVES 7.00% 4 6.00% + 5.23% 5.00% + 4.00% + 3.00% 3.00% + 2.00% + 1.00% + 0.00% Axis-REIT EPF Dividend Return 10-yr MGS 12 Months FD Rate OPR Distribution Yield 2018 28 www.axis-reit.com.my
Slide 29: Income Statement 4Q2019 vs 4Q2018
FINANCIAL OVERVIEW INCOME STATEMENT 4Q2019 vs 4Q2018 AWls REAL ESTATE INVESTMENT TRUST 4Q2019 4Q2018 Changes / (RM‘000) (RM‘000) Movement No. of Properties 48 45 +3 Property Income 54,023 59,295 - Property income before lease incentive adjustment 54,407 52,900 +2.8% - Lease incentive adjustment (non
Slide 30: Income Statement YTD2019 vs YTD2018
FINANCIAL OVERVIEW Avals INCOME STATEMENT YTD2019 vs YTD2018 . YTD2019 YTD2018 Changes / (RM‘000) (RM‘000) Movement No. of Properties 48 45 +3 Property Income - Note 1 214,975 203,637 - Property income before lease incentive adjustment 216,005 197,242 +9.51% - Lease incentive adjustment (non-distrib
Slide 31: Income Statement YTD2019 vs YTD2018 - Notes
FINANCIAL OVERVIEW ANAS INCOME STATEMENT YTD2019 vs YTD2018 - 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 2018 an
Slide 32: 5-Year Performance
FINANCIAL OVERVIEW AWSels REAL ESTATE INVESTMENT TRUST 5-YEAR PERFORMANCE Revenue (RM'000)* 250,000 216,005 214,975 197,242 203,637 200,00 4 163,077 166,685 167,761 150,000 100,000 50,000 FY2015 FY2016 FY2017 FY2018 FY2019 Mm Actual Ml After lease incentive adjustment Net Income (RM'000)* 140,000 11
Slide 33: Portfolio Yield by Asset Types
FINANCIAL OVERVIEW Assails PORTFOLIO YIELD BY ASSET TYPES Net Yield (%) Gross Yield (%) Office 7.0 98 Office Industrial 73 9.5 Warehouse Logistics 8.4 95 Manufacturing Facilities 79 8.7 Hypermarket 8.3 8.9 a 33 www.axis-reit.com.my
Slide 34: Financial Position
FINANCIAL OVERVIEW Atels REAL ESTATE INVESTMENT TRUS FINANCIAL POSITION Investment Properties - Note 1 2,990,610 2,798,500 +192,110 Fixed Assets 3,201 3,021 +180 Other Assets — Note 2 91,870 38,942 +52,928 TOTAL ASSETS 3,085,681 2,840,463 +245,218 Borrowings 885,859 1,059,367 -173,508 Other Payables
Slide 35: Notes - Financial Position
FINANCIAL OVERVIEW ANAS NOTES - FINANCIAL POSITION Note 1 - Investment Properties The acquisition of Nusajaya Tech Park Facility 1 and Nusajaya Tech Park Facility 2 completed on 30 September 2019 at RM55.8 million and the development project for Axis Facility @ Batu Kawan has been substantially comp
Slide 36: Note - 5-Year Debt Profile
FINANCIAL OVERVIEW Assails NOTE 3 - 5-YEAR DEBT PROFILE Total Financing (RM’000) 731,814 780,665 842,594 1,059,367 Total Assets (RM’000) 2,141,493 2,244,274 2,549,609 2,840,463 Gearing 34.17% 34.78% 33.05% 37.30% Effective Profit Rate 4.28% 4.25% 4.21% 4.32% Percentage of short term financing-Maturi
Slide 37: Gearing Levels
FINANCIAL OVERVIEW ANAS GEARING LEVELS Placements Undertaken I Allowable threshold of 50% 50% 45% 40% 40% 38% 36% 36% 36% 35% 33% 31% 33% 33% 33% 29% 30% 27% 27% 25% 24% 20% 15% 10% 5% 0% 4Q20071Q2008 2Q20093Q2009 2Q 201Q 2010 3Q 20114Q 2011 3Q20144Q2014 3Q20174Q2017 3Q20194Q2019 37 www.axis-reit.co
Slide 38: Unitholders' Capital
RM mil 3,500.0 3,000.0 2,500.0 2,000.0 1,500.0 1,000.0 500.0 339.6 FINANCIAL OVERVIEW Avals UNITHOLDERS’ CAPITAL REAL ESTATE INVESTMENT TRUST 3,085.7 5 83.8 247.1 31-Dec-05 2,244.0 2,141.5 1,589.4 1,616.5 1,240.3 1,208.9 1,044.7 052.3} | 1,060.0} 907.7 726.4 5 581.8 418 540.3 3233 406.9 ta’ Oe 9 De
Slide 39: Stock Information
Angels 2019 C STOCK INFORMATION | i Sale
Slide 40: Top Unitholders
STOCK INFORMATION Avals REAL ESTATE INVESTMENT TRUST TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 9.36% 2 EMPLOYEES PROVIDENT FUND BOARD 8.49% 3 LEMBAGA TABUNG HAJI 474% 4 TEW PENG HWEE @ TEOH PENG HWEE 3.94% 5 ALEXLEELAO 3.69% 6 EXEMPT AN FOR AIA BHD. 3.63% 7 A
Slide 41: Analysis of Unitholders with >2 Million Units
STOCK INFORMATION Avals ANALYSIS OF UNITHOLDERS WITH >2 MILLION UNITS . Top 5 Increases in Unitholdings Changes vs Last Quarter PERMODALAN NASIONAL BERHAD 1.3% HONG LEONG ASSURANCE BERHAD AS BENEFICIAL OWNER (LIFE PAR) 0.5% CIMB COMMERCE TRUSTEE BERHAD - KENANGA GROWTH FUND 0.5% PAMB FOR PRULINK DAN
Slide 42: Investor Visibility & Liquidity
STOCK INFORMATION Avals INVESTOR VISIBILITY & LIQUIDITY Number of CDS Accounts 7,000 5,715 6,000 5217 5,000 4585 4,581 4,787 4,000 3,891 , 3,176 2702 2,850 3,009 3,000 2080 2,420 2,000 1,652 _e a | if i : 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 102019 202019» 32019» 4Q2019 Units Held 4Q201
Slide 43: 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 s PARTNER
Axis Real Estate Investment Trust — FY2019 Earnings Presentation on 6ix