Axis Real Estate Investment Trust · MYX:AXREIT

Axis Real Estate Investment Trust — Q4 2022 Earnings Presentation

42 slides from Axis Real Estate Investment Trust's earnings presentation, Jan 19, 2023

  1. Slide 1: Results Presentation 4Q2022

    AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 4Q2022 19 January 2023

  2. Slide 2: Highlights, Portfolio Overview, Financial Overview, Stock Information

    PORTFOLIO FINANCIAL STOCK HIGHLIGHTS OVERVIEW OVERVIEW INFORMATION 1

  3. Slide 3: Highlights

    HIGHLIGHTS 2

  4. Slide 4: Highlights

    HIGHLIGHTS 62 properties on portfolio 49 properties with 100% occupancy Portfolio Occupancy of 95% (as at 31/12/2022) 2 properties under development Weighted Average Lease Expiry of 5.3 years 1 property under major enhancement Total Assets Under Management Reclassified as Islamic REIT in 2008 RM4.26

  5. Slide 5: YTD 2022 Highlights

    YTD 2022 HIGHLIGHTS 1Q 2022 ► Completed the acquisition of Pasir Gudang Logistics Warehouse 2 for RM32.0 million on 7 March 2022. ► Completed the acquisition of Indahpura Facility 4 for RM16.3 million on 8 March 2022. 2Q 2022 ► Completed the acquisition of DW1 Logistics Warehouse for RM390.0 million

  6. Slide 6: YTD 2022 Highlights

    YTD 2022 HIGHLIGHTS 4Q 2022 ► Completed the acquisition of Axis Industrial Facility 1 @ Meru for RM41.0 million on 2 December 2022. ► Embarked on the development of Axis Mega Distribution Centre (Phase 2), a logistics warehouse of approximately 584,112 sq. ft. to be constructed on the remaining vaca

  7. Slide 7: Portfolio Overview

    PORTFOLIO OVERVIEW 6

  8. Slide 8: Space Under Management

    PORTFOLIO OVERVIEW Space Under Management (sq ft) 14,000,000 12,726,260 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 ( sq ft) 6,859,474 7,015,242 6,000,000 5,463,599 5,464,124 4,288,054 4,449,580 4,000,000 3,679,796 2,858,121 2,175,522 2,000,000 1,656

  9. Slide 9: 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

  10. Slide 10: 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 Vacant Hypermarkets

  11. Slide 11: Portfolio Summary and Efficiency Ratio

    PORTFOLIO OVERVIEW As at 31 December 2022, the portfolio has 62 assets comprising 12,726,260 sq. ft. and 161 tenants. YTD 2022 No. of Properties 62 000) 280,830 000) 39,128 000) 241,702 Occupancy 95% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 2022 2021 2020 2019 2018 13

  12. Slide 12: Properties with Occupancy Below 90%

    PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 31 DECEMBER 2022 Fonterra HQ 85% Axis Business Park 82% Axis Ind. Facility 1@Shah Alam 78% Wisma Academy Parcel 78% Axis Business Campus 75% Axis Technology Centre 75% Wisma Kemajuan 68% The Annex 60% Menara Axis 48% Axis Facility 2 @ Buki

  13. 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 2022 Total NLA Income/month 2023 Total NLA Income/month 2024 Total NLA Income/month Petaling Jaya 572,265 4.50 0.65 576,820 4.53 0.58 506,048 3.98 0.59 Shah Alam 566,072 4.45 0.39 6

  14. Slide 14: Top Tenants

    PORTFOLIO OVERVIEW Top 10 Tenants ESTABLISHED NATIONWIDE FOOTPRINT YTD top ten tenants accounted for 51.0% of the total 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 Kawan

  15. Slide 15: Asset Enhancement Initiative: Menara Axis

    PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVE Menara Axis Conversion of void area to additional lettable space 14

  16. Slide 16: Asset Enhancement Initiative: FCI Senai

    PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVE FCI Senai Façade treatment and painting 15

  17. Slide 17: Asset Enhancement Initiative

    PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVE Axis Hypermarket @ Sungai Petani Seberang Prai Logistics Warehouse 3 Waterproofing works Washroom upgrading works 16

  18. Slide 18: Asset Enhancement Initiative

    PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVE Shah Alam Distribution Centre 2 Bukit Raja Distribution Centre Axis Technology Centre Upgrading of firefighting system 17

  19. Slide 19: Ongoing Asset Enhancement Initiative

    PORTFOLIO OVERVIEW ONGOING ASSET ENHANCEMENT INITIATIVE Axis Facility 2 @ Bukit Raja Before Enhancement Post- Target completion Major enhancements: Green features include: 1Q2023 • Roof replacement • LED lighting Green • Mechanical dock levellers • Water-efficient fittings certified • Replacement of

  20. Slide 20: Ongoing Development

    PORTFOLIO OVERVIEW ONGOING DEVELOPMENT Bukit Raja Distribution Centre 2 Gross Built-up Area : 620,096 sq. ft. Green Land Area : Approx. 20.75 acres certified Land Tenure : Freehold building Lessee : Shopee Express Malaysia Sdn. Bhd. WALE : 15 years Lease Commencement : No later than 31 August 2023 D

  21. Slide 21: New Development

    PORTFOLIO OVERVIEW NEW DEVELOPMENT Axis Mega Distribution Centre (Phase 2) Nestle DC Phase 2 Target completion 1Q2024 Gross Built-up Area : 584,112 sq. ft. Green Land Area : Approx. 20.0 acres certified Land Tenure : Freehold building Construction Cost : Approx. RM130.0 million 20

  22. Slide 22: Completed Acquisitions

    PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 1. Pasir Gudang Logistics Warehouse 2, Johor 2. Indahpura Facility 4, Johor Completion Date : 7 March 2022 Completion Date : 8 March 2022 Net Lettable Area : 276,000 sq. ft. Net Lettable Area : 59,956 sq. ft. Land Area : Approx. 12.80 acres Land Area : Appro

  23. Slide 23: Completed Acquisitions

    PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 3. DW1 Logistics Warehouse, Johor 4. Axis Industrial Facility 1 @ Meru Completion Date : 25 April 2022 Completion Date : 2 December 2022 Net Lettable Area : 1,150,391 sq. ft. Net Lettable Area : 193,015 sq. ft. Land Area : Approx. 18.4 acres Land Area : Appr

  24. Slide 24: 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

  25. Slide 25: Financial Overview

    FINANCIAL OVERVIEW 24

  26. Slide 26: Snapshot as at December 2022

    FINANCIAL OVERVIEW SNAPSHOT AS AT 31 DECEMBER 2022 RM4.26 billion RM1.55 billion RM2.57 billion Total Assets Total Financing RM1.57 36% FY2022: 9.75 sen Net Asset Value Per Unit Financing Ratio Distribution per unit 25

  27. Slide 27: Return Comparatives

    FINANCIAL OVERVIEW RETURN COMPARATIVES 7.00% 6.10% 6.00% 5.45% 5.00% 3.97% 4.00% 3.00% 2.83% 2.75% 2.00% 1.00% 0.00% Axis-REIT Distribution EPF Dividend Return 2021 10-yr MGS 12 Months FD Rate OPR Yield (as at 12 January 2023) (as at 12 January 2023) (based on RM1.79 closing price) 26

  28. Slide 28: Income Statement 4Q2022 vs 4Q2021

    FINANCIAL OVERVIEW INCOME STATEMENT 4Q2022 vs 4Q2021 4Q2022 4Q2021 Changes / Movement No. of Properties 62 58 +4 Property Income 70,536 62,558 Property Income - Property income before lease incentive adjustment 71,189 63,061 +12.9% - Lease incentive adjustment (non-distributable) (653) (503) Propert

  29. Slide 29: Income Statement YTD 2022 vs YTD 2021

    FINANCIAL OVERVIEW INCOME STATEMENT YTD 2022 vs YTD 2021 YTD 2022 YTD 2021 Changes / Movement No. of Properties 62 58 +4 Property Income Note 1 280,830 241,605 Property Income - Property income before lease incentive adjustment 281,463 242,747 +15.9% - Lease incentive adjustment (non-distributable)

  30. Slide 30: Income Statement YTD 2022 vs YTD 2021 - Notes

    FINANCIAL OVERVIEW INCOME STATEMENT YTD 2022 vs YTD 2021 - NOTES Note 1 Property Income Increase in property income as compared to preceding year was mainly due to: • rental from newly acquired properties • commencement of new tenancies at Axis Industrial Facility @ Rawang and D8 Logistics Warehouse

  31. Slide 31: 5-Year Performance

    FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Net Property Income (RM'000)* Revenue (RM'000)* 300,000 281,463 280,830 300,000 242,747 241,605 242,335 241,702 250,000 250,000 203,637 216,005 214,975 224,712 224,064 209,433 208,291 200,000 197,242 200,000 175,810 185,249 184,219 190,996 190,348 169,415 150,00

  32. Slide 32: Portfolio Yield by Asset Types

    FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 6.8 9.4 Office Industrial 6.5 8.8 Logistics Warehouse 7.9 8.7 Manufacturing Facilities 7.9 8.8 Hypermarket 8.7 9.3 Average 7.6 8.8 31

  33. Slide 33: Financial Position

    FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 4,186,020 3,614,230 +571,790 Fixed Assets 1,859 2,410 -551 Other Assets Note 2 67,534 222,120 -154,586 TOTAL ASSETS 4,255,413 3,838,760 +416,653 Financing Note 4 1,546,020 1,184,593 +361,427 Other Payables 123,334 114,049 +9,285 Defe

  34. Slide 34: Notes - Financial Position

    FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties In 2022, a total of RM57.3 million was spent on capital expenditure on existing properties of which: • RM42.2 million for the ongoing development of Bukit Raja Distribution Centre 2 • RM0.6 million for the ongoing development

  35. Slide 35: Notes - Financial Position

    FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 2 Other Assets The RM137.0 million balance proceeds from 2021 equity placement had been utilised for redemption of short-term financing in January 2022. The average collection of trade receivables as at 31 December 2022 was 11 days. Note 3 Unitholde

  36. Slide 36: Note 4: 5-Year Financing Profile

    FINANCIAL OVERVIEW NOTE 4: 5-YEAR FINANCING PROFILE 2018 2019 2020 2021 2022 1,059,367 885,859 1,112,183 1,184,593 1,546,020 2,840,463 3,085,681 3,364,083 3,838,760 4,255,413 Financing Ratio 37.30% 28.71% 33.06% 30.86% 36.33% Effective Profit Rate 4.32% 4.37% 3.89% 3.63% 3.87% Percentage of short te

  37. Slide 37: 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% 31% 31% 30% 27% 29% 30% 29% 27% 25% 24% 20% 15% 10% 5% 0% 36

  38. Slide 38: Total Assets and Unitholders' Capital

    FINANCIAL OVERVIEW 4,500.0 4,255.4 4,156.9 4,162.6 4,000.0 3,838.8 3,762.2 3,500.0 3,364.1 3,085.7 3,000.0 2,840.5 2,549.6 2,500.0 2,244.0 2,141.5 RM mil 2,085.7 1,934.3 1,934.3 1,945.7 1,945.7 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 1,044.71,052.3 1,060.0 1,240.31,24

  39. Slide 39: Stock Information

    STOCK INFORMATION 38

  40. Slide 40: Top Unitholders

    STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 8.97% 2 EMPLOYEES PROVIDENT FUND BOARD 7.94% 3 LEMBAGA TABUNG HAJI 4.68% 4 AMANAH SAHAM BUMIPUTERA 4.32% 5 TEW PENG HWEE @ TEOH PENG HWEE 3.49% 6 ALEX LEE LAO 3.31% 7 EMPLOYEES PROVIDENT FUND BOARD (

  41. Slide 41: Number of CDS Accounts

    STOCK INFORMATION Number of CDS Accounts Units Held 4Q2022 Units Held 3Q2022 Movement Total no. of unitholders 12,227 11,642 585 Total foreign holdings 19.04% 14.98% 4.06% Foreign holdings related party 5.69% 5.69% 0.00% Foreign holdings non-related party 13.35% 9.29% 4.06% Promoters 9.84% 9.84% 0.0

  42. Slide 42: Thank You

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