Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q1 2018 Earnings Presentation
51 slides from Axis Real Estate Investment Trust's earnings presentation, Apr 25, 2018
Slide 1: Axis Real Estate Investment Trust Results Presentation 1Q2018
Axis Real Estate Investment Results Presentation 1Q2018 25 April 2018
Slide 2: 1Q2018 Portfolio Highlights
1Q2018 Portfolio Highlights Abels v REAL ESTATE INVESTMENT TRUST Portfolio size increased by 1 to a total of 41 properties. Investment properties currently stands at RM2,563,700,000. Successfully signed the Sale & Purchase Agreement for the acquisition and leaseback of 2 adjoining parcels of industr
Slide 3: 1Q2018 Return Comparatives
1Q2018 Return Comparatives 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1,00% 0.00% 6.90% Aw%ls REAL ESTATE INVESTMENT TRUST 6.02% 3.90% 3.50% 3.25% Axis-REIT EPF Dividend Return 10-yr MGS 12 Months FD Rate OPR Distribution Yield www.axis-reit.com.my
Slide 4: Finance Report
REAL ESTATE INVESTMENT TRUST - 1Q2018 FINANCE REPORT
Slide 5: 1Q2018 Summary
1Q2018 Summary Total Net Income (“Realised”) (RM'000) Income Available for Distribution ("Realised") (RM'000) Earnings per Unit ("EPU") ("Realised") (Sen) Income Distribution Declared (RM'000) Distribution per Unit ("DPU") (Sen) Number of Investment Properties Units in Circulation (Units) Assets Und
Slide 6: Income Statement 1Q2018 vs 1Q2017
Income Statement 102018 vs 102017 AdS4lS REAL ESTATE INVESTMENT TRUST 1Q2018 1Q2017 Changes / (RM’000) (RM’000) Movement No. of Properties 41 38 +1 Property Income - Note 1 44,948 42,515 +5.7% Property Expenses — Note 2 (6,798) (6,541) +3.9% Net Property Income 38,150 35,974 +6.1% Profit Income / Ot
Slide 7: Income Statement 1Q2018 vs 1Q2017 Notes
Income Statement 1Q2018 vs 102017 Abs4lS REAL ESTATE INVESTMENT TRUST Note 1 - Property Income Increase in property income as compared to preceding year corresponding quarter is due to contribution of rental proceeds from the newly acquired Kerry Warehouse and Wasco Facility @ Kuantan coupled with p
Slide 8: Income Statement 1Q2018 vs 1Q2017 Notes
Income Statement 1Q2018 vs 102017 Abs4lS REAL ESTATE INVESTMENT TRUST Note 4 - Islamic Financing Cost Increase in financing cost due to additional financing facilities utilised to fund the new acquisition. The financing cost for Nestle Distribution Centre development has stopped being capitalised an
Slide 9: Average YTD gross yield = 9.60%
Average YTD gross yield = 9.60% 9
Slide 10: Average YTD net yield = 8.2%
Average YTD net yield = 8.2% 10
Slide 11: Gain on disposal
Gain on Gain on disposal disposal 1.35 1.35 11
Slide 12: Summary of Realised EPU and DPU
Summary of Realised EPU and DPU 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 Aw%ls REAL ESTATE INVESTMENT TRUST 2007 9:30 9.23 9.25 8 8.64919 65 871 a3 358.40 8.01 65 70 3.19 275 913 2 789 7.90 8.00 0 773 764 * mmm 14 6.80 6.82 | 1.92 1.94 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Slide 13: Statement of Financial Position
Statement of Financial Position Investment Properties Fixed Assets Other Assets TOTAL ASSETS Borrowings Other Payables TOTAL LIABILITIES NET ASSET VALUE (NAV) Unitholders' Capital Undistributed Distributable Income Non-Distributable Reserve TOTAL UNITHOLDERS' FUND GEARING NAV/UNIT (RM) No. of units
Slide 14: Statement of Financial Position Notes
Statement of Financial Position AdS4lS REAL ESTATE INVESTMENT TRUST Note 1 - Investment Properties The land lease of vacant land for Axis Aerotech Centre Project @ Subang of RM19.9 million has been fully paid on 7 February 2018. During the year, a total of RM2.01 million was spent on enhancement wor
Slide 15: Statement of Financial Position: Borrowings
Statement of Financial Position Borrowings P| 2009 | zor | zor | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 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 mo
Slide 16: Borrowings: Floating vs Fixed
Statement of Financial Position A®AlS Borrowings The Fund has entered into a profit rate swap of RM100 million in April 2018. The exposure to floating rate has reduced from 65% to 55%. @ Floating m Fixed 16
Slide 17: Gearing Ratio History
40% 38% 36% 36% 36% 35% 35% 35% 34% 33% 33% 33% 32% 33% 31% 30% 29% 27% 29% 27% 25% 24% 20% 15% 10% 5% 0% 17
Slide 18: Unitholders' Capital
Unitholders’ Capital AdS4lS REAL ESTATE INVESTMENT TRUST 3,000.0 7 25496 74 2,500.0 + 2,141.5 2 7 2,000.0 + 1,589.4 1616.5 1,500.0 + RM mil 8.4 1,208.9 1,044.7) 052.3 1,000.0 4 907.7 726.4 728.2 | | 735.4 | 1751.0 581.8 540.3 500.0 4 4118 406.9 339.6 3233 : i fi” 234.9 31-Dec-05 31-Dec-07 31-Dec-09
Slide 19: Non-distributable Reserve
Statement of Financial Position Non-distributable Reserve Non-distributable reserve mainly comprises the gain in fair value of approximately RM339 million to date. AW%elS REAL ESTATE INVESTMENT TRUST Crystal Plaza 45,564 Crystal Plaza 45,564 Menara Axis 36,732 Menara Axis 36,732 Axis Mega Distributi
Slide 20: Property Report
REAL ESTATE INVESTMENT TRUST - 1Q2018 PROPERTY REPORT
Slide 21: Overview
Overview Auge IS The occupancy rate of Axis REIT’s portfolio improved to 93.56% this quarter from 91.12% recorded as at 31 December 2017. The available space has reduced substantially from 717,881 sq. ft. to 520,639 sq. ft. Weighted average lease expiry period is 5.98 years (based on rental) and the
Slide 22: Key Portfolio Metrics
Key Portfolio Metrics Als REAL ESTATE INVESTMENT TRUST As at 31 March 2018, the portfolio has 41 assets comprising 8,087,781 sq. ft. and 144 tenants. No. of properties Property Income (RM'‘000) 44,948 41,913 +7.24% Property Expenses (RM’000) 6,798 6,607 +2.89% Net Property Income (RM’‘000) 38,150 35
Slide 23: Key Portfolio Metrics: Average Rental Rates
Key Portfolio Metrics Average Rental Rates Type of Properties 1Q2018 4Q2017 aaa Office (RM/sq. ft.) Office Industrial (RM/sq. ft.) 2.74 Manufacturing Facilities (RM/sq. ft.) 1.47 Warehouse Logistics (RM/sq. ft.) 1.53 Hypermarket (RM/sq. ft.) 2.39 2.76% positive rental reversion for 1Q2018 2.74 1.47
Slide 24: Space Under Management
Space Under Management Als 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 '9.8b0,000 3,000,000 2,000,000 1,000,000 REAL ESTATE INVESTMENT TRUST Space Under Management (sq ft) 8,087,781 8,087,781 7,606,863 6,859,47471015:242 5,463,5995,464,124 4,288,05: 44,449,580 3,679,796 2,858,121 2,175,522 1,6
Slide 25: Portfolio Occupancy Rate
il Portfolio Occupancy Rate AdS4IS REAL ESTATE INVESTMENT TRUST As at 31 March 2018, only 10 out of 41 properties carry vacancy, while 1 is undergoing development. 30 properties enjoy 100% occupancy. Occupancy As at 31 March 2018 Vacancy As at 31 March 2018 Space available Occupancy Multi-tenants pr
Slide 26: Properties Below 90% Occupancy
Properties Below 90% Occupancy Als REAL ESTATE INVESTMENT TRUST Occupancy rates of properties below 90% as at 31 March 2018 Menara Axis 86% Fonterra HQ 85% Wisma Academy Parcel 82% Axis Technology Centre Wisma Kemajuan Infinite Centre Axis Business Park Quattro West Axis Business Campus Axis Aerotec
Slide 27: Diversified Portfolio
Diversified Portfolio AdS4lS REAL ESTATE INVESTMENT TRUST NLA by Industry Sector Services 5% Healthcare & Lifestyle 3% Aerospace Others 0 1% 3% Consumer Products . ‘ a A% Engineering/Building Materials 21% Financial Services 1% www.axis-reit.com.my 27
Slide 28: Diversified Portfolio
Diversified Portfolio AdS4lS REAL ESTATE INVESTMENT TRUST Portfolio Diversification by Type and NLA | m Office @ Office/ Industrial m= Hypermarkets m Warehouse Logistic m= Manufacturing Facilities - Light Industrial www.axis-reit.com.my 28
Slide 29: Portfolio Location
Portfolio Location Ais4ls REAL ESTATE INVESTMENT TRUST Portfolio Diversification by Geographical Location Johor Petaling Jaya Shah Alam Penang Kuantan Klang Rawang Nilai Kedah LAA 26.63% LL 24.65% NN 19.95% (NN 9.25% (NN 6.27% 4.19% MN 3.74% (NN 3.61% = 1.71% www.axis-reit,com.my 29
Slide 30: Lease Expiry Profile
Lease Expiry Profile % of Year % of Rental Year % of Property Income/ 2018 TotalNLA month 2019 Petaling Jaya 389,647 4.82 7.92 495,894 6.13 Klang - - - - - Shah Alam 527,167 6.52 5.77 = = Johor 438,362 5.42 4.18 = = Nilai - - - 291,642 3.61 Penang - - - 395,225 4.89 TOTAL 1,355,176 16.76 17.87 1,182
Slide 31: Top Tenants
Top 10 Tenants Auge IS REAL ESTATE INVESTMENT TRUST = LF Logistics Services (M) Sdn Bhd Yongnam Engineering Sdn Bhd Wasco Coatings Malaysia Sdn Bhd Tenaga Nasional Berhad POS Logistics Berhad Tesco Stores (Malaysia) Sdn. Bhd. Schenker Logistics (Malaysia) Sdn Bhd Northport (Malaysia) Berhad yo oN DY
Slide 32: Asset Enhancements
REAL ESTATE INVESTMENT TRUST 1Q2018 ASSET ENHANCEMENTS
Slide 33: Enhancement Works In Progress
Enhancement Works In Progress AdS4lS REAL ESTATE INVESTMENT TRUST y Wisma Academy Re-branding Signage: Front Facade Re-branding)Signage: Side Facade www.axis-reit.com.my 33
Slide 34: Enhancement Works In Progress
Enhancement Works In Progress AdS4lS REAL ESTATE INVESTMENT TRUST Bukit Raja Distribution Centre Road Enhancement 34
Slide 35: Property Development Report
REAL ESTATE INVESTMENT TRUST 1Q2018 PROPERTY DEVELOPMENT REPORT
Slide 36: Nestle DC @ Axis Mega Distribution Centre
Nestle DC @ Axis Mega Distribution Centre Abels REAL ESTATE INVESTMENT TRUST NLA : 515,000 sf Rental Rate : Starting rental of RM19.2 million per annum Tenure : 10 years with option of 2 terms of 3 years each Handover date : 2 February 2018 Lease Commencement : 1 June 2018 Cost incurred up to 31 Dec
Slide 37: REAL ESTATE INVESTMENT TRUST
REAL ESTATE INVESTMENT TRUST
Slide 38: Axis Aerotech Centre @ Subang Aerotech Park
Axis Aerotech Centre @ Subang Aerotech Park A%:¢1S a) Details of purchase of the sub-lease of land from MAHB Size Purchase price Tenure 7.02 acres RM19,876,428 (based on RM65 psf) 49 years, expiring 31 December 2066 b) Details of lease agreement with Upeca Net Lettable Area Estimated Construction Co
Slide 39: Axis Aerotech Centre @ Subang Aerotech Park
Axis Aerotech Centre @ Subang Aerotech Park Ads4ls i
Slide 40: Investments Report
REAL ESTATE INVESTMENT TRUST 1Q2018 INVESTMENTS REPORT
Slide 41: Ongoing Acquisitions: Teraju Sinar Warehouse
Ongoing Acquisitions Aw%ls REAL ESTATE INVESTMENT TRUST Teraju Sinar Warehouse - Seksyen 28, Shah Alam, Selangor Target Completion Date Land Area Land Tenure Occupancy Purchase Price Starting Net Property Yield WALE 2H2018 Approx. 10.11 acres Freehold 100% RM87 million 7.0% 6 years 41 www.axis-reit.
Slide 42: Ongoing Acquisitions: Senawang Manufacturing Facility
Ongoing Acquisitions Aw%ls REAL ESTATE INVESTMENT TRUST Manufacturing Facility - Senawang, Negeri Sembilan Target Completion Date Land Area Land Tenure Occupancy Purchase Price WALE 2H2018 Approx. 4.21 acres Freehold 100% RM18.5 million Approx. 8 years 42 www.axis-reit.com.my
Slide 43: Ongoing Acquisitions: Indahpura Manufacturing Facilities
Ongoing Acquisitions Manufacturing Facilities - Indahpura, Johor Target Completion Date Land Area Land Tenure Occupancy Purchase Price WALE (Average) 2H2018 Approx. 5.8 acres Freehold 100% RM38.7 million Approx. 7 years 43 www.axis-reit.com.my
Slide 44: Total Estimated Value of Acquisition Targets RM180 million
• • • Total Estimated Value of Acquisition Targets RM180 million 44
Slide 45: Investor Relations Report
REAL ESTATE INVESTMENT TRUST 1Q2018 INVESTOR RELATIONS REPORT
Slide 46: KLCI vs AXREIT: Jan 2014 – Mar 2018
KLCI vs AXREIT: 1 Jan 2014 – 31 Mar 2018 46
Slide 47: Volume Movement
Volume Movement AXREIT: 1 Jan 2014 - 31 Mar 2018 Aw%ls REAL ESTATE INVESTMENT TRUST 45,000,000 40,208,000 39,783,200 40,000,000 35,000,0063,826,000 32,708,200 30,000,000 806,000 27,347,800 25,000,000 23,451,4 23,438,700 028,800 0 491,600 21,092,600 20,026,000 20,000,000 616,000 16,046,400 16,444,600
Slide 48: Top Unitholders
Top 10 Unitholders Name of Unitholder CITIGROUP NOMINEES (TEMPATAN) SDN BHD EMPLOYEES PROVIDENT FUND AMANAHRAYA TRUSTEES BERHAD AMANAH SAHAM BUMIPUTERA KUMPULAN WANG PERSARAAN (DIPERBADANKAN) LEMBAGA TABUNG HAJI TEW PENG HWEE @ TEOH PENG HWEE ALEX LEE LAO PERMODALAN NASIONAL BERHAD AMANAHRAYA TRUSTE
Slide 49: Analysis of Unitholders with >2 million Units
fu oY Analysis of Unitholders with >2million Units Aw%ls REAL ESTATE INVESTMENT TRUST Top 5 Increases in Unitholdings Changes vs Last Quarter EMPLOYEES PROVIDENT FUND 1.1% PUBLIC ITTIKAL SEQUEL FUND 0.2% RHB TRUSTEES BERHAD FOR MANULIFE INVESTMENT SHARIAH 0.2% PROGRESSFUND “ KUMPULAN WANG PERSARAAN
Slide 50: Investor Visibility & Liquidity
Investor Visibility & Liquidity AdS4lS REAL i INVESTMENT TRUST No. of CDS Accounts 5,000 4,607 4,500 4,184 4011 4,098 ™ 4,000 3611 2790 3,718 3776 3,891 3,934 3,309 3,500 vaso 3009 3,176 3,200 3,219 3,000 2,702. + 2,420 2,500 2080 2,000 | 1,652 1,500 1,000 500 2008 2009 2010 2011 2012 2013 2014 1Q20
Slide 51: Thank You
REAL ESTATE INVESTMENT TRUST THANK YOU WA www.axis-reit.com. my
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