Axis Real Estate Investment Trust · MYX:AXREIT

Axis Real Estate Investment Trust — Q3 2021 Earnings Presentation

37 slides from Axis Real Estate Investment Trust's earnings presentation, Oct 21, 2021

  1. Slide 1: Axis Real Estate Investment Trust Results Presentation 3Q2021

    AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 3Q2021 21 October 2021

  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 57 properties on portfolio Portfolio Occupancy of 94% (as at 30/09/2021) 47 properties with 100% occupancy Weighted Average Lease Expiry of 5.1 years Total Assets Under Management Reclassified as Islamic REIT in 2008 RM3.55 billion Space Under Management Total Distribution Per Unit YTD 3Q

  5. Slide 5: YTD 3Q2021 Highlights

    YTD 3Q2021 HIGHLIGHTS ► Total of 7.08 sen DPU declared for YTD 3Q2021. ► Portfolio size increased by 4 to a total of 57 properties. ► Investment properties currently stands at RM3.46 billion. ► Net property income increased by 7.1% for YTD 3Q2021 as compared to YTD 3Q2020. ► Net income increased by

  6. Slide 6: YTD 3Q2021 Highlights

    YTD 3Q2021 HIGHLIGHTS ► Completed the acquisition of Indahpura Facility 2, Johor for RM8.54 million on 12 January 2021. ► Completed the acquisition of Indahpura Facility 3, Johor for RM6.68 million on 26 February 2021. ► Completed the acquisition of Beyonics i-Park Campus Block F, Johor for RM12.98

  7. Slide 7: Portfolio Overview

    PORTFOLIO OVERVIEW 6

  8. Slide 8: Space Under Management (sq ft)

    PORTFOLIO OVERVIEW Space Under Management (sq ft) 12,000,000 10,910,090 10,478,726 10,000,000 9,349,267 9,537,666 8,087,781 8,000,000 7,606,863 6,859,474 7,015,242 ( sq ft) 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 1,656,943 1,186,590 - 2005

  9. Slide 9: Portfolio Diversification by Location

    PORTFOLIO OVERVIEW  Our 57 properties are strategically located in prime industrial areas such as Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah.  Pipeline acquisitions include additions in key industrial hubs of: • Penang • Selangor • Johor  This geographical diversification is a

  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) Services Consumer Products Single Tenant Multi Tenants Manufacturing Logistics Vacant Office Office/ Industrial Hypermarkets

  11. Slide 11: Portfolio Summary as at September 2021

    PORTFOLIO OVERVIEW As at 30 September 2021, the portfolio has 57 assets comprising 10,910,090 sq. ft. and 151 tenants. 3Q2021 No. of Properties 57 000) 179,047 000) 24,533 000) 154,514 Occupancy 94% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 3Q2021 2020 2019 2018 2017 1

  12. Slide 12: Properties with Occupancy Below 90%

    PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 30 SEPTEMBER 2021 Fonterra HQ 85% Axis Business Park 81% Axis Business Campus 75% Menara Axis 73% Wisma Academy Parcel 73% Wisma Kemajuan 71% The Annex 60% Axis Technology Centre 52% Axis Industrial Facility@ Rawang 48% Crystal Plaza 46% N

  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 2021 Total NLA Income/month 2022 Total NLA Income/month 2023 Total NLA Income/month Petaling Jaya 582,948 5.34 9.47 561,997 5.15 8.54 401,448 3.68 5.60 Shah Alam 612,547 5.61 5.53 8

  14. Slide 14: Top Tenants

    PORTFOLIO OVERVIEW Top 10 Tenants ESTABLISHED NATIONWIDE FOOTPRINT YTD top ten tenants account for 48% of the total revenue Kedah (1.3%) Penang (7.3%) • Sungai Petani 1. Nestle Products Sdn Bhd • Bayan Lepas • Seberang Perai 2. LF Logistics Services (M) Sdn Bhd • Batu Kawan 3. Schenker Logistics (Ma

  15. Slide 15: Completed Acquisitions

    PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 1. Indahpura Facility 2, Johor 2. Indahpura Facility 3, Johor Completion Date : 12 January 2021 Completion Date : 26 February 2021 Net Lettable Area : 35,339 sq. ft. Net Lettable Area : 24,949 sq. ft. Land Area : Approx. 1.2 acres Land Area : Approx. 1.25 ac

  16. Slide 16: Completed Acquisitions

    PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 3. Beyonics i-Park Campus Block F, Johor 4. Bukit Raja Distribution Centre 2, Shah Alam Completion Date : 3 March 2021 Completion Date : 31 March 2021 Net Lettable Area : 57,545 sq. ft. Gross Floor Area : 326,231 sq. ft. Land Area : Approx. 2.1 acres Land Ar

  17. Slide 17: Completed Acquisitions

    PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 5. Xin Hwa Warehouse @ Pasir Gudang, Johor Completion Date : 21 October 2021 Net Lettable Area : 464,613 sq. ft. Land Area : Approx. 16.2 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM75.0 million WALE at Acquisition : Approx. 10 years 16

  18. Slide 18: Ongoing Acquisitions

    PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 1. Logistics Warehouse @ Pasir Gudang, Johor Target Completion Date : 1H2022 Net Lettable Area : 240,000 sq. ft. Land Area : Approx. 12.8 acres Land Tenure : Sublease Occupancy : 100% Purchase Price : RM32.0 million WALE at Acquisition : Approx. 3 years 16

  19. Slide 19: 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 will continue to focus on:  Grade A logistics facilities and manufacturing facilities with long lease

  20. Slide 20: Financial Overview

    FINANCIAL OVERVIEW 18

  21. Slide 21: Snapshot as at September 2021

    FINANCIAL OVERVIEW SNAPSHOT AS AT 30 SEPTEMBER 2021 RM3.55 billion RM1.30 billion RM2.13 billion Total Assets Total Financing RM1.47 37% 3Q 2021 : 2.45 sen Net Asset Value Per Unit Financing Ratio 2Q 2021 : 2.40 sen 1Q 2021 : 2.23 sen Distribution Per Unit 19

  22. Slide 22: Return Comparatives

    FINANCIAL OVERVIEW 6.00% RETURN COMPARATIVES 5.20% 4.97% 5.00% 4.00% 3.68% 3.00% 2.00% 1.75% 1.75% 1.00% 0.00% Axis-REIT Distribution Yield EPF Dividend Return 2020 10-yr MGS 12 Months FD Rate OPR (based on RM1.90 closing price) (as at 11 October 2021) (as at 11 October 2021) 20

  23. Slide 23: Income Statement 3Q2021 vs 3Q2020

    FINANCIAL OVERVIEW INCOME STATEMENT 3Q2021 vs 3Q2020 3Q2021 3Q2020 Changes / Movement No. of Properties 57 51 +6 Property Income 61,417 57,010 Property Income - Property income before lease incentive adjustment 61,795 57,248 +7.9% - Lease incentive adjustment (non-distributable) (378) (238) Property

  24. Slide 24: Income Statement YTD 3Q2021 vs YTD 3Q2020

    FINANCIAL OVERVIEW INCOME STATEMENT YTD 3Q2021 vs YTD 3Q2020 YTD 3Q2021 YTD 3Q2020 Changes / Movement No. of Properties 57 51 +6 Property Income Note 1 179,047 166,691 Property Income - Property income before lease incentive adjustment 179,686 167,146 +7.5% - Lease incentive adjustment (non-distribu

  25. Slide 25: Income Statement YTD 3Q2021 vs YTD 3Q2020 - Notes

    FINANCIAL OVERVIEW INCOME STATEMENT YTD 3Q2021 vs YTD 3Q2020 - NOTES Note 1 Property Income Increase in property income as compared to preceding year corresponding period was mainly due to rental from newly acquired properties, commencement of new tenancy at Axis Industrial Facility @ Rawang and als

  26. Slide 26: 5-Year Performance

    FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Net Property Income (RM'000)* Revenue (RM'000)* 250,000 250,000 224,712 224,064 203,637 216,005 214,975 197,242 190,996 190,348 200,000 179,686 179,047 200,000 175,810 185,249 184,219 167,761 169,415 155,153 154,514 141,249 150,000 150,000 100,000 100,000 50,000

  27. Slide 27: Yield by Asset Types

    FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 5.9 8.4 Office Industrial 6.8 8.9 Logistics Warehouse 8.1 8.9 Manufacturing Facilities 7.6 8.4 Hypermarket 8.2 8.8 Average 7.6 8.7 25

  28. Slide 28: Financial Position

    FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 3,460,433 3,280,240 +180,193 Fixed Assets 2,571 2,870 -299 Other Assets Note 2 91,814 80,973 +10,841 TOTAL ASSETS 3,554,818 3,364,083 +190,735 Financing Note 4 1,302,449 1,112,183 +190,266 Other Payables 111,572 119,774 -8,202 Deferr

  29. Slide 29: Notes - Financial Position

    FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the year, a total of RM9.9 million was spent on capital expenditure on existing properties and RM19.7 million was incurred for the extension of lease of D21 Logistics Warehouse for another 30 years. Acquisitions comple

  30. Slide 30: Notes - Financial Position

    FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 2 Other Assets The average collection of trade receivables as at 30 September 2021 was 14 days. Note 3 Unitholders Capital A total of net proceeds of RM7.7 million raised from 4,150,222 new issued units pursuant to the IDRP applicable to the 2020 fi

  31. Slide 31: Note 4: 5-Year Financing Profile

    FINANCIAL OVERVIEW NOTE 4: 5-YEAR FINANCING PROFILE 2017 2018 2019 2020 YTD 3Q2021 842,594 1,059,367 885,859 1,112,183 1,302,449 2,549,609 2,840,463 3,085,681 3,364,083 3,554,818 Financing Ratio 33.05% 37.30% 28.71% 33.06% 36.64% Effective Profit Rate 4.21% 4.32% 4.37% 3.89% 3.61% Percentage of shor

  32. Slide 32: Financing Ratio

    FINANCIAL OVERVIEW FINANCING RATIO Allowable threshold of 50% has been increased to 60% Placements Undertaken effective from 12 August 2020 until 31 December 2022 50% 45% 40% 40% 38% 37% 36% 36% 36% 36% 36% 35% 33% 33% 33% 33% 33% 31% 29% 30% 30% 27% 27% 25% 24% 20% 15% 10% 5% 0% 30

  33. Slide 33: FINANCIAL OVERVIEW

    FINANCIAL OVERVIEW 4,000.0 3,524.6 3,524.4 3,554.8 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 2,085.7 2,000.0 RM mil 1,589.4 1,616.5 1,583.8 1,595.5 1,603.2 1,603.2 1,603.2 1,500.0 1,298.4 1,240.3 1,247.1 1,208.9 1,044.7 1,052.3 1,060.0 1,000.0 907.7 726.4 728.2 735.4 75

  34. Slide 34: Stock Information

    STOCK INFORMATION 32

  35. Slide 35: Stock Information: Top Unitholders

    STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 10.00% 2 EMPLOYEES PROVIDENT FUND BOARD 8.58% 3 LEMBAGA TABUNG HAJI 4.82% 4 TEW PENG HWEE @ TEOH PENG HWEE 3.95% 5 ALEX LEE LAO 3.73% 6 AMANAH SAHAM BUMIPUTERA 2.94% 7 EXEMPT AN FOR AIA BHD. 2.82% 8

  36. Slide 36: Stock Information: Unitholder Accounts

    STOCK INFORMATION 12,000 Number of CDS Accounts 9,812 10,000 9,353 8,637 8,000 6,776 5,715 5,591 5,740 5,913 6,000 5,217 4,607 3,790 4,632 4,585 4,581 4,787 3,891 3,934 4,011 4,098 4,184 4,000 3,176 3,611 2,702 2,850 3,009 2,000 - Units Held 3Q2021 Units Held 2Q2021 Movement Total no. of unitholders

  37. Slide 37: axis-reit.com.my

    A®4IS REAL ESTATE INVESTMENT TRUST axis-reit.com.my

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