Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q4 2021 Earnings Presentation
46 slides from Axis Real Estate Investment Trust's earnings presentation, Jan 20, 2022
Slide 1: Results Presentation 4Q2021
AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 4Q2021 20 January 2022
Slide 2: Highlights, Portfolio Overview, Financial Overview, Stock Information
PORTFOLIO FINANCIAL STOCK HIGHLIGHTS OVERVIEW OVERVIEW INFORMATION 1
Slide 3: Highlights
HIGHLIGHTS REAL ESTATE INVESTMENT TRUST
Slide 4: Highlights
HIGHLIGHTS 58 properties on portfolio Portfolio Occupancy of 96% (as at 31/12/2021) 48 properties with 100% occupancy Weighted Average Lease Expiry of 5 years Total Assets Under Management Reclassified as Islamic REIT in 2008 RM3.84 billion Space Under Management Total Distribution Per Unit YTD 2021
Slide 5: Portfolio Highlights
PORTFOLIO HIGHLIGHTS 1Q2021 ► 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 RM
Slide 6: Portfolio Highlights
PORTFOLIO HIGHLIGHTS 4Q2021 ► Approximately 1.8 million sq. ft. of space locked in through tenancy renewals and new tenants secured. ► Achieved 5.6% positive rental reversion for the year from tenancy renewals and contracted step-ups. ► Portfolio size increased by 5 to a total of 58 properties. 5
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS ► DPU increased by 8.5% to 9.49 sen for YTD2021(DPU for YTD2020 was 8.75 sen). ► NAV per unit increased by 5% to RM1.5462. ► Traded at a premium of 26% to NAV on 31 December 2021. ► Investment properties currently stands at RM3.61 billion. ► Net property income increased by 7.2%
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS ► Completed the Income Distribution Reinvestment Plan in conjunction with the payment of 2020 final income distribution on 12 March 2021. ► Successfully launched our 4th Sukuk of RM210.0 million in September 2021. ► Successfully concluded 8th placement exercise with the listing
Slide 9: Portfolio Overview
PORTFOLIO OVERVIEW 8
Slide 10: Space Under Management
PORTFOLIO OVERVIEW Space Under Management (sq ft) 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 7,015,242 6,859,474 ( sq ft) 6,000,000 5,463,599 5,464,124 4,449,580 4,288,054 4,000,000 3,679,796 2,858,121 2,175,522 2,000,000 1,656,943 1,186,590 - 2005
Slide 11: Portfolio Diversification by Location
PORTFOLIO OVERVIEW ✓ Our 58 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
Slide 12: Portfolio Diversification by Sector, Asset Type, 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 Manufacturing Logistics Office Office/ Industrial Single Tenant Multi Tenants Vacant Hypermarkets
Slide 13: Portfolio Overview
PORTFOLIO OVERVIEW As at 31 December 2021, the portfolio has 58 assets comprising 11,374,703 sq. ft. and 152 tenants. 2021 No. of Properties 58 000) 241,605 000) 33,314 000) 208,291 Occupancy 96% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 2021 2020 2019 2018 2017 13.79%
Slide 14: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 31 DECEMBER 2021 Fonterra HQ 85% Axis Business Park 81% Menara Axis 76% Axis Business Campus 75% Wisma Academy Parcel 72% Wisma Kemajuan 71% The Annex 60% Axis Technology Centre 52% Crystal Plaza 46% Notes: 1. Vacant space in Fonterra HQ i
Slide 15: Lease Expiry
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 5.12 0.80 571,347 5.03 0.73 441,171 3.88 0.52 Shah Alam 612,547 5.39 0.47 8
Slide 16: Top Tenants
PORTFOLIO OVERVIEW Top 10 Tenants ESTABLISHED NATIONWIDE FOOTPRINT YTD top ten tenants account for 47% of the total revenue Kedah (1.2%) Penang (7.0%) • Sungai Petani 1. Nestle Products Sdn Bhd • Bayan Lepas • Seberang Perai 2. LF Logistics Services (M) Sdn Bhd • Batu Kawan 3. Schenker Logistics (Ma
Slide 17: Asset Enhancement Initiatives
ASSET ENHANCEMENT INITIATIVES WATER PROOFING WORKS AT ROOFTOP RC SLAB Quattro West Strateq Data Centre Bukit Raja Distribution Centre 16
Slide 18: Asset Enhancement Initiatives
ASSET ENHANCEMENT INITIATIVES FAÇADE PAINTING Bayan Lepas Distribution Centre Strateq Data Centre 17
Slide 19: Asset Enhancement Initiatives
ASSET ENHANCEMENT INITIATIVES ENHANCEMENT OF RETAINING WALL ALONG SG. PENCHALA AND DRIVEWAY Axis Technology Centre 18
Slide 20: Asset Enhancement Initiatives
ASSET ENHANCEMENT INITIATIVES ENHANCEMENT OF FIRE PREVENTION SYSTEM AND CIVIL WORKS D8 Warehouse, PTP 19
Slide 21: Asset Enhancement Initiatives
ASSET ENHANCEMENT INITIATIVES NEW AIR CONDITIONING SYSTEM Crystal Plaza 20
Slide 22: Asset Enhancement Initiatives
ASSET ENHANCEMENT INITIATIVES ENHANCEMENT WORKS Axis Industrial Facility @ Rawang 21
Slide 23: Upcoming Development
PORTFOLIO OVERVIEW UPCOMING DEVELOPMENT Bukit Raja Distribution Centre 2 Gross Built-up Area : 620,096 sq. ft. Land Area : Approx. 20.75 acres Land Tenure : Freehold Lessee : Shopee Express Malaysia Sdn. Bhd. WALE : 15 years Lease Commencement : No later than 31 August 2023 Development Value : RM130
Slide 24: 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
Slide 25: 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
Slide 26: 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 25
Slide 27: Ongoing Acquisitions
PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 1. Logistics Warehouse @ Pasir Gudang, Johor 2. Manufacturing Facility, Johor Target Completion Date : 1H2022 Target Completion Date : 1H2022 Net Lettable Area : 240,000 sq. ft. Net Lettable Area : 59,956 sq. ft. Land Area : Approx. 12.80 acres Land Area : App
Slide 28: 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
Slide 29: Financial Overview
FINANCIAL OVERVIEW 28
Slide 30: Snapshot as at December 2021
FINANCIAL OVERVIEW SNAPSHOT AS AT 31 DECEMBER 2021 RM3.84 billion RM1.18 billion RM2.53 billion Total Assets Total Financing RM1.55 31% FY2021: 9.49 sen Net Asset Value Per Unit Financing Ratio Distribution Per Unit 1Q2021: 2.23 sen 2Q2021: 2.40 sen 3Q2021: 2.45 sen 4Q2021: 2.41 sen Distribution Per
Slide 31: Return Comparatives
FINANCIAL OVERVIEW 6.00% RETURN COMPARATIVES 5.20% 4.89% 5.00% 4.00% 3.67% 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 RM1.94 closing price) (as at 11 January 2022) (as at 11 January 2022) 30
Slide 32: Income Statement 4Q2021 vs 4Q2020
FINANCIAL OVERVIEW INCOME STATEMENT 4Q2021 vs 4Q2020 4Q2021 4Q2020 Changes / Movement No. of Properties 58 53 +5 Property Income 62,558 57,373 Property Income - Property income before lease incentive adjustment 63,061 57,566 +9.5% - Lease incentive adjustment (non-distributable) (503) (193) Property
Slide 33: Income Statement YTD 2021 vs YTD 2020
FINANCIAL OVERVIEW INCOME STATEMENT YTD 2021 vs YTD 2020 YTD 2021 YTD 2020 Changes / Movement No. of Properties 58 53 +5 Property Income Note 1 241,605 224,064 Property Income - Property income before lease incentive adjustment 242,747 224,712 +8.0% - Lease incentive adjustment (non-distributable) (
Slide 34: Income Statement YTD 2021 vs YTD 2020 - Notes
FINANCIAL OVERVIEW INCOME STATEMENT YTD 2021 vs YTD 2020 - 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 the pos
Slide 35: 5-Year Performance
FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Net Property Income (RM'000)* Revenue (RM'000)* 300,000 250,000 209,433 208,291 250,000 224,064 242,747 241,605 190,996 190,348 203,637 216,005 214,975 224,712 200,000 175,810 185,249 184,219 169,415 200,000 197,242 167,761 150,000 141,249 150,000 100,000 100,00
Slide 36: Portfolio 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 9.0 Manufacturing Facilities 7.6 8.4 Hypermarket 8.2 8.8 Average 7.5 8.7 35
Slide 37: Financial Position
FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 3,614,230 3,280,240 +333,990 Fixed Assets 2,410 2,870 -460 Other Assets Note 2 222,120 80,973 +141,147 TOTAL ASSETS 3,838,760 3,364,083 +474,677 Financing Note 4 1,184,593 1,112,183 +72,410 Other Payables 114,049 119,774 -5,725 Defer
Slide 38: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the year, a total of RM39.3 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. Portfolio recognis
Slide 39: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 2 Other Assets The balance proceeds from placement of RM137 million will be placed into Islamic deposits in licensed banks pending redemption in January 2022. The average collection of trade receivables as at 31 December 2021 was 12 days. Note 3 Uni
Slide 40: Note 4: 5-Year Financing Profile
FINANCIAL OVERVIEW NOTE 4: 5-YEAR FINANCING PROFILE 2017 2018 2019 2020 2021 842,594 1,059,367 885,859 1,112,183 1,184,593 2,549,609 2,840,463 3,085,681 3,364,083 3,838,760 Financing Ratio 33.05% 37.30% 28.71% 33.06% 30.86% Effective Profit Rate 4.21% 4.32% 4.37% 3.89% 3.63% Percentage of short term
Slide 41: 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% 36% 36% 36% 36% 36% 37% 35% 33% 33% 33% 33% 33% 31% 31% 29% 30% 30% 27% 27% 25% 24% 20% 15% 10% 5% 0% 40
Slide 42: Total Assets and Unitholders' Capital
FINANCIAL OVERVIEW 4,000.0 3,838.8 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 1,934.3 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.
Slide 43: Stock Information
STOCK INFORMATION 42
Slide 44: Top Unitholders
STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 EMPLOYEES PROVIDENT FUND BOARD 9.58% 2 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 8.85% 3 LEMBAGA TABUNG HAJI 4.66% 4 AMANAH SAHAM BUMIPUTERA 3.87% 5 TEW PENG HWEE @ TEOH PENG HWEE 3.50% 6 ALEX LEE LAO 3.30% 7 EXEMPT AN FOR AIA BHD. 2.25% 8 E
Slide 45: Number of CDS Accounts
STOCK INFORMATION Number of CDS Accounts Units Held 4Q2021 Units Held 3Q2021 Movement Total no. of unitholders 10,521 9,812 709 Total foreign holdings 13.58% 14.94% -1.36% Foreign holdings related-party 5.68% 6.41% -0.73% Foreign holdings non-related-party 7.90% 8.53% -0.63% Related-party holdings 9
Slide 46: axis-reit.com.my
A®4IS REAL ESTATE INVESTMENT TRUST axis-reit.com.my
Axis Real Estate Investment Trust — Q4 2021 Earnings Presentation on 6ix