Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q4 2020 Earnings Presentation
45 slides from Axis Real Estate Investment Trust's earnings presentation, Jan 20, 2021
Slide 1: Results Presentation 4Q2020
Results Presentation 4Q2020 20 January 2021 1
Slide 2: Agenda
AGENDA 2020 PORTFOLIO FINANCIAL STOCK HIGHLIGHTS OVERVIEW OVERVIEW INFORMATION 2
Slide 3: 2020 Highlights
Asgels 2020 HIGHLIGHTS
Slide 4: Highlights
HIGHLIGHTS PORTFOLIO SUMMARY 53 properties on portfolio Portfolio Occupancy of 91% (as at 31/12/2020) 41 properties with 100% occupancy Weighted Average Lease Expiry of 5.7 years Total Assets Under Management RM3.36 billion Reclassified as Islamic REIT in 2008 Space Under Management Total Distributi
Slide 5: Portfolio Highlights
PORTFOLIO HIGHLIGHTS 1Q 2020 Completed the acquisition of Axis Facility 2 @ Nilai for RM50.0 million on 28 February 2020. The Axis Facility @ Batu Kawan development project was successfully handed over to Federal Express Services (M) Sdn Bhd and rental commenced on 1 March 2020. Completed the
Slide 6: Portfolio Highlights
PORTFOLIO HIGHLIGHTS 4Q2020 Signed the Sale & Purchase Agreements to acquire three units of 1 ½ storey detached factories for RM28.2 million, located in Kawasan Perindustrian i-Park in Mukim Kulai, Johor on 19 November 2020. One of the properties was completed on 12 January 2021 and the property i
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS Declared the DPU of 8.75 sen for 2020. Total of RM19.0 million revaluation gain recorded for 2020. Investment properties currently stands at RM3.28 billion. Net property income increased by 3.6% for 2020 as compared to 2019. Realised net income increased by 8.5% for 20
Slide 8: Portfolio Overview
Angels reaLes PORTFOLIO OVERVIEW
Slide 9: Diversified and Expanding Portfolio
PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Space Under Management (sq ft) 12,000,000 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,
Slide 10: Diversified and Expanding Portfolio
PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Our 53 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 in: • Penang • Selangor • Johor Th
Slide 11: Diversified and Expanding Portfolio
PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Portfolio Diversification Portfolio Diversification Portfolio Diversification by on NLA) by Asset Type (on NLA) by Occupancy Type (on NLA) Services Consumer Products *Industrial title properties Single Tenant Multi Tenants Logistics Manufacturin
Slide 12: High Occupancy Rate with Income Visibility
PORTFOLIO OVERVIEW HIGH OCCUPANCY RATE WITH INCOME VISIBILITY As at 31 December 2020, the portfolio has 53 assets comprising 10,478,726 sq. ft. and 150 tenants. 2020 No. of Properties 53 000) 224,064 000) 33,716 000) 190,348 Occupancy 91% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Prop
Slide 13: High Occupancy Rate with Income Visibility
PORTFOLIO OVERVIEW HIGH OCCUPANCY RATE WITH INCOME VISIBILITY Year % of % of Rental Year % of % of Rental Year % of % of Rental Property 2020 Total NLA Income/month 2021 Total NLA Income/month 2022 Total NLA Income/month Petaling Jaya 625,591 5.96 9.92 563,707 5.38 9.68 493,891 4.71 8.12 Shah Alam 4
Slide 14: Properties with Occupancy Below 90% as at December 2020
PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 31 DECEMBER 2020 Fonterra HQ 85% Axis Business Park 82% Axis Business Campus 75% Wisma Kemajuan 73% Menara Axis 73% Wisma Academy Parcel 71% The Annex 60% Axis Technology Centre 52% Crystal Plaza 46% D8 Logistics Warehouse 0% Axis Industri
Slide 15: Established Nationwide Footprint and Top Tenants
PORTFOLIO OVERVIEW ESTABLISHED NATIONWIDE FOOTPRINT Top 10 Tenants YTD top ten tenants account for 46.75% Kedah (1.3%) of the total revenue Penang (7.6%) • Sungai Petani • Bayan Lepas 1. Nestle Products Sdn Bhd • Seberang Perai 2. LF Logistics Services (M) Sdn Bhd 3. Yongnam Engineering Sdn Bhd Paha
Slide 16: Asset Enhancement Initiatives and Major Repairs
PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES AND MAJOR REPAIRS Crystal Plaza, Petaling Jaya: Upgrade of air conditioning system 16
Slide 17: Asset Enhancement Initiatives and Major Repairs
PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES AND MAJOR REPAIRS Crystal Plaza & Menara Axis, Petaling Jaya: Upgrade of car park lighting system with LED and sensor for better energy savings and CCTV system with higher resolution and bigger memory capacity 17
Slide 18: Asset Enhancement Initiatives and Major Repairs
PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES AND MAJOR REPAIRS Axis Vista, Petaling Jaya: Repair of driveway caused by collapsed Sungai Penchala retaining wall 18
Slide 19: Asset Enhancement Initiatives and Major Repairs
PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES AND MAJOR REPAIRS Infinite Centre & Axis Business Campus, Petaling Jaya: Building façade improvement works 19
Slide 20: Completed Development
PORTFOLIO OVERVIEW COMPLETED DEVELOPMENT Axis Facility @ Batu Kawan Net Lettable Area : 44,000 sq. ft. Land Area : Approx. 2.5 acres Land Tenure : Leasehold Tenant : Federal Express Services (M) Sdn Bhd Occupancy : 100% WALE : 10 years Construction Time : 5 months Lease Commencement : 1 March 2020 D
Slide 21: Completed Acquisitions
PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 1. Axis Facility 2 @ Nilai, Negeri Sembilan 2. Axis Facility 2 @ Bukit Raja, Klang Completion Date : 28 February 2020 Completion Date : 17 March 2020 Net Lettable Area : 246,500 sq. ft. Net Lettable Area : 199,890 sq. ft. Land Area : Approx. 8.75 acres Land
Slide 22: Completed Acquisitions
PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 3. D37c Logistics Warehouse, PTP Johor 4. Axis Shah Alam Distribution Centre 5, Selangor Completion Date : 9 June 2020 Completion Date : 5 November 2020 Net Lettable Area : 222,723 sq. ft. Net Lettable Area : 285,249 sq. ft. Land Area : Approx. 8.2 acres Lan
Slide 23: Completed Acquisitions
PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 5. Axis Industrial Facility @ Shah Alam, Selangor 6. Indahpura Facility 2, Johor Completion Date : 3 December 2020 Completion Date : 12 January 2021 Net Lettable Area : 41,061 sq. ft. Net Lettable Area : 35,339 sq. ft. Land Area : Approx. 2.2 acres Land Area
Slide 24: Ongoing Acquisitions
PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 1. Bayan Lepas Industrial Facility 1, Penang 2. Manufacturing Facility 1, iPark @ Indahpura Target Completion Date : 1H2021 Target Completion Date : 1H2021 Net Lettable Area : 78,024 sq. ft. Net Lettable Area : 24,949 sq. ft. Land Area : Approx. 2.1 acres Land
Slide 25: Ongoing Acquisitions
PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 3. Manufacturing Facility 3, iPark @ Indahpura 4. Manufacturing Facility @ Bukit Raja, Klang Target Completion Date : 1H2021 Target Completion Date : 1H2021 Net Lettable Area : 57,545 sq. ft. Gross Floor Area : 326,231 sq. ft. Land Area : Approx. 2.1 acres Lan
Slide 26: Ongoing Acquisitions
PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 5. Warehouse @ Pasir Gudang, Johor Target Completion Date : 1H2021 Net Lettable Area : 398,060 sq. ft. Land Area : Approx.16.23 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM75.0 million WALE : Approx. 10 years 26
Slide 27: 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 28: Financial Overview
Aegis FINANCIAL OVERVIEW _ 28
Slide 29: Financial Overview: Snapshot as at December 2020
FINANCIAL OVERVIEW SNAPSHOT AS AT 31 DECEMBER 2020 RM3.36 bn RM1.11 bn RM2.12 bn Total Assets Total Financings RM1.47 33% FY2020: 8.75 sen Net Asset Value Per Unit Financing Ratio Distribution Per Unit 4Q2020: 2.25 sen 3Q2020: 2.25 sen 2Q2020: 2.15 sen 1Q2020: 2.10 sen Distribution Per Unit 29
Slide 30: Return Comparatives
FINANCIAL OVERVIEW RETURN COMPARATIVES 6.00% 5.45% 5.00% 4.31% 4.00% 3.00% 2.63% 2.00% 1.75% 1.75% 1.00% 0.00% Axis-REIT Distribution EPF Dividend Return 2019 10-yr MGS 12 Months FD Rate OPR Yield (as at 15 January 2021) (as at 31 December 2020) (based on RM2.03 closing price) 30
Slide 31: Income Statement 4Q2020 vs 4Q2019
FINANCIAL OVERVIEW INCOME STATEMENT 4Q2020 vs 4Q2019 4Q2020 4Q2019 Changes / Movement No. of Properties 53 48 +5 Property Income 57,373 54,023 - Property income before lease incentive adjustment 57,566 54,407 +5.8% - Lease incentive adjustment (non-distributable) (193) (384) Property Expenses (8,645
Slide 32: Income Statement YTD 2020 vs YTD 2019
FINANCIAL OVERVIEW INCOME STATEMENT YTD 2020 vs YTD 2019 YTD 2020 YTD 2019 Changes / Movement No. of Properties 53 48 +5 Property Income NOTE 1 224,064 214,975 - Property income before lease incentive adjustment 224,712 216,005 +4.0% - Lease incentive adjustment (non-distributable) (648) (1,030) Pro
Slide 33: Income Statement YTD 2020 vs YTD 2019 - Notes
FINANCIAL OVERVIEW INCOME STATEMENT YTD 2020 vs YTD 2019 - 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 Facility @ Batu Kawan on 1 March 2020 and rental from newly acquired properties.
Slide 34: 5-Year Performance
FINANCIAL OVERVIEW Revenue (RM'000)* 5-YEAR PERFORMANCE Net Property Income (RM'000)* 250,000 224,712 250,000 216,005 214,975 224,064 197,242 203,637 200,000 166,685 167,761 200,000 175,810 185,249 184,219 190,996 190,348 169,415 150,000 139,637 141,249 150,000 100,000 100,000 50,000 50,000 - - FY20
Slide 35: Portfolio Yield by Asset Types
FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 6.3 8.9 Office Industrial 6.4 9.1 Warehouse Logistics 8.3 9.1 Manufacturing Facilities 7.4 8.3 Hypermarket 8.2 8.8 Average 7.5 8.8 35
Slide 36: Financial Position
FINANCIAL OVERVIEW FINANCIAL POSITION 31/12/20 Investment Properties Note 1 3,280,240 2,990,610 +289,630 Fixed Assets 2,870 3,201 -331 Other Assets Note 2 80,973 91,870 -10,897 TOTAL ASSETS 3,364,083 3,085,681 +278,402 Borrowings 1,112,183 885,859 +226,324 Other Payables 119,774 112,443 +7,331 Defer
Slide 37: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the year, a total of RM7.4 million was spent on enhancement works on the portfolio and RM19.0 million revaluation gain was recognised for 2020. Acquisition completed during the financial year is as follows : Purchase C
Slide 38: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 2 Other Assets The average collection of trade receivables as at 31 December 2020 was 14 days. The fund has collected almost 100% of rental for 4Q2020. Note 3 Unitholders Capital A total of net proceeds of RM11.7 million raised from 7,081,008 new is
Slide 39: Note - 5-Year Debt Profile
FINANCIAL OVERVIEW NOTE 3 - 5-YEAR DEBT PROFILE 2016 2017 2018 2019 2020 780,665 842,594 1,059,367 885,859 1,112,183 2,244,274 2,549,609 2,840,463 3,085,681 3,364,083 Gearing 34.78% 33.05% 37.30% 28.71% 33.06% Effective Profit Rate 4.25% 4.21% 4.32% 4.37% 3.89% Percentage of short term financing- 58
Slide 40: Gearing Levels
FINANCIAL OVERVIEW GEARING LEVELS 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% 35% 33% 33% 33% 33% 33% 31% 31% 32% 30% 27% 29% 30% 27% 25% 24% 20% 15% 10% 5% 0% 40
Slide 41: Total Assets and Unitholders' Capital
FINANCIAL OVERVIEW 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 1,500.0 1,298.4 1,240.3 1,247.1 1,208.9 1,044.7 1,052.3 1,060.0 1,000.0 907.7 726.4 728.2 735.4 751.0 581.8 540.3 500.0 411.8 406.9 339.6 323.3 234.9 234.
Slide 42: Stock Information
Aves STOCK INFORMATION — 42
Slide 43: Top Unitholders
STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 9.86% 2 EMPLOYEES PROVIDENT FUND BOARD 8.31% 3 LEMBAGA TABUNG HAJI 4.83% 4 TEW PENG HWEE @ TEOH PENG HWEE 3.92% 5 EXEMPT AN FOR AIA BHD. 3.81% 6 ALEX LEE LAO 3.72% 7 AMANAH SAHAM BUMIPUTERA 2.77% 8 P
Slide 44: Investor Visibility & Liquidity
STOCK INFORMATION 8,000 INVESTOR VISIBILITY & LIQUIDITY Number of CDS Accounts 6,776 7,000 6,000 5,715 5,591 5,740 5,913 5,217 5,000 4,607 4,579 4,632 4,585 4,581 4,787 3,891 3,934 4,011 4,098 4,184 4,000 3,611 3,790 3,718 3,790 3,309 3,009 3,176 3,200 3,219 3,000 2,702 2,850 2,420 2,000 1,000 - Uni
Slide 45: Thank You
THANK YOU www.axis-reit.com.my 45
Axis Real Estate Investment Trust — Q4 2020 Earnings Presentation on 6ix