Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q4 2023 Earnings Presentation
41 slides from Axis Real Estate Investment Trust's earnings presentation, Jan 24, 2024
Slide 1: Results Presentation 4Q2023
AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 4Q2022 Results Presentation 4Q2023 19 January 24 January 2023 2024
Slide 2: Highlights, Portfolio Overview, Financial Overview, Stock Information
PORTFOLIO FINANCIAL STOCK HIGHLIGHTS OVERVIEW OVERVIEW INFORMATION
Slide 3: Highlights
HIGHLIGHTS
Slide 4: Highlights
HIGHLIGHTS 62 properties on portfolio 50 properties with 100% occupancy Portfolio Occupancy of 97% (as at 31/12/2023) 1 ongoing development project Weighted Average Lease Expiry of 4.94 years Total Assets Under Management Reclassified as Islamic REIT in 2008 RM4.52 billion Space Under Management Dis
Slide 5: 2023 Financial Highlights
2023 FINANCIAL HIGHLIGHTS ➢ Successfully completed the listing of 100 million new units on 4 January 2023 pursuant to a placement exercise. ➢ Investment properties currently stands at RM4.44 billion. ➢ Total of RM81.3 million revaluation gain on investment properties recorded for FYE2023. ➢ Total of
Slide 6: 2023 Portfolio Highlights
2023 PORTFOLIO HIGHLIGHTS ➢ Our fourth development project, Bukit Raja Distribution Centre 2 was successfully completed a month ahead of schedule and commenced its 15 year lease. ➢ Signed the Sale and Purchase Agreement to acquire a manufacturing facility in Sendayan, Negeri Sembilan for a proposed
Slide 7: Sustainability Highlights
SUSTAINABILITY HIGHLIGHTS ✓Efficient energy management: ✓Donated an ambulance to SJAM ✓Best practices: Governance Environment Social Replacing conventional lighting for emergency ambulance Complied with 30% female with energy efficient lighting services in Kota Kinabalu, Sabah representation on Boar
Slide 8: Portfolio Overview
PORTFOLIO OVERVIEW
Slide 9: Portfolio Overview
PORTFOLIO OVERVIEW As at 31 December 2023, the portfolio has 62 assets comprising 13,351,168 sq. ft. and 173 tenants. 2023 No. of Properties 62 Realised 000) 284,498 000) 42,977 Realised 000) 241,521 Occupancy 97% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 2023 2022 202
Slide 10: Space Under Management
PORTFOLIO OVERVIEW Space Under Management (sq ft) 16,000,000 14,000,000 13,351,168 12,726,260 12,000,000 11,374,703 10,478,726 10,000,000 9,537,666 9,349,267 8,087,781 ( sq ft) 8,000,000 7,606,863 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 2,1
Slide 11: 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
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 Office Office/ Industrial Single Tenant Multi Tenants Manufacturing Logistics Hypermarket Logistic
Slide 13: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 31 DECEMBER 2023 Axis Business Park 87% Fonterra HQ 85% Wisma Academy Parcel 81% Axis Business Campus 75% Axis Ind. Facility 1@Shah Alam 75% Wisma Kemajuan 71% The Annex 60% Menara Axis 54% Notes: 1. Vacant space in Fonterra HQ is built fo
Slide 14: 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 2023 Total NLA Income/month 2024 Total NLA Income/month 2025 Total NLA Income/month Petaling Jaya 582,765 4.37 6.30 588,022 4.40 7.12 660,918 4.95 8.47 Subang - - - - - - 30,250 0.2
Slide 15: Top Tenants
PORTFOLIO OVERVIEW Top 10 Tenants ESTABLISHED NATIONWIDE FOOTPRINT YTD top ten tenants accounted for 48.9% of the monthly 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 Kawa
Slide 16: Asset Enhancement Initiatives: Menara Axis
PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES Installation of OKU Stairlift Platform Menara Axis 15
Slide 17: Asset Enhancement Initiatives: Crystal Plaza
PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES Transformer upgrade Crystal Plaza 16
Slide 18: Asset Enhancement Initiatives: Quattro West
PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES LED Lighting Enhancements Quattro West 17
Slide 19: Asset Enhancement Initiatives: Roof Enhancements
PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES Roof Enhancements • Kerry Warehouse • Axis Northport Distribution Centre • Seberang Prai Logistics Warehouse 3 18
Slide 20: Completed Development
PORTFOLIO OVERVIEW COMPLETED DEVELOPMENT Green Bukit Raja Distribution Centre 2 certified building Original Acquisition Post-Development Enhancements Completion Date 31 March 2021 1 August 2023 GreenRE Gold-certified Gross Built-up Area 326,231 sq ft 620,096 sq ft Enlarged built-up area Industry Use
Slide 21: Ongoing Development
PORTFOLIO OVERVIEW ONGOING DEVELOPMENT Axis Mega Distribution Centre (Phase 2) Phase 2 Nestle DC Target completion 1Q2024 Green Lettable Area : 509,035 sq. ft. certified Land Area : Approx. 20.0 acres building Land Tenure : Freehold Development Cost : Approx. RM180.0 million (incl. land) 20
Slide 22: Ongoing Acquisition
PORTFOLIO OVERVIEW ONGOING ACQUISITION Manufacturing Facility in Sendayan, Negeri Sembilan Target Completion Date : 1H2024 Net Lettable Area : 105,311 sq. ft. Land Area : Approx. 14.63 acres Land Tenure : Freehold Occupancy : 100% Purchase Price : RM48.0 million WALE at Acquisition : Approx. 6 years
Slide 23: Completed Acquisition
PORTFOLIO OVERVIEW COMPLETED ACQUISITION Axis Hypermarket @ Temerloh, Pahang Completion Date : 16 January 2024 Net Lettable Area : Approx. 106,711 sq. ft. Land Area : Approx. 1.85 acres Land Tenure : Freehold Occupancy : 100% Purchase Price : RM25.75 million WALE at Acquisition : 20 years 22
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
Slide 25: Financial Overview
FINANCIAL OVERVIEW
Slide 26: Financial Overview: Snapshot as at December 2023
FINANCIAL OVERVIEW SNAPSHOT AS AT 31 DECEMBER 2023 RM4.52 billion RM1.55 billion RM2.83 billion Total Assets Total Financing RM1.62 34.4% FY2023: 8.65 sen Net Asset Value Per Unit Financing Ratio Distribution Per Unit 25
Slide 27: Results Highlights Quarter-on-Quarter
FINANCIAL OVERVIEW Results highlights for current quarter compared to preceding quarter: 4Q2023 • Q-on-Q Property Income increased by 5% RM75,747,000 3Q2023 2Q2023 RM72,057,000 RM67,943,000 1Q2023 RM69,654,000 • Property income improved as compared to the previous 3 preceding quarters due to: ➢ Comp
Slide 28: Income Statement 4Q2023 vs 4Q2022
FINANCIAL OVERVIEW INCOME STATEMENT 4Q2023 vs 4Q2022 4Q2023 4Q2022 Changes / Movement No. of Properties 62 62 - Property Income 75,197 70,796 Property Income - Property income before lease incentive adjustment 75,747 71,449 +6% - Lease incentive adjustment (non-distributable) (550) (653) Property Ex
Slide 29: Income Statement YTD 2023 vs YTD 2022
FINANCIAL OVERVIEW INCOME STATEMENT YTD 2023 vs YTD 2022 YTD 2023 YTD 2022 Changes / Movement No. of Properties 62 62 - Property Income Note 1 284,498 281,090 +1.2% Property Income - Property income before lease incentive adjustment 285,401 281,723 +1.3% - Lease incentive adjustment (non-distributab
Slide 30: Income Statement YTD 2023 vs YTD 2022 - Notes
FINANCIAL OVERVIEW INCOME STATEMENT YTD 2023 vs YTD 2022 - NOTES Note 1 Property Income Property income is marginally higher as compared to preceding year mainly due to higher occupancy rate for existing portfolio and commencement of lease for Bukit Raja Distribution Centre 2 in August 2023. This wa
Slide 31: 5-Year Performance
FINANCIAL OVERVIEW 5-YEAR PERFORMANCE Net Property Income (RM'000)* Revenue (RM'000)* 284,498 300,000 300,000 281,723 281,090 285,401 242,747 242,595 241,962 242,424 241,521 250,000 241,605 250,000 216,005 214,975 224,712 224,064 209,433 208,291 190,996 190,348 200,000 200,000 185,249 184,219 150,00
Slide 32: Portfolio Yield by Asset Types
FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 6.7 9.6 Office Industrial 6.8 9.4 Logistics Warehouse 7.6 8.6 Manufacturing Facilities 8.1 8.9 Hypermarket 8.8 9.4 Average 7.6 8.9 31
Slide 33: Financial Position
FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 4,444,120 4,186,020 +258,100 Fixed Assets 1,391 1,859 -468 Other Assets Note 2 77,382 67,794 +9,588 TOTAL ASSETS 4,522,893 4,255,673 +267,220 Financing Note 4 1,554,974 1,546,020 +8,954 Other Payables 123,613 123,334 +279 Deferred Ta
Slide 34: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the period, a total of RM172.7 million was spent on capital expenditure as below: • RM12.6 million for enhancement of existing properties, • RM72.5 million for the completed development project Bukit Raja Distribution
Slide 35: Note 4: 5-Year Financing Profile
FINANCIAL OVERVIEW NOTE 4: 5-YEAR FINANCING PROFILE 2019 2020 2021 2022 2023 885,859 1,112,183 1,184,593 1,546,020 1,554,974 3,085,681 3,364,083 3,838,760 4,255,673 4,522,893 Financing Ratio 28.71% 33.06% 30.86% 36.33% 34.38% Effective Profit Rate 4.37% 3.89% 3.63% 3.87% 4.19% Percentage of short te
Slide 36: Financing Ratio
FINANCIAL OVERVIEW FINANCING RATIO Placements Undertaken 50% 45% 40% 40% 38% 37% 36% 36% 36% 36% 35% 34% 35% 33% 33% 33% 33% 33% 34% 31% 31% 30% 27% 29% 30% 29% 27% 25% 24% 20% 15% 10% 5% 0% 35
Slide 37: Total Assets and Unitholders' Capital
FINANCIAL OVERVIEW 5,000.0 4,522.9 4,395.1 4,434.6 4,500.0 4,255.7 4,316.0 4,000.0 3,838.8 3,500.0 3,364.1 3,085.7 3,000.0 2,840.5 2,549.6 2,500.0 RM mil 2,141.52,244.0 2,118.6 2,118.62,118.6 2,129.3 2,085.7 1,934.31,945.7 2,000.0 1,589.4 1,616.5 1,583.81,595.5 1,500.0 1,208.9 1,298.4 1,240.31,247.1
Slide 38: Stock Information
STOCK INFORMATION
Slide 39: Top Unitholders
STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 8.40% 2 EMPLOYEES PROVIDENT FUND BOARD 7.90% 3 LEMBAGA TABUNG HAJI 4.83% 4 AMANAH SAHAM BUMIPUTERA 4.60% 5 TEW PENG HWEE @ TEOH PENG HWEE 3.26% 6 ALEX LEE LAO 3.12% 7 PUBLIC ITTIKAL SEQUEL FUND 2.41%
Slide 40: Number of CDS Accounts
STOCK INFORMATION Number of CDS Accounts Units Held 4Q2023 Units Held 3Q2023 Movement Total no. of unitholders 12,247 12,233 14 Total foreign holdings 17.50% 17.30% 0.20% Foreign holdings related party 5.10% 5.28% -0.18% Foreign holdings non-related party 12.40% 12.03% 0.37% Promoters 8.98% 9.16% -0
Slide 41: Thank You
REAL ESTATE INVESTMENT TRUST THANK YOU
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