Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q1 2019 Earnings Presentation
37 slides from Axis Real Estate Investment Trust's earnings presentation, Apr 29, 2019
Slide 1: Results Presentation 1Q2019
AXIS AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 1Q2019 m — > lis co 29 April 2019
Slide 2: Agenda
Abels REAL ESTATE INVESTMENT TRUST AGENDA 2019 PORTFOLIO FINANCIAL STOCK HIGHLIGHTS fe/3\714"7 OVERVIEW | [izeiiiuile) t | WEEE ——) : a i il ll iw II I| Y y
Slide 3: 1Q2019 Highlights
Angels 1Q2019 HIGHLIGHTS i Sale
Slide 4: 2019 Highlights: Portfolio Summary
r%4n 3 2019 HIGHLIGHTS ANAS PORTFOLIO SUMMARY 45 properties on portfolio 34 properties with 100% occupancy Total Assets Under Management RM2.9 billion Space Under Management 9.3 million sq ft Gearing 38% Solid industrial space portfolio 91% of properties on industrial titles Portfolio Occupancy of 9
Slide 5: 2019 Highlights: Portfolio Performance
2019 HIGHLIGHTS ANAS PORTFOLIO PERFORMANCE Investment properties currently stands at RM2.8 billion. Net property income increased by 21% for 1Q2019 as compared to 1Q2018. DPU for 1Q2019 increased by 21% to 2.35 sen (vs DPU for 1Q2018 at 1.94 sen). Currently trades at a premium of 34% to NAV. Accepta
Slide 6: Portfolio Overview
Angels 1Q2019 ZC PORTFOLIO OVERVIEW | 1 ST Se
Slide 7: Portfolio Overview
PORTFOLIO OVERVIEW .. Diversified and expanding portfolio 2 High occupancy rate with income visibility Sustainable distributions 4 Established nationwide footprint Aggressive pipeline targets A®,@|S REAL ESTATE INVESTMENT TRUST www.axis-reit.com.my
Slide 8: Diversified and Expanding Portfolio
PORTFOLIO OVERVIEW ANAS DIVERSIFIED AND EXPANDING PORTFOLIO Y Our 45 properties are strategically located in prime industrial areas such as Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah. v Recent acquisitions include additions in key industrial hubs of Bayan Lepas, Penang and Nusaja
Slide 9: Space Under Management
10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 (s eae 4,000,000 3,000,000 2,000,000 1,000,000 PORTFOLIO OVERVIEW Avals DIVERSIFIED AND EXPANDING PORTFOLIO | Space Under Management 9,349,267 9,349,267 8,087,781 7,606 863 6,859,474 7,015,242 5,463,599 5,464,124 4,288,054 4,449,580 3,679,796 2,858,
Slide 10: Portfolio Diversification
PORTFOLIO OVERVIEW Avals DIVERSIFIED AND EXPANDING PORTFOLIO oe [ Portfolio Diversification E Portfolio Diversification 3) Portfolio Diversification by Industry Sector (on NLA) by Asset Type (on NLA) by Occupancy Type (on NLA) mServices m Consumer Products ® Manufacturing m Logistics m™ Vacant *Indu
Slide 11: High Occupancy Rate with Income Visibility
PORTFOLIO OVERVIEW Avals HIGH OCCUPANCY RATE WITH INCOME VISIBILITY As at 31 March 2019, the portfolio has 45 assets comprising 9,349,267 sq. ft. and 155 tenants. No. of Properties 45 Property Income (RM‘000) 53,557 Property Expenses (RM’000) 7,452 Net Property Income (RM’‘000) 46,095 Occupancy 94%
Slide 12: Lease Expiry Profile
PORTFOLIO OVERVIEW Avals HIGH OCCUPANCY RATE WITH INCOME VISIBILITY . Lease Expiry Profile By Location % of % of Rental % of % of Rental % of % of Rental Income/ Income/ Income/ Property Total NLA month Total NLA month 990,885) % of Rental % of Rental % of % of Rental Income/ Income/ Income/ Total N
Slide 13: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW Assails HIGH OCCUPANCY RATE WITH INCOME VISIBILITY Properties with Occupancy Below 90% Fonterra HQ 85% Wisma Academy Parcel Wisma Kemajuan Crystal Plaza Axis Business Campus Axis Business Park Menara Axis The Annex Quattro West Axis Technology Centre Note: Vacant space in Fonterra
Slide 14: Established Nationwide Footprint and Top 10 Tenants
Penang (8.0%) * Bayan Lepas * Seberang Perai Selangor (55.6%) Shah Alam (19.9' Petaling Jaya (21.3 Klang (9.1%) Rawang (3.2% Subang (1.99 Negeri Sembilan (4.7%) + Nilai * Senawang PORTFOLIO OVERVIEW Atels ESTABLISHED NATIONWIDE FOOTPRINT Kedah (1.5%) Sungai Peta Pahang (5.4%) * Kuantan Johor (24.8%)
Slide 15: Asset Enhancement Initiatives
PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES Infinite Centre, Petaling Jaya Bayan Lepas Distribution Centre, Bayan Lepas Enhancement of property compound Replacement of louvered window to aluminium casement window www.axis-reit.com.my
Slide 16: Pipeline Targets: Development Projects
PORTFOLIO OVERVIEW A®AlS AGGRESSIVE PIPELINE TARGETS: DEVELOPMENT PROJECTS Nestle Distribution Centre @ y Axis Mega Distribution Centre (Phase 1) Nett Lettable Area: 515,000 sq ft Handover Date: 2 February 2018 Construction Time: 12 months Lease Commencement: 1 June 2018 Market Value (as at 31 Dec 2
Slide 17: Pipeline Targets: Completed Projects
PORTFOLIO OVERVIEW ANzAls AGGRESSIVE PIPELINE TARGETS: COMPLETED PROJECTS Handover of Axis Aerotech Centre @ Subang, 13 February 2019 www.axis-reit.com.my
Slide 18: Pipeline Targets: Ongoing Acquisitions
PORTFOLIO OVERVIEW Avals AGGRESSIVE PIPELINE TARGETS: ONGOING ACQUISITIONS . 1. Manufacturing Facility - Bayan Lepas, Pulau Pinang 2. Manufacturing Facilities - Nusajaya, Johor Target Completion Date : 1H2019 Target Completion Date : 1H2019 Land Area : Approx. 2.07 acres Land Area : Approx. 5.2 acre
Slide 19: Total Estimated Value of Acquisition Targets RM200 million
Total Estimated Value of Acquisition Targets RM200 million
Slide 20: Financial Overview
Angels 1Q2019 CN FINANCIAL OVERVIEW | 1 Sale
Slide 21: Snapshot as at March 2019
FINANCIAL OVERVIEW ANAS SNAPSHOT AS AT 31 MARCH 2019 RM2.87bn Total Assets 2.35 sen Net Asset Value Per Unit Net Gearing Distribution Per Unit RM1.10bn RM1.66bn Total Financings Total Unitholder’s Funds 21 A} > wwwaaxis-reit.com.my
Slide 22: Return Comparatives
7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% FINANCIAL OVERVIEW RETURN COMPARATIVES 6.15% 5.22% | 3.89% 3.50% | 3.25% Axis-REIT EPF Dividend Return 10-yr MGS 12 Months FD Rate OPR Distribution Yield 2017 22 AWls REAL ESTATE INVESTMENT TRUST www.axis-reit.com.my
Slide 23: Income Statement 1Q2019 vs 1Q2018
\Z FINANCIAL OVERVIEW Assails INCOME STATEMENT 1Q2019 vs 1Q2018 1Q2019 1Q2018 Changes / (RM’‘000) (RM’‘000) Movement No. of Properties 45 41 +4 Property Income - Note 1# 53,557 44,948 +19.2% Property Expenses — Note 2 (7,462) (6,798) +9.8% Net Property Income 46,095 38,150 +20.8% Profit Income / Oth
Slide 24: Income Statement Notes
FINANCIAL OVERVIEW ANAS INCOME STATEMENT 1Q2019 vs 192018 - 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 Mega DC on 1 June 2018, Axis Aerotech Centre @ Subang on 16 December 2018 and
Slide 25: 5-Year Performance
FINANCIAL OVERVIEW ANS 250,000 5-YEAR PERFORMANCE Revenue (RM'000)* Net Property Income (RM'000)* 200,000 200,000 150,000 150,000 100,000 100,000 50,000 @ 50,000 - FY2015 FY2016 FY2017 FY2018# 1QFY2019 FY2015 FY2016 FY2017 FY20184 10FY2019 Net Income (RM'000)* Distribution Per Unit (Sen) 120,000 10
Slide 26: Portfolio Yield by Asset Types
FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Net Yield (%) Gross Yield (%) Office 7A 99 Office Industrial 71 9.2 Warehouse Logistics 8.6 95 Manufacturing Facilities 8.2 9.1 Hypermarket 8.6 9.3 TT 26 AWSels REAL ESTATE INVESTMENT TRUST www.axis-reit.com.my
Slide 27: Financial Position
Investment Properties - Note 1 Fixed Assets Other Assets — Note 2 TOTAL ASSETS Borrowings — Note 3 Other Payables TOTAL LIABILITIES NET ASSET VALUE (NAV) Unitholders' Capital Undistributed Distributable Income Non-Distributable Reserve TOTAL UNITHOLDERS' FUND GEARING NAV/UNjT (RM) jin issuance FINAN
Slide 28: Notes: Financial Position
FINANCIAL OVERVIEW ANAS NOTES - FINANCIAL POSITION Note 1 - Investment Properties During the period ended 31 March 2019, a total of RM2.4 million was spent on enhancement works of the properties in the portfolio and RM6.4 million was incurred for the development project. Note 2 - Other Assets The av
Slide 29: 5-Year Debt Profile
FINANCIAL OVERVIEW Assails NOTE 3 - 5-YEAR DEBT PROFILE Total Financing (RM’000) 731,814 780,665 842,594 1,059,367 1,09! Total Assets (RM’000) 2,141,493 2,244,274 2,549,609 2,840,463 Gearing 34.17% 34.78% 33.05% 37.30% Effective Profit Rate 4.28% 4.25% 4.21% 4.32% Percentage of short term financing-
Slide 30: Note 3: Borrowings
FINANCIAL OVERVIEW ANAS NOTE 3- BORROWINGS The Fund has entered into a profit rate swap of RM50 million in April 2019. The exposure to floating rate has reduced from 48% to 44%. @ Floating ™ Fixed 30 www.axis-reit.com.my
Slide 31: Gearing Levels
FINANCIAL OVERVIEW ANAS GEARING LEVELS Placements Undertaken Hi 40% 36% 38% 37% 37% 37% 38% 34% 35% 35% 35% 33% 33% 3396 32% 29% 29% 30% 27% 27% 25% 24% 20% 15% 10% 5% 0% $ RY s e Sufficient headroom to pursue more acquisitive and development opportunities. 31 www.axis-reit.com.my
Slide 32: Unitholders' Capital
FINANCIAL OVERVIEW Avals REAL ESTATE INVESTMENT TRUST A UNITHOLDERS’ CAPITAL 3,000.0 2,870.4 2,840.5 2,500.0 2,141.5 a 2,000.0 1,589.4 1,616.5 1,500.0 RM mil 1,240.3 1,247.1) (1,247.1 1,044. 052.3) 1,060. 1,000.0 907.7 726.4 728.2 | | 735.4) (751.0 581.8 540.3 500.0 13396 4118 933 | (406 ran a” ° 31
Slide 33: Stock Information
Angels 1Q2019 ZC STOCK INFORMATION — 1 ST Se
Slide 34: Top Unitholders
STOCK INFORMATION ANzAls TOP 10 UNITHOLDERS Name of Unitholder % 1 EMPLOYEES PROVIDENT FUND BOARD 11.69% 2 AMANAH SAHAM BUMIPUTERA 9.34% 3 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 7.95% 4 LEMBAGA TABUNG HAJI 5.11% 5 TEW PENG HWEE @ TEOH PENG HWEE 4.57% 6 ALEX LEE LAO 4.25% 7 PERMODALAN NASIONAL BERHA
Slide 35: Analysis of Unitholders with >2 Million Units
STOCK INFORMATION ANALYSIS OF UNITHOLDERS WITH >2 MILLION UNITS AWls REAL ESTATE INVESTMENT TRUST Top 5 Increases in Unitholdings Changes vs Last Quarter AMANAH SAHAM BUMIPUTERA EMPLOYEES PROVIDENT FUND BOARD (BNP NAJMAH EQ) MTRUSTEE BERHAD FOR TENAGA NASIONAL BERHAD RETIREMENT BENEFIT TRUST FUND (R
Slide 36: Investor Visibility & Liquidity
sEEEEEE EEE STOCK INFORMATION Assails INVESTOR VISIBILITY & LIQUIDITY 4607 4579 4,632 4585 4581 3,790 ae & 3,718 2,420 1,652 2008 = 2009-2010 2011.) 2012-2013 2014» 102015 202015 302015 402015 102016 202016 3Q2016 402016 1Q2017 2Q2017 302017 4Q2017 102018 202018 32018 402018 102019 Units Held 1Q2019
Slide 37: Thank You
Angels ea ves THANK YOU For more information, please visit: ll www.axis-reit.com.my al | => = — | ii II II YOUR
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