Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q1 2020 Earnings Presentation
35 slides from Axis Real Estate Investment Trust's earnings presentation, May 20, 2020
Slide 1: Results Presentation 1Q2020
A415 REAL ESTATE INVESTMENT TRUST Results Presentation 1Q2020 20 May 2020
Slide 2: Agenda
AGENDA
Slide 3: 1Q2020 Highlights
Avis 102020 HIGHLIGHTS
Slide 4: Highlights: Portfolio Summary
aaa + o ie Aeals REAL ESTATE INVESTMENT TRUST HIGHLIGHTS PORTFOLIO SUMMARY 50 properties on portfolio 38 properties with 100% occupancy Total Assets Under Management RM3.2 billion Space Under Management 9.9 million sq ft Financing Ratio 30% Solid industrial space portfolio 91% of properties on indus
Slide 5: Highlights
Avzels meas HIGHLIGHTS Declared 15tinterim 2020 DPU of 2.10 sen. Portfolio size increased by 2 to a total of 50 properties. Investment properties currently stands at RM3.1 billion. Traded at a premium of 26% to NAV as of 31 March 2020. Implemented the Income Distribution Reinvestment Plan (“IDRP”) i
Slide 6: Portfolio Overview
Angels PORTFOLIO OVERVIEW |
Slide 7: Diversified and Expanding Portfolio: Space Under Management
PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO AWSels REAL ESTATE INVESTMENT TRUST 9,537,666" ot 9,349,267 77°°"" Space Under Management (sq ft) 12,000,000 10,000,000 7606 963008778! 8,000,000 606, 6,859,474 015,242 "g 6,000,000 5,463,599 104124 ~ 4,449,580 4,288,054 4,000,000 3,679,796 2,85
Slide 8: Diversified and Expanding Portfolio: Location
AWS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Y Our 50 properties are strategically located in prime industrial areas such as Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah. v Pipeline acquisitions include additions in key industrial hubs of:
Slide 9: Portfolio Diversification by Industry, Asset Type, Occupancy
AWS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Portfolio Diversification Portfolio Diversification Portfolio Diversification by Industry Sector (on NLA) by Asset Type (on NLA) by Occupancy Type (on NLA) m Services ™ Consumer Products *Industrial title tie i i
Slide 10: High Occupancy Rate with Income Visibility
AWls REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW HIGH OCCUPANCY RATE WITH INCOME VISIBILITY As at 31 March 2020, the portfolio has 50 assets comprising 9,933,644 sq. ft. and 152 tenants. No. of Properties 50 Property Income (RM‘000) 54,540 Property Expenses (RM’‘000) 8,163 Net Property Income (R
Slide 11: Lease Expiry by Location
PORTFOLIO OVERVIEW HIGH OCCUPANCY RATE WITH INCOME VISIBILITY AWls REAL ESTATE INVESTMENT TRUST Lease Expiry By Location % of % of Rental % of % of Rental % of % of Rental TotalNLA _Income/month TotalNLA___Income/month Total NLA Income/month Petaling Jaya 597,987 6.02 10.09 542,398} 5.45 9.96 436,61
Slide 12: Properties with Occupancy Below 90%
Axis Business Park Axis Business Campus Fonterra HQ Menara Axis Crystal Plaza Wisma Kemajuan Wisma Academy Parcel The Annex Axis Technology Centre Quattro West Axis Industrial Facility@ Rawang PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 31 MARCH 2020 43% 0% Note: 1. Vacant space in
Slide 13: Established Nationwide Footprint and Top 10 Tenants
Penang (8.0%) Sel Bayan Lepas Sebera langor (53.8%) Shah Alam (18.8%) Petaling Jaya (20.0%) Klang (10.1%) Rawang (3.0! Subang (1.9%) Negeri Sembilan (6.9%) * Nilai * Senawang ANSAIS REAL ESTATE INVESTMENT TRUS PORTFOLIO OVERVIEW ESTABLISHED NATIONWIDE FOOTPRINT Kedah (1.4%) * Sungai Petani Pahang (5
Slide 14: Completed Development
AWS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW COMPLETED DEVELOPMENT Axis Facility @ Batu Kawan Nett 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 L
Slide 15: Completed Acquisitions
AWS REAL ESTATE INVESTMENT TRUST 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. Nett Lettable Area : 199,890 sq. ft. La
Slide 16: Ongoing Acquisitions
AWls REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 1. Bayan Lepas Industrial Facility 1, Penang 2. D37c Warehouse, PTP Johor Target Completion Date : 2H2020 Target Completion Date : 1H2020 Net Lettable Area : 78,024 sq. ft. Net Lettable Area : 222,723 sq. ft. Land Area : Appro
Slide 17: Ongoing Acquisitions
AWS REAL ESTATE INVESTMENT TRUST PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 3. Manufacturing Facility, Shah Alam, Selangor 4. Manufacturing Facility, Tebrau, Johor Target Completion Date : 2H2020 Target Completion Date : 2H2020 Nett Lettable Area : 41,133 sq. ft. Nett Lettable Area : 152,348 sq. ft. La
Slide 18: Ongoing Acquisitions
PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 5. Manufacturing Facility, Kota Kinabalu, Sabah 18 Target Completion Date : Gross Floor Area Land Area Land Tenure Occupancy Purchase Price WALE AWS REAL ESTATE INVESTMENT TRUST 2H2020 444,180 sq. ft. Approx. 21.6 acres Leasehold 100% RM60.0 million 15 years
Slide 19: Total Estimated Value of Acquisition Targets RM135 million
Total Estimated Value of Acquisition Targets RM135 million
Slide 20: Financial Overview
Angels FINANCIAL OVERVIEW | 20
Slide 21: Snapshot as at March 2020
Angels FINANCIAL OVERVIEW —_ SNAPSHOT AS AT 31 MARCH 2020 RM3.15 bil RM935 mil RM2.10 bil Total Assets N Total Financings Total Unitholder’s Funds ==> RM1.46 30% 1Q2020: 2.10 sen ER Net Asset Value Per Unit Financing Ratio Distribution Per Unit 21
Slide 22: Return Comparatives
6.00% 5.00% + 4.00% 3.00% 2.00% 1.00% 0.00% 4.59% I FINANCIAL OVERVIEW RETURN COMPARATIVES 5.45% 3.89% 2.68% Axis-REIT Distribution Yield AWls REAL ESTATE INVESTMENT TRUST 2.50% EPF Dividend Return 2019 10-yr MGS 12 Months FD Rate 22 OPR (as at 31 March 2020)
Slide 23: Income Statement 1Q2020 vs 1Q2019
FINANCIAL OVERVIEW INCOME STATEMENT 1Q2020 vs 1Q2019 1Q2020 1Q2019 Changes / (RM‘000) (RM‘000) Movement No. of Properties 50 45 +5 Property Income- NOTE 1 54,540 53,557 - Property income before lease incentive adjustment 54,875 53,875 +1.9% - Lease incentive adjustment (non-distributable) (335) (318
Slide 24: Income Statement Notes
Avzels meas FINANCIAL OVERVIEW INCOME STATEMENT 1Q2020 vs 1Q2019- 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 4 newly acquired p
Slide 25: Financial Trends FY2016-1Q2020
250,000 214,975 200,000 175,810 184,219 203,637 200,000 150,000 150,000 100,000 100,000 46,377 54,540 50,000 50,000 - - FY2016 FY2017 FY2018 FY2019 Q12020 FY2016 FY2017 FY2018 FY2019 Q12020 140,000 10.00 113,442 116,209 115,179 120,000 107,047 8.00 2.20 100,000 90,186 90,796 1.94 2.45 2.10 80,000 6.
Slide 26: Portfolio Yield by Asset Types
AWSels REAL ESTATE INVESTMENT TRUST FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Net Yield (%) Gross Yield (%) Office 6.7 9.1 Office Industrial 7.0 9.3 Warehouse Logistics 8.7 95 Manufacturing Facilities 74 8.3 Hypermarket 8.2 8.8 Pm | 26
Slide 27: Financial Position
Investment Properties - Note 1 Fixed Assets Other Assets - Note 2 TOTAL ASSETS Borrowings Other Payables Deferred Tax Liability TOTAL LIABILITIES NET ASSET VALUE (NAV) Unitholders' Capital - Note 3 Undistributed Distributable Income Non-Distributable Reserve TOTAL UNITHOLDERS' FUND GEARING NAV/UNIT
Slide 28: Notes: Financial Position
Avzels meas FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 - Investment Properties Total acquisitions of RM87.0 million including Axis Facility 2 @ Nilai and Axis Facility 2 @ Bukit Raja were completed on 28 February 2020 and 17 March 2020 respectively. During the quarter ended 31 March 2020,
Slide 29: 5-Year Debt Profile
FINANCIAL OVERVIEW a ee ee ee Total Financing (RM’000) Total Assets (RM’000) Gearing Effective Profit Rate Percentage of short term financing- Maturity <1 Year Percentage of medium/long term financing (maturity more than 1 year) Percentage of floating rate financing Percentage of fixed rate financin
Slide 30: Gearing Levels
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% FINANCIAL OVERVIEW AWS REAL ESTATE INVESTMENT TRUST GEARING LEVELS Placements Undertaken I Allowable threshold of 50% 40% 38% 36% 36% 36% 33% 31% 33% 33% 33% 29% 30% 27% 27% 24% | 4Q20071Q2008 2Q2008Q2009 2Q 2016Q 2010 3Q 2014Q 2011 3Q2014Q2014 3Q201AQ2017 3
Slide 31: Unitholders' Capital
RM mil 3,500.0 3,000.0 2,500.0 2,000.0 1,500.0 1,000.0 AWS REAL ESTATE INVESTMENT TRUST FINANCIAL OVERVIEW UNITHOLDERS’ CAPITAL 3,085.7 3,153.8 2,840.5 4 2,549.6 2,141.5 2,244.0 1,589.4 1,616.5 95.5 12089 \7e4 4 907.7 726.4 735.4) (751.0 581.8 540.3 43396 0 411.8 333 406.9 i I 234.9) 234.9 . 31-Dec-
Slide 32: Stock Information
Asels STOCK INFORMATION | 32
Slide 33: Top Unitholders
AWls REAL ESTATE INVESTMENT TRUST STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 EMPLOYEES PROVIDENT FUND BOARD 10.37% 2 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 9.59% 3 LEMBAGA TABUNG HAJI 4.83% 4 TEW PENG HWEE @ TEOH PENG HWEE 3.92% 5 AMANAH SAHAM BUMIPUTERA 3.79% 6 ALEX LEELAO 3.72%
Slide 34: Investor Visibility & Liquidity
AWSels REAL ESTATE INVESTMENT TRUST STOCK INFORMATION INVESTOR VISIBILITY & LIQUIDITY Number of CDS Accounts 6,000 4,581 5,715 5,591 aoe 4184 4,585 4,581 4,787 3,891 d 4,000 sive 3611 3,009 , 3,000 2,420 2,702 2,850 2,000 1,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q2019 2Q2019 + 3Q2019 4Q20
Slide 35: Thank You
Avis THANK YOU | www.axis-reit.com.my 35
Axis Real Estate Investment Trust — Q1 2020 Earnings Presentation on 6ix