Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q4 2014 Earnings Presentation
98 slides from Axis Real Estate Investment Trust's earnings presentation, Jan 20, 2015
Slide 1: Q4 2014 Results Presentation
Q4 2014 Axis REIT Managers Bhd Analysts Luncheon Briefing Q4 2014 Results Presentation Westin Kuala Lumpur 20thJanuary 2015
Slide 2: 2014 Highlights
2014 Highlights
Slide 3: 2014 Highlights
2014 Highlights RM 2,085,748,000 Total Assets Under Management crosses the RM 2 Billion Mark for the first time 3
Slide 4: 2014 Highlights
2014 Highlights Revaluation Declared a Unitholders Gain record DPU Funds RM 25.97 of 19.75 sen >RM 1 Billion Million Completed the acquisition of 3 Assets Successful Placement worth RM 389 Million of 83,579,942 Premium to & disposed Axis Plaza Units NAV 49.4% for RM 34 million for a gain in DPU of 2
Slide 5: 2014 Milestones
2014 Milestones Successfully completed the acquisition of 2 out of 3 properties with related parties, Axis Shah Alam DC3 and Axis MRO Hub, on 18 December 2014, whereas the acquisition of Axis Shah Alam DC2 is expected to be completed in 1Q 2015. Successfully completed the acquisition of Axis Ste
Slide 6: 2014 Milestones
2014 Milestones Inaugural issuance of new units for the purpose of the payment of management fee to the Manager for 2H 2014 to strengthen the alignment of Manager’s interest. Traded at a premium of 49.4% to our NAV as of 31 December 2014. Axis Business Campus ready for leasing after enhancemen
Slide 7: Our 2014 Strategy
Our 2014 Strategy Targeting growth in our asset class. To build on our SUKUK presence in the market. To continue to improve on our capital management. Continue to enhance existing assets to drive value and income. Trading of assets to reward our Unitholders. Best Practices and Corporate Go
Slide 8: Q4 Finance Report
Q4 Finance Report
Slide 9: 2014 Summary
2014 Summary YTD 2014 Total Net Income (“Realised”)(RM' 000) 81,286 Income Available for Distribution ("Realised") (RM' 000) 92,720 Earnings per Unit ("EPU") ("Realised") (Sen) 17.41 Income Distribution Declared (RM'000) 92,684 Distribution per Unit ("DPU") (Sen) * 19.75 Number of Investment Propert
Slide 10: 2014 Return Comparatives
2014 Return Comparatives 35.0% 30.3% 30.0% 25.0% 20.0% 15.0% 10.0% 6.35% 5.5% 5.0% 4.18% 4.00% 3.25% 0.0% Axis-REIT Total Axis-REIT EPF Dividend 10-yr MGS 12 Months FD OPR Return * Distribution Return Rate Yield * (Based on DPU from operations + gain on disposal + movement in market price)/ Opening
Slide 11: Income Statement Q4 2014 vs Q4 2013
Income Statement Q4 2014 vs Q4 2013 Q4 2014 Q4 2013 Changes / (RM ‘000) (RM’000) Movement No. of Properties 33 31 +2 Property Income 34,370 36,007 - 4.5% Property Expenses (5,235) (5,387) - 2.8% Net Property Income 29,135 30,620 - 4.8% Profit Income 663 187 Non-Property Expenses (3,590) (3,476) + 3.
Slide 12: Income Statement 2014 vs 2013
Income Statement 2014 vs 2013 2014 2013 Changes / (RM ‘000) (RM’000) Movement No. of Properties 33 31 +2 Property Income - Note 1 137,625 141,314 - 2.6% Property Expenses - Note 2 (21,553) (20,812) + 3.6% Net Property Income 116,072 120,502 - 3.7% Profit Income 1,210 667 Gain on disposal of investme
Slide 13: Income Statement 2014 vs 2013
Income Statement 2014 vs 2013 Note 1 – Property Income Property income is 2.6% lower as compared to 2013. This is due to loss of rental from the sale of Axis Plaza and the time taken to complete Axis Business Campus due to enhancement. Note 2 – Property Expenses Property expenses increased due to hi
Slide 14: Income Statement 2014 vs 2013
Income Statement 2014 vs 2013 Note 3 – Gain on disposal of investment Computation of Distributable Gain on Disposal: RM'000 Disposal price 34,000 Less: Current book value (32,034) 1,966 Less : Incidental cost Legal fees - SPA (85) Valuation fees (8) Disposal fee (180) Defect repair works (79) (352)
Slide 15: Income Statement 2014 vs 2013
Income Statement 2014 vs 2013 Note 3 – Gain on disposal of investment The disposal of Axis Plaza, which was completed on 25 March 2014, has resulted in a total realized gain on disposal of RM10,952,000 (“Gain on disposal”) which is represented by the gain on disposal of RM1,614,000 and realization o
Slide 16: Income Statement 2014 vs 2013
Income Statement 2014 vs 2013 Note 4 – Non-Property Expenses The MER of the Fund as at 31 December 2014 is 1.29% of NAV as compared to 1.25% for 2013. The increase is due to increase in the Manager’s and Trustee’s fees which resulted from the increase in the NAV of the Fund. Note 5 – Islamic Financi
Slide 17: Gross Yield of Investment Properties
Gross Yield of Investment Properties Properties Gross yield (%) Average gross yield = 10.24% 1 Wisma Kemajuan 17.89% 2 Crystal Plaza 15.92% 18 Axis PDI Centre 9.96% 3 Menara Axis 14.87% 19 Emerson Industrial Facility Nilai 9.86% 4 FCI Senai 12.95% 20 Axis Business Park 9.71% 5 Delfi Warehouse 12.25%
Slide 18: Net Yield of Investment Properties / Cost
Net Yield of Investment Properties / Cost Properties Net yield (%) Average net yield per property = 8.82% 1 Crystal Plaza 13.63% 2 Wisma Kemajuan 13.26% 18 Bayan Lepas Distribution Centre 8.57% 3 Menara Axis 12.26% 19 Seberang Prai Logistic Warehouse 1 8.44% 4 FCI Senai 11.57% 20 Bukit Raja Distribu
Slide 19: Income Statement
Income Statement 35.00 Adjusted Income Before Taxation/ Income Available For Distribution: Gain on 30.00 disposal RM10.952 mil 25.00 20.00 RM' million 15.00 20.54 21.21 21.32 21.45 31.78 20.83 10.00 19.85 20.26 5.00 - 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 19
Slide 20: 4th Quarter Income Distribution
4th Quarter Income Distribution 4th Quarter 2014 Income Distribution a) 4th interim DPU of 2.70 sen The DPU payment of 2.70 sen for the period 1 October 2014 to 1 December 2014 due to the placement of the 83,579,942 new units was paid on 8 January 2015. b) Final 2014 DPU of 1.45 sen This is based on
Slide 21: Details of the 2014 IDRP
Details of the 2014 IDRP Details of the 2014 IDRP (in conjunction with 2014 First Interim Income Distribution): Income Distribution : 5.30 sen Electable portion : 2.20 sen Issue Price : RM3.20 Discount Rate : 5.9% Subscription rate : 84% Net Proceed : RM7.9 million In view of the placement which too
Slide 22: Summary of EPU (Realized) and DPU
Summary of EPU (Realized) and DPU 19.75 20.00 18.60 18.60 18.46 18.50 18.00 Increasing DPU y-o-y 17.28 17.41 since listing 17.20 15.77 15.80 16.01 16.00 16.00 15.46 15.27 14.00 13.60 13.63 12.82 12.95 12.00 sen per unit 10.00 8.00 6.00 4.87 4.70 4.00 2.00 - 2005 2006 2007 2008 2009 2010 2011 2012 20
Slide 23: Statement of Financial Positions
Statement of Financial Positions 31/12/14 31/12/13 (RM’000) (RM’000) Changes Investment Properties – Note 1 1,982,587 1,543,248 + 439,339 Fixed Assets 2,821 2,407 + 414 Other Assets – Note 2 100,340 70,868 + 29,472 TOTAL ASSETS 2,085,748 1,616,523 + 469,225 Borrowings – Note 3 683,769 528,004 + 155,
Slide 24: Statement of Financial Positions
Statement of Financial Positions Note 1 – Investment properties The completion of total acquisitions of RM389 million including Axis MRO Hub and Axis Shah Alam DC3 were completed on 18 December 2014 whilst the acquisition of Axis Steel Centre @ SiLC was completed on 30 December 2014. A total of RM18
Slide 25: Statement of Financial Positions - Note 3 Borrowings
Statement of Financial Positions - Note 3 Borrowings Jan 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Total Borrowings (RM’000) 88,089 209,816 230,456 308,932 416,609 311,338 548,920 528,004 683,769 623,769 Total Assets (RM’000) 411,781 581,857 726,371 907,745 1,208,897 1,298,431 1,589,408 1,6
Slide 26: Statement of Financial Positions
Statement of Financial Positions Note 3 – Borrowings (continued) By the end of 31 January 2015, the balance proceed from placement of 83,579,942 units of RM60 million (as at 31 December 2014) will be fully utilized to repay borrowings that matures in the month of January 2015. 26
Slide 27: Statement of Financial Positions
Statement of Financial Positions Placements Gearing Levels Undertaken 40.0% 38.2% 36.0% 37.5% 36.1% 36.0% 34.5% 35.4% 35.0% 33.1% 34.0% 34.5% 34.2% 33.9% 32.7% 32.5% 33.4% 33.0% 32.6% 32.7% 32.8% 31.8% 31.2% 31.7% 31.3% 31.7% 30.0% 30.0% 29.1% 28.8% 26.8% 27.3% 25.0% 25.0% 23.7% 23.5% 24.0% 22.4% 21
Slide 28: Statement of Financial Positions
Statement of Financial Positions Note 4 – Unitholders’ capital a) Increases via Equity Placement Exercises Since the Listing of the Fund in year 2005, there have been 5 rounds of equity placements to the market; increasing the unitholders capital of the Fund as follows: Year No. of units Issue price
Slide 29: Statement of Financial Positions
Statement of Financial Positions Note 4 – Unitholders’ capital b) Increase via the Income Distribution Reinvestment Plan (“IDRP”) The historical IDRP issue price & discount rate as follow : Year No. of units Issue price per Discount Unit (RM/Unit) rate 1 2011 2,732,896 RM2.30 5.70% 2 2012 2,703,125
Slide 30: Placement 2014
Placement 2014 Placement of 83,579,942* units Completed and listed on 12 December 2014. Raised approximately RM288.351 million at RM3.45 per unit. As at 31 December 2014, there is a balance of approximately RM60 million which will be utilized to repay financing of Axis-REIT maturing in January
Slide 31: Placement 2014
Placement 2014 Total Assets cross the RM 2 Billion mark 2,500.0 2,085.7 The funds raised from equity 2,000.0 placements are being injected into acquiring good 1,616.5 quality properties….. 1,589.4 1,500.0 1,298.4 RM mil 1,208.9 1,044.7 1,000.0 907.7 726.4 728.2 735.4 751.0 581.8 540.3 500.0 411.8 40
Slide 32: Placement 2014
Placement 2014 … resulting in good total returns to unitholders. 360% 312% 320% 280% 122% 240% 200% 168% 175% 160% 57% 124% 67% 120% 40% 190% 72% 80% 118% 24% 101% 40% 84% 48% 5% 0% IPO @ RM1.25 Placement '08 @ Placement '09 @ Placement '10 @ Placement '11 @ Placement '14 @ RM1.80 RM1.66 RM1.97 RM2.
Slide 33: Statement of Financial Positions
Statement of Financial Positions Note 5 – Non-distributable reserve Non-distributable reserve mainly comprises the favorable gain in fair value of approx. RM267 million to date. Building Gain /(Loss) RM Building Gain /(Loss) RM Crystal Plaza 44,328,521.16 Bukit Raja Distribution Centre 20,583,986.70
Slide 34: Q4 Revaluation of Properties
Q4 Revaluation of Properties
Slide 35: Revaluation of Properties
Revaluation of Properties Name of Properties Net Book Value Open Surplus/(deficit) as at 31 Market to be December 2014 Value incorporated (RM'000) (RM'000) into Axis-REIT (RM'000) 1 Axis Business Park 119,281 119,000 (281) 2 Crystal Plaza 106,553 109,000 2,447 3 Menara Axis 114,788 118,000 3,212 4 I
Slide 36: Revaluation of Properties
Revaluation of Properties Name of Properties Net Book Value Open Surplus/(deficit) as at 31 Market to be December 2014 Value incorporated (RM'000) (RM'000) into Axis-REIT (RM'000) 9 FCI Senai 15,945 16,000 55 10 Fonterra HQ 14,197 15,000 803 11 Quattro West 53,866 55,800 1,934 12 Strateq Data Centre
Slide 37: Revaluation of Properties
Revaluation of Properties Name of Properties Net Book Value Open Surplus/(deficit) as at 31 Market to be December 2014 Value incorporated (RM'000) (RM'000) into Axis-REIT (RM'000) 17 Bukit Raja Distribution Centre 91,085 94,500 3,415 Seberang Prai Logistic 18 20,006 20,200 194 Warehouse 1 Seberang P
Slide 38: Revaluation of Properties
Revaluation of Properties Name of Properties Net Book Value Open Surplus/(deficit) as at 31 Market to be December Value incorporated 2014 (RM'000) into Axis-REIT (RM'000) (RM'000) 25 Emerson Industrial Facility Nilai 29,430 29,490 60 26 Wisma Academy Parcel 77,058 77,000 (58) 27 The Annex 16,070 17,
Slide 39: Revaluation of Properties
Revaluation of Properties % of Revaluation on Properties Revaluation Surplus to date = Investment Cost The increase in value demonstrated the ability of the Manager to create value to the assets 70% 69% 67% 61% 60% 50% 48% 40% 38% 36% 29% 28% 30% 26% 26% 24% 21% 22% 20% 17% 18% 16% 14% 11% 9% 10% 7%
Slide 40: Revaluation of Properties
Revaluation of Properties Properties Appreciation Value as at 31 December 2014 200 180 160 140 120 RM' Millions 24 100 38 186 44 6 21 14 80 156 3 4 60 10 2 5 3 1 95 22 10 22 40 80 2 86 7 74 77 74 65 66 2 62 58 2 53 50 2 53 6 50 50 20 34 36 39 43 2 3 34 2 3 4 28 31 27 5 20 15 13 18 1 13 11 7 12 - (0)
Slide 41: Q4 Property Report
Q4 Property Report
Slide 42: 2014 Overview
2014 Overview As we enter our 10th Year of Asset Management many leases in our portfolio that were in place since the time of our listing, came due for renewal in 2014. Unfortunately some of our tenants decided to relocate to other countries or relocate as their space requirements outstripped our ab
Slide 43: Key Metrics
Key Metrics Property Size: As at 31 December 2014 the Portfolio has 33 assets comprising 6,859,474 sq. ft. and 134 tenants Type Q4 2014 Q3 2014 Movement Property Income (RM’000) 34,370 33,004 4.14% Property Expenses (RM’000) 5,235 5,099 2.66% Net Property Income (RM’000) 29,135 27,905 4.41% Occupanc
Slide 44: Key Metrics
Key Metrics Average Rental Rates: Type of Properties Q4 2014 Q3 2014 Movement Office (RM/sq. ft.) 4.55 4.56 - 0.01 Office Industrial (RM/sq. ft.) 2.61 2.60 + 0.01 Manufacturing Facilities (RM/sq. ft.) 1.29 0.84 + 0.45 Warehouse Logistics (RM/sq. ft.) 1.66 1.63 + 0.03 Hypermarket (RM/sq. ft.) 2.24 2.
Slide 45: Space Under Management (Sq. Ft.)
Space Under Management (Sq. Ft.) Space Under Management (sq ft) 8,000,000 6,859,474 7,000,000 6,000,000 5,463,599 5,464,124 5,000,000 4,449,580 4,288,054 ( sq ft) 4,000,000 3,679,796 2,858,121 3,000,000 2,175,522 2,000,000 1,656,943 1,186,052 1,000,000 - 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 46: Portfolio Occupancy Rate
Portfolio Occupancy Rate Occupancy Rate As at 31 Dec 2014 Axis REIT has only 10 out of 33 properties that carry vacancy. 23 properties enjoy 100% occupancy. Vacant 7% Occupancy As at 30 Sept 2014 90.54% As at 31 Dec 2014 92.98% Vacancy As at 31 Dec 2014 7.02% Occupied Space to be let out 481,259 sq.
Slide 47: Occupancy Rates by Property As At 31 Dec 2014
Occupancy Rates by Property As At 31 Dec 2014 1 Menara Axis 100.00 % 18 BMW Asia Technology Centre 100.00 % 2 Crystal Plaza 81.33 % 19 Niro Warehouse 100.00 % 3 Quattro West 84.18 % 20 Delfi Warehouse 100.00 % 4 Axis Eureka 62.07 % 21 Axis Steel Centre 100.00 % 5 Axis Business Park 58.46 % 22 Bukit
Slide 48: Properties Below 90% Occupancy
Properties Below 90% Occupancy Occupancy rates of properties below 90% as at 31 Dec 2014 Axis Tech Centre 88.29% Fonterra HQ 84.96% Axis Business Campus - Infinite Centre 69% Axis Business Park 58.46% Axis Eureka 62.07% Quattro West 84.18% Crystal Plaza 81.33% Note: Vacant space in Fonterra HQ is bu
Slide 49: Occupancy Rates – 5 Year Analysis
Occupancy Rates – 5 Year Analysis 100.00% 95.73% 97.22% 96.25% 94.87% 92.98% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 7.02% 4.27% 3.75% 5.13% 2.78% 0.00% 2010 2011 2012 2013 2014 Occupied Vacant 49
Slide 50: Diversified Portfolio
Diversified Portfolio Portfolio Diversification by Type and NLA = Office = Office/ Industrial = Hypermarkets = Warehouse Logistic = Manufacturing Facilities - Light Industrial 50
Slide 51: Diversified Portfolio – 5 Years Analysis
Diversified Portfolio – 5 Years Analysis 50.00% Portfolio Diversification by Type and NLA 44.50% 45.00% 43.00% 43.38% 40.00% 40.00% 40.00% 37.00% 35.00% 35.00% 31.00% 30.82% 30.00% 25.00% 22.50% 20.00% 18.60% 15.00% 14.00% 11.00% 11.00% 11.16% 10.00% 9.00% 9.00% 8.00% 8.00% 7.84% 7.00% 6.80% 5.40% 5
Slide 52: Portfolio Location
Portfolio Location Portfolio Diversification by Geographical Location Petaling Jaya 29.17% Johor 24.62% Shah Alam 21.13% Penang 10.91% Klang 6.19% Nilai 4.25% Kedah 2.01% Cyberjaya 1.71% 52
Slide 53: Tenancy Mix Single Tenant vs Multi-Tenants
Tenancy Mix Single Tenant vs Multi-Tenants 41.69% 58.31% Single Tenant Multi Tenants 53
Slide 54: Lease Expiry Profile – Looking Forward
Lease Expiry Profile – Looking Forward Year Area up for % of Total % of Rental renewal NLA Income 2015 902,252 sq. ft. 13.15% 18.24% 2016 1,653,053 sq. ft. 24.10% 30.89% 2017 1,082,431 sq. ft. 15.78% 20.84% 54
Slide 55: Leasing Profile – 2010 to 2014
Leasing Profile – 2010 to 2014 2010 2011 2012 2013 2014 Sq. Ft. of space expiring 972,653 557,738 757,195 938,917 1,825,949 % over total NLA 22.68% 12.54% 13.86% 17.18% 26.62% Sq. Ft. of space renewed 791,386 540,279 507,841 789,795 1,445,092 % over total NLA 18.46% 12.14% 9.29% 14.45% 21.06% Sq. Ft
Slide 56: Positive Rent Reversions
Positive Rent Reversions Space Renegotiated Properties Space Renegotiated % Rent Movement (Sq. Ft.) Menara Axis 15,763 +4.87% Crystal Plaza 7,747 +9.91% Axis Business Park 131,803 +9.76% Infinite Centre 28,074 +11.76% Wisma Kemajuan 9,583 +4.66% Axis Eureka 19,768 +6.61% Axis Steel Centre 366,839 -1
Slide 57: Income Growth – Leasing Profile
Income Growth – Leasing Profile Successfully renegotiated 1,445,092 sq. ft. space out of 1,825,949 sq. ft. space due for renewal in 2014. 79% tenants retention achieved. Rental growth of 753,506 sq. ft. space achieved from pre- negotiated rent step up in the leases. The leases in the portfol
Slide 58: Weighted Average Lease Expiry (WALE)
Weighted Average Lease Expiry (“WALE”) The “WALE” for the portfolio is: By Year Q4 2014 Q4 2013 Q4 2012 Q4 2011 By NLA 4.22 3.89 4.43 5.64 By Rental 4.33 3.99 4.17 5.19 Note: Improvement in WALE is contributed by new leases from asset acquisition and renewals of expiring leases. 58
Slide 59: Portfolio Efficiency (PE)
Portfolio Efficiency (“PE”) The Efficiency Ratio = Operating Cost for the Portfolio / Gross Property Income Q4 2014 Q4 2013 Q4 2012 Q4 2011 Q4 2010 15.66% 14.73% 15.17% 15.19% 14.20% 59
Slide 60: Top 10 Tenants – Strong Rental Covenants
Top 10 Tenants – Strong Rental Covenants 1. Konsortium Logistik Berhad 2. LF Logistics Services (M) Sdn Bhd 3. Schenker Logistics (M) Sdn Bhd 4. Tenaga Nasional Berhad 5. Tesco Stores (M) Sdn Bhd 6. Strateq Data Center Sdn Bhd 7. DHL Properties (M) Sdn Bhd 8. GCH Retail (M) Sdn Bhd 9. Nippon Express
Slide 61: Asset Enhancement Initiatives
Asset Enhancement Initiatives
Slide 62: Axis Business Campus Refurbishment
Axis Business Campus Refurbishment
Slide 63: Axis Business Campus Awards
Axis Business Campus Awards AXIS BUSINESS CAMPUS WINS INTERNATIONAL PROPERTY AWARD FOR COMMERCIAL RENOVATION/ REFURBISHMENT IN MALAYSIA AND ASIA PACIFIC Axis REIT walked away as winners at the prestigious Asia Pacific Property Awards 2014, taking home 2 awards for Axis Business Campus. At the awards
Slide 64: Axis Business Campus Refurbishment Projected ROI
Axis Business Campus Refurbishment Projected ROI Project Analysis Axis Business Initial Cost : RM 34,173,526.21 Campus (ABC) Redevelopment : RM 23,639,326.00 Total Cost : RM 57,812,852.21 NLA : 155,401 sq. ft. Estimated Property Income : RM 7,600,000 Projected Gross Yield: 13%
Slide 65: Axis Business Park Block C Refurbishment-Before
Axis Business Park Block C Refurbishment-Before
Slide 66: Axis Business Park Block C Progress
Axis Business Park Block C Progress
Slide 67: Axis Business Park Block C Project Photos
Axis Business Park Block C Project Photos New environmentally- friendly R410A air- conditioning system cluster on rooftop New smoke spill system complying with Bomba requirements 67
Slide 68: Axis Business Park Block C Project Photos
Axis Business Park Block C Project Photos Typical lift lobbies on all floors Typical toilets on all floors 68
Slide 69: Axis Business Park Block C - Projected ROI
Axis Business Park Block C - Projected ROI Project Analysis ABP Block C Initial Cost : RM 46,393,274 Refurbishment Redevelopment : RM 12,324,149 (est.) Total cost : RM 58,735,423 NLA : 182,187 sq. ft. Number of Car parks: 179 Estimated Property Income : RM 7,200,000 Projected Gross Yield : 12.26%
Slide 70: The Annex Redevelopment
The Annex Redevelopment Current Status
Slide 71: The Annex Redevelopment
The Annex Redevelopment After Enhancement
Slide 72: The Annex Redevelopment - Projected ROI
The Annex Redevelopment - Projected ROI Project Analysis Annex Initial Cost : RM 12,289,272.25 Redevelopment Redevelopment : RM 30,000,000.00 (est.) Total cost : RM 42,289,272.25 NLA : 127,133 sq. ft. (30% office & 70% warehouse) Number of Car Parks: 266 Estimated Gross Property Income : RM 4,500,00
Slide 73: Sustainability Initiatives
Sustainability Initiatives
Slide 74: Initiatives Carried Out Up To Q4 2014
Initiatives Carried Out Up To Q4 2014 Sustainability policy drafted and implemented Attended various trainings and conferences Energy audit initiated • Menara Axis was test case • Identified air-conditioning system for replacement • Pilot programme to replace with VRV air-conditioning system o
Slide 75: Q4 Business Development Report
Q4 Business Development Report
Slide 76: Current Acquisitions
Current Acquisitions 4 New Yield Accretive Acquisitions at Total Value of RM434 million COMPLETED TRANSACTIONS 3 acquisition transactions completed as of 31 December 2014, located in prime Shah Alam and Johor Bahru industrial areas. • Axis MRO Hub, Section 15 – completed 18 December 2014 • Axis Sh
Slide 77: Axis MRO Hub - Section 15 Shah Alam
Axis MRO Hub - Section 15 Shah Alam 77
Slide 78: Axis MRO Hub - Section 15 Shah Alam
Axis MRO Hub - Section 15 Shah Alam Land Area : Approx. 3 acres Gross Floor Area : Total – approx. 172,000 sf Land Tenure : Leasehold – expiring 12 Jan 2086 Occupancy : 100% Purchase Price : RM52.5 million Valuation : RM53 million Projected Initial Net Yield : 7.07% Overall WALE : approx. 7 years 78
Slide 79: Axis SADC 3 - Section 33 Shah Alam
Axis SADC 3- Section 33 Shah Alam Building C – LF Logistics Building A&B – Konsortium Logistik 79
Slide 80: Axis SADC 3 - Section 33 Shah Alam
Axis SADC 3 - Section 33 Shah Alam Land Area : Approx. 23 acres Gross floor area : Total – approx. 694,000 sf : Building A & B – approx. 362,000 sf (Konsortium Logistik) : Building C – approx. 331,000 sf (LF Logistics) Land Tenure : Freehold Occupancy : 100% Solar Panel Leases : Approx. 297,000sf of
Slide 81: Axis Steel Centre @ SiLC Johor
Axis Steel Centre @ SiLC Johor 81
Slide 82: Axis Steel Centre @ SiLC Johor
Axis Steel Centre @ SiLC Johor Land Area : Approx. 27 acres Gross Floor Area plus hardstand : 504,400 sf + 183,611 sf Land Tenure : Freehold Occupancy : 100% Purchase Price : RM153.5 million Valuation : RM156.0 million Projected Initial Net Yield : 7.2% Overall WALE : 15 years 82
Slide 83: Axis Steel Centre @ SiLC Johor
Axis Steel Centre @ SiLC Johor 83
Slide 84: Axis SADC 2 - Section 16 Shah Alam
Axis SADC 2- Section 16 Shah Alam 84
Slide 85: Axis SADC 2 - Section 16 Shah Alam
Axis SADC 2- Section 16 Shah Alam Land Area : Approx. 6 acres Gross floor area : 171,650 sf Land Tenure : Leasehold expiring 8 August 2066 Occupancy : 100% Solar panel leases : Approx. 145,000sf of roof space Purchase Price : RM45 million Valuation : RM46 million Projected initial net yield : 7.0% W
Slide 86: Prospective Acquisition Targets
Prospective Acquisition Targets The Manager is currently undergoing assessments for the following assets as future acquisition targets: 1.An industrial facility at Bayan Lepas 2.An industrial facility in Seberang Prai 3.A warehouse in Seberang Prai Total Estimated Value of RM160 million 86
Slide 87: Q4 Investor Relations Report
Q4 Investor Relations Report
Slide 88: Share Price Performance YTD 2014
Share Price Performance YTD 2014 3.80 3.69 3.62 3.62 3.55 3.54 3.55 3.50 3.38 3.37 3.31 3.30 3.09 2.93 2.85 2.80 2.30 1.80 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 88
Slide 89: KLCI vs Axis-REIT
KLCI vs Axis-REIT 1 Jan 2013 – 31 December 2014 Price & Volume Statistics 140% Unit Price @ 31 Dec 2014 RM 3.62 130% Unit Price @ 30 Jun 2014 RM 3.31 Unit Price @ 31 Dec 2013 RM 2.93 120% Highest Price 4Q2014 RM 3.70 (November 2014) 110% Lowest Price1Q 2014 RM 2.80 (January 2014) 100% Unit Price app
Slide 90: Total Return Comparables for MREITs YTD 2014
Total Return Comparables for MREITs YTD 2014 40.00 32.82 30.00 29.06 20.00 18.83 % 13.29 11.36 10.00 8.85 8.30 8.27 6.48 5.60 -11.90 -2.30 -1.91 -12.69 0.00 0.00 -10.00 -20.00
Slide 91: Share Volume YTD 2014
Share Volume YTD 2014 18,000,000 16,913,000 16,000,000 13,903,000 14,000,000 12,274,000 12,000,000 10,546,300 10,000,000 9,308,000 7,924,800 8,000,000 6,000,000 5,635,500 5,571,700 5,173,600 4,744,600 4,554,600 4,015,400 4,319,100 4,000,000 2,000,000 - Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Slide 92: Top 10 Unitholders YTD 2014
Top 10 Unitholders YTD 2014 1 EMPLOYEES PROVIDENT FUND 2 SKIM AMANAH SAHAM BUMIPUTERA 3 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 4 TEW PENG HWEE @ TEOH PENG HWEE 5 ALEX LEE LAO 6 EXEMPT AN FOR AIA BHD. 7 DATO’ CARL GUNNAR MYHRE 8 PERMODALAN NASIONAL BERHAD 9 AMANAH SAHAM 1MALAYSIA 10 EXEMPT AN FOR EA
Slide 93: Analysis of >1 million Unitholders
Analysis of >1 million Unitholders Top 5 increases in unitholdings : o Lembaga Tabung Haji o Kumpulan Wang Persaraan (Diperbadankan) o EPF o Skim Amanah Saham Bumiputera o Permodalan Nasional Berhad Top 5 decreases in unitholdings : o TNTC for Mondrian Emerging Markets Small Cap Equity Fund o Exempt
Slide 94: Investor Visibility and Liquidity YTD 2014
Investor Visibility and Liquidity YTD 2014 No. of CDS Accounts 3,500 3,242 3,228 3,176 3,138 3,009 3,000 2,850 2,702 2,500 2,420 2,080 2,000 1,652 1,500 1,000 500 - 2008 2009 2010 2011 2012 2013 1Q2014 2Q2104 3Q2014 4Q2014 Quarter-on-quarter, total number of CDS accounts increased by 38 to 3,176.
Slide 95: 2014 Seminar Presentations & Investor Meetings
2014 Seminar Presentations & Investor Meetings 11-Jan Wealth Mastery Convention; presentation on “Industrial Market Outlook and Performance for Year 2014” 26-Feb Industrial Real Estate and Business Parks Conference 08-Apr APREA Property Leaders Forum 2014 15-Apr Public Mutual Investor Meeting 18-Apr
Slide 96: Analyst Coverage
Analyst Coverage Target Price Coverage Rating (RM) Coverage Period CIMB Bank Buy 3.85 3Q2014 RHB Hold 3.55 3Q2014 Maybank Hold 3.34 3Q2014 Kenanga Underperform 3.48 3Q2014 Nomura Buy 4.15 3Q2014 Alliance DBS Hold 3.65 3Q2014 Affin Hwang Hold 3.90 3Q2014 Nomura Buy 4.15 4Q2014 (Post-placement) Kenang
Slide 97: 2014 Engagements: Unitholders, Analyst & Media
2014 Engagements: Unitholders, Analyst & Media Category Date Description Unitholders 29-April Second Annual General Meeting 29-April Unitholders’ Meeting 19-Nov Extraordinary General Meeting Analysts & Press 21-Jan Announcement of fourth quarter 2013 results 4-July Announcement of second quarter 201
Slide 98: Thank You
THANK YOU
Axis Real Estate Investment Trust — Q4 2014 Earnings Presentation on 6ix