Axis Real Estate Investment Trust · MYX:AXREIT
Axis Real Estate Investment Trust — Q1 2021 Earnings Presentation
34 slides from Axis Real Estate Investment Trust's earnings presentation, Apr 21, 2021
Slide 1: Results Presentation 1Q2021
AXIS REAL ESTATE INVESTMENT TRUST Results Presentation 1Q2021 21 April 2021
Slide 2: Highlights, Portfolio Overview, Financial Overview, Stock Information
PORTFOLIO FINANCIAL STOCK HIGHLIGHTS OVERVIEW OVERVIEW INFORMATION 1
Slide 3: Highlights
HIGHLIGHTS 2
Slide 4: 2021 Highlights
2021 HIGHLIGHTS 57 properties on portfolio Portfolio Occupancy of 91% (as at 31/03/2021) 45 properties with 100% occupancy Weighted Average Lease Expiry of 5.5 years Total Assets Under Management Reclassified as Islamic REIT in 2008 RM3.52 billion Space Under Management Distribution Per Unit for 1Q0
Slide 5: 1Q2021 Highlights
1Q2021 HIGHLIGHTS ► Declared 1st interim 2021 DPU of 2.23 sen. ► Portfolio size increased by 4 to a total of 57 properties. ► Investment properties currently stands at RM3.4 billion. ► Traded at a premium of 32% to NAV as of 31 March 2021. ► Completed the Income Distribution Reinvestment Plan in con
Slide 6: Portfolio Overview
PORTFOLIO OVERVIEW 5
Slide 7: Portfolio Overview: Space Under Management
PORTFOLIO OVERVIEW Space Under Management (sq ft) 12,000,000 10,902,323 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 4,449,580 4,288,054 4,000,000 3,679,796 2,858,121 2,175,522 2,000,000 1,656,943 1,186,590 - 2005
Slide 8: Portfolio Diversification by Location
PORTFOLIO OVERVIEW Our 57 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 of: • Penang • Selangor • Johor This geographical diversification is a
Slide 9: 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 Single Tenant Multi Tenants Manufacturing Logistics Vacant Office Office/ Industrial 9% 11% Hyperm
Slide 10: Portfolio Overview: Properties, Tenants, Efficiency Ratio
PORTFOLIO OVERVIEW As at 31 March 2021, the portfolio has 57 assets comprising 10,902,323 sq. ft. and 152 tenants. 1Q2021 No. of Properties 57 000) 57,378 000) 8,583 000) 48,795 Occupancy 91% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 1Q2021 2020 2019 2018 2017 14.96% 1
Slide 11: Properties with Occupancy Below 90%
PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 31 MARCH 2021 Axis Business Park 86% Fonterra HQ 85% Axis Business Campus 75% Wisma Kemajuan 73% Menara Axis 73% Wisma Academy Parcel 68% The Annex 60% Axis Technology Centre 52% Crystal Plaza 46% D8 Logistics Warehouse 0% Axis Industrial
Slide 12: 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 2021 Total NLA Income/month 2022 Total NLA Income/month 2023 Total NLA Income/month Petaling Jaya 575,563 5.28 10.14 533,069 4.88 8.84 370,976 3.45 5.63 Shah Alam 612,547 5.62 5.96
Slide 13: Top Tenants
PORTFOLIO OVERVIEW Top 10 Tenants ESTABLISHED NATIONWIDE FOOTPRINT YTD top ten tenants account for 45.24% of the total revenue Kedah (1.3%) Penang (7.3%) • Sungai Petani 1. Nestle Products Sdn Bhd • Bayan Lepas • Seberang Perai 2. Yongnam Engineering Sdn Bhd • Batu Kawan 3. Wasco Coatings Malaysia S
Slide 14: Completed Acquisitions
PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 1. Indahpura Facility 2, Johor 2. Indahpura Facility 3, Johor Completion Date : 12 January 2021 Completion Date : 26 February 2021 Net Lettable Area : 35,339 sq. ft. Net Lettable Area : 24,949 sq. ft. Land Area : Approx. 1.2 acres Land Area : Approx. 1.25 ac
Slide 15: Completed Acquisitions
PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 3. Beyonics i-Park Campus Block F, Johor 4. Bukit Raja Distribution Centre 2, Shah Alam Completion Date : 3 March 2021 Completion Date : 31 March 2021 Net Lettable Area : 57,545 sq. ft. Gross Floor Area : 326,231 sq. ft. Land Area : Approx. 2.1 acres Land Ar
Slide 16: Ongoing Acquisitions
PORTFOLIO OVERVIEW ONGOING ACQUISITIONS 1. Warehouse @ Pasir Gudang, Johor Target Completion Date : 1H2021 Net Lettable Area : 398,060 sf Land Area : Approx. 16.23 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM75 million WALE : Approx. 10 years 15
Slide 17: 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 18: Financial Overview
FINANCIAL OVERVIEW 17
Slide 19: Snapshot as at March 2021
FINANCIAL OVERVIEW SNAPSHOT AS AT 31 MARCH 2021 RM3.52 billion RM1.27 billion RM2.13 billion Total Assets Total Financings RM1.47 36% 2.23 sen (1Q2021) Net Asset Value Per Unit Financing Ratio Distribution Per Unit 18
Slide 20: Return Comparatives
FINANCIAL OVERVIEW RETURN COMPARATIVES 6.00% 5.20% 5.00% 4.57% 4.00% 3.09% 3.00% 2.00% 1.75% 1.75% 1.00% 0.00% Axis-REIT Distribution EPF Dividend Return 2020 10-yr MGS 12 Months FD Rate OPR Yield (as at 15 April 2021) (as at 15 April 2021) 19
Slide 21: Income Statement 1Q2021 vs 1Q2020
FINANCIAL OVERVIEW INCOME STATEMENT 1Q2021 vs 1Q2020 1Q2021 1Q2020 Changes / Movement No. of Properties 57 50 +7 Property Income Note 1 57,378 54,540 Property Income - Property income before lease incentive adjustment 57,690 54,875 +5.1% - Lease incentive adjustment (non-distributable) (312) (335) P
Slide 22: Income Statement 1Q2021 vs 1Q2020 - Notes
FINANCIAL OVERVIEW INCOME STATEMENT 1Q2021 vs 1Q2020 - NOTES Note 1 Property Income Increase in property income as compared to preceding year corresponding period was mainly due to rental from newly acquired properties. This has offset the rental loss from the expiry of tenancy of D8 Logistics Wareh
Slide 23: 5-Year Performance
FINANCIAL OVERVIEW Revenue (RM'000)* 5-YEAR PERFORMANCE 250,000 Net Property Income (RM'000)* 216,005 214,975 224,712 224,064 203,637 250,000 200,000 197,242 167,761 190,996 190,348 200,000 175,810 185,249 184,219 150,000 169,415 141,249 150,000 100,000 100,000 57,690 57,378 50,000 49,107 48,795 50,
Slide 24: Yield by Asset Types
FINANCIAL OVERVIEW PORTFOLIO YIELD BY ASSET TYPES Asset Type Net Yield (%) Gross Yield (%) Office 5.9 8.4 Office Industrial 6.8 8.9 Logistics Warehouse 7.8 8.5 Manufacturing Facilities 7.3 8.1 Hypermarket 8.2 8.8 Average 7.3 8.5 23
Slide 25: Financial Position
FINANCIAL OVERVIEW FINANCIAL POSITION Investment Properties Note 1 3,441,067 3,280,240 +160,827 Fixed Assets 2,776 2,870 -94 Other Assets Note 2 80,797 80,973 -176 TOTAL ASSETS 3,524,640 3,364,083 +160,557 Financing Note 4 1,269,276 1,112,183 +157,093 Other Payables 116,015 119,774 -3,759 Deferred T
Slide 26: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 1 Investment Properties During the year, a total of RM10.3 million was spent on enhancement works on the portfolio. Out of this amount, RM5.9 million was paid as part payment for the extension of lease of D21 Logistics Warehouse for another 30 years
Slide 27: Notes - Financial Position
FINANCIAL OVERVIEW NOTES - FINANCIAL POSITION Note 2 Other Assets The average collection of trade receivables as at 31 March 2021 was 15 days. Note 3 Unitholders Capital A total of net proceeds of RM7.7 million raised from 4,150,222 new issued units pursuant to the IDRP applicable to the 2020 final
Slide 28: Note 4: 5-Year Financing Profile
FINANCIAL OVERVIEW NOTE 4: 5-YEAR FINANCING PROFILE 2017 2018 2019 2020 1Q2021 842,594 1,059,367 885,859 1,112,183 1,269,276 2,549,609 2,840,463 3,085,681 3,364,083 3,524,640 Financing Ratio 33.05% 37.30% 28.71% 33.06% 36.01% Effective Profit Rate 4.21% 4.32% 4.37% 3.89% 3.71% Percentage of short te
Slide 29: Financing Ratio
FINANCIAL OVERVIEW FINANCING RATIO Allowable threshold of 50% has been increased to 60% 50% Placements Undertaken effective from 12 August 2020 until 31 December 2022 45% 40% 40% 38% 36% 36% 36% 36% 35% 33% 33% 33% 33% 33% 31% 29% 30% 30% 27% 27% 25% 24% 20% 15% 10% 5% 0% 4Q2007 1Q2008 2Q2009 3Q2009
Slide 30: Total Assets and Unitholders' Capital
FINANCIAL OVERVIEW 4,000.0 3,524.6 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 RM mil 2,000.0 1,589.4 1,616.5 1,583.8 1,595.5 1,603.2 1,500.0 1,298.4 1,240.3 1,247.1 1,208.9 1,044.7 1,052.3 1,060.0 1,000.0 907.7 726.4 728.2 735.4 751.0 581.8 540.3 500.0 339.6 411.
Slide 31: Stock Information
STOCK INFORMATION 30
Slide 32: Stock Information: Top Unitholders
STOCK INFORMATION TOP 10 UNITHOLDERS* Name of Unitholder % 1 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 9.89% 2 EMPLOYEES PROVIDENT FUND BOARD 8.33% 3 LEMBAGA TABUNG HAJI 4.82% 4 TEW PENG HWEE @ TEOH PENG HWEE 3.95% 5 ALEX LEE LAO 3.73% 6 EXEMPT AN FOR AIA BHD. 3.28% 7 AMANAH SAHAM BUMIPUTERA 2.94% 8 P
Slide 33: Stock Information: Number of CDS Accounts
STOCK INFORMATION Number of CDS Accounts Units Held 1Q2021 Units Held 4Q2020 Movement Total no. of unitholders 8,637 6,776 1,861 Total foreign holdings 14.87% 14.40% 0.47% Foreign holdings related party 6.41% 6.31% 0.10% Foreign holdings non-related party 8.46% 8.09% 0.37% Related party holdings 11.
Slide 34: axis-reit.com.my
A®4IS REAL ESTATE INVESTMENT TRUST axis-reit.com.my
Axis Real Estate Investment Trust — Q1 2021 Earnings Presentation on 6ix