Results Presentation 4Q2020 20 January 2021
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Results Presentation 4Q2020 20 January 2021 1 AGENDA 2020 PORTFOLIO FINANCIAL STOCK HIGHLIGHTS OVERVIEW OVERVIEW INFORMATION 2 2020 HIGHLIGHTS 3 HIGHLIGHTS PORTFOLIO SUMMARY 53 properties on portfolio Portfolio Occupancy of 91% (as at 31/12/2020) 41 properties with 100% occupancy Weighted Average Lease Expiry of 5.7 years Total Assets Under Management RM3.36 billion Reclassified as Islamic REIT in 2008 Space Under Management Total Distribution Per Unit YTD2020 10.5million sq ft 8.75 sen Financing Ratio Market Capitalization (as at 31/12/2020) 33% RM2.93 billion Solid industrial space portfolio Nationwide presence across Malaysia 92% of properties on industrial titles 4 PORTFOLIO HIGHLIGHTS 1Q 2020 Completed the acquisition of Axis Facility 2 @ Nilai for RM50.0 million on 28 February 2020. The Axis Facility @ Batu Kawan development project was successfully handed over to Federal Express Services (M) Sdn Bhd and rental commenced on 1 March 2020. Completed the acquisition of Axis Facility 2 @ Bukit Raja for RM37.0 million on 17 March 2020. 2Q2020 Completed the acquisition of D37c Logistics Warehouse for RM65.0 million on 9 June 2020. 4Q2020 Completed the acquisition of Axis Shah Alam Distribution Centre 5 for RM95.0 million on 10 November 2020. Completed the acquisition of Axis Industrial Facility @ Shah Alam for RM11.87 million on 3 December 2020. 5 PORTFOLIO HIGHLIGHTS 4Q2020 Signed the Sale & Purchase Agreements to acquire three units of 1 ½ storey detached factories for RM28.2 million, located in Kawasan Perindustrian i-Park in Mukim Kulai, Johor on 19 November 2020. One of the properties was completed on 12 January 2021 and the property is now known as Indahpura Facility 2. Acceptance of Letter of Offer to acquire a manufacturing facility for RM120.0 million, located in Kawasan Perindustrian Bukit Raja Selatan, Shah Alam, Selangor. Acceptance of Letter of Offer to acquire a warehouse for RM75.0 million, located in Mukim Plentong, Johor Bahru. Close to 1.37 million sq. ft. of space locked in through tenancy renewals and new tenants secured. Achieved 5.6 % positive rental reversion for the year from tenancy renewals and contracted step-ups. 6 FINANCIAL HIGHLIGHTS Declared the DPU of 8.75 sen for 2020. Total of RM19.0 million revaluation gain recorded for 2020. Investment properties currently stands at RM3.28 billion. Net property income increased by 3.6% for 2020 as compared to 2019. Realised net income increased by 8.5% for 2020 as compared to 2019. Announced the implementation of the Income Distribution Reinvestment Plan in conjunction with the payment of 2020 final income distribution. Traded at a premium of 38% to NAV on 31 December 2020. Number of unitholders increased to 6,776 in 4Q2020 as compared to 5,913 in 3Q2020. 7 PORTFOLIO OVERVIEW 8 PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Space Under Management (sq ft) 12,000,000 10,478,726 10,000,000 9,349,267 9,537,666 8,087,781 8,000,000 7,606,863 7,015,242 6,859,474 6,000,000 5,464,124 5,463,599 ( ( sq ft) 4,288,054 4,449,580 4,000,000 3,679,796 2,858,121 2,175,522 2,000,000 1,656,943 1,186,590 - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 9 PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Our 53 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 in: • Penang • Selangor • Johor This geographical diversification is aimed at capturing the rapid growth of current and future regional industrial hubs. Portfolio Diversification by Location (on NLA) 1% 5% 6% Selangor 8% Johor Penang 26% 54% Pahang Negeri Sembilan Kedah 10 PORTFOLIO OVERVIEW DIVERSIFIED AND EXPANDING PORTFOLIO Portfolio Diversification Portfolio Diversification Portfolio Diversification by on NLA) by Asset Type (on NLA) by Occupancy Type (on NLA) Services Consumer Products *Industrial title properties Single Tenant Multi Tenants Logistics Manufacturing Vacant Office Office/Industrial 9% 11% 31% 17% Hypermarkets Warehouse Logistics 26% Manufacturing Facilities 5% 32% 33% 15% 74% 3% 44% 11 PORTFOLIO OVERVIEW HIGH OCCUPANCY RATE WITH INCOME VISIBILITY As at 31 December 2020, the portfolio has 53 assets comprising 10,478,726 sq. ft. and 150 tenants. 2020 No. of Properties 53 000) 224,064 000) 33,716 000) 190,348 Occupancy 91% Portfolio Efficiency Ratio = YTD Property Expenses / YTD Property Income 2020 2019 2018 2017 2016 15.05% 14.31% 13.66% 15.80% 16.23% 12 PORTFOLIO OVERVIEW HIGH OCCUPANCY RATE WITH INCOME VISIBILITY Year % of % of Rental Year % of % of Rental Year % of % of Rental Property 2020 Total NLA Income/month 2021 Total NLA Income/month 2022 Total NLA Income/month Petaling Jaya 625,591 5.96 9.92 563,707 5.38 9.68 493,891 4.71 8.12 Shah Alam 412,015 3.93 3.86 612,547 5.85 5.79 105,550 1.01 1.23 Klang - - - - - - 149,605 1.43 1.19 Johor 468,936 4.48 2.97 772,475 7.37 5.08 216,988 2.07 1.98 Nilai - - - - - - 291,642 2.78 1.41 Penang 205,151 1.96 2.37 - - - 395,225 3.77 2.96 TOTAL 1,711,693 16.33 19.12 1,948,729 18.60 20.55 1,652,901 15.77 16.89 Lease Expiry By Type Year % of % of Rental Year % of % of Rental Year % of % of Rental Property 2020 Total NLA Income/month 2021 Total NLA Income/month 2022 Total NLA Income/month Office 137,864 1.32 3.12 134,059 1.28 3.46 113,742 1.09 2.42 Office Industrial 487,727 4.65 6.80 429,648 4.10 6.23 410,399 3.92 6.30 Warehouse Logistics 1,086,102 10.36 9.20 1,087,123 10.38 8.17 645,445 6.15 5.07 Manufacturing Facilities - - - 297,899 2.84 2.69 483,315 4.61 3.10 Hypermarket - - - - - - - - - TOTAL 1,711,693 16.33 19.12 1,948,729 18.60 20.55 1,652,901 15.77 16.89 Out of 1.7 million square feet of space expiring in 2020, 77% of this space was renewed and 3% was secured by new tenants. 13 PORTFOLIO OVERVIEW PROPERTIES WITH OCCUPANCY BELOW 90% AS AT 31 DECEMBER 2020 Fonterra HQ 85% Axis Business Park 82% Axis Business Campus 75% Wisma Kemajuan 73% Menara Axis 73% Wisma Academy Parcel 71% The Annex 60% Axis Technology Centre 52% Crystal Plaza 46% D8 Logistics Warehouse 0% Axis Industrial Facility@ Rawang 0% Note: Vacant space in Fonterra HQ is built for their future expansion 14 PORTFOLIO OVERVIEW ESTABLISHED NATIONWIDE FOOTPRINT Top 10 Tenants YTD top ten tenants account for 46.75% Kedah (1.3%) of the total revenue Penang (7.6%) • Sungai Petani • Bayan Lepas 1. Nestle Products Sdn Bhd • Seberang Perai 2. LF Logistics Services (M) Sdn Bhd 3. Yongnam Engineering Sdn Bhd Pahang (4.8%) 4. Wasco Coatings Malaysia Sdn Bhd • Kuantan Selangor (54.1%) 5. Schenker Logistics (Malaysia) Sdn Bhd • Shah Alam (20.9%) 6. Upeca Aerotech Sdn Bhd • Petaling Jaya (19.0%) Johor (25.7%) • Klang (9.6%) • Pasir Gudang 7. POS Logistics Berhad • Rawang (2.9%) • Gelang Patah • Subang (1.7%) • Iskandar Puteri 8. Tesco Stores (Malaysia) Sdn Bhd • Kulaijaya 9. Teraju Sinar Sdn Bhd Negeri Sembilan 10. Northport (Malaysia) Berhad (6.5%) • Nilai • Senawang 15 PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES AND MAJOR REPAIRS Crystal Plaza, Petaling Jaya: Upgrade of air conditioning system 16 PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES AND MAJOR REPAIRS Crystal Plaza & Menara Axis, Petaling Jaya: Upgrade of car park lighting system with LED and sensor for better energy savings and CCTV system with higher resolution and bigger memory capacity 17 PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES AND MAJOR REPAIRS Axis Vista, Petaling Jaya: Repair of driveway caused by collapsed Sungai Penchala retaining wall 18 PORTFOLIO OVERVIEW ASSET ENHANCEMENT INITIATIVES AND MAJOR REPAIRS Infinite Centre & Axis Business Campus, Petaling Jaya: Building façade improvement works 19 PORTFOLIO OVERVIEW COMPLETED DEVELOPMENT Axis Facility @ Batu Kawan Net 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 Lease Commencement : 1 March 2020 Development Value : RM14.6million Market Value : RM18.95million (as at 31 Dec 2020) 20 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. Net Lettable Area : 199,890 sq. ft. Land Area : Approx. 8.75 acres Land Area : Approx. 5.57 acres Land Tenure : Leasehold Land Tenure : Leasehold Occupancy : 100% Occupancy : 100% Purchase Price : RM50.0 million Purchase Price : RM37.0 million WALE : 10 years WALE : Approx. 2.5 years 21 PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 3. D37c Logistics Warehouse, PTP Johor 4. Axis Shah Alam Distribution Centre 5, Selangor Completion Date : 9 June 2020 Completion Date : 5 November 2020 Net Lettable Area : 222,723 sq. ft. Net Lettable Area : 285,249 sq. ft. Land Area : Approx. 8.2 acres Land Area : Approx. 10.4 acres Land Tenure : Sublease Land Tenure : Leasehold Occupancy : 100% Occupancy : 100% Purchase Price : RM65.0 million Purchase Price : RM 95.0 million WALE : Approx. 8 years WALE : Approx. 3 years 22 PORTFOLIO OVERVIEW COMPLETED ACQUISITIONS 5. Axis Industrial Facility @ Shah Alam, Selangor 6. Indahpura Facility 2, Johor Completion Date : 3 December 2020 Completion Date : 12 January 2021 Net Lettable Area : 41,061 sq.