REIT s An Alternative Investment Tool for your Wealth Creation

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1 REIT s An Alternative Investment Tool for your Wealth Creation Stewart LaBrooy CEO Axis REIT Managers Bhd & Chairman Malaysian REIT Managers Association September 24, 2011

2 Introduction The biggest asset class that the average Malaysian invests in is his life time is: Property 2

3 Introduction Why Property? Hedge against inflation Measure of wealth Inheritance for children 3

4 Introduction What Property do we buy? Houses Shop lots Office suites Condos 4

5 Introduction What Problems do we commonly face buying property for investment? Quick disposal Exposure to interest rates Taxation on income Finding tenants 5

6 Introduction Until 2005 people who wanted to invest in property directly had only these choices But all that has changed Today there is a different form of investing directly in property You can invest in REITs 6

7 What is a REIT? A real estate investment trust is a listed vehicle that invests in a portfolio of income-generating properties. Rents collected from tenants, less expenses are distributed on a regular basis to provide stable yields to Unitholders This distributed income to Unitholders is subject to a one time withholding tax of 10% for individuals. The REIT is not taxed by the IRB 7

8 What does a REIT represent? Units in a REIT represents equity ownership Provides the indirect access of large, stable estate portfolios in a tax efficient manner Tax efficiency -Investors are only taxed once High Corporate Governance REITs are governed by a Trust Deed, the stock exchange and the securities commission regulations which define the operating procedures ensuring a high level of corporate governance 8

9 Why REITs are an important Part of an Investment Portfolio - The Benefits 9

10 Why Listed REITs? Liquid proxy to physical assets- you can buy and sell like a equity stock. It is priced daily in the market Linked to interest rate cycle Hedge against inflation Low entry cost Excludes Property Business risk 10

11 Why REITs? REITs have a long history of impressive long term returns. REITs have a low correlation to stocks and Bonds They help reduce a portfolio s risk profile Data has shown that a portfolio that has a minority allocation to REITs have out performed those with only Bonds and equities.* Source: Ibbotson & Associates

12 Why REITs? They have been paying consistent dividends since 2005 despite the GFC Source : Company Data Axis -REIT Al Aqar JPJ REIT Atrium REIT Hektar REIT AmanahRaya REIT Axis REIT Quill Capita Trust AmFirst REIT Al-Hadharah Boustead REIT Starhill REIT 12

13 Why REITs? 104 Outperforms KLCI during recent market downturn KLCI AL-'AQAR KPJ AL-HADHARAH BOUS AMANAHRAYA REIT AMFIRST REIT ATRIUM REIT AXIS REAL ESTATE HEKTAR REIT QUILL CAPITA TR STARHILL REIT TOWER REIT UOA REIT SUNWAY REAL ESTA CAPITAMALLS MALA FTSE Bursa Malaysia KLCI 8/1/2011 8/3/2011 8/5/2011 8/7/2011 8/9/2011 8/11/2011 8/13/2011 8/15/2011 8/17/2011 8/19/2011 8/21/2011 8/23/2011 8/25/2011 8/27/2011 8/29/2011 8/31/2011 9/2/2011 9/4/2011 9/6/2011 9/8/2011 9/10/2011 9/12/2011 9/14/2011 Source: Bloomberg as at Sept

14 Why REITs? 180% 160% Its about Total Return- The Axis-REIT Total Return 166% 140% 120% 100% 80% 60% 67% 65% 40% 31% 20% 0% IPO - RM1.25 Placement '08 - RM1.80 Placement '09 - RM1.66 Placement '10 - RM1.97 Movement in Market Price Distribution Return 14

15 Why REITs? You can own properties around the world With a bigger global market we can see investors placing their funds in countries where they may never have a chance to invest in property London, New York, Tokyo, Hong Kong & Singapore all have REIT stock to choose from. More important they can choose between different countries at different points of the property cycle.

16 Earnings Profile REITs vs. Property Companies A REIT is driven by recurring rental income A property company seeks a combination of property sales, development profits, rental income and property investments Capital Structure and Cash Flow A REIT has low and defined level of retained earnings, low debt level defined by the regulators and strong cash flow from operations A property stock has a high gearing ratio due to high capital expenditure required for property development and sometimes negative cash flow. Low dividend payouts 16

17 REITs vs. Property Companies Dividend Distribution Policy A REIT will distribute % of its retained earnings before tax. A property stock has no certainty of a dividend payout. Risk Profile A REIT is a low risk, passive investment vehicle with a high certainty of cash flow from rentals derived from lease agreements with tenants A property stock has a high development and financial risk. 17

18 Corporate Governance REITs vs. Property Companies REITs are governed by multiple layers of stakeholders - unitholders, manager, trustees, regulating authorities ensuring that interest of minority unitholders are protected. A property stock is often dominated by a controlling shareholder which raises conflict of interest issues with minority shareholders. 18

19 REITs vs. Unit Trusts A REIT unitholder has a direct investment in the underlying assets of a REIT. A Unit Trust unitholder has an indirect investment in the investments held by the Unit Trust. 19

20 REITs vs. Unit Trusts Type of Fund REIT Unit Trust Can Fund size be increased? Yes Yes/No Dealings/Trading Bursa Malaysia Fund Manager Pricing Growth & earnings NAV Income Distribution Quarterly/ Semi annually Varies Distribution Cash Units Payout Policy > 90% Subject to performance 20

21 REIT vs. Fixed Deposit Today there is RM 280,000,000,000 in Fixed Deposits In Malaysia; and RM 80,000,000,000 In Savings Accounts

22 REIT vs. Fixed Deposit RM 1,000,000 in Fixed Deposit will yield RM 27,000 a year With inflation running at 3.5% your RM 1,000,000 will be worth RM 965,000 Your net loss = (RM 8,000)

23 REIT vs. Fixed Deposit RM 1,000,000 in a REIT stock will yield RM 80,000 a year (RM 72,000 after tax) And with inflation running at 3.5% your portfolio could be worth RM 1,035,000 upon revaluation Your total gain = RM 72, ,000 = RM107,000 Advantages: You can sell down stock when you want break an FD and you will be penalised. You get paid cash dividends Quarterly or Half Yearly

24 Typical REIT Structure Vendors Maximum 75% Unit holders Investors Minimum 25% and 1,000 Unit holders Cornerstone investors Institutional funds Retail Distributions Investment in REIT Units REIT Management Company Management Services Management Fees REIT Acts on behalf of Unit holders Trustees Trustee Fees Property Management Company Services Fees Properties 24

25 Typical Islamic REIT Structure Vendors Investors Cornerstone investors Shariah Advisor Maximum 75% Unit holders Minimum 25% and 1,000 Unit holders Institutional funds Retail Distributions Investment in REIT Units REIT Management Company Management Services Management Fees REIT Acts on behalf of Unit holders Trustees Trustee Fees Property Management Company Services Fees Shariah Compliant Properties 25

26 REITs Worldwide Date as of 30 Apr 2008 Source: APREA Research 26

27 Asian REITs 35 Market Capitalization of Individual REIT Markets in Asia US $ Billion JAPAN SINGAPORE HONG KONG TAIWAN THAILAND MALAYSIA KOREA Japan 42, Singapore 21, Hong Kong -7, Taiwan- 8, Thailand 20, Malaysia 13, Korea

28 28 M REITs

29 List of M REITs Trust Office Retail Industrial Hospitality Others Al-Aqar KPJ (hospital) Al-Hadharah (plantation) AmanahRaya (education) AmFirst Atrium Axis Hektar Quill Starhill Tower UOA CMMT Sunway Shariah compliant REIT 29

Capital Gain since listing June 30, 2011 120% 100% 96% 80% 60%

30 Capital Gain since listing June 30, % 100% 96% 80% 60% 46% 40% 20% 24% 18% 27% 29% 29% 26% 17% 23% 3% 7% 0% -20% -8% 30

31 Premium to Net Asset Values as at 21 Sept % 20% Percentage Premium or Discount to NAV 23% 24% 10% 8% 9% 3% 2% 0% -3% -9% -5% -10% -20% -30% Al Aqar JPJ REIT Atrium REIT Hektar REIT AmanahRaya REIT Axis REIT Quill Capita Trust AmFirst REIT -20% -18% Al-Hadharah Boustead REIT Starhill REIT -24% Tower REIT -29% UOA REIT CMMT Sunway -40% Source: Company Data NAV as at 30 June

32 Distribution yields of M REITs as at 21 Sept 2011 Projected 2011 Distribution Yield as at 21 Sept 2011 Prices 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 5.9% 8.0% 7.8% 8.2% 7.1% 7.8% 8.7% 5.2% 7.4% 8.6% 7.2% 5.9% 5.9% 4.0% 3.0% 2.0% 1.0% 0.0% Using Projected Jan-Dec 2011 DPU = ( 2H 2011 DPU ) x 2 32

33 Market Capitalization of M REITs Mln Source: The Edge, 22 Sept 2011

34 34 Tracking REIT Stocks

35 REITs The Risk Factors 35

36 REITs Risk Factors Refinancing Risks The ability for REITs to refinance their existing banking facilities are critical to their capital management. Failure to do so will mean selling off assets to repay loans Downside Dividend Yields A global recession will put strain across all businesses. As a result, dividend yields will come under pressure with negative rental reversions as businesses try to cut costs. Increased interest cost/spreads will also affect the bottom line 36

37 REITs Risk Factors Valuations Pressure Property valuations will also come under stress should negative rent reversion persist. As valuations fall, REITs gearing level will increase and possibly breach debt covenants. This could trigger balance sheet recapitalization. Dilutive capital raising Dilutive capital raising may be unavoidable in the event of balance sheet recapitalization. REITs with ready sponsor participation will likely to be the first to come to the market. 37

38 REITs Risk Factors Economic, Political and regulatory risks The performance of the real estate industry is closely linked to the economic environment. Any adverse developments in the political and economic environment and uncertainties in Malaysia can materially and adversely affect the property industry and hence the financial performance of REIT. These include the risks of war, global economic downturn and unfavourable changes in the Government s policy such as changes in rates of tax, methods of taxation or introduction of new regulations. 38

39 REITs Risk Factors Risk associated with borrowings Significant fluctuations in interest rates may have an adverse impact on the financial performance of REITs and may lower income distribution to unit holders. There is an inverse correlation between the interest rates and the distributable income to unit holders. 39

40 REITs Risk Factors Risk related to investments in real estate The yields of the real estate may be adversely affected by a number of factors, including but not limited to: Vacancies following expiry or termination of leases that reduces the REIT s income; The Manager s ability to provide adequate management and maintenance; Not sufficient insurance cover for the real estate in case of fire; Sudden changes in tax regulations; Poor collection of rent from tenants on a timely basis or at all; tenants going bankrupt 40

41 REITs Risk Factors Risk related to investments in real estate Lower rent when leases are renewed; Poor cost control resulting in higher operating and other expenses without a corresponding increase in revenue; Unexpected expenses incurred due to changes in statutory laws, regulations or government policies Amendment or revocation of the present tax incentives for REITs; and Competition for tenants from other buildings which may affect rental levels and occupancy rates. 41

42 REITs The Investors Perspective 42

43 REITs The Investors Perspective Learn about REITs - Investor Education is necessary to gain confidence and support Often neglected aspect of launching a new asset class is investor education. Misunderstanding of a new asset class can lead to a mismatch of expectations and subsequent disenchantment. 43

44 REITs The Investors Perspective Look for Transparency Transparent earnings and simplified operating models are now preferred Complex financial engineering by REITs are now being closely examined 44

45 REITs The Investors Perspective Capital Management is increasingly important Investors should insist on prudent capital management The manager should focus on reducing existing gearing levels and extend debt maturity profile Focus on refinancing debts and capping interest spreads Look into the possibility of selling assets to stabilize balance sheets Note that over leveraged REITs will be severely punished and their share prices can fall. 45

46 REITs The Investors Perspective The Management Team is paramount for success- the Manager brings the value to the fund Investors should put a greater scrutiny on the REIT Manager Look for focused management teams with a proven track record Look for good governance and transparency by the manager 46

REITs The Investors Perspective Capital Raising

capital raisings 2.60 2.40 2.20 2.00 1.80 1.60 1.40 1.

75 1.75 1.76 1.74 1.78 1.50 1.31 1.12 2.37 2.12 2.16 2.

47 REITs The Investors Perspective Capital Raising Investors should avoid REITs that exercise dilutive capital raisings NAV Market price 47

48 REITs The Investors Perspective Have a Sector Focus Focus not only on acquisition growth but have an increasing focus on existing portfolios by: Timely enhancements to preserve valuations Emphasis on asset and leasing management to deliver rental growth and mitigate negative rent reversions Improve operational efficiency to reduce operating costs 48

49 Our Story

Axis Group - Beginnings Dato Carl Myhre Stephen Tew The Axis Group started its operations in 1989 when Dato Carl Abas (an Industrialist from Norway) and

The venture was so successful that they teamed up with other investors pooling their funds to put together a portfolio of assets for investment holding

50 Axis Group - Beginnings Dato Carl Myhre Stephen Tew The Axis Group started its operations in 1989 when Dato Carl Abas (an Industrialist from Norway) and Stephen Tew (a real estate agent) met to conclude their first build and lease property a purpose built facility for Multinational APV Hills and Mills. The venture was so successful that they teamed up with other investors pooling their funds to put together a portfolio of assets for investment holding purposes. The group identified Petaling Jaya as the next destination for Multinationals to relocate to and successfully undertook several build and lease projects in Petaling Jaya.

51 Axis Group - Beginnings In doing so the group put in place the necessary supporting management that mirrored best practices of a REIT. The portfolio of assets grew rapidly and by the time Malaysia had REIT legislation in place the Axis Group had a portfolio of properties ready to list as Malaysia s first REIT

52 Property Portfolio Growth- 5 to 27 Assets in 5 Years

53 Office Portfolio Petaling Jaya Crystal Plaza, Petaling Jaya Menara Axis, Petaling Jaya Quattro West, Petaling Jaya

54 Office Portfolio Cyberjaya Axis Eureka, Cyberjaya

55 Industrial Portfolio Klang Valley Axis Business Park, Petaling Jaya Axis Plaza, Shah Alam Infinite Centre, Petaling Jaya Wisma Kemajuan, Petaling Jaya Kayangan Depot, Shah Alam Wisma Bintang, Petaling Jaya Kompakar, Petaling Jaya Nestle Office & Warehouse, Shah Alam Axis Vista, Petaling Jaya

56 Industrial Portfolio Klang Valley IDS, Bukit Raja Distribution Center, Shah Alam Axis Shah Alam DC1, Shah Alam Axis Steel Center, Klang Axis PDI Center, Klang Axis Technology Center, Petaling Jaya

57 Industrial Portfolio - Johor BMW Asia Technology Centre Tanjung Pelepas, Johor Niro Warehouse Pasir Gudang, Johor Delphi Cocoa Warehouse Pasir Gudang, Johor FCI Connectors Senai, Johor D8, Tanjung Pelepas, Johor

58 Industrial Portfolio - Penang IDS, Seberang Prai Logistic Warehouse 1 IDS, Seberang Prai Logistic Warehouse 2

59 Retail Warehouse Portfolio Giant Hypermarket Sg Petani, Kedah Tesco Hypermarket Bukit Indah, Johor

60 2011 Acquisitions

2011 Acquisition D8, PTP (Johor) SPA signed on 20 April 2010 Completion Date: 1 March 2011 Tenant: Nippon Express (M) Sdn Bhd Land Area Gross Built Up Land Tenure : 6.

61 2011 Acquisition D8, PTP (Johor) SPA signed on 20 April 2010 Completion Date: 1 March 2011 Tenant: Nippon Express (M) Sdn Bhd Land Area Gross Built Up Land Tenure : 6.12 acres (622,587 sq ft) : 187,000 sq ft : Leasehold land with 47 yrs Occupancy : 100% - sublease expired Mar 2055 Tenure Purchase Price Acquisition Price Valuation Gain : 10-yr lease with a 3 yr option : RM30.0 million : RM30.52 million : RM31.00 million : RM0.48 million Net Yield : 9.16%

62 2011 Acquisition Axis Eureka (Cyberjaya) Land Area Gross Built Up Land Tenure : 2.06 acres (89,760 sq ft) : 218,662 sq ft : Freehold SPA signed on 30 December 2010 Completion Date: 19 April 2011 Tenant: Scicom (MSC) Berhad Multimedia Development Corporation Sdn Bhd (MDEC) Wolters Kluwer Enterprise Services Partners Sdn Bhd Occupancy : 100% Tenancy/lease period : Ranging from 1 6 years Tenants Purchase Price Acquisition Price Valuation Gain : MDEC, Wolter Kluwer, SCICOM : RM51.25 million : RM52.07 : RM52.20 million : RM0.18 million Net Yield : 8.00%

63 2011 Disposal Axis North Port Logistics Centre Completion Date : 18 April 2011 Disposal Price : RM 14.5 million Net Gain on Disposal : RM 791,951 RPGT : RM0 Net Gain available for Distribution : RM 791,951

64 Impact on Asset Under Management 1, , Growth ~300% 1, , , RM mil Dec'05 Jun'06 Dec'06 Jun'07 Dec'07 Jun'08 Dec'08 Jun'09 Dec'09 Jun'10 Dec'10 Jun '11 *

Our Main Investment Focus Northern Region Industrial/ Retail / Hotels Excellent Infrastructure/ Ports/ Airports Central Region Klang valley Office/ Industrial/

65 Our Main Investment Focus Northern Region Industrial/ Retail / Hotels Excellent Infrastructure/ Ports/ Airports Central Region Klang valley Office/ Industrial/ Hotel/ Retail/ IT. Best Infrastructure in the Country and Highest growth South Johor Economic Region The next Shenzen for Singapore? Industrial/ Office/ IT/ Retail *

66 An Overview

55 from the Dec 2010 price of RM2.37 Completed the acquisition of properties worth RM 81.

67 Milestones 2011 Unitholders have approved to increase the Approved Fund Size from 375,901,000 units to 451,081,200 units Market Cap increased from to RM891million to RM 921 million Closing price 22 July 2011 was at an all time high of RM 2.55 from the Dec 2010 price of RM2.37 Completed the acquisition of properties worth RM million in 1H 2011 Asset Disposal of RM14.5million AUM now RM1.267 Billion Launch of IDRP (Income Distribution Investment Plan) is now approved Declared a record DPU of 8.7 sen for 1H

68 World s First Islamic Office/Industrial REIT The reclassification was completed on 11 December 2008 Why? To widen Axis REIT s investor base to include locally based Shariah Funds as well develop investors interest from Foreign Shariah Funds. Allow Axis REIT to tap the growing Islamic funds in Malaysia and the Middle East. Expedite its asset growth with new strategic partners. To be the 1st Office Industrial REIT globally to comply with Shariah REIT Guidelines.

69 Highlights - Yield Comparison FY 2011 (Annualised) 16.00% 14.00% 12.00% 10.00% 7.00% % Return 8.00% 6.00% Capital Gain Dividend 4.00% 2.00% 6.82% 5.80% 4.00% 3.15% 2.10% 3.00% 0.00% 69

70 Total return to shareholders 166% since IPO 180% 160% 140% 120% 100% 80% 60% 166% Axis-REITs Total Return 67% 65% 40% 31% 20% 0% IPO - RM1.25 Placement '08 - RM1.80 Placement '09 - RM1.66 Placement '10 - RM1.97 Movement in Market Price Distribution Return 70

71 Financial Results Income Statement Net Property Income exceeds 2Q2010 by 34.84% 2Q2011 2Q2010 Changes / Movement No. of Properties Property Income (RM 000) 28,362 20, % Net Property Income (RM 000) 23,938 17, % Profit before Taxation (RM 000) 15,584 12, % Distribution per Unit sen % Units in Circulation 375,901, ,081, % Note: The above financials excludes unrealised earnings due to changes in fair value of investment properties/tenants deposits.

72 Financial Results Balance Sheet Trading at premium to NAV of 22.50% 2H 2011 (RM 000) 31 DEC 2010 (RM 000) Total Assets 1,267,208 1,208,897 Investment Properties 1,250,042 1,178,682 Borrowings 475, ,609 Net Asset Value 752, ,230 Unitholders Capital 540, ,281 Gearing 37.52% 34.46% NAV per unit Price Premium to NAV 22.38% 17.96%

73 40.0% 35.0% 30.0% 25.0% 20.0% Capital Raising & Gearing 25.0% 23.7% 21.4% 23.5% 22.4% 31.2% 36.1% 26.8% 29.1% Placements Undertaken 33.0%33.1% 31.8%31.7% 27.3% 35.4% 36.0% 34.0% 31.3% 34.5% 37.5% 38.0% 15.0% 10.0% 10.8% 11.8% 14.0% 5.0% 0.0% 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

IPO 2.37 2.16 2.34 2.45 2.00 1.80 1.60 1.40 1.

75 1.75 1.76 1.78 1.74 1.50 1.31 1.12 2.00 2.

74 Placements A total million new units had been placed out since IPO NAV Market price

75 Unit Price Performance continues to improve 2.7 RM Twelve Months Closing Prices Sept

76 Summary of EPU & DPU * H2011 DPU EPU Realised * Based on Adjusted EPU

77 Improving Investor Visibility and Liquidity 3000 No. of Unitholders Current Price : RM Week Hi : RM Week Lo : RM Mth Daily Avg Volume 3-Mth Daily Avg Volume : 65,104 : 155, Mth Daily Avg Volume : 228,378 0 Dec '06 Dec '07 Jun '08 Dec '08 Jun '09 Dec '09 Jun '10 Dec ' 10 Jun '11

78 Our Top Investors Top Institutional Jun'11 % of Total Units EMPLOYEES PROVIDENT FUND BOARD 32,568,200 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 22,389,400 SKIM AMANAH SAHAM BUMIPUTERA 18,032, % 6.0% 4.8% AMERICAN INTERNATIONAL ASSURANCE BERHAD 16,386, % AMANAH SAHAM DIDIK 14,924,400 AMANAH RAYA TRUSTEES BERHAD AS 1MALAYSIA 12,621,000 VALUECAP SDN BHD 11,045, % 3.4% 2.9%

79 Governance- Winner of APREA Best Practices Award Recently won the Asia Pacific Real Estate Association (APREA) Best Practices Award 2010 (Emerging Markets Category)

80 Our Management Team

81 Our Management Team Axis REIT Managers had a dedicated team of top professionals in their respective fields who manage the Assets of the Trust, its Acquisition Strategy and its Capital Management

82 Property Report

83 World Class Asset Enhancements

84 Asset Enhancements- Menara Axis Penthouse Previously unused area comprising 8,000sf, has been converted to grade A office space with high grade toilets and fittings.

85 Menara Axis Penthouse Board Room Breakout Area Main Workstations CEO s Office

86 Asset Enhancements- Crystal Plaza

87 Asset Enhancements- Crystal Plaza 6 new Cooling Towers Installed 6 new pumps installed New waterproofing installed All Toilets Upgraded New male toilet fittings New Lobby Designs

88 Asset Enhancements- Subang Hi Tech Park

Subang Hi-Tech Built to Suit Corporate Office The concept follows clients requirement to have a new headquarters built to suit their expansion.

89 Subang Hi-Tech Built to Suit Corporate Office The concept follows clients requirement to have a new headquarters built to suit their expansion. The old Nestle Office / Warehouse will now be transformed into a corporate office. The additional investment of RM 2.6 million will enhance yields to 11% p.a. The client will be signing a 10 year lease with 3 year step ups in rent

90 Asset Enhancements- Infinite Centre Current Building Complex

91 Asset Enhancements- Infinite Centre Perspective View:

92 Asset Enhancements- Wisma Bintang Current Building Complex

93 Asset Enhancements- Wisma Bintang Perspective View:

94 Asset Enhancements- Wisma Bintang Perspective View:

95 Asset Enhancements- Kayangan Depot Current Building Complex

96 Asset Enhancements- Kayangan Depot Perspective View: Front View Main Lobby

97 High Occupancy Rates As at 30 th June 2011 we have only 7 of our 27 buildings that carry any vacancy. 4.02% This is only 4.02% of NLA 95.98%

98 Key Tenants

Risk Management- Keeping a Diverse Portfolio

Portfolio Diversification by Geographical and

Johor 22% Petaling Jaya 39% 8% 35% Klang 10%

Warehouse Retail Warehouse Logistic Light

99 Risk Management- Keeping a Diverse Portfolio Portfolio Diversification by Type and NLA Portfolio Diversification by Geographical and NLA 3% Kedah 3% Prai 3% Cyberjaya 3% 40% 14% Johor 22% Petaling Jaya 39% 8% 35% Klang 10% Shah Alam 20% Ofiice Office/Industrial Warehouse Retail Warehouse Logistic Light Industrial 42% Single Tenant Vs Multi-Tenants 58% Single Tenant Multi Tenants

100 Enhancements Improve Asset Valuations 120,000 Axis REIT Properties Appreciated in Value as at 31 December 2010 They recorded a record gain of RM 45.6 million in ,000 RM'000 80,000 60,000 40,000 20,000 - Fair Value Adjustment Acquisition Cost + Enhancement 100

101 Thank You 101

Axis REIT First Quarter 2009 Financial Performance

Axis REIT First Quarter 2009 Financial Performance Disclaimer This the information contained in this document is provided for information purposes only and in no way constitutes an offer of services or