2017 PROPERTY DEVELOPMENT 46

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Merry Harrell
5 years ago
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1 2017 PROPERTY DEVELOPMENT 46

2 Axis Nestle PDI DC Centre at Axis Proposed PDI Centre Development The Manager is pleased to announced that on 19 August 2016, RHB Trustees Berhad signed an Agreement to Build and Lease with Nestle Products Sdn Bhd to develop a 515,000 sq. ft. distribution warehouse facility for Nestle as their national distribution centre ( Nestle DC ). The agreement is for an initial lease term of 10 years plus an option to renew for further two terms of three years each. Axis-REIT expects to derive annual rental income of about RM19.22 million with a step-up every three years. This development was granted a special waiver by the Securities Commission Malaysia to allow Axis-REIT to develop and lease the distribution centre. This project would increase the fund s gross revenue, net property income and income distribution to its unitholders, whilst enlarging the size of its assets under management. Nestle DC is the first phase of the development of Axis PDI Centre, which will take up acres of the 50 acres property. The development commenced in December 2016 and is on schedule to be completed by end acre site 47

3 Axis Nestle PDI DC Centre at Axis Proposed PDI Centre (Before) Development (Before) 50 acre site 48

4 Nestle DC at Axis PDI Centre (After) Artists Impression 49

5 Nestle DC at Axis PDI Centre Artists Impression 50

6 Nestle DC at Axis PDI Centre (Current) Phase 2 land Rented as vehicle storage yard 51

7 2017 CSR INITIATIVES 52

8 Donation to Malaysian Association of the Blind (MAB) Axis-REIT donated a 14-seater Jinbei van to the Malaysian Association of the Blind (MAB). 53

9 The Edge Kuala Lumpur Rat Race 2017 Axis-REIT will be sending a team of 5 runners for the annual Rat Race which is scheduled for this afternoon! 54

10 2Q2017 INVESTMENTS REPORT 55

11 Completed Acquisition Kerry Warehouse Pasir Gudang, Johor Completion Date : 24 July 2017 Land Area : Approx. 6 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM33 million Projected Net Property Yield : 7.5% WALE : 3.5 years 56

12 Ongoing Acquisitions Wasco Facility Gebeng, Pahang Target Completion Date : 2H2017 (SPA signed on 24 July 2017) Land Area : Approx. 120 acres Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM155 million WALE : 15 years 57

13 Wasco Facility East Coast Rail Line (ECRL) A 600 km rail line Project start in 2017 Construction of the five-year ECRL The 3 Phases 1 st Phase :Klang Valley to Kuantan 2 nd Phase : Kuantan to Kuala Terengganu 3 rd Phase : Kuala Terengganu to Kota Bharu and Tumpat 58

Wasco Facility The East Coast Rail Line project (ECRL) will connect ports on the east and west coasts of Peninsular Malaysia and could alter regional trade routes which currently ply between the busy

14 Wasco Facility The East Coast Rail Line project (ECRL) will connect ports on the east and west coasts of Peninsular Malaysia and could alter regional trade routes which currently ply between the busy Strait of Malacca and the South China Sea via Singapore. The upgrading of Kuantan Port, which will be completed by mid- 2018, is only one part of what is shaping up to be Malaysia's most expensive infrastructure undertaking. The construction of new roads and flyovers from the port complex to a nearby industrial park is almost complete, and government officials say the eastern economic region has already attracted more than RM8.9bil in investment, mainly from manufacturing concerns from China. 59

15 Ongoing Acquisitions Manufacturing Facility Iskandar Puteri, Johor Target Completion Date : 3Q2017 Land Area : Approx. 9.0 acres Land Tenure : Freehold Occupancy : 100% Purchase Price : RM50 million WALE : 21 years 60

16 Prospective Acquisition Targets 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 leases from tenants with strong covenants; Well-located retail warehousing in locations ideal for last-mile distribution; and Office, business parks and industrial properties with potential for future enhancement. Total Estimated Value of Acquisition Targets RM239 million 61

17 2Q2017 INVESTOR RELATIONS REPORT 62

18 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Unit Price Performance 2Q AXREIT: 1 Jan Jun Pre-Unit Split Price Post-Unit Split Price 63

19 1/1/2014 1/2/2014 1/3/2014 1/4/2014 1/5/2014 1/6/2014 1/7/2014 1/8/2014 1/9/2014 1/10/2 1/11/2 1/12/2 1/1/2015 1/2/2015 1/3/2015 1/4/2015 1/5/2015 1/6/2015 1/7/2015 1/8/2015 1/9/2015 1/10/2 1/11/2 1/12/2 1/1/2016 1/2/2016 1/3/2016 1/4/2016 1/5/2016 1/6/2016 1/7/2016 1/8/2016 1/9/2016 1/10/2 1/11/2 1/12/2 1/1/2017 1/2/2017 1/3/2017 1/4/2017 1/5/2017 1/6/2017 Unit Price Movement 2Q % 120% AXREIT vs KLCI: 1 Jan Jun % 110% 105% 100% 95% 90% 85% KLCI AXREIT 80% 2Q2017: Unit 30 Jun 2017 RM1.64 Price Statistics Highest Price YTD: May 2017 RM1.72 1Q2017: Unit 31 Mar 2017 RM Lowest Price YTD: Mar 2017 RM1.61

20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Volume Movement 2Q ,000,000 40,000,000 AXREIT: 1 Jan Jun ,208,000 39,783,200 35,000,00033,826,000 32,708,200 30,000,000 27,806,000 27,347,800 25,000,000 21,092,600 23,451,400 22,491,600 21,028,800 23,438,700 20,000,000 18,616,000 15,000,000 10,000,000 5,000,000 15,849,600 11,271,000 11,143,400 9,489,200 8,638,2009,109,2009,349,000 8,030,800 12,995,800 11,328,600 9,712,000 8,930,7008,875,800 4,370,900 6,433,500 3,032,900 7,690,600 13,159,100 3,928,000 12,854,800 7,888,600 10,341,800 2,349,100 16,046,400 15,009,300 5,372,500 14,402,100 11,757,900 11,021,800 4,708,800 - Volume Statistics Average Monthly Volume ,389,767 Highest Monthly Volume: Feb ,438,700 Lowest Monthly Volume: Apr ,708,800 65

21 Top 10 Unitholders 2Q EMPLOYEES PROVIDENT FUND 9.39% 2 AMANAH SAHAM BUMIPUTERA 9.00% 3 LEMBAGA TABUNG HAJI 5.43% 4 TEW PENG TEOH PENG HWEE 5.04% 5 ALEX LEE LAO 4.53% 6 PERMODALAN NASIONAL BERHAD 3.95% 7 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 3.79% 8 AMANAH SAHAM BUMIPUTERA % 9 AMANAH SAHAM MALAYSIA 2.19% 10 PUBLIC SMALLCAP FUND 2.04% Holdings Breakdown Units Held 2Q2017 Units Held 1Q2017 Q-on-Q Change Top 5 Unitholders 33.44% 33.72% -0.28% Top 10 Unitholders 47.81% 48.11% -0.30% Unitholders with > 2 million unitholdings 88.07% 88.18% -0.11% 66

22 Analysis of >2 million Unitholders Top 5 increases in unitholdings: Top 5 decreases in unitholdings: Last Quarter Increase BNP PARIBAS SECS SVS PARIS FOR REIT ASIEN 1 0.4% AMANAH SAHAM MALAYSIA 0.3% FOR BANK KERJASAMA RAKYAT MALAYSIA BERHAD 0.2% EMPLOYEES PROVIDENT FUND 0.1% EXEMPT AN FOR BNP PARIBAS SECURITIES SERVICES (DUB-CLTS UCITS) 0.0% Last Quarter Decrease PAMB FOR PRULINK EQUITY FUND -0.5% AMANAH SAHAM DIDIK -0.5% STANDARD CHARTERED BANK SINGAPORE FOR ARQAAM CAPITAL LIMITED SIX SIS FOR B&I PAN-ASIAN TOTAL RETURN REAL ESTATE SECURITIES FUND -0.1% -0.1% PBTB FOR TAKAFULINK DANA EKUITI %

23 Investor Visibility and Liquidity 2Q2017 No. of CDS Accounts 4,500 4,000 3,500 3,000 2,500 2,000 1,652 2,080 2,420 2,702 2,850 3,009 3,176 3,200 3,219 3,309 3,611 3,790 3,718 3,776 3,891 3,934 4,011 1,500 1, Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 Quarter-on-quarter, total number of CDS accounts increased by 77 to 4,011 Units Held 2Q2017 Units Held 1Q2017 Q-on-Q Change Total foreign holdings 11.87% 11.64% 0.23% Foreign holdings related-party 7.76% 7.67% 0.09% Foreign holdings non-related-party 4.11% 3.97% 0.14% Promoters 14.01% 14.00% 0.01% 68

24 Analyst Coverage 2Q2017 Coverage Rating Target Price (RM) Published Date Alliance DBS Hold Apr-17 Hong Leong IB Hold Apr-17 CIMB Hold Apr-17 Kenanga Hold Apr-17 Maybank Hold Apr-17 MIDF Hold Apr-17 UOBKayHian Hold Apr-17 RHB Hold Apr-17 Nomura Hold Apr-17 AffinHwang Hold Apr-17 Recommendation Movement 2Q2017 1Q2017 Buy 0 0 Hold Sell 0 0

25 THANK YOU 70

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