Axis PDI Centre – Proposed
Development
50 acre site
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 24.78 acres of the 50 acres property. The development commenced in December 2016
and is on schedule to be completed by end 2017.
Nestle DC at Axis PDI Centre
47
Axis PDI Centre – Proposed
Development (Before)
50 acre site
Nestle DC at Axis PDI Centre (Before)
48
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
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
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
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
East Coast Rail Line (ECRL) • A 600 km rail line • Project start in 2017 • Construction of the five-year ECRL
The 3 Phases 1st Phase :Klang Valley to Kuantan 2nd Phase : Kuantan to Kuala Terengganu 3rd 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 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
Wasco Facility
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
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
Unit Price Performance 2Q2017
AXREIT: 1 Jan 2014 – 30 Jun 2017
63
2.85
3.09
3.38
3.50
3.37 3.31
3.55 3.54 3.62
3.69
3.55 3.62
3.58
3.69
3.53
3.62
3.53 3.45
3.34 3.27
1.69 1.65
1.61 1.64
1.55 1.55 1.61
1.66 1.70 1.70
1.77 1.80 1.75 1.72
1.68 1.61
1.68 1.63 1.65 1.64
1.72 1.64
1.00
1.50
2.00
2.50
3.00
3.50
4.00
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Pre-Unit Split Price Post-Unit Split Price
Highest Price YTD: May 2017 RM1.72
Lowest Price YTD: Mar 2017 RM1.61
Unit Price Movement 2Q2017
Price Statistics
AXREIT vs KLCI: 1 Jan 2014 – 30 Jun 2017
2Q2017: Unit Price @ 30 Jun 2017 RM1.64
1Q2017: Unit Price @ 31 Mar 2017 RM1.65
64
80%
85%
90%
95%
100%
105%
110%
115%
120%
125%
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KLCI AXREIT
Volume Movement 2Q2017
Volume Statistics
AXREIT: 1 Jan 2014 – 30 Jun 2017
Average Monthly Volume 2017 13,389,767
Highest Monthly Volume: Feb 2017 23,438,700
Lowest Monthly Volume: Apr 2017 4,708,800 65
33,826,000
27,806,000
18,616,000
9,489,200
11,271,000
8,030,800 8,638,200
11,143,400
9,109,200
15,849,600
9,349,000
21,092,600
40,208,000
12,995,800
27,347,800
21,028,800
11,328,600
23,451,400
39,783,200
22,491,600
9,712,000 8,930,700
4,370,900
8,875,800
6,433,500
3,032,900
32,708,200
7,690,600
3,928,000
13,159,100
12,854,800
7,888,600
2,349,100
10,341,800
5,372,500
16,046,400 15,009,300
23,438,700
11,757,900
4,708,800
14,402,100
11,021,800
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
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Top 10 Unitholders 2Q2017
1 EMPLOYEES PROVIDENT FUND 9.39%
2 AMANAH SAHAM BUMIPUTERA 9.00%
3 LEMBAGA TABUNG HAJI 5.43%
4 TEW PENG HWEE @ 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 2 2.26%
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
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
-0.1%
SIX SIS FOR B&I PAN-ASIAN TOTAL RETURN REAL ESTATE SECURITIES
FUND -0.1%
PBTB FOR TAKAFULINK DANA EKUITI -0.0% 67
Investor Visibility and Liquidity 2Q2017
Quarter-on-quarter, total number of CDS accounts increased by 77 to 4,011
No. of CDS Accounts
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
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
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2008 2009 2010 2011 2012 2013 2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017
Analyst Coverage 2Q2017
Coverage Rating Target Price (RM) Published Date
Alliance DBS Hold 1.73 26-Apr-17
Hong Leong IB Hold 1.71 26-Apr-17
CIMB Hold 1.72 26-Apr-17
Kenanga Hold 1.66 26-Apr-17
Maybank Hold 1.70 26-Apr-17
MIDF Hold 1.68 26-Apr-17
UOBKayHian Hold 1.65 26-Apr-17
RHB Hold 1.64 26-Apr-17
Nomura Hold 1.69 26-Apr-17
AffinHwang Hold 1.65 25-Apr-17
Recommendation Movement 2Q2017 1Q2017
Buy ↔ 0 0
Hold ↔ 10 10
Sell ↔ 0 0 69