1Q Axis REIT Managers Berhad Results Presentation 2016 25 April - - PowerPoint PPT Presentation

SLIDE 1

Axis REIT Managers Berhad Results Presentation

25 April 2016

1Q

2016

SLIDE 2

Our Milestones

2

 Assets Under Management RM296 million RM2.16 billion  Space Under Management 978,000 sq ft 7,304,854 sq ft  Properties 5 38  Valuation Gain since listing RM275,000,000  First REIT to convert into an Islamic REIT  First PLC to adopt Cloud Computing  First REIT to introduce the Income Distribution Reinvestment Plan  First REIT to implement Unit Split  Winner of Best Practices Award from Asian Public Real Estate Association

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3

1Q2016 HIGHLIGHTS

SLIDE 4

1Q2016 Highlights

4

RM 2,116,790,000

Investment Properties

SLIDE 5

1Q2016 Highlights

5

 Completed the acquisition of 4 industrial properties - Beyonics i-Park Campus Block A, B, C and D for RM61.0 million on 28 January 2016.  Portfolio size increased by 4 to a total of 38.  Acceptance of a Letter of Offer to acquire a logistics warehouse for RM33.0 million located at Pasir Gudang, Johor on 4 January 2016.  Acceptance of a Letter of Offer to acquire a manufacturing facility for RM42.0 million located at Rawang, Selangor on 6 April 2016.  Registered RM2.5 million revaluation gain on Axis Shah Alam DC 1 in 1Q2016.  Declared 2.05 sen as 1st Interim 2016 DPU.  Announced the implementation of the Income Distribution Reinvestment Plan (IDRP) in conjunction with the payment of the 1st Interim 2016 DPU.  Traded at a premium of 31% to NAV.  Number of unitholders further increased 5% to 3,790.

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0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% Axis-REIT Total Return * Axis-REIT Distribution Yield EPF Dividend Return 10-yr MGS 12 Months FD Rate OPR 3.17% 5.09% 6.40% 3.96% 3.65% 3.25%

* (Based on annualised DPU from operations + movement in market price)/opening market price as at 1 January 2016)

1Q2016 Return Comparatives

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1Q2016 FINANCE REPORT

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1Q2016

Total Net Income (“Realised”)(RM' 000) 22,169 Income Available for Distribution ("Realised") (RM' 000) 22,583 Earnings per Unit ("EPU") ("Realised") (Sen) 2.02 Income Distribution Declared (RM'000) 22,546 Distribution per Unit ("DPU") (Sen) * 2.05 Number of Investment Properties 38 Units in Circulation (Units) 1,099,793,068 Assets Under Management (RM'000) 2,158,528 Total Financing (RM'000) 744,776 Gearing Ratio 34.50% Total Unitholder's Fund (RM'000) 1,355,614 Market Capitalization (RM'000) 1,770,667 Net Asset Value per Unit (RM) 1.23 IPO Retail Unit Price (RM) (restated from RM1.25) 0.625 Unit Price as at 31 March 2016 (RM) 1.61 Number of Unitholders 3,790

* First interim income distribution to be paid on 16 June 2016

1Q2016 Summary

SLIDE 9

Income Statement 1Q2016 vs 1Q2015

9

1Q2016 (RM ‘000) 1Q2015 (RM’000) Changes / Movement

• No. of Properties

38 34 + 4 Property Income - Note 1 41,075 40,404 + 1.66% Property Expenses - Note 2 (6,537) (6,019) + 8.61% Net Property Income 34,538 34,385 + 0.44% Profit Income / other income 140 215 Non-Property Expenses - Note 3 (4,718) (4,877)

• 3.26%

Islamic Financing Cost - Note 4 (7,791) (7,216) + 7.97% Net Income 22,169 22,507

• 1.50%

DPU (sen) – Note 5 2.05 2.05*

• No. of units in issuance – Note 5

1,099,793,068 547,758,040

Note: The above financials excludes unrealised earnings due to changes in fair value of investment properties/tenants’ deposits and derivative liability. * Restated from 4.10sen to reflect the 1 to 2 Unit Split

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Note 1 – Property Income Increase in property income as compared to last preceding year corresponding quarter is due to contribution of rental proceeds from the newly acquired Beyonics i- Park Campus Block A,B,C and D since end January 2016. Note 2 – Property Expenses Increase in property expenses is mainly due to additional properties completed. Note 3 – Non-Property Expenses The MER of the Fund has dropped to 1.27% of NAV, as compared to 1.36% for 1Q 2015. Note 4 – Islamic Financing Cost The increase in financing cost is due to the utilisation of financing facility to complete the Beyonics i-Park Block A, B, C and D acquisitions. Note 5 – No. of units in issuance and effect on DPU The Unit Split of 1 unit into 2 units has doubled the Fund's units in circulation and resulted in the DPU being halved. However the DPU after Unit Split remains the same for 1Q2016 and 1Q2015.

Income Statement 1Q2016 vs 1Q2015

SLIDE 11

Gross Yield of Investment Properties

11

Average gross yield = 10.36%

Properties Gross yield (%) 1 Wisma Kemajuan

18.05%

2 FCI Senai

14.47%

3 Crystal Plaza

14.38%

4 Menara Axis

14.24%

5 BMW Centre PTP

13.70%

6 Delfi Warehouse

13.48%

7 D8 Logistics Warehouse

12.04%

8 Strateq Data Centre

11.90%

9 Niro Warehouse

11.42%

10 Fonterra HQ

11.35%

11 Beyonics i-Park Campus Block C

11.01%

12 Beyonics i-Park Campus Block A

10.98%

13 Beyonics i-Park Campus Block B

10.98%

14 Beyonics i-Park Campus Block D

10.97%

15 Seberang Prai Logistic Warehouse 3

10.43%

16 Wisma Academy Parcel

10.14%

17 Quattro West

9.92%

18 Axis Shah Alam DC 1

9.86%

19 Emerson Industrial Facility Nilai

9.85%

20 Bayan Lepas Distribution Centre

9.81%

21 Axis Vista

9.79%

22 Bukit Raja Distribution Centre

9.54%

23 Infinite Centre

9.37%

24 Seberang Prai Logistic Warehouse 1

9.21%

25 Giant Hypermarket, Sungai Petani

9.06%

26 Axis Steel Centre

8.90%

27 Seberang Prai Logistic Warehouse 2

8.78%

28 Axis Business Park

8.54%

29 Tesco Bukit Indah

8.48%

30 Axis Shah Alam DC 3

8.15%

31 Axis MRO Hub

7.82%

32 Axis Shah Alam DC 2

7.73%

33 Axis Eureka

7.53%

34 Axis Steel Centre@ SiLC

7.46%

35 Axis Technology Centre

7.45%

36 The Annex

6.23%

37 Axis PDI Centre

• 38 Axis Business Campus

SLIDE 12

Net Yield of Investment Properties

12

Properties Net yield (%) 1 Wisma Kemajuan

14.25%

2 FCI Senai

13.00%

3 BMW Centre PTP

12.46%

4 Crystal Plaza

12.14%

5 Menara Axis

11.59%

6 D8 Logistics Warehouse

11.17%

7 Strateq Data Centre

11.05%

8 Niro Warehouse

10.39%

9 Beyonics i-Park Campus Block D

10.04%

10 Beyonics i-Park Campus Block A

10.01%

11 Beyonics i-Park Campus Block B

10.00%

12 Beyonics i-Park Campus Block C

9.99%

13 Fonterra HQ

9.52%

14 Axis Shah Alam DC 1

8.99%

15 Bukit Raja Distribution Centre

8.97%

16 Emerson Industrial Facility Nilai

8.93%

17 Seberang Prai Logistic Warehouse 3

8.87%

18 Bayan Lepas Distribution Centre

8.81%

19 Seberang Prai Logistic Warehouse 1

8.68%

20 Axis Vista

8.36%

21 Giant Hypermarket, Sungai Petani

8.28%

22 Axis Steel Centre

8.06%

23 Seberang Prai Logistic Warehouse 2

7.99%

24 Tesco Bukit Indah

7.86%

25 Quattro West

7.63%

26 Wisma Academy Parcel

7.37%

27 Delfi Warehouse

7.14%

28 Axis MRO Hub

7.13%

29 Axis Shah Alam DC 3

7.11%

30 Axis Steel Centre@ SiLC

7.09%

31 Axis Shah Alam DC 2

6.94%

32 Infinite Centre

6.77%

33 Axis Business Park

6.09%

34 Axis Technology Centre

5.55%

35 The Annex

4.65%

36 Axis Eureka

4.56%

37 Axis PDI Centre

• 38 Axis Business Campus
• Average net yield = 8.82%

SLIDE 13

Income Statement

13

5 10 15 20 25 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 22.67 23.75 23.86 21.87 22.58 RM' million

Adjusted Income Before Taxation/ Income Available For Distribution:

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1Q2016 Income Distribution

14

1st Quarter 2016 Income Distribution: 2.05 sen

The 2.05 sen DPU represents 99.83% income available for distribution for the period from 1 January 2016 to 31 March 2016. Important dates: Ex-date : 6 May 2016 Entitlement date :10 May 2016 Payment date :16 June 2016

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Implementation of Income Distribution Reinvestment Plan (IDRP)

15

The Manager wishes to announce that it will be implementing the Income Distribution Reinvestment Plant for the 1Q 2016. Details are as follows: a) Electable Portion : 1.00 sen which is 48% of the 2.05 sen DPU to be allow for reinvestment b) Exercise Price : RM1.50 represents a 8.35% discount to the VWAMP up to and including 22 April 2016

SLIDE 16

Summary of Realised EPU and DPU

16

6.48 6.82 7.64 7.90 8.00 8.50 8.65 9.25 8.70 8.40 2.05 0.10 0.65 1.18 6.41 6.80 7.73 7.89 8.01 8.64 9.30 9.23 8.71 8.35 2.02

• 1.00

2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1 2016 Gain on disposal DPU EPU (realised)

SLIDE 17

Statement of Financial Position

17

31/03/16 (RM’000) 31/12/15 (RM’000) Changes Investment Properties – Note 1 2,116,790 2,048,626 + 68,164 Fixed Assets 3,497 3,602

• 105

Other Assets – Note 2 38,241 89,265

• 51,024

TOTAL ASSETS 2,158,528 2,141,493 + 17,035 Borrowings – Note 3 744,776 731,814 + 12,962 Other Payables 58,138 57,194 + 944 TOTAL LIABILITIES 802,914 789,008 + 13,906 NET ASSETS VALUE (“NAV”) 1,355,614 1,352,485 + 3,129 Unitholders' Capital – Note 4 1,052,277 1,052,272 + 5 Undistributed Distributable Income 19,209 19,036 + 173 Non-Distributable Reserve – Note 5 284,128 281,177 + 2,951 TOTAL UNITHOLDERS' FUND 1,355,614 1,352,485 + 3,129 GEARING 34.50% 34.17% NAV/unit (RM) 1.2326 1.2298

• No. of units in issuance

1,099,793,068 1,099,793,068

SLIDE 18

Statement of Financial Position

18

Note 1 – Investment Properties The acquisition of Beyonics i-Park Campus Block A, B, C and D was completed

• n 28 January 2016 at RM61.0 million.

During the quarter, a total of RM3.642 million was spent for enhancement of the properties on portfolio and RM2.5 million revaluation gain has been recorded. Note 2 – Other assets The average collection of trade receivables is as shown below: For Period Ended

• Avg. Collection Period

(in days) 31-Dec-15 9 31-Mar-16 9

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Statement of Financial Position – Note 3 Borrowings

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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total Borrowings (RM’000) 209,816 230,456 308,932 416,609 311,338 548,920 528,004 683,769 731,814 744,776 Total Assets (RM’000) 581,857 726,371 907,745 1,208,897 1,298,431 1,589,408 1,616,523 2,085,883 2,141,433 2,158,528 Gearing 36.06% 31.73% 34.03% 34.46% 23.98% 34.54% 32.66% 32.78% 34.17% 34.50% Effective Profit Rate 4.39% 4.28% 4.11% 4.48% 4.66% 4.58% 4.38% 4.24% 4.28% 4.19% Percentage of short term borrowings- Maturity < 1 Year 100% 100% 47% 48% 52% 62% 50% 61% 55% 56% Percentage of medium/ long term borrowings (maturity more than 1 years and less than 7 years)

• 53%

52% 48% 38% 50% 39% 45% 44% Percentage of floating rate borrowings 100% 100% 47% 48% 52% 62% 40% 47% 50% 51% Percentage of fixed rate borrowings

• 53%

52% 48% 38% 60% 53% 50% 49% Total unencumbered assets 8 13 12 11 12 6 5 5 10 14 Percentage of unencumbered assets/total assets 34% 44% 52% 42% 44% 19% 16% 21% 26% 29% Financing cost cover 5.6 5.5 4.8 4.1 3.8 4.6 4.5 4.5 4.1 3.8

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Statement of Financial Position Gearing Levels

20 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 1Q2006 2Q2006 3Q2006 4Q2006 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 14.0% 25.0% 23.7% 21.4% 23.5% 22.4% 31.2% 36.1% 26.8% 29.1% 31.8% 31.7% 33.0% 33.1% 27.3% 34.0% 35.4% 36.0% 31.3% 34.5% 36.0% 37.5% 38.2% 24.0% 28.8% 30.0% 34.2% 34.5% 33.9% 32.6% 32.7% 32.7% 32.5% 31.7% 33.4% 32.8% 32.5% 32.5% 32.5% 34.2% 34.5%

Placements Undertaken

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Unitholders’ Capital – Note 4

21

• 500.0

1,000.0 1,500.0 2,000.0 2,500.0 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Mar-16 411.8 581.8 726.4 907.7 1,208.9 1,298.4 1,589.4 1,616.5 2,085.7 2,141.5 2,158.5 234.9 234.9 323.3 406.9 540.3 728.2 735.4 751.0 1,044.7 1,052.3 1,052.3 RM mil Total Asset Unitholders' Capital

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Unitholders’ Capital – Note 4

22

… resulting in good total returns to unitholders.

158% 79% 94% 63% 31%

• 7%

139% 78% 70% 51% 32% 6% 297% 157% 164% 114% 63%

• 40%

0% 40% 80% 120% 160% 200% 240% 280% 320% IPO @ RM1.25 Placement '08 @ RM1.80 Placement '09 @ RM1.66 Placement '10 @ RM1.97 Placement '11 @ RM2.45 Placement '14 @ RM3.45

Total returns on placements

Capital return Distribution return

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Statement of Financial Position – Note 5 Non-distributable Reserve

23

Non-distributable reserve mainly comprises the favorable gain in fair value of approximately RM275 million to date.

Building Gain /(Loss) RM’000 Crystal Plaza 44,324 Menara Axis 37,591 Wisma Kemajuan 25,101 Axis Vista 22,251 Bukit Raja Distribution Centre 21,508 Axis Business Park 20,344 Tesco Bukit Indah 15,076 Axis Business Campus 14,807 Strateq Data Centre 10,471 Axis Shah Alam DC 1 7,353 Infinite Centre 6,763 The Annex 5,630 Quattro West 5,098 Wisma Academy Parcel 5,041 FCI Senai 4,307 Fonterra HQ 3,872 Axis Steel Centre 3,727 Axis Technology Centre 2,960 Building Gain /(Loss) RM’000 Delfi Warehouse 2,797 Emerson Industrial Facility Nilai 2,693 Niro Warehouse 2,466 Seberang Prai Logistic Warehouse 1 2,378 BMW Centre PTP 2,141 Giant Hypermarket, Sungai Petani 2,027 D8 Logistics Warehouse 1,812 Seberang Prai Logistic Warehouse 3 1,728 Bayan Lepas Distribution Centre 1,432 Axis Eureka 764 Seberang Prai Logistic Warehouse 2 615 Axis Shah Alam DC 2 2,719 Axis MRO Hub (375) Axis Steel Centre@ SiLC (449) Axis PDI Centre (1,522) Axis Shah Alam DC 3 (2,287)

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1Q2016 PROPERTY REPORT

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Overview

In 1Q 2016, the occupancy rate has held steady at 92%. In 2016, a total of 1,938,654 sq. ft.

• f space will be coming for renewal representing 26.5% of the portfolio. Out of the 26.5%,

almost half has been committed for renewal to date. There have been some movements in the portfolio with some tenants moving out, however the leasing team has been successful in securing replacement tenants for these spaces at higher rates. We also have existing tenants expanding space within our buildings. The office properties within the portfolio are well located, supported by amenities and public transportation, will continue to attract both new and existing tenants, maintaining their high occupancy rates and competitive rentals. Our office buildings in Petaling Jaya and Cyberjaya which are in the affordable rental category continues to appeal to companies that are expanding or relocating from high rental rates. 2016 remains challenging for the office leasing market with new supply continuing to come on stream. Our exposure to pure office properties is limited to 8% of our entire

• portfolio. As such, this oversupply factor has minimal impact on the Fund and we

continue to enjoy an average 81% occupancy for our office properties.

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Overview

The industrial portfolio continues to perform very well and has excellent growth prospects in the coming years. Demand for industrial and warehousing space are rising and we are working with our new and current tenants on their space expansion to meet this new

• demand. As reported in 4Q 2015, the redevelopment of Axis PDI Centre into a mega

distribution centre is in progress now to provide space to capture the future demand of industrial space. The vacant spaces in the portfolio currently stands at 587,130 sq. ft as at 31 March 2016. Our leasing team continues to work hard to secure new tenants to fill up the voids in our properties within the portfolio. By filling the current voids, we expect to add as much as 1.65 sen to the annual DPU.

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Key Metrics

As at 31 March 2016, the portfolio has 38 assets comprising 7,304,854 sq. ft. and 139 tenants. 1Q2016 4Q2015 Movement No of properties Property Income (RM’000) 38 41,075 34 39,832 4 3.12% Property Expenses (RM’000) 6,537 6,004 8.88% Net Property Income (RM’000) 34,538 33,828 2.10% Occupancy 92% 92%

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Type of Properties 1Q2016 4Q2015 Movement Office (RM/sq. ft.) 4.68 4.64 + 0.04 Office Industrial (RM/sq. ft.) 2.68 2.72

• 0.04

Manufacturing Facilities (RM/sq. ft.) 1.35 1.33 + 0.02 Warehouse Logistics (RM/sq. ft.) 1.53 1.52 + 0.01 Hypermarket (RM/sq. ft.) 2.36 2.24 + 0.12

Key Metrics

Average Rental Rates:

SLIDE 29

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Space Under Management (sq. ft.)

1,186,052 1,656,943 2,175,522 2,858,121 3,679,796 4,288,054 4,449,580 5,463,599 5,464,124 6,859,474 7,015,242 7,304,854

• 1,000,000

2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q 2016 ( sq ft)

Space Under Management (sq ft)

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Portfolio Occupancy Rate

As at 31 March 2016, Axis-REIT has only 13 out of 38 properties that carry vacancy. 25 properties enjoy 100% occupancy. Occupancy As at 31 March 2016 91.96% Vacancy As at 31 March 2016 8.04% Space to be let out 587,130 sq. ft. Occupancy Multi-tenants properties 79.70% Single tenant properties 99.87% Unbilled space income RM18.2 million per year Potential annual DPU upside 1.65 sen per unit/year

Occupied 91.96% Vacant 8.04%

Occupancy Rate

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Occupancy Rates by Property as at 31 March 2016

1 Menara Axis 93.74% 2 Crystal Plaza 81.33% 3 Quattro West 84.18% 4 Axis Eureka 59.08% 5 Axis Business Park 62.90% 6 Infinite Centre 68.08% 7 Wisma Kemajuan 95.35% 8 Axis Business Campus

• 9

Strateq Data Centre 100.00% 10 Fonterra HQ 84.96% 11 Axis Vista 100.00% 12 Axis Tech Centre 81.01% 13 Wisma Academy Parcel 81.03% 14 The Annex 94.81% 15 Giant Hypermarket Sg. Petani 100.00% 16 Tesco Bukit Indah 100.00% 17 Axis Shah Alam DC 1 100.00% 18 BMW Centre PTP 100.00% 19 Niro Warehouse 100.00% 20 Delfi Warehouse 100.00% 21 Axis Steel Centre 100.00% 22 Bukit Raja Distribution Centre 100.00% 23 Seberang Prai Logistic Warehouse 1 100.00% 24 Seberang Prai Logistic Warehouse 2 100.00% 25 Axis PDI Centre

• 26

D8 Logistics Warehouse 100.00% 27 FCI Senai 100.00% 28 Bayan Lepas Distribution Centre 100.00% 29 Seberang Prai Logistic Warehouse 3 100.00% 30 Emerson Industrial Facility Nilai 100.00% 31 Axis Shah Alam DC 3 100.00% 32 Axis MRO Hub 100.00% 33 Axis Steel Centre @ SiLC 100.00% 34 Axis Shah Alam DC 2 100.00% 35 Beyonics I-Park Campus Block A 100.00% 36 Beyonics i-Park Campus Block B 100.00% 37 Beyonics i-Park Campus Block C 100.00% 38 Beyonics i-Park Campus Block D 100.00%

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Properties Below 90% Occupancy

Occupancy rates of properties below 90% as at 31 March 2016 Note: Vacant space in Fonterra HQ is built for their future expansion, Axis PDI is vacant for re-development initiatives.

• 59.08

62.90 68.08 81.01 81.03 81.33 84.18 84.96 Axis Business Campus Axis PDI Axis Eureka Axis Business Park Infinite Centre Axis Tech Centre Wisma Academy Crystal Plaza Quattro West Fonterra HQ

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Diversified Portfolio

8% 21% 5% 44% 22% Portfolio Diversification by Type and NLA Office Office/ Industrial Hypermarkets Warehouse Logistic Manufacturing Facilities

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34

Diversified Portfolio

Services 5.27% Healthcare & Lifestyle 3.66% Engineering/ Building Materials 21.95% Financial Services 1.37% Logistics 36.85% Automotive 2.85% IT/Electronics 10.25% Retail 5.86% Consumer Products 4.21% Others 0.48% Vacant, 7.24%

Portfolio Diversification by Industry Sector and NLA

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35

Portfolio Location

1.61% 1.89% 3.99% 5.82% 10.24% 22.09% 27.06% 27.29% Cyberjaya Kedah Nilai Klang Penang Shah Alam Johor Petaling Jaya Portfolio Diversification by Geographical Location

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Tenancy Mix

58% 39% 3% Single Tenant vs Multi-Tenants Single Tenant Multi Tenants Vacant

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Lease Expiry Profile – Looking Forward

Year Area up for renewal % of Total NLA % of Rental Income 2016 1,938,654 sq. ft. 26.54% 28.85% 2017 1,179.585 sq. ft. 16.15% 18.76% 2018 703,941 sq. ft. 9.64% 9.73%

SLIDE 38

Year % of % of Rental Year % of % of Rental Year % of % of Rental Property 2016 Total NLA Income/ month 2017 Total NLA Income/ month 2018 Total NLA Income/ month Menara Axis 103,019 1.41 3.24 22,073 0.30 1.09 -

• Crystal Plaza

120,122 1.64 3.76 11,153 0.15 0.32 -

• Axis Business Park

65,284 0.89 1.42 139,407 1.91 2.99 7,717 0.11 0.21 Infinite Centre 51,145 0.70 1.00 30,383 0.42 0.45 21,096 0.29 0.37 Wisma Kemajuan 129,279 1.77 2.31 9,583 0.13 0.25 47,569 0.65 0.90 Axis Vista 40,937 0.56 0.71 77,080 1.06 1.24 -

• Quattro West

61,474 0.84 2.06 17,422 0.24 0.56 18,160 0.25 0.53 Axis Technology Centre 61,234 0.84 0.93 34,020 0.47 0.38 61,817 0.85 1.06 Axis Eureka 15,235 0.21 0.51 54,259 0.74 1.57 -

• Wisma Academy

Parcel 65,148 0.89 1.26 50,741 0.69 1.05 75,563 1.03 1.37 Annex 45,400 0.62 0.50 - -

• Emerson Nilai

291,642 3.99 1.63 - -

• Axis Steel Centre
• - -

366,839 5.02 3.53 -

• Bayan Lepas Dist

Centre

• - -

205,151 2.81 2.98 -

• SPLC3

395,225 5.41 4.03 - -

• Fontera HQ

600 0.01 0.01 - -

• BMW
• - -

161,474 2.21 2.34 -

• Axis PDI Centre
• - -
• -
• Axis Shah Alam DC 1
• - -
• -
• Axis Shah Alam DC 2
• - -

164,400 2.25 1.91 D8, PTP

• - -

171,000 2.34 2.24 FCI

• - -
• -
• 136,619

1.87 1.14 Delfi 130,743 1.79 1.04 - -

• Axis Shah Alam DC 3

362,167 4.96 4.43

• 1,938,654

26.54 28.85 1,179,585 16.15 18.76 703,941 9.64 9.73 38

Lease Expiry Profile – Looking Forward

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39

Positive Rent Reversions

Properties Space Renegotiated (sq. ft.) % Rent Movement Menara Axis 60,987 +4.50% Crystal Plaza

• *

+8.45% Axis Business Park

• *

+33.33% Infinite Centre

• *

+7.14% Wisma Kemajuan 31,005 +0.44% Quattro West 9,349 +0.33% Axis Technology Centre 41,182 +0.00% Wisma Academy Parcel 26,222 +1.18% Total Pre-negotiated Rent Step Up 744,483 +4.76%

* Telco antenna on building roof

4.17% positive rental reversion in 1Q2016

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Weighted Average Lease Expiry (WALE)

The WALE for the portfolio is: By Year 1Q 2016 4Q 2015 By NLA 4.32 3.89 By Rental 4.41 3.99

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41

Portfolio Efficiency (PE)

The Portfolio Efficiency Ratio = Operating Cost for the Portfolio / Gross Property Income The Efficiency Ratio in 1Q 2016 has increased by 1.36% compared to 4Q 2015 due to increase in maintenance cost. 1Q 2016 4Q 2015 15.92% 14.56%

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Top 10 Tenants – Strong Rental Covenants

Ranking Tenant 1 LF Logistics Services (M) Sdn. Bhd. 2 Konsortium Logistik Berhad 3 Yongnam Engineering Sdn Bhd 4 Tenaga Nasional Berhad 5 Schenker Logistics (Malaysia) Sdn. Bhd. 6 Tesco Stores (Malaysia) Sdn. Bhd. 7 Strateq Data Centre Sdn. Bhd. 8 DHL Properties (Malaysia) Sdn. Bhd. 9 S R Technics Malaysia Sdn Bhd 10 BMW Asia Technology Centre Sdn Bhd The top ten tenants account for 51% of the total revenue of the Trust.

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1Q2016 ASSET ENHANCEMENTS

SLIDE 44

Menara Axis – Enhancement

44

Handicap-friendly & Loading Ramp Drop-Off Area Columns COMPLETED COMPLETED

SLIDE 45

Menara Axis – Enhancement

45

Ground Floor Lobby Columns COMPLETED

SLIDE 46

Menara Axis – Enhancement

46

Penthouse Lobby With Additional Lift Access COMPLETED

SLIDE 47

Menara Axis – Enhancement

47

Typical Toilets On All Floors COMPLETED

SLIDE 48

Menara Axis – Enhancement

48

Male & Female Surau COMPLETED

SLIDE 49

Menara Axis – Enhancement

49

Dome Painting COMPLETED

SLIDE 50

Menara Axis – Enhancement

50

Lifts Upgrading ONGOING

SLIDE 51

Wisma Academy – Enhancement

51

Lifts Upgrading ONGOING

SLIDE 52

Wisma Academy – Enhancement

52

Carpark Lighting Upgrade ONGOING

SLIDE 53

53

Axis PDI Centre – Proposed Enhancement (Before)

50 acre site

SLIDE 54

54

Axis PDI Centre – Proposed Enhancement (After)

A collaboration project with the Axis Group on the enhancement.

SLIDE 55

55

Axis PDI Centre – Proposed Enhancement

The existing site is centrally located in the heart of the Klang Valley, enjoying a wide frontage onto the Klang / Banting Highway (E5), 3.8km from the proposed LRT3 Johan Setia LRT Station.

Lebuhraya Shah Alam Lebuhraya Lembah Klang Selatan Subject Property

Caltex Sijangkang

GPS Coordinates : 2.949773, 101.472042

Proposed Johan Setia LRT Station

SLIDE 56

Sustainability Initiatives – Up To 1Q2016

56

 In the process of drafting a holistic sustainability plan encompassing energy efficient, water conservation and solid waste management – dubbed “GREEN WITH ENVY”.  Secured lease of 30,720 sq. ft. of roof space for installing solar panels at Axis Business

• Campus. This initiative not only supported the environment sustainability but also

generates rental income for the trust. Property Lettable Area (sq ft) Monthly Rental (RM) Axis Eureka 16,145 3,000.00 Axis SADC 3 297,311 61,898.75 Axis MRO Hub 40,000 8,000.00 Axis SADC 2 145,312 30,375.00 Wisma Kemajuan 16,145 2,400.00 Axis Business Campus 30,720 4,000.00 TOTAL 545,633 109,673.75

SLIDE 57

57

1Q2016 INVESTMENTS REPORT

SLIDE 58

Beyonics iPark Campus, Kulaijaya, Johor

Completion Date : 28 January 2016 Land Area :

• Approx. 10 acres

Land Tenure : Freehold Occupancy : 100% Purchase Price : RM61 million Projected Net Property Yield : 7.12% WALE : 10 years

Completed Acquisitions

SLIDE 59

Ongoing Acquisitions

Logistics Warehouse – Pasir Gudang, Johor

Land Area :

• Approx. 6 acres

Land Tenure : Leasehold Occupancy : 100% Purchase Price : RM33 million WALE : 5 years

SLIDE 60

Manufacturing Facility – Rawang, Selangor

Land Area :

• Approx. 15.25 acres

Land Tenure : Freehold Occupancy : 100% Purchase Price : RM42 million WALE : 15 years

Ongoing Acquisitions

SLIDE 61

Prospective Acquisition Targets

The Manager is currently undergoing assessments for the following assets as future acquisition targets:

• 1. Industrial facility in Seberang Prai, Penang for RM23million
• 2. Two Industrial facilities in Meru and one industrial facility in Balakong, Selangor for a

total of RM50million

• 3. Industrial facility in Senawang, Negri Sembilan for RM20million
• 4. Industrial facility in Nusajaya, Johor for RM50million
• 5. Industrial facility in Shah Alam, Selangor for RM58million
• 6. Two industrial facilities in Klang, Selangor for RM41million

Total Estimated Value of RM242 million

SLIDE 62

62

1Q2016 INVESTOR RELATIONS REPORT

SLIDE 63

Unit Price Performance YTD 2016

63

AXREIT: 1 Jan 2014 – 31 Mar 2016

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 1.00 1.50 2.00 2.50 3.00 3.50 4.00

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

Pre-Unit Split Price Post-Unit Split Price

SLIDE 64

Unit Price Movement YTD 2016

64

Price Statistics AXREIT vs KLCI: 1 Jan 2013 – 31 Mar 2016

1Q 2016: Unit Price @ 31 Mar 2016 RM1.61 4Q 2015: Unit Price @ 31 Dec 2015 RM1.64 Highest Price YTD: January 2016 RM1.63 Lowest Price YTD: March 2016 RM1.50

80% 90% 100% 110% 120% 130% 140% KLCI AXREIT

SLIDE 65

Volume Movement YTD 2016

65

Volume Statistics AXREIT: 1 Jan 2014 – 31 Mar 2016

Average Monthly Volume 2016 14,059,200 Highest Monthly Volume: March 2016 32,708,200 Lowest Monthly Volume: February 2016 3,032,900

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

• 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 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

SLIDE 66

Top 10 Unitholders YTD 2016

66

1 AMANAH SAHAM BUMIPUTERA 11.68% 2 EMPLOYEES PROVIDENT FUND 10.27% 3 TEW PENG HWEE @ TEOH PENG HWEE 5.04% 4 LEMBAGA TABUNG HAJI 5.00% 5 ALEX LEE LAO 4.52% 6 PERMODALAN NASIONAL BERHAD 3.72% 7 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 3.09% 8 AMANAH SAHAM MALAYSIA 2.48% 9 EXEMPT AN FOR EASTSPRING INVESTMENTS BERHAD 2.47% 10 PUBLIC SMALLCAP FUND 2.04% Holdings Breakdown Units Held 1Q 2016 Units Held 4Q 2015 Q-on-Q Change Top 5 Unitholders 36.5% 36.2% 0.3% Top 10 Unitholders 50.3% 51.1%

• 0.8%

Unitholders with > 2 million unitholdings 87.0% 87.1%

• 0.1%

SLIDE 67

Analysis of >2 million Unitholders

67

Top 5 increases in unitholdings: Top 5 decreases in unitholdings:

Last Quarter Increase Employees Provident Fund 0.7% Lembaga Tabung Haji 0.5% Etiqa Takaful Berhad 0.3% CIMB Islamic Trustee Berhad – Kenanga Syariah Growth Fund 0.2% Abas Carl Gunnar bin Abdullah 0.1% Last Quarter Decrease Amanah Saham Didik

• 0.9%

Kumpulan Wang Persaraan (Diperbadankan)

• 0.7%

AS 1Malaysia

• 0.4%

Public Smallcap Fund

• 0.3%

CNY for DFA International Real Estate Securities Portfolio of DFA Investments Dimensions Group Inc

• 0.1%

SLIDE 68

Investor Visibility and Liquidity YTD 2016

68

 Quarter-on-quarter, total number of CDS accounts increased by 179 to 3,790.

• No. of CDS Accounts

Units Held 1Q 2016 Units Held 4Q 2015 Q-on-Q Change Total foreign holdings 12.69% 12.66% 0.03% Foreign holdings – related-party 7.64% 7.48% 0.16% Foreign holdings – non-related-party 5.05% 5.18%

• 0.13%

Promoters 13.96% 13.79% 0.17%

1,652 2,080 2,420 2,702 2,850 3,009 3,176 3,200 3,219 3,309 3,611 3,790

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000

2008 2009 2010 2011 2012 2013 2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016

SLIDE 69

Analyst Coverage 1Q 2016

Coverage Rating Target Price (RM) Published Date AffinHwang Hold 1.65 19 Jan 2016 Hong Leong IB Hold 1.60 4 Mar 2016 KAF Hold 1.70 17 Feb 2016 Maybank Hold 1.55 19 Jan 2016 MIDF Hold 1.68 19 Jan 2016 S&P Capital IQ Consensus 1.66 29 Mar 2016 Recommendation Movement 1Q 2016 4Q 2015 Buy ↓ 2 Hold ↑ 5 4 Sell ↔

SLIDE 70

THANK YOU