Axis Real Estate Investment TrustINTEGRATED
ANNUAL REPORT 2021
We are pleased to report that the Fund turned in strong financial and operating metrics in FYE2021. Total revenue rose 6% to a record RM246.21 million, while realised net income rose 9% to RM136.2 million. Axis-REIT’s balance sheet strength paved the way for continued growth of our property portfolio, with the Fund adding over 900,000 sq. ft. of net lettable area (“NLA”) during the year, extending its leadership in the industrial space segment.
Office
No. 2, Jalan 51A/223
Section 51A
46100 Petaling Jaya
Selangor
No. 4, Jalan 51A/223
Section 51A
46100 Petaling Jaya
Selangor
No. 4, Lorong Persiaran Barat
46100 Petaling Jaya
Selangor
Lot 13A & 13B, Jalan 225
Section 51A
46100 Petaling Jaya
Selangor
No. 10, Jalan Bersatu 13/4
Section 13
46200 Petaling Jaya
Selangor
No. 13, Jalan 225
Section 51A
46100 Petaling Jaya
Selangor
No. 11, Jalan 219
Section 51A
46100 Petaling Jaya
Selangor
No. 23, Jalan Delima 1/1
Subang Hi-Tech Industrial Park
Batu Tiga, 40000 Shah Alam
Selangor
Lot 1, Jalan 13/6
Section 13
46200 Petaling Jaya
Selangor
No. 12 Jalan Bersatu 13/4
Section 13
46200 Petaling Jaya
Selangor
No. 4, Jalan 19/1
Section 19
46300 Petaling Jaya
Selangor
No. 4A, Jalan 19/1
Section 19
46300 Petaling Jaya
Selangor
No. 2, Jalan 19/1B
Section 19
46300 Petaling Jaya
Selangor
Jalan Aeroangkasa 4
Seksyen U3
40150 Shah Alam
Selangor
No 4, Solok Waja 3
Kawasan Perindustrian Bukit Raja
41050 Klang
Selangor
Lot No. 749, Kawasan Perindustrian Nilai II
71800 Nilai
Negeri Sembilan
Lot 795 & 796 Jalan Monorail
Kawasan Industri Sungai Choh
48000 Sungai Choh Rawang
Selangor
No. 3, Jalan Keluli 15/16
Section 15
40200 Shah Alam
Selangor
Lot 16, Jalan Pengapit 15/19
Seksyen 15
40200 Shah Alam
Selangor
Lots 2-22,2-24,2-26,2-28
Jalan SU 6A
Taman Perindustrian Subang
(Lion Industrial Park) Section 22
40300 Shah Alam, Selangor
No 3, Jalan Keluli Satu,
Kawasan Perindustrian Bukit Raja Selatan,
40000 Shah Alam, Selangor
Lot 13111 & Lot 13112, Mukim Labu
Kawasan Perindustrian Nilai 1
71800 Nilai
Negeri Sembilan
Lot 7316 (PT 3609)
Persiaran Sijangkang Utama
42500 Telok Panglima Garang
Selangor
Lot 19, Lebuh Hishamuddin 1
Selat Klang Utara
42000 Pelabuhan Klang
Selangor
Lot No. 10 & 12, Jalan Pahat 16/8A
Lot No. 11 & 13, Jalan Gudang 16/9
Section 16, 40200 Shah Alam
Selangor
Lot No. 22202, Jalan Gambus 33/4
Off Jalan Bukit Kemuning, Batu 8.5
40400 Shah Alam
Selangor
Lot PT 5038-5041
Jalan Teluk Datuk 28/40
Off Persiaran Sepang, Seksyen 28
40400 Shah Alam, Selangor
Lot 45 (177) Jalan Utas 15/7
Seksyen 15, 40200 Shah Alam
Selangor
No. 43 & 44, Lengkok Keluli 1
Kawasan Perindustrian
Bukit Raja Selatan, Seksyen 7
40000 Shah Alam, Selangor
Lot 73 & 74, Persiaran Bunga
Tanjung 1, Senawang Industrial Park
70400 Seremban
Negeri Sembilan
LOGISTICS WAREHOUSE
PMT 770, Jalan Cassia Selatan 6/4
Taman Perindustrian Batu Kawan
14110 Bandar Cassia, Penang
88A, Lintang Bayan 9
Lintang Bayan Lepas Industrial Park
Phase IV 11900 Bayan Lepas
Penang
Plot 24, Tingkat Perusahaan 6
Kawasan Perusahaan Prai Phase 4
13600 Seberang Prai Tengah
Penang
Plot 23, Tingkat Perusahaan 6
Kawasan Perusahaan Prai Phase 4
Seberang Prai Tengah
Penang
No. 74, Lorong Perusahaan Utama 4
Bukit Tengah Industrial Park
14000 Bukit Mertajam
Penang
HYPERMARKET
Jalan Lencongan Barat
08000 Sungai Petani
Kedah
MANUFACTURING FACILITY
Sub Lot 2
Kawasan Perindustrian MIEL
Gebeng, KM25
Jalan Kuantan-Kemaman
P.O. Box 240, 25720 Kuantan
Pahang
OFFICE/INDUSTRIAL
75 (Plot 111), Jalan i-Park 1/8,
Kawasan Perindustrian i-Park,
Bandar Indahpura,
81000 Kulai, Johor
No. 27, Jalan SiLC 1/5
Kawasan Perindustrian SiLC
79200 Nusajaya
Johor
No. 95, Jalan i-Park 1/10
Kawasan Perindustrian i-Park
81000 Bandar Indahpura
Kulaijaya, Johor
No. 96, Jalan i-Park 1/10
Kawasan Perindustrian i-Park
81000 Bandar Indahpura
Kulaijaya, Johor
No. 97, Jalan i-Park 1/10
Kawasan Perindustrian i-Park
81000 Bandar Indahpura
Kulaijaya, Johor
No. 98, Jalan i-Park 1/10
Kawasan Perindustrian i-Park
81000 Bandar Indahpura, Kulaijaya
Johor
No. 93, Jalan i-Park 1/10
Kawasan Perindustrian i-Park
81000 Bandar Indahpura
Kulaijaya, Johor
92 (Plot 132), Jalan i-Park 1/10,
Kawasan Perindustrian i-Park,
Bandar Indahpura,
81000 Kulai, Johor
PLO 205, Jalan Cyber 14
Kawasan Perindustrian Senai IV
81400 Johor
No.69, Jalan i-Park 1/7
Kawasan Perindustrian i-Park
81000 Bandar Indahpura
Kulaijaya, Johor
74 (Plot 112), Jalan i-Park 1/8,
Kawasan Perindustrian i-Park,
Bandar Indahpura,
81000 Kulai, Johor
Nos. 1, 3 & 5
Jalan Teknologi Perintis 1
Taman Teknologi Nusajaya
79200 Iskandar Puteri, Johor
No. 14, Jalan Teknologi Perintis 1/3
Taman Teknologi Nusajaya
79200 Iskandar Puteri, Johor
Lot D8, Jalan Tanjung A/4
Distripark A, Port of Tanjung Pelepas
Gelang Patah, 81560 Johor
Lot D21, Jalan Tanjung A/3
Distripark A, Port of Tanjung Pelepas
Gelang Patah, 81560 Johor
Plot D37c, Jalan DPB 3, Distripark B
Pelabuhan Tanjung Pelepas, 81560
Gelang Patah, Johor
PLO 731, Jalan Nikel 2
Kawasan Perindustrian Pasir Gudang
81700 Pasir Gudang
Johor
PLO 419-421, Jalan Emas 2
Pasir Gudang Industrial Estate
81700 Pasir Gudang
Johor
PLO 563, Jalan Keluli 8
Pasir Gudang Industrial Estate
81700 Pasir Gudang
Johor
Plot 823 & Plot 828, Jalan Nikel 2, Kawasan Perindustrian Pasir Gudang, 81700 Pasir Gudang, Johor
HYPERMARKET
No. 1, Jalan Bukit Indah 15
81200 Johor
Guided by our Business Plan 2021, we are pleased to report that we were able to capitalise on these conditions as well as the Fund’s inherent strengths to turn in solid financial and operating results for FYE2021.
Axis-REIT’s Unitholders’ capital, financing facilities, investments and rental income that are used to support Axis-REIT’s business and operations
Our structured processes that include Axis-REIT’s diverse portfolio of properties and management services which provide the framework of how we do business and create value
Stakeholder relationships, including suppliers, regulators and the communities in which we operate, as we recognise the need for interdependent relationships in building a thriving society
Our culture and people, collective information, skills and experience that enable innovative and competitive developments and initiatives for our tenants and other stakeholders
The expertise and knowledge inherent to the Manager that can be reproduced and shared for sustainable growth
Preservation and sustainable application of all environmental resources and processes that support the current and future prosperity of our business and stakeholders, to minimise the impact of our operations on climate change
Raising capital to pare down financing and provide financial headroom for acquisitions
Managing financial resources through the implementation of a disciplined investment strategy
Maintaining a proactive portfolio management strategy to preserve and enhance the value of properties
Adopting cost discipline and optimisation of capital structure
Maintaining an optimal balance of short and long-term financing through prudent capital management
Active marketing of properties to prospective tenants with increased reach through digital marketing channels, including virtual property viewings
Participating in bidding exercises for ‘built-to-lease’ projects
AEIs
Focusing on acquisitions and development of warehouses given the surge in e-commerce activities in the country
Conducting an annual vendor/contractor evaluation process that includes ESG considerations
Engaging with existing tenants on space and facility requirements
Monitoring tenants’ business conditions due to COVID-19
Enhancing our whistleblowing channel for more effective reporting
Monetary donations to the IDEAS Community Projects’ Hospital Emergency Fund
Enhancing our Supplier Code of Conduct by including human rights and fair labour practices
Adhering to the HSE Policy and enforcement of policies by on-site engineers
Implementation of Job Safety Analysis (“JSA”) to establish documented risk assessments
Conducting safety awareness and training programmes for new employees, external service providers and contractors
Adherence to SOPs to protect the health and well-being of employees and other stakeholders
Provision of ongoing learning opportunities and annual performance appraisals for employees
Provision of equal employment benefits to both permanent and contract employees
Enhancement of ‘Hello Axis’ to improve user experience
Upgrade of IT security through the adoption of IT Guidelines, the Cyber Hygiene Checklist and implementation of IT infrastructure and controls
Incorporating ESG considerations into due diligence exercises for potential new acquisitions
Incorporating ESG criteria for developments
Installing rainwater harvesting systems for landscaping and general cleaning
Upgrading of air conditioning systems to environmentally friendly systems
Replacing conventional lighting with energy-efficient light and water-saving fittings
Managing recycling bins and repositories for the collection of recyclable waste and electronic waste ("e-waste")
Completed 5 yield-accretive acquisitions worth RM223.2 million
Grew revenue and net property income by 6% and 7.2% yoy to RM246.2 million and RM212.9 million respectively
Increased economic value distributed by 7.2% to RM171.5 million
Sufficient liquidity at RM661 million
Achieved occupancy rate of 96% and tenant retention rate of 89%
Secured tenancies for 91% of the total NLA that was up for renewal as well as a 5.6% positive rental reversion across the portfolio
No cases of compliance breaches
100% local vendors
The total number of suppliers decreased by 8.6% with a total procurement value of RM19.6 million
A total of 45 training hours across 15 sessions were offered to suppliers
Doubled the Fund’s monetary donations to RM200,000 in FYE2021, from RM100,000 in FYE2020
No reported incidents or grievances related to discrimination, child labour and/or forced labour issues
Maintained absentee rates at an average of 1.0%, unchanged from FYE2020
No fatalities, Lost Time Injuries (“LTI”), restricted work, medical treatment cases or first aid cases
No fines or sanctions for non-compliance with OSH-related laws and regulations
Average training hours per employee increased by 40% from the previous year
100% of employees received regular performance and career development reviews
2 new hires in FYE2021 and a 6% turnover rate
Gender pay ratio (male to female) of 1:1 from middle to senior management
Tenant satisfaction rating for service requests on ‘Hello Axis’ maintained at 4.32 out of 5, exceeding the annual target score of 4 and above
Annual tenant satisfaction survey score averaged 7.31 out of 10 which is a marginal 1.2% decrease from FYE2020
Enhanced IT security systems with zero incidents of cybersecurity breaches
Reduced water consumption and Water Use Intensity (“WUI”) by 20% and 17% respectively
Energy consumption, intensity and scope 2 GHG emissions were maintained at similar levels to the previous year
Collected 438kg of paper, 184kg of glass and 196kg of metal, aluminium cans and plastic from common areas of multi-tenanted properties
Collected 82kg of e-waste
No fines or sanctions for non-compliance with environmental laws and regulations
Axis-REIT’s Unitholders’ capital, financing facilities, investments and rental income that are used to support Axis-REIT’s business and operations
Our structured processes that include Axis-REIT’s diverse portfolio of properties and management services which provide the framework of how we do business and create value
Stakeholder relationships, including suppliers, regulators and the communities in which we operate, as we recognise the need for interdependent relationships in building a thriving society
Our culture and people, collective information, skills and experience that enable innovative and competitive developments and initiatives for our tenants and other stakeholders
The expertise and knowledge inherent to the Manager that can be reproduced and shared for sustainable growth
Preservation and sustainable application of all environmental resources and processes that support the current and future prosperity of our business and stakeholders, to minimise the impact of our operations on climate change
Raising capital to pare down financing and provide financial headroom for acquisitions
Managing financial resources through the implementation of a disciplined investment strategy
Maintaining a proactive portfolio management strategy to preserve and enhance the value of properties
Adopting cost discipline and optimisation of capital structure
Maintaining an optimal balance of short and long-term financing through prudent capital management
Active marketing of properties to prospective tenants with increased reach through digital marketing channels, including virtual property viewings
Participating in bidding exercises for ‘built-to-lease’ projects
AEIs
Focusing on acquisitions and development of warehouses given the surge in e-commerce activities in the country
Conducting an annual vendor/contractor evaluation process that includes ESG considerations
Engaging with existing tenants on space and facility requirements
Monitoring tenants’ business conditions due to COVID-19
Enhancing our whistleblowing channel for more effective reporting
Monetary donations to the IDEAS Community Projects’ Hospital Emergency Fund
Enhancing our Supplier Code of Conduct by including human rights and fair labour practices
Adhering to the HSE Policy and enforcement of policies by on-site engineers
Implementation of Job Safety Analysis (“JSA”) to establish documented risk assessments
Conducting safety awareness and training programmes for new employees, external service providers and contractors
Adherence to SOPs to protect the health and well-being of employees and other stakeholders
Provision of ongoing learning opportunities and annual performance appraisals for employees
Provision of equal employment benefits to both permanent and contract employees
Enhancement of ‘Hello Axis’ to improve user experience
Upgrade of IT security through the adoption of IT Guidelines, the Cyber Hygiene Checklist and implementation of IT infrastructure and controls
Incorporating ESG considerations into due diligence exercises for potential new acquisitions
Incorporating ESG criteria for developments
Installing rainwater harvesting systems for landscaping and general cleaning
Upgrading of air conditioning systems to environmentally friendly systems
Replacing conventional lighting with energy-efficient light and water-saving fittings
Managing recycling bins and repositories for the collection of recyclable waste and electronic waste ("e-waste")
Completed 5 yield-accretive acquisitions worth RM223.2 million
Grew revenue and net property income by 6% and 7.2% yoy to RM246.2 million and RM212.9 million respectively
Increased economic value distributed by 7.2% to RM171.5 million
Sufficient liquidity at RM661 million
Achieved occupancy rate of 96% and tenant retention rate of 89%
Secured tenancies for 91% of the total NLA that was up for renewal as well as a 5.6% positive rental reversion across the portfolio
No cases of compliance breaches
100% local vendors
The total number of suppliers decreased by 8.6% with a total procurement value of RM19.6 million
A total of 45 training hours across 15 sessions were offered to suppliers
Doubled the Fund’s monetary donations to RM200,000 in FYE2021, from RM100,000 in FYE2020
No reported incidents or grievances related to discrimination, child labour and/or forced labour issues
Maintained absentee rates at an average of 1.0%, unchanged from FYE2020
No fatalities, Lost Time Injuries (“LTI”), restricted work, medical treatment cases or first aid cases
No fines or sanctions for non-compliance with OSH-related laws and regulations
Average training hours per employee increased by 40% from the previous year
100% of employees received regular performance and career development reviews
2 new hires in FYE2021 and a 6% turnover rate
Gender pay ratio (male to female) of 1:1 from middle to senior management
Tenant satisfaction rating for service requests on ‘Hello Axis’ maintained at 4.32 out of 5, exceeding the annual target score of 4 and above
Annual tenant satisfaction survey score averaged 7.31 out of 10 which is a marginal 1.2% decrease from FYE2020
Enhanced IT security systems with zero incidents of cybersecurity breaches
Reduced water consumption and Water Use Intensity (“WUI”) by 20% and 17% respectively
Energy consumption, intensity and scope 2 GHG emissions were maintained at similar levels to the previous year
Collected 438kg of paper, 184kg of glass and 196kg of metal, aluminium cans and plastic from common areas of multi-tenanted properties
Collected 82kg of e-waste
No fines or sanctions for non-compliance with environmental laws and regulations
Economic Performance
Tenant Satisfaction
Quality Assets & Services - New Acquisitions
Quality Assets & Services- Existing Assets
Responsible Supply Chain Management
Business Ethics
Cybersecurity & Data Protection
Energy & Carbon Footprint
Water Management
Waste Management
Occupational Health & Safety
Talent Development
Diversity & Inclusion
Human Rights & Labour Practices
Community Activity & Partnership
