Value Creation & Sustainable Development Goals
Financial Capital
Axis-REIT’s Unitholders’ capital, Sukuk funds, revolving credit facilities, investments, and rental income that are used to support the Fund’s business and operations
Manufactured Capital
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
Social & Relationship Capital
Stakeholder relationships, including with suppliers, regulators, and the communities in which we operate, as we recognise the importance of having robust interdependent relationships in building a thriving society
Human Capital
Our culture and people, collective information, skills and experience that enable innovative and competitive business space solutions, developments and initiatives for our tenants and other stakeholders
Intellectual Capital
The expertise and knowledge inherent to the Manager that can be reproduced and shared for sustainable growth
Natural Capital
All environmental resources and processes that support the current and future sustainability of our business and all our stakeholders, which we preserve through the limitation of negative contributions towards climate change
Financial Capital
- CAPEX: RM176.8 million
- Operational cash flows: RM198.7 million
- Undertaking capital raising to pare down financing and provide financial headroom for property acquisitions and developments
- 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 the Fund’s capital structure
- Maintaining an optional balance of short- and long-term financing through a prudent capital management strategy
- Increasing the proportion of single-tenanted buildings with triple-net leases in the portfolio
- Obtaining sustainability-linked financing facilities
Manufactured Capital
- Total no. of properties: 62
- Investments in strategic AEIs and development projects in 2023: RM172.7 million
- Strengthening the property portfolio with yield-accretive acquisitions and quality new builds
- Preserving the value of the property portfolio through strategic AEIs
- Securing credible and reliable tenants
- Incorporating green building designs and features in major AEIs and development projects, in line with our Environmental Policy, and aligning these efforts with green building standards
- Leveraging on existing initial due diligence assessments to evaluate annual flood risks in the mid- to long-term horizons of new acquisitions and proposed developments
- Focusing on development projects with long lease tenures
Social & Relationship Capital
- Total community investments in 2023: RM181,000
- Total procurement (excluding government-related expenses) from local suppliers in 2023: RM205.6 million
- Building strong public awareness and brand association of Axis-REIT’s commitments towards sustainability
- Actively providing training sessions for our suppliers
- Upholding strong ethical practices among our value chains by conducting periodic assessments and audits on key suppliers and contractors
- Forging strong relationships with existing tenants
- Continual engagements with tenants to understand their business strategies and needs
Human Capital
- Total workforce: 80 employees
- Employee training expenses: RM39,000
- Providing employee engagement programmes such as ongoing learning opportunities, year-end performance appraisals, annual dinners and company trip
- Providing equal employment benefits to both permanent and contract employees
- Upholding strong HSE practices by on-site managers in accordance with our HSE Policy
- Conducting periodic HSE audits
Intellectual Capital
- Strengthening cybersecurity defences by engaging with our outsourced IT service provider to explore the implementation of an IT disaster recovery plan
- Undertaking an internal audit on IT processes
- Implementing end-to-end encryption and threat detection
- Installing endpoint detection and response software on Facilities Management computers
- Subscribing to an online interactive cybersecurity awareness programme for employees
- Maintaining seamless communication with tenants via our Hello Axis online portal to address their service requests, feedback and complaints
Natural Capital
- Implementing measures to increase energy and water use efficiency
- Upgrading air conditioning systems to environmentally-friendly systems at selected multi-tenanted properties
- Installing new energy efficient transformers at Crystal Plaza in 2023
- Establishing a baseline and targets for waste management initiatives
- Actively promoting waste reduction efforts through the 5R concept
- Prioritising the inclusion of additional green building features in major AEIs and new developments
Financial Capital
- Improvement in revenue and net property income: RM288.4 million and RM245.4 million respectively
- Economic value distributed: RM193.9 million
- DPU: 8.65 sen
- Liquidity: RM592.7 million
- Value of committed sustainability-linked financing: RM490.0 million
Manufactured Capital
- Total space under management: 13.4 million sq. ft.
- Major AEI completed: 1
- Development project completed: 1
- Successfully raised tenant occupancy rate by 2 percentage points to 97% and achieved a positive rental reversion of 5.8%
- Secured renewals for 1.53 million sq. ft. of space (representing 97% tenant retention rate) and commenced new tenancies for 1.91 million sq. ft. of space during the year
- Obtained final green building certification for 1 property and provisional green building certifications for 2 buildings
Social & Relationship Capital
- Total number of beneficiaries of our community investment initiatives: 85
- Proportion of qualified suppliers that are local entities: 100%
- Total number of suppliers increased by 8.4%
- Total procurement value (excluding government-related expenses) increased by 136% to RM205.6 million
- No. of suppliers and/or contractors removed from our panel due to non-compliance with the Supplier Code of Conduct: 4
- Annual tenant satisfaction survey average score: 7.61 out of 10 (target score: 7 out of 10)
- No. of green lease (i.e., tenancy agreement featuring ESG considerations): 1
- Incorporated ESG components into the fit-out and refurbishment guide of the Renovation Manual
Human Capital
- Total employee training hours: 957.5 hours
- Average training hours per employee: 12 hours
- Proportion of employees receiving regular performance and career development reviews: 100%
- New hires rate: 5%
- Employee turnover rate: 2%
- Gender pay ratio for middle and senior management (male to female): 1.0 : 1.1
- No. of work-related fatalities, lost time injuries (LTI), restricted work, medical treatment cases, or first aid cases: 0
- No. of fines or sanctions for non-compliance with OHS-related laws and regulations: 0
Intellectual Capital
- Proportion of employees who underwent PDPA-related training: 100%
- Proportion of employees who underwent cybersecurity-related training: 70%
- No. of cases of cybersecurity breaches: 0
- Hello Axis tenant satisfaction ratings average score: 4.31 out of 5 (target score: 4 out of 5)
- Responded to 91% of service request tickets raised from multi-tenanted properties and 97% of tickets from single-tenanted properties within 24 hours
Natural Capital
- Total reduction in energy consumption vs. baseline year: 13.5%
- Total reduction in Scope 1 and Scope 2 GHG emissions vs. baseline year: 15.2%
- Increase in water consumption vs. baseline year: 6.7%
- Increase in general waste generated vs. baseline year: 22.8%
- Total waste recycled at multi-tenanted buildings: 42,710 kg
- Waste reused or recycled at development projects: 88,150 kg
Management of Material Sustainability Matters
Economic
Economic Performance
Tenant Satisfaction
Quality Assets & Services - New Acquisitions
Quality Assets & Services - Existing Assets
Responsible Supply Chain Management
Governance
Business Ethics
Cybersecurity & Data Protection
Environmental
Energy & Carbon Footprint
Water Management
Waste Management
Social
Occupational Health & Safety
Talent Development
Diversity & Inclusion
Human Rights & Labour Practices
Community Activity & Partnership
