Page 70 - KWAP_AR2022

68 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) FoR BEttER PERFoRMANcE

INVESTMENT REVIEW
ASSET CLASS REVIEw

PERFORMANCE AND INVESTMENT HIGHLIGHTS
Geographical Exposure as at 31 December 2022
2
In 2022, KWAP’s real estate investments generated a net
income yield of 4.0% on the investment cost. Historically, the 6.3%
average net income yield on investment cost of KWAP’s real
estate portfolio stood at a healthy 5.0% p.a. from 2018 to 2022. 37.8%

KWAP’s Real Estate Portfolio - Net Income Yield on 44.3%
Investment Cost from 2018 to 2022

6.3% 6.5% 11.6%
8% • Malaysia • UK
6% 4.1% 4.0% 4.0% • Australia • Europe
4%
2%
Asset Segment Exposure as at 31 December 2022 2
0
2018 2019 2020 2021 2022 13.9%
Net Income Yield

The year saw KWAP’s real estate investment recording a 9.6% 42.6%
five-year rolling return of 3.68% which was lower than the
benchmark of 6.41% amidst the widening of yields in the
rising interest rate environment. 8.4%

KWAP’s Real Estate Portfolio – 5-year Rolling Total 25.5%
Return 1
• Office • Retail • Residential
•
•
PBSA
Logistics
11.91%
14% 10.94% In terms of asset segment, our property investments are
12% diversified across office, logistics, retail, purpose-built
10% 6.50% 6.50% 6.90% student accommodation (PBSA) and residential. Office
8% 5.36% 6.27% 5.58% 6.41% and logistics currently make up the bulk of the portfolio at
6% 3.68% 42.6% and 25.5% respectively.
4% In May 2022, KWAP expanded its portfolio in the
2% non-core and indirect segment by entering into its first fund
0% investment, Blackstone Real Estate Partners Asia III Fund
2018 2019 2020 2021 2022 with a total capital commitment of USD50 million. In June
• Total Return • Benchmark 2022, KWAP subscribed to its second fund investment
in Sime Darby Property Industrial Development Fund
The average occupancy of KWAP’s properties as at 31 (SDPIDF) for RM200 million.
December 2022 was 89.7%.
Following the approval given by the Ministry of Finance
In terms of geography, KWAP has diversified its exposure (MOF) in September 2021, KWAP conducted the repayment
into four main countries namely Malaysia, Australia, United exercise via shareholders loan for its existing financing for
Kingdom (UK) and Germany with the largest exposure being its logistics portfolio at Zalando Distribution Warehouse,
in the UK at 44.3%.
Germany and the exercise was completed by June 2022.

1 Note: Benchmark is Blended CPI+4% (5-year rolling)
2 Note: Exposure based on equity invested