Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — AIMS AMP Capital Industrial REIT — FY2014 Earnings Presentation
47 slides from Singapore Exchange's earnings presentation, May 7, 2014
Slide 1: AIMS AMP Capital Industrial REIT FY2014 Results Presentation
AIMS AMP CAPITAL INDUSTRIAL REIT FY2014: Fourth Quarter and Full Year Ended 31 March 2014 Results Presentation 7 May 2014 AIMS AMP Capital Industrial REIT
Slide 2: Important notice
Important notice Disclaimer This Presentation is focused on comparing actual results for the financial period from 1 April 2013 to 31 March 2014 (“FY2014”) and 1 January 2014 to 31 March 2014 (“4Q FY2014”) versus actual results year-on-year (“y-o-y”) and quarter-on-quarter (“q-o-q”). This Presentati
Slide 3: Contents
CONTENTS Highlights for 4Q FY2014 4 4Q FY2014 and FY2014 Financial Results 9 Prudent Capital Management 14 Portfolio Performance 19 FY2014 Milestones & Achievements 30 Strategy Ahead 38 3
Slide 4: Highlights for 4Q FY2014
>1 HIGHLIGHTS FOR 4Q FY2014 4 AIMS AMP Capital Industrial REIT
Slide 5: Highlights for 4Q FY2014
Highlights for 4Q FY2014 >1 Active portfolio management driving higher distributions • DPU performance: 2.51 cents per Unit for the quarter (DPU of 2.95 cents pre Rights Issue) • Net property income in 4Q FY2014 increased by 24.1% y-o-y to S$19.3 million • Distribution to Unitholders (from operation
Slide 6: Highlights for 4Q FY2014
Highlights for 4Q FY2014 >1 Prudent capital management • Raised S$100.0 million via rights issue mainly to fund the Trust’s asset enhancement initiatives (including redevelopment projects), development projects and/or third party acquisitions in Singapore • Aggregate leverage of 31.7% (average of 30
Slide 7: Stable and attractive yield
Stable and attractive yield >1 10.00% 7.42% % yield per annum 5.00% 2.47% 2.50% 0.56% 0.00% 1 2 3 2 AACI REIT Actual Yield S'pore Govt 10-yr bond CPF Ordinary Account Bank 12mths FDs 1 Based on closing price of S$1.42 on 6 May 2014 and actual DPU for FY2014 of 10.53 cents. 2 Source: Bloomberg data a
Slide 8: Stable and growing DPU
Stable and growing DPU >1 3.50 3.140 0.300 from 2.950 3 3.00 capital gain 2.840 2.750 2.770 2.688 2.688 2.700 2.650 2.700 2.600 2.580 2.550 2.500 2.500 2.500 2.500 2.510 2.50 Distribution per Unit (cents) 1.984 2.00 1.795 1.50 1.00 0.50 0.00 1 1 1 1 1 1 1 2 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11
Slide 9: 4Q FY2014 and FY2014 Financial Results
4Q FY2014 AND FY2014 >2 FINANCIAL RESULTS 9 AIMS AMP Capital Industrial REIT
Slide 10: Distribution details
Distribution details >2 Stock counter Distribution period DPU (cents) AIMSAMP Cap Reit 1 January 2014 to 31 March 2014 2.510 Code: O5RU Distribution timetable Ex-date 14 May 2014, 9.00am Books closure date 16 May 2014, 5.00pm Tax Declaration Forms 4 June 2014, 5.00pm Distribution payment date 24 Jun
Slide 11: Results for 4Q FY2014 and FY2014
Results for 4Q FY2014 and FY2014 >2 4Q 3Q Q-o-Q 4Q Y-o-Y FY2014 FY2013 FY2014 FY2014 % FY2013 % S$’000 S$’000 % S$’000 S$’000 S$’000 Gross Revenue 29,473 27,317 7.9 23,810 23.8 108,240 92,082 17.5 Net Property Income 19,260 18,677 3.1 15,516 24.1 71,895 59,896 20.0 Distribution to 15,591 14,643 6.5
Slide 12: Balance Sheet
Balance Sheet >2 31 March 2014 31 December 2013 31 March 2013 Total Assets (S$’M) 1,405.2 1,159.2 1,056.2 Comprising (S$’M): - Investment properties 1,085.5 1,071.9 971.0 - Investment properties under development 72.0 56.6 73.9 - Joint venture 215.2 - - - Trade and other receivables 10.5 21.4 8.2 -
Slide 13: Key financial metrics
Key financial metrics >2 4Q FY2014 3Q FY2014 Appraised Value of Property Portfolio S$1,372.51,2 million S$1,128.53 million Market Capitalisation4 S$882.0 million S$752.2 million NAV per Unit S$1.47 S$1.52 Premium / (Discount) to NAV4 (3.4)% (6.3)% Aggregate Leverage5 31.7% 26.5% Interest Cover Ratio
Slide 14: Prudent Capital Management
PRUDENT CAPITAL >3 MANAGEMENT 14 AIMS AMP Capital Industrial REIT
Slide 15: Debt facilities as at 31 March 2014
Debt facilities as at 31 March 2014 >3 Secured borrowings (Singapore) • Bank syndicate comprising UOB, SCB, CBA, ING and Maybank • All in pricing (margin + upfront fee) of 2.13% • 67.8% of interest rate fixed for weighted average period of 2.7 years at 1.34% (Fixed Base Rate) • Total funding cost of
Slide 16: Debt facilities as at 31 March 2014
Debt facilities as at 31 March 2014 >3 Secured borrowings (Australia) • Onshore syndicated facility with ANZ and CBA • Secured facility of A$110.655 million to part finance the acquisition of Optus Centre • Total funding cost of approximately 5% • 50.0% of interest rate fixed for weighted average pe
Slide 17: Debt facilities as at 31 March 2014
Debt facilities as at 31 March 2014 >3 S$44.2m Maturity date S$ undrawn ‘million S$1.0m Due in October 2015 (FY2016) 111.2 undrawn 120 74 Due in August 2016 (FY2017) 100.0 Due in October 2016 (FY2017) 75.8 S$61.8m Due in February 2019 (FY2019) 128.7 undrawn 128.7 100 100 Due in December 2019 (FY2020
Slide 18: Gearing level since 2009
Gearing level since 2009 >3 Target LVR between 30 – 40%, max 50% (bank covenant) 60.0 50.0 Maintained gearing at average of 30% for 18 consecutive quarters 40.0 34.0 33.6 34.0 % Gearing 31.9 31.5 31.7 28.9 28.9 28.8 28.9 30.4 30.0 30.7 30.0 29.7 30.0 25.4 25.2 26.5 20.0 10.0 - 3QFY104QFY10 1QFY11 2Q
Slide 19: Portfolio Performance
>4 PORTFOLIO PERFORMANCE 19 AIMS AMP Capital Industrial REIT
Slide 20: Total assets since 2009
Total assets since 2009 >4 1,600.0 1,405.2 1,400.0 1,200.0 1,056.2 Total Assets (S$mil) 1,000.0 939.0 874.7 800.0 657.7 600.0 400.0 200.0 - FY2010 FY2011 FY2012 FY2013 FY2014 20 AIMS AMP Capital Industrial REIT
Slide 21: Revenue performance since 2009
Revenue performance since 2009 >4 120,000 108,240 100,000 +17.5% 92,082 83,983 80,000 73,245 71,895 S$’000 59,896 +20.0% 59,071 60,000 50,944 52,982 40,353 40,000 20,000 - FY2010 FY2011 FY2012 FY2013 FY2014 NPI (S$'000) Gross Revenue (S$'000) 21 21 AIMS AMP Capital Industrial REIT
Slide 22: Key portfolio statistics
Key portfolio statistics >4 As at As at As at 31 March 31 December 19 April 2007 2014 2013 (Listing) Number of Properties 26 25 12 Appraised Value (S$ million) 1,372.51,2 1,128.53 316.5 Net Lettable Area (sq m) 556,607.34 516,253.64 194,980.7 Number of Tenants 141 140 12 Portfolio Occupancy (%) 97.0
Slide 23: Portfolio breakdown
Portfolio breakdown By 4Q FY2014 rental income >4 Breakdown by Property Sector Master Leases vs Multi-tenanted Light Industrial 10.6% Business Park 17.0% Multi- Master tenanted Leases 50.5% 49.5% Hi-Tech Space 6.8% Cargo lift Warehouse 23.9% Manufacturing 8.8% Occupancy Average security deposit2 Ram
Slide 24: Diversification reduces risk
Diversification reduces risk >4 Tenant Base by Industry (By 4Q FY2014 Rental Income) Furniture Self-storage 0.7% 2.3% Data Centre 1.6% Construction and Printing Engineering Telecommunication 2.1% Energy 5.5% 13.1% Plastic Products and 7.0% Distribution 2.4% F&B 3.7% Pharmaceutical/ Healthcare/ Cosme
Slide 25: Intensive lease management
Intensive lease management >4 Lease Expiry Profile as at 30 September 2013 (by 2Q FY2014 Net Lettable Area) Lease Expiry Profile as at 31 March 2014 (By 4Q FY2014 Net Lettable Area) 50.0% 4Q FY2014 Sqm Total new/renewal leases signed 15 8,897.0 40.0% % of total NLA 1.6 % of net lettable area Weighte
Slide 26: Quality tenant base
Quality tenant base Top 10 tenants by 4Q FY2014 by rental income Tenant % CWT Limited* 17.4% Optus Administration Pty Limited* 10.0% Eurochem Corporation Pte Ltd 7.0% Schenker Singapore (Pte) Ltd* 4.2% Ossia International Limited* 2.7% LTH Logistics (Singapore) Pte Ltd* 2.6% (Vibrant Group Limited)
Slide 27: Strong and stable cashflows
Strong and stable cashflows >4 Average security deposit per Occupancy property of of 97.0% approx. 5.8 months Weighted Built-in rent average escalation lease expiry of 3.25 years 27 AIMS AMP Capital Industrial REIT
Slide 28: Long land lease expiry – 42.6 years
Long land lease expiry – 42.6 years >4 The weighted average unexpired land lease was 42.6 years as at 31 March 2014 % of Net Lettable Area 35.0% 30.6% 30.0% 28.7% 25.0% 21.8% 20.0% % of Net Lettable Area 15.0% 11.7% 10.0% 7.2% 5.0% 0.0% 21 - 30 yrs 31 - 40 yrs 41 - 50 yrs 51 - 60 yrs > 60 yrs Note:
Slide 29: Comparisons to Singapore industrial average occupancy levels
Comparisons to Singapore industrial average occupancy levels >4 105.0% 100.0% 100.0% 97.0% 97.0% 95.7% 95.0% 91.6% 91.1% 90.0% 88.4% 85.0% 83.4% 80.0% 75.0% Overall Business/Office Park Warehouse Hi Tech/ Light Industrial & Manufacturing AACI REIT JTC's 1Q2014 29 Source: Based on JTC’s 1st quarter 2
Slide 30: FY2014 Milestones & Achievements
FY2014 MILESTONES & >5 ACHIEVEMENTS 30 AIMS AMP Capital Industrial REIT
Slide 31: Unlocking value within the Portfolio
Unlocking value within the Portfolio Completed redevelopment of Phase One and Two, 20 Gul Way, Singapore >5 Phase Two Phase One TOP was granted on 7 May 2013 TOP was granted on 29 October 2012 – 7 months ahead of schedule and on budget – 4 weeks ahead of schedule and on budget Income contribution in
Slide 32: 20 Gul Way, Phase One & Two – Summary Financials
20 Gul Way, Phase One & Two – Summary Financials >5 Per 26 July 2011 Actual announcement Achieved (S$ million) (S$ million) 1. Gross development value upon completion 214.0 217.0 2. Project development cost (155.0) (150.1) 3. Land cost (41.8) (41.8) 4. Net rental income during redevelopment 6.8 0.7
Slide 33: Growth from further development – 20 Gul Way
Growth from further development– 20 Gul Way >5 Prior to redevelopment Redevelopment Further development Phase 1 and 2 Phase 2E and 3 Property Valuation S$41.8 m(1) S$217.0 m(2) Additional S$89.4 m(3) Annual Rental Income S$3.6 m(1) S$16.3 m Additional S$6.3 m(4) Plot Ratio 0.46 1.4 2.0(5),(6) Gross
Slide 34: Strategic Acquisition
Strategic Acquisition >5 Improved debt maturity profile and reduced refinancing risk through 6 further staggering of the debt repayment Signature maiden investment in Australia, leveraging on Increased size 1 sponsors’ network and real 5 estate expertise in Australia of portfolio Strategic addition
Slide 35: Strong and Stable Cashflows
Strong and Stable Cashflows >5 Through intensive lease management to manage lease expiry profile risk in FY2014 WALE increased to 3.23 years from 3.16 years FY2014 Sqm Total new/renewal leases signed 64 50,261.4 % of total NLA 9.0 Weighted average rental increase (%) 15.8 25.0% 22.8% 21.2% 20.3% Lea
Slide 36: Strengthened Capital Structure
Strengthened Capital Structure >5 4Q FY2014 4Q FY2013 Broadened banking UOB, SCB, CBA, ING, Maybank and UOB, SCB, CBA, ING relationships ANZ and Maybank Diversified source of funding Secured (local & offshore) and Secured and unsecured facilities unsecured facilities Market Capitalisation1 S$832.4 m
Slide 37: Strategy Ahead
>6 STRATEGY AHEAD 37 AIMS AMP Capital Industrial REIT
Slide 38: Objectives Creating Value
Objectives >6 Stable distributions, Intensive asset Increase and lease Unitholders’ management value and liquidity Creating Value Delivering Growth Strengthen the Prudently portfolio through manage the asset Group’s capital redevelopments structure and strategic acquisitions 38 AIMS AMP Capital Indu
Slide 39: Strategy Ahead
Strategy Ahead >6 Yield accretive Intensive asset and Prudent capital and investments in leasing management risk management Singapore Focus on successful Continual prudent Prudent capital delivery of current management of lease expiry management by splitting of developments on time and profile and u
Slide 40: Execution on development pipeline
Execution on development pipeline >6 Redevelopment of 103 Defu Lane 10, Singapore Expect TOP May 2014 Expect income contribution in September 2014 quarter Artist Impression Actual Photo 40 AIMS AMP Capital Industrial REIT
Slide 41: 103 Defu Lane 10 – Summary Estimate Financials
103 Defu Lane 10 – Summary Estimate Financials >6 S$ million 1. Gross development value upon completion1 43.1 2. Project redevelopment cost (25.4) 3. Land cost (12.0) 4. Profit 5.7 5. Profit margin 15.2% 1 Based on Knight Frank Pte Ltd’s valuation dated 31 March 2014 on an “as-if-complete” basis. 41
Slide 42: Execution on development pipeline
Execution on development pipeline >6 Further development of Phase 2E & 3, 20 Gul Way Phase 1 Phase 2E Phase 2 Hardstand Area 42 Phase 3 42 42 AIMS AMP Capital Industrial REIT
Slide 43: Execution on development pipeline
Execution on development pipeline >6 Actual progress of 20 Gul Way, Phase 2E Artist Impression 43 AIMS AMP Capital Industrial REIT
Slide 44: Execution on development pipeline
Execution on development pipeline >6 Actual progress of 20 Gul Way, Phase 3 Artist Impression 44 AIMS AMP Capital Industrial REIT
Slide 45: 20 Gul Way, Phase 2E & 3 – Summary Estimate Financials
20 Gul Way, Phase 2E & 3 – Summary Estimate Financials >6 S$ million 1. Gross development value upon completion 89.401 2. Project development cost2 (77.15) 3. Profit 12.25 4. Profit margin 15.88% 5. Net property income yield 8.17% (based on development cost2) 8.29% (based on development cost, exclud
Slide 46: 20 Gul Way Fact Sheet
20 Gul Way Fact Sheet >6 Prior to redevelopment Redevelopment Development Phase 1 & 2 Phase 2E & 3 Property 10 single storey buildings Five storey ramp up warehouse Extension to Phase 2 (Phase 2E) and (completed in two Phases) new warehouse connected to the existing ramp (Phase 3) Valuation S$41.8 m
Slide 47: Thank you
Thank you For enquiries, kindly contact: AIMS AMP Capital Industrial REIT Management Limited Koh Wee Lih Joanne Loh Chief Executive Officer Assistant Fund Manager Tel: + 65 6309 1050 Tel: + 65 6309 1057 Email: wlkoh@aimsampcapital.com Email: jloh@aimsampcapital.com AIMS AMP Capital Industrial REIT
AIMS AMP Capital Industrial REIT — FY2014 Earnings Presentation on 6ix