Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — ARA LOGOS Logistics Trust — FY2020 Earnings Presentation
38 slides from Singapore Exchange's earnings presentation, Jan 26, 2021
Slide 1: ARA LOGOS Logistics Trust 2H / Full Year FY2020 Financial Results Presentation
ARA LOGOS Logistics Trust 2H / Full Year FY2020 Financial Results Presentation 26 January 2021
Slide 2: Agenda
Agenda 1 Key Highlights 2 Acquisition Update 3 Financials Snapshot & Portfolio Update 4 Market Outlook 5 Additional Information 2
Slide 3: Key Highlights
Key Highlights 41 – 51 Mills Road, Braeside, Victoria, AUS
Slide 4: Financial Highlights
Financial Highlights Resilient Portfolio Underpinned by Strong Fundamentals 2H FY2020 Financial Performance FY2020 Financial Performance Prudent Capital Management Gross Revenue Gross Revenue Aggregate Leverage S$59.6 mil S$117.4 mil 39.0% NPI NPI All-in Financing Cost S$46.1 mil S$90.0 mil 3.22% Di
Slide 5: Portfolio Highlights
Portfolio Highlights Proactive Asset Management and Portfolio Rebalancing Portfolio Rebalancing & Growth Portfolio Statistics Leasing Update Strategy Strong Portfolio Occupancy Significant Leases Secured Transformational Development 98.5% committed ~ 2.6 mil sf in FY2020 ARA’s Acquisition of a Year-
Slide 6: Acquisition Update
Acquisition Update 51 Musgrave Road, Coopers Plains, Queensland, AUS
Slide 7: Portfolio Transformation
Portfolio Transformation Maiden Acquisition since Rebranding Good Quality Assets Underpinned by Enlarged Portfolio Strong Fundamentals Freehold or long-dated ground leases ✓ with 39 to 51 years remaining New Australia Properties 5 AUS properties Long WALE (by NLA) of approximately ✓ 11.3 years 27 Pr
Slide 8: Key Benefits to Unitholders
Key Benefits to Unitholders Complements and Strengthens the Resilience of ALOG’s Existing Portfolio Deepens ALOG’s Footprints in a Key Strategic Logistics Market Addition of High Quality Prime Logistics Properties Underpinned by Reputable Tenants Allows ALOG to Ride on E-commerce Growth and Robust D
Slide 9: Enlarged Portfolio
Enlarged Portfolio More Balanced Exposure to SG and AU 2 New Sydney (NSW) Assets 5 New Brisbane (QLD) Assets Australia 69 Sargents Road, Minchinbury 11-14 John Morphett Place, 47 Logistics Place, 8 Curlew Street, Deposited property value: Brisbane Erskine Park Larapinta Port of Brisbane S$785.3 mil
Slide 10: Key Financials
Key Financials ALOG Changi DistriCentre 1, Singapore
Slide 11: 2H FY2020 vs 2H FY2019 Performance (Y-o-Y)
2H FY2020 vs 2H FY2019 Performance (Y-o-Y) Robust Portfolio Performance Gross Revenue and Net Property Income Distributable Income (S$ mil) (S$ mil) 59.6 54.9 46.1 41.6 33.5 29.2 3.3(2) 4.5(1) 30.2 24.7 2H FY2019 2H FY2020 2H FY2019 2H FY2020 2H FY2019 2H FY2020 Adjusted Distributable Income Capital
Slide 12: 2H FY2020 vs 2H FY2019 Distribution
2H FY2020 vs 2H FY2019 Distribution Robust Portfolio Performance DPU(1) Adjusted DPU(1)(2) (Cents) (Cents) 2.927 2.689 2.646(4) 2.275(3) 2H FY2019 2H FY2020 2H FY2019 2H FY2020 Notes: (1) DPU for 2H FY2020 factored in the enlarged base with Private Placement Units issued on 11 November 2020 and Pref
Slide 13: FY2020 vs FY2019 Performance
FY2020 vs FY2019 Performance Strong Portfolio Operating Metrics Gross Revenue and Net Property Income Distributable Income (S$ mil) (S$ mil) 113.6 117.4 85.8 90.0 59.8 58.8 8.4(1) 1.3(2) 51.4 57.5 FY2019 FY2020 FY2019 FY2020 FY2019 FY2020 Gross Revenue NPI Adjusted Distributable Income Capital and O
Slide 14: FY2020 vs FY2019 Distribution
FY2020 vs FY2019 Distribution Strong Portfolio Operating Metrics DPU(1) Adjusted DPU(1)(2) (Cents) (Cents) 5.523 5.250 5.152(4) 4.736(3) FY2019 FY2020 FY2019 FY2020 Notes: (1) DPU for FY2020 factored in the enlarged base with Private Placement Units issued on 11 November 2020 and Preferential Offeri
Slide 15: Prudent Capital Management
Prudent Capital Management Well-Balanced Debt Maturity Profile Extending Into Future Years Debt Maturity Profile Interest Rate Hedging (S$ million) 300 Floating Rate 30.9% 250 214.0 Fixed Rate 200 69.1% 144.9 150 110.0 ◼ 69.1% of total debt hedged. 100 ◼ 84.9% of SGD debt and 28.0% of onshore AUD bo
Slide 16: Distribution Details
Distribution Details Distribution of 2.109 cents per unit for the period 1 July 2020 to 10 November 2020, including advanced distribution for the period 1 October 2020 to 10 November 2020, has been distributed to Unitholders on 27 November 2020. SGX DPU Payment Distribution Period Stock Code (cents)
Slide 17: Portfolio Update
Portfolio Update ALOG Commodity Hub, Singapore
Slide 18: Portfolio Statistics
Portfolio Statistics (as at 31 December 2020) 27 Logistics Warehouse Properties Singapore - 10 Australia - 17 Total Valuation(1) S$1.28 bil Gross Floor Area (GFA, approx.) 9.0 million sq ft Committed Occupancy Portfolio – 98.5% Singapore – 98.7% Australia – 98.3% Weighted Average Lease to Expiry (“W
Slide 19: Independent Property Valuation
Independent Property Valuation As at 31 December 2020 • Overall portfolio valuation increased by 2.0% due to the uplift in the Australia’s portfolio valuation as well as the appreciation of AUD against SGD. • Singapore portfolio valuation was lower by 1.9% on a y-o-y basis largely due to shorter rem
Slide 20: Portfolio Performance
Portfolio Performance High Occupancy with Significant Leases Secured in FY2020 As at 31 December 2020 High Committed Portfolio Occupancy Achieved 98.5% Significant leases secured in FY2020(1) 2,611,900 sq ft Rental Reversion FY2020 4.8% 2H FY2020(1) Area (sq ft) Leases Secured in FY2020 Renewals 952
Slide 21: Portfolio Expiry Profile
Portfolio Expiry Profile Proactive Lease Management Strategy Well-Balanced Lease Expiry Profile WALE by NLA 2.8 years WALE by GRI 2.8 years 28.2% 27.5% 25.4% 26.3% 18.7% 18.8% 15.3% 15.3% 6.6% 6.9% 5.8% 5.2% FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 and beyond By NLA By Gross Revenue ◼ 2.6 mil sq ft
Slide 22: Portfolio Rebalancing & Growth
Portfolio Rebalancing & Growth Performance Driven by Diversified and Balanced Portfolio Portfolio NLA Gross Revenue Australia Australia 41% 26% Singapore Singapore 74% 59% Portfolio Valuation WALE (by NLA) Australia Singapore 2.9 years 35% Australia 2.5 years Singapore 65% Portfolio 2.8 years 22
Slide 23: Portfolio Diversification
Portfolio Diversification – Diversified Portfolio and Quality Tenant Mix 1 Greater Balance of 2 Geographical Diversification Multi-Tenanted and Single-User Lease Structures Single-User 29% Australia, 26% Gross Gross Revenue Revenue Singapore, Multi- 74% Tenanted 71% Credit Quality: Well-Supported In
Slide 24: Diversified Tenant Base
Diversified Tenant Base High Quality Tenants ◼ Top 10 tenants make up approximately 50.8% of ALOG’s GRI. ◼ Diversified tenant base comprises mainly high-quality multinational businesses in the logistics / supply chain and other diverse sectors including FMCG, transportation and construction. Top 10
Slide 25: Market Outlook
Market Outlook DHL Supply Chain Advanced Regional Centre, Singapore
Slide 26: Market Outlook – Singapore
Market Outlook – Singapore Stable and Resilient Logistics Market Fundamentals Moderated Supply Pipeline Singapore Warehouse Annual Net Completion, Absorption and Vacancy Rate (%) 1,000 16.0 900 3Q 2020 Warehouse 14.0 800 Vacancy: 10.9% 12.0 700 10.0 600 Grey bars refer to supply space that has been
Slide 27: Market Outlook - Singapore
Market Outlook - Singapore Stable and Resilient Logistics Market Fundamentals ▪ 4Q 2020 overall leasing activity saw an improvement as compared to 3Q 2020, with majority of the transactions comprising of renewals and relocations. ▪ In particular, third-party logistics and e-commerce players have sig
Slide 28: Market Outlook - Australia
Market Outlook - Australia Stable and Resilient Logistics Market Fundamentals ▪ Australia’s cash rate will continue to remain low and Reserve Bank of Australia is not expected to increase the cash rate until actual inflation is sustainably within the 2% to 3% target range. ▪ Robust demand from the t
Slide 29: Contact Information
Contact Information For enquiries: Cassandra Seet ARA LOGOS Logistics Trust Investor Relations Management Limited cassandraseet@ara-group.com 5 Temasek Boulevard #12-01 Suntec Tower Five Singapore 038985 Tel: +65 6835 9232 Website: www.aralogos-reit.com 29
Slide 30: Additional Information
Additional Information 223 Viking Drive, Wacol, Queensland ,AUS
Slide 31: ARA LOGOS Logistics Trust
ARA LOGOS Logistics Trust Backed by ARA and Strong Sponsor, LOGOS ARA LOGOS Logistics Trust, “ALOG”, (previously Cache Logistics Trust (1)) is Portfolio Statistics a leading Asian logistics REIT with a 27 Properties across Singapore and Australia S$1.28 billion(2) portfolio across Singapore and Aust
Slide 32: Vision & Strategy
Vision & Strategy Provide High Quality, Best-in-Class Logistics Real Estate Solutions to Our Customers Acquisitions Environmental, Social, and Asset Governance Management (ESG) Focused Development OUR MISSION: Long-term sustainable growth in DPU and NAV per unit to Unitholders 32
Slide 33: Strong Sponsorship
Strong Sponsorship Cementing Position for a Transformative Growth Outlook Demonstrates Strong Commitment from ARA and LOGOS Access New Growth Markets, Alignment of Expansion and Interest with Providing Asset, Leading APAC Real Development Unitholders Investment and Opportunities Development Assets F
Slide 34: ARA Overview
ARA Overview Leading APAC Real Assets Fund Manager with Global Reach Consistent, disciplined business expansion and 2002 launch of new products…. Founded in 2002 with a strong APAC focus Expanding global Global network, local expertise reach with Japan, Europe and US Headquartered in Singapore with
Slide 35: LOGOS Overview
LOGOS Overview Leading Logistics Developer and Real Estate Specialist in APAC Strong Regional Presence Vertically Integrated Platform with a Wide Offering Total AUM US$10.9bil • US$0.9bil transacted in industrial and commercial real estate across the Transaction Group in last 12 months India Total N
Slide 36: ALOG’s Portfolio Overview – Singapore
ALOG’s Portfolio Overview Singapore Changi North / Loyang Airport Logistics Park Sembawang Pan Asia Logistics Centre Air Market Logistics Wharves Schenker Megahub 8 9 5 21 Changi North Way Centre 22 Loyang Lane Johor 51 Alps Avenue Causeway Link Changi South Tampines LogisPark Pulau Ubin Second link
Slide 37: ALOG’s Portfolio Overview – Australia
ALOG’s Portfolio Overview Australia Brisbane, Queensland Melbourne, Victoria 51 Musgrave Road, 11 Coopers Plains 12 203 Viking Drive, 13 223 Viking Drive, 18 16 – 28 Transport 19 217 – 225 Boundary 20 16 – 24 William Wacol Wacol Drive, Somerton Road, Laverton North Angliss Drive, Laverton North 11 –
Slide 38: Disclaimer
Disclaimer This presentation has been prepared by ARA LOGOS Logistics Trust Management Limited, in its capacity as the manager of ALOG (the “Manager”) and includes market and industry data and forecast that have been obtained from internal survey, reports and studies, where appropriate, as well as m
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