Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — AIMS AMP Capital Industrial REIT — Q1 FY2014 Earnings Presentation
36 slides from Singapore Exchange's earnings presentation, Jul 25, 2013
Slide 1: AIMS AMP Capital Industrial REIT 1Q FY2014 Results Presentation
AIMS AMP CAPITAL INDUSTRIAL REIT FY2014: First Quarter ended 30 June 2013 Results Presentation 25 July 2013 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 30 June 2013 (“1Q FY2014”) versus actual results year-on-year (“y-o-y”) and quarter-on-quarter (“q-o-q”). This Presentation shall be read in conjunction with AIMS AMP Ca
Slide 3: Contents
CONTENTS Highlights for 1Q FY2014 4 1Q FY2014 Financial Results 9 Prudent Capital Management 14 Portfolio Performance 18 Strategy for FY2014 29 3
Slide 4: Highlights for 1Q FY2014
>1 HIGHLIGHTS FOR 1Q FY2014 4 AIMS AMP Capital Industrial REIT
Slide 5: Highlights for 1Q FY2014
Highlights for 1Q FY2014 >1 Active portfolio management driving distributions DPU performance: 2.50 cents per Unit for the quarter DPU (Cents) S$’000 Advanced distribution for the period from 0.85 3,820 1 April 2013 to 1 May 20131 Distribution for the period from 1.65 8,668 2 May 2013 to 30 June 201
Slide 6: Highlights for 1Q FY2014: Prudent capital management
Highlights for 1Q FY2014 >1 Prudent capital management • NAV per unit increased from S$1.476 to S$1.501 • Aggregate leverage of 25.4% • Raising of S$110.0 million equity via private placement to partially fund development projects (i) Phase 2E and 3 development of 20 Gul Way and (ii) 103 Defu Lane 1
Slide 7: Stable and attractive yield
Stable and attractive yield 8.00% 7.00% 6.12% 6.00% 5.00% % yield per annum 4.00% 3.00% 2.47% 2.50% 2.00% 1.00% 0.56% 0.00% 1 2 3 2 1Q FY2014 Yield S'pore Govt 10-yr bond CPF Ordinary Account Bank 12mths FDs 1 Based on closing price of S$1.635 on 24 July 2013 and annualised DPU of 10.0 cents. Annual
Slide 8: Stable and growing DPU
Stable and growing DPU 3.50 3.140 3.00 2.688 2.688 2.700 2.650 2.700 2.550 2.600 2.580 2.500 2.500 2.500 2.500 2.50 1.984 Distribution per Unit (cents) 2.00 1.795 1.50 1.00 0.50 0.00 1 1 1 1 1 1 1 2 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QF
Slide 9: 1Q FY2014 Financial Results
>2 1Q FY2014 FINANCIAL RESULTS 9 AIMS AMP Capital Industrial REIT
Slide 10: Distribution details
Distribution details >2 Stock counter Distribution period DPU (cents) AIMSAMPIReit 1 April 2013 to 1 May 2013 0.8501 Code: O5RU 2 May 2013 to 30 June 2013 1.650 1 April 2013 to 30 June 2013 2.500 1 Advanced distribution paid on 18 June 2013. Distribution timetable Ex-date 2 August 2013, 9.00am Books
Slide 11: Results for 1Q FY2014
Results for 1Q FY2014 >2 1Q FY2014 4Q FY2013 Q-o-Q 1Q FY2013 Y-o-Y S$’000 S$’000 % S$’000 % Gross Revenue 24,524 23,810 3.0 20,948 17.1 Net Property Income 15,734 15,516 1.4 14,884 5.7 Distribution to Unitholders 12,488 14,111 (11.5) 11,149 12.0 From operations 12,4881 12,763 (2.2) 11,149 12.0 From
Slide 12: Balance Sheet
Balance Sheet >2 30 June 2013 31 March 2013 31 December 2012 Total Assets (S$’M) 1,096.6 1,056.2 1,048.8 Comprising (S$’M): - Investment properties 1,062.9 971.0 977.5 - Investment properties under development 15.2 74.0 54.0 - Plant and equipment 0.1 0.1 0.1 - Cash at banks and in hand 8.8 2.9 10.8
Slide 13: Key financial metrics
Key financial metrics >2 1Q FY2014 4Q FY2013 Appraised Value of Property Portfolio S$1,078.11 million S$1,045.0 million Market Capitalisation2 S$856.5 million S$746.0 million NAV per Unit S$1.501 S$1.476 Premium / (Discount) to NAV2 8.9% 12.5% Aggregate Leverage3 25.4% 34.0% Interest Cover Ratio4 5.
Slide 14: Prudent Capital Management
PRUDENT CAPITAL >3 MANAGEMENT 14 AIMS AMP Capital Industrial REIT
Slide 15: Debt facilities as at 30 June 2013
Debt facilities as at 30 June 2013 >3 Secured facilities • Bank syndicate comprising UOB, SCB, CBA, ING and Maybank • All in pricing (margin + upfront fee) of 2.33% • Interest rate 100% fixed for weighted average period of 2.9 years at 1.28% (Fixed Base Rate) • S$330.0 million debt facility • Term l
Slide 16: Debt facilities as at June 2013: maturity profile
Debt facilities as at 30 June 2013 >3 Maturity date S$ ‘million S$0.95m undrawn Due in October 2015 149.0 Due in August 2016 100.0 150 Due in October 2016 - Due to December 2019 30.0 Total debt drawndown 279.0 S$100m 80 S$80m 100 undrawn 100 Undrawn available facilities 181.01 undrawn 30 Total commi
Slide 17: Gearing level since IPO
Gearing level since IPO 50.0 Target LVR between 30 – 40%, max 45% (bank covenant) 44.7 45.0 41.2 41.8 40.0 39.6 39.6 39.7 Maintained gearing at average of 30% for 15 consecutive quarters 40.0 35.0 34.0 33.6 34.0 31.9 31.5 30.4 30.0 30.7 30.0 29.7 30.0 28.9 28.9 28.8 28.9 27.6 % Gearing 25.4 25.0 20.
Slide 18: Portfolio Performance
>4 PORTFOLIO PERFORMANCE 18 AIMS AMP Capital Industrial REIT
Slide 19: Total assets since IPO
Total assets since IPO 1,200.0 1,096.6 1,056.2 1,048.8 1,000.0 975.0 939.0 907.1 939.5 874.7 883.6 863.3 818.8 800.0 659.9 Total Assets (S$mil) 658.2 657.7 660.4 568.3 600.0 569.3 570.0 566.2 544.0 538.8 505.2 473.4 400.0 361.8 323.7 200.0 - 19 AIMS AMP Capital Industrial REIT
Slide 20: Revenue performance since IPO
Revenue performance since IPO 30.0 25.7 25.0 24.5 23.8 21.5 21.2 21.6 20.8 21.0 20.9 20.3 19.6 20.0 16.8 15.6 16.0 S$millon 15.5 15.2 15.5 15.7 14.6 14.5 14.4 14.9 14.7 14.8 15.0 14.0 12.9 13.1 12.6 12.4 12.4 11.8 11.9 11.8 12.1 10.9 11.0 9.9 10.0 9.1 9.3 9.4 9.2 9.4 9.2 8.4 8.2 7.3 6.3 5.6 5.9 4.7
Slide 21: Key portfolio statistics
Key portfolio statistics >4 As at As at As at 19 April 2007 30 June 2013 31 March 2013 (Listing) Number of Properties 25 25 12 Appraised Value (S$ million) 1,078.11 1,045.0 316.5 Net Lettable Area (sq m) 524,510.7 478,986.9 194,980.7 Number of Tenants 141 141 12 Portfolio Occupancy (%) 98.0 96.1 100
Slide 22: Portfolio breakdown
Portfolio breakdown By 1Q FY2014 rental income Breakdown by Property Sector Master Leases vs Multi-tenanted Business Park Multi- Master / Hi-Tech tenanted Leases Space 58.3% 41.7% 16.4% Warehousing and Logistics 38.4% Manufacturing 13.4% Occupancy Average security Ramp up deposit Warehouse 31.8% Tot
Slide 23: Diversification reduces risk
Diversification reduces risk Tenant Base by Industry (By 1Q FY2014 Rental Income) F&B 4.5% Pharmaceutical/ Healthcare/ Cosmetics 9.4% Fashion and Apparels 6.1% Printing Logistics & Warehousing 2.8% 42.7% Metal Recycling 2.5% Telecommunications 6.0% Plastic Products and Information Distribution Techn
Slide 24: Intensive lease management
Intensive lease management 50.0% Lease Expiry Profile as at 30 June 2013 (by 1Q FY2014 Net Lettable Area) 1Q FY2014 Sqm 40.0% Total new/renewal leases signed 31 29,427.7 % of total NLA 5.6 30.0% Weighted average rental increase 14.2% % of net lettable area 21.2% 22.0% 20.0% 17.2% 17.0% 10.0% 5.9% 3.
Slide 25: Quality tenant base
Quality tenant base Top 10 tenants by 1Q FY2014 by rental income Tenant % CWT Limited 12.4% Eurochem Corporation Pte Ltd 8.3% Schenker Singapore (Pte) Ltd 5.3% Ossia International Limited 3.4% LTH Logistics (Singapore) Pte Ltd 3.3% (Freight Links Group) Broadcom Singapore Pte Ltd 3.1% Lorenzo Intern
Slide 26: Strong and stable cashflows
Strong and stable cashflows Average security deposit per Occupancy property of of 98.0% approx. 5.9 months Weighted Built-in rent average escalation lease expiry of 3.12 years 26 AIMS AMP Capital Industrial REIT
Slide 27: Long land lease expiry – 38.9 years
Long land lease expiry – 38.9 years The weighted average unexpired land lease was 38.9 years as at 30 June 2013 % of Net Lettable Area 40.0% 35.0% 34.1% 29.8% 30.0% % of Net Lettable Area 25.0% 23.5% 20.0% 15.0% 12.6% 10.0% 5.0% 0.0% 21 - 30 yrs 31 - 40 yrs 41 - 50 yrs 51 - 60 yrs 27 AIMS AMP Capita
Slide 28: Comparisons to Singapore industrial average occupancy levels
Comparisons to Singapore industrial average occupancy levels 98.0% High Occupancy Levels 93.0% 92.9% 93.0% The Trust Factory Space Warehouse Space URA Industrial Average Source: Based on URA 1st quarter 2013 statistics. URA Industrial Average is the average of the factory and warehouse space occupan
Slide 29: Strategy for FY2014
>5 STRATEGY FOR FY2014 29 AIMS AMP Capital Industrial REIT
Slide 30: Objectives
Objectives Stable distributions, Intensive asset Increase and lease Unitholders’ management value and liquidity Creating Value Delivering Growth Strengthen the Prudently portfolio through manage the asset Trust’s capital redevelopments structure and strategic acquisitions 30 AIMS AMP Capital Industr
Slide 31: Execution on development pipeline
Execution on development pipeline >5 Redevelopment of 103 Defu Lane 10, Singapore Expect TOP May 2014 Expect income contribution in September 2014 quarter 31 AIMS AMP Capital Industrial REIT
Slide 32: 103 Defu Lane 10 – Summary Estimate Financials
103 Defu Lane 10 – Summary Estimate Financials >5 S$ million 1. Gross development value upon completion1 42.6 2. Project redevelopment cost (25.4) 3. Land cost (12.0) 4. Profit 5.2 5. Profit margin 14.0% 1 Based on Colliers International Consultancy and Valuation (Singapore) Pte Ltd’s valuation date
Slide 33: Execution on development pipeline: 20 Gul Way Phase 2E & 3
Execution on development pipeline >5 Further development of Phase 2E & 3, 20 Gul Way Phase 1 Phase 2E Phase 2 Hardstand Area 33 Phase 3 33 33 AIMS AMP Capital Industrial REIT
Slide 34: 20 Gul Way, Phase 2E & 3 – Summary Estimate Financials
20 Gul Way, Phase 2E & 3 – Summary Estimate Financials >5 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 35: Yield accretive acquisitions
Yield accretive acquisitions >5 Continued evaluation of yield accretive investment opportunities in Singapore and Australia Continued monitoring of economic and property market trends in readiness for potential offshore investment opportunities in Australia Leverage on Sponsors’ expertise and real e
Slide 36: Thank you
Thank you For enquiries, kindly contact: AIMS AMP Capital Industrial REIT Management Limited Nicholas McGrath Joanne Loh Chief Executive Officer Asst Fund Manager / Investor Relations Tel: + 65 6309 1050 Tel: + 65 6309 1057 Email: nmcgrath@aimsampcapital.com Email: jloh@aimsampcapital.com AIMS AMP C
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