Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — Ascendas Real Estate Investment Trust — Shareholder Meeting (June 2009)
29 slides from Capitaland Ascendas Reit's shareholder meeting presentation, Jun 30, 2009
Slide 1: 3rd Unitholders' Meeting, 30 June 2009
Business & Light Industrial Warehouse Science Park Retail Facilities Logistics and Hi-Tech Industrial Distribution 3rd Unitholders’ Meeting 30 June 2009 Members of the Panel Mr David Wong (Chairman, Independent Director) Ms Chong Siak Ching (Vice Chairman, Non-executive Director) Mr Benedict Kwek, (
Slide 2: Agenda
Business & Light Industrial Warehouse Science Park Retail Facilities Logistics and Hi-Tech Industrial Distribution OVERVIEW OF A-REIT’s PERFORMANCE FY 2008/09 Agenda • Overview of A-REIT • FY 2008/09 Performance • Capital Management • Investment Update • Portfolio Update • A-REIT’s strengths Managed
Slide 3: Overview of Ascendas Real Estate Investment Trust
Overview of Ascendas Real Estate Investment Trust • First and largest business space and industrial REIT listed on the Singapore Exchange • Has a diversified portfolio of 89 properties in Singapore comprising: • Baa1 corporate rating • Total Assets of about S$4.5 bn (US$3.20 bn) • Tenant base of abo
Slide 4: Organisation Chart; A-REIT's Properties
Organisation Chart Managed by Ascendas Funds Management (S) Limited ……7 ……7 A-REIT’s Properties • Strategically located along major expressways • Business & Science Park properties and some Hi-tech Industrial properties are in close proximity to CBD • Light Industrial and Hi-tech Industrial properti
Slide 5: A-REIT's strategies
A-REIT's strategies Total returns Predictable income Capital stability Proactive and dedicated Outcome Stability Growth Manager with proven track Prudent Proactive record Strategies Value-Adding Capital & Risk Asset Investments Management Management Fund Manager: Fund Manager: Perfor- Property Manag
Slide 6: Key Highlights for FY2008/09
Key Highlights for FY2008/09 • FY2008/09 net property income of S$296.6 m, increase of 21.8% y-o-y • DPU of 15.18 cents, increase of 7.4% y-o-y • Raised new equity of S$408 million in Jan/Feb 2009 to strengthen balance sheet and fund committed development projects • Secured new loans of S$200m and i
Slide 7: DPU – FY2008/09 vs FY2007/08
DPU – FY2008/09 vs FY2007/08 (S$’000) FY2008/09(1) FY2007/08(1) % Change Net income 200,749 174,980 14.7% Non tax deductible expenses(2) 10,174 12,289 17.2% Available for distribution 210,923 187,269 12.6% No. of units in issue (mil) 1,683.5 1,325.6 27.0% Distribution per Unit (cents) 15.18 14.13 7.
Slide 8: Sources of NPI Growth
Sources of NPI Growth Organic growth contributed to 39.3% of NPI growth of 21.8% Investments made in Organic Growth FY2008/09, (rental & occupancy 30.7% rate growth, asset enhancements, etc), 39.3% Investments made in FY2007/08*, 30.0% * Investments made in FY2007/08 contributing full year NPI impac
Slide 9: Healthy Balance Sheet; Interest Rate Risk Management
Healthy Balance Sheet (S$ mil) As at 31 Mar 09 As at 31 Mar 08 Total Assets 4,548 4,205 Aggregate Leverage 1,615 1,606 Net assets attributable to 2,703 2,438 unitholders Aggregate Leverage (%) 35.5% 38.2% Net asset value per unit 161 cents 184 cents Units in Issue (mil) 1,683.5 1,325.6 Managed by As
Slide 10: Current Debt Maturity Profile
Current Debt Maturity Profile $450 $400 $350 $119 $300 S$ million $250 $200 $395 $350 $150 $300 $300 $100 $150 $50 $0 2009 2010 2011 2012 2014 Commercial Mortgage Backed Securities Term Loan Facility Revolving Credit Facilities Medium Term Note Managed by Ascendas Funds Management (S) Limited ……19 …
Slide 11: Portfolio Growth since IPO; Completed Investments
Portfolio Growth since IPO $5,000 100 89 $4,500 84 90 77 $4,000 80 $3,500 64 70 Total Assets (S$'m) No. of Properties $3,000 60 $2,500 50 36 $4,548 $2,000 $4,205 40 $3,307 $1,500 $2,808 30 $1,000 16 $2,112 20 8 $500 $1,021 10 $636 $0 0 As at Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Total Ass
Slide 12: Completed Development Projects; Development Value-Add
Completed Development Projects - FY2008/09 100% Occupied Pioneer Hub 3 Changi Business Park Crescent 15 Changi North Way Managed by Ascendas Funds Management (S) Limited ……23 ……23 Development Value-Add Development Development Book Value @ % Increase Cost (S$’m) 31 Mar 09 (S$’m) in Value Courts Megas
Slide 13: Investment Highlights: Development-in-progress
Investment Highlights Value Expected Expected (S$m) Commencement Completion Date Date Development-in-progress: Plot 8 MTB & Amenity Centre, Changi 107.1 Started 3Q FY09/10 Business Park Expeditors Built-to-Suit at Airport Logistic 25.6 Started 3Q FY09/10 Park Singapore (ALPS) Built-to-Suit Hi-Tech I
Slide 14: Development-in-progress: Built-to-Suit
Development-in-progress: Built-to-Suit for Expeditors Singapore • Development of a part 2-storey / part 4-storey logistics facility at Plot 6 of Airport Logistics Park (within Airport Free Trade Zone) • 100% pre-commitment by Expeditors Singapore Pte Ltd Dec 2008 • Expected completion date: 3Q FY200
Slide 15: Well Diversified Portfolio
Agenda • Overview of A-REIT • FY 2008/09 Performance • Capital Management • Investment Update • Portfolio Update • A-REIT’s strengths Managed by Ascendas Funds Management (S) Limited ……29 ……29 Well Diversified Portfolio - by Value Asset Class Mix of Sale-&-Leaseback vs Diversification Multi-tenanted
Slide 16: High Occupancy; Long Leases; Lease Expiry Profile
High Occupancy; Long Leases • Stable renewals & new take-up • MTB occupancy at 95.3% in Mar 09 As at 31 Mar 09 As at 31 Mar 08 Total Portfolio GFA (sqm) 2,259,812 2,044,210 Portfolio occupancy 97.8% 98.4% MTB(1) occupancy 95.3% 96.4% (3) (2) Total portfolio renewals/new leases (sqm) 185,929 274,061
Slide 17: Portfolio Occupancy vs Market; Tenants' Industry Distribution
Portfolio Occupancy Rates vs Market Average 100% 98.9% 98.7% 96.4% 93.8% 95.3% 95% 92.8% 91.0% 91.0% 90% 85% Occupancy Rate (%) 80% 75% 70% 65% 60% 55% 50% Business Park Hi-Tech Industrial Light Industrial Logistics A-REIT URA Source: URA Official Statistics as at Dec 2008 A-REIT’s occupancy as at 3
Slide 18: Limited Exposure to Manufacturing; Diversified Tenant Base
Limited exposure to conventional manufacturing FY2008/09 tenants’ business activities by net lettable area • 21% of NLA occupied by tenants engaged in conventional manufacturing activities. Manufacturing, 21% • Manufacturing activities include food & beverages, aeronautical auxiliary equipment, prec
Slide 19: Security Deposits; Accounts Receivables Management
Security Deposit for Sale & Leaseback Properties • Security deposits for sale & leaseback properties range from 7 to 12 months rental income • On portfolio basis, weighted average security deposit is 6 months of gross rental income No. of SLB Weighted Average No. of Months Properties Rent as Securit
Slide 20: Subsector Performance; Current Passing Rent Level
Subsector Performance • Continued but smaller growth in renewal rental rates • Rental rates for new demand declined compared to 3QFY2008/09 Occupancy Rate (%) New take up Multi-tenanted As at As at Renewal rates 4Q vs 3Q properties 31 Mar 09 31 Dec 08 rates (1) FY2008/09(2) Business & Science Park 9
Slide 21: Average Market Gross Rents by Sector; Portfolio Revaluation
Average Market Gross Rents by Sector psf pm $5.00 $4.50 $4.09 $4.00 $3.50 $2.90 $3.00 $2.50 $2.00 $1.45 $1.50 $1.40 $1.20 $1.00 $1.10 $0.50 2000 2001 2002 2003 2004 2005 2006 2007 2008Q2 2008Q3 2008Q4 2009Q1 Business & Science Parks Hi Tech Light ground floor Log ground floor Light upper floor Log u
Slide 22: Agenda
Agenda • Overview of A-REIT • FY 2008/09 Performance • Capital Management • Investment Update • Portfolio Update • A-REIT’s strengths Managed by Ascendas Funds Management (S) Limited ……43 ……43 A-REIT's strengths Diversity and Depth • Largest business and industrial REIT in Singapore • Solid and well
Slide 23: A-REIT's strengths
A-REIT's strengths • Downside protection in earnings • Stable portfolio with about 86% of A-REIT’s portfolio revenue committed and an portfolio average lease to expiry of 5.1 years. • Mix of long term and short term leases provides earnings stability. Long term leases have a weighted average lease t
Slide 24: Accolades; Thank you
Accolades • Voted Singapore’s 7th best managed company (after SingTel, SIA, OCBC, Capitaland, DBS and UOB) in FinanceAsia’s 2009 annual poll of Asia’s best managed companies • Winner for the “Most Transparent Company Award 2008” in the REITs category awarded by Securities Investors’ Association (Sin
Slide 25: Resolutions
Business & Light Industrial Warehouse Science Park Retail Facilities Logistics and Hi-Tech Industrial Distribution RESOLUTIONS Resolutions Managed by Ascendas Funds Management (S) Limited ……50 ……50
Slide 26: Resolution 1: General Mandate for Issue of New Units
Resolution 1: The Proposed General Mandate for the Issue of New Units and/or Convertible Securities (including Warrants) - (Ordinary Resolution) General Mandate: • Manager to issue new Units and/or Convertible securities or other instruments (including but not limited to warrants) which may be conve
Slide 27: Resolution 2: Issue Price Supplement to the Trust Deed
Resolution 2: The Proposed Issue Price Supplement to the Trust Deed - (Extraordinary Resolution) • Manager to supplement the Trust Deed for the purpose of allowing the Manager to issue Units at the adjusted VWAP for the period of between 10 Business Days to 30 Business Days if the Manager reasonably
Slide 28: Board Recommends Vote in Favor of the Resolutions
The Board Recommends that Unitholders Vote in Favor of the Resolutions Resolution 1 Resolution 2 Managed by Ascendas Funds Management (S) Limited ……55 ……55 Resolutions Ordinary Resolution The Proposed General Mandate for the Issue of New Units and/or Convertible Securities (Ordinary Resolution) Extr
Slide 29: Polling Slip; Thank you
Polling Slip Managed by Ascendas Funds Management (S) Limited ……57 ……57 Thank you Important Notice This presentation has been prepared by Ascendas Funds Management (S) Limited as Manager for Ascendas Real Estate Investment Trust. The details in this presentation provide general information only. It
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