Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Viva Industrial Trust — Q1 2016 Earnings Presentation
29 slides from Singapore Exchange's earnings presentation, Apr 28, 2016
Slide 1: Viva Industrial Trust 1Q2016 Financial Results
Viva Industrial Trust 1Q2016 Financial Results 28 April 2016
Slide 2: Important Notice
Important Notice This presentation is for information purposes only and does not constitute or form part of an offer, invitation or solicitation of any offer to purchase or subscribe for any Stapled Securities of Viva Industrial Trust (“VIT”) in Singapore or any other jurisdiction nor should it or a
Slide 3: Contents
Contents Key Highlights Financial Performance Capital Management Portfolio Updates Outlook 3
Slide 4: Key Highlights
Key Highlights • Gross revenue increased by 21.2% year-on-year to S$21.9 million. 1Q2016 • Distributable income grew by 21.6% year-on-year to S$14.1 million. • DPS was 12.4% lower year-on-year and 0.2% higher quarter-on-quarter at 1.638 cents1. • Obtained Temporary Occupation Permit (TOP) for 750A V
Slide 5: Contents
Contents Key Highlights Financial Performance Capital Management Portfolio Updates Outlook 5
Slide 6: Financial Performance (Year-on-Year)
Financial Performance Year-on-Year 1Q2016 1Q2015 Variance Gross Revenue (S$’000) 21,912 18,084 21.2% NPI (S$’000) 15,798 12,414 27.3% Distributable Income 1 (S$’000) 14,143 11,630 21.6% DPS (SG cents) 1.638 1.870 12.4% Annualised DPS (SG cents) 6.588 7.584 13.1% Distribution Yield 9.2% 10.
Slide 7: Financial Performance (Quarter-on-Quarter)
Financial Performance Quarter-on-Quarter 1Q2016 4Q2015 Variance Gross Revenue (S$’000) 21,912 19,702 11.2% NPI (S$’000) 15,798 13,725 15.1% Distributable Income 1 (S$’000) 14,143 12,463 13.5% DPS (SG cents) 1.638 1.634 0.2% Annualised DPS (SG cents) 6.588 6.483 1.6% Distribution Yield 9.2%
Slide 8: Stable Net Property Income (NPI)
Stable Net Property Income (NPI) NPI NPI Performance Since IPO (S$ million) 18 15.8 16 13.7 14 12.5 12.4 12.2 12 11.0 9.9 10.2 9.6 10 8 6.0 6 4 2 0 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 8
Slide 9: Distribution Performance since IPO
Distribution Performance since IPO Distributable Income DPS (S$ million) (S$ cents) 1.870 1.849 16 1.723 2 1.722 1.701 1.647 1.634 1.638 1.687 1.8 14 1.6 12 1.4 10 1.08 1.2 8 1 6 0.8 0.6 4 0.4 2 0.2 0 0 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 Distributable Income DPS 9
Slide 10: Attractive Return on Investment since IPO
Attractive Return on Investment since IPO FP20131 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 Price at Quarter End (S$) 0.775 0.770 0.795 0.805 0.795 0.805 0.795 0.735 0.710 0.720 Cumulative DPS (SG cents)2 1.080 2.802 4.525 6.212 7.913 9.783 11.632 13.279 14.913 16.551 Price Appr
Slide 11: Distribution Details
Distribution Details For the period from 1 January 2016 to 31 March 2016 Distribution per Stapled Security 1.638 comprising: (Singapore cents) (a) taxable income: 1.313 (b) tax exempt income: 0.325 Ex-Date 5 May 2016 Books Closure Date 9 May 2016 Distribution Payment Date 31 May 2016 11
Slide 12: Contents
Contents Key Highlights Financial Performance Capital Management Portfolio Updates Outlook 12
Slide 13: Proactive Capital Management
Proactive Capital Management Successfully refinanced S$315 million loan facilities obtained at IPO with new S$330 million loan facilities in February 2016. Weighted average debt maturity lengthened from 2.2 years as at 31 December 2015 to 4.0 years as at 31 March 2016. Further lowered gearing
Slide 14: Balance Sheet
Balance Sheet 31 Mar 2016 31 Dec 2015 S$ mil S$ mil Investment Properties 1,130.7 1,123.2 Intangible Assets1 8.6 9.4 Current Assets 40.4 65.7 Total Assets 1,179.7 1,198.3 Borrowings (net of transaction costs) 436.2 459.2 Other Liabilities 41.6 37.5 Total Liabilities 477.8 496.7 Net Assets 701.9 701.
Slide 15: Capital Management
Capital Management As at 31 March 2016 Total Borrowings S$443 million Gearing Ratio (Total Borrowings over Total Assets) 37.6% All-in Borrowing Cost 4.13% Weighted Average Debt Maturity 4.0 years Interest Rate Exposure Fixed1 94.8% Interest Cover 4.2 times Credit Ratings assigned by S&P: Corporate C
Slide 16: Contents
Contents Key Highlights Financial Performance Capital Management Portfolio Updates Outlook 16
Slide 17: Portfolio Highlights
Portfolio Highlights Completed the acquisition of 30 Pioneer Road, which raised VIT’s total portfolio valuation to approximately S$1.2 billion in 2Q2016. Newly acquired properties, HFB and 11 Ubi Road 1, contributed 12% of VIT’s gross revenue for 1Q2016. Secured approximately 205,000 sq ft of
Slide 18: Strategically Located Quality Portfolio
Strategically Located Quality Portfolio WOODLANDS CHECKPOINT Jackson Design Hub UE BizHub EAST Jackson Square Viva Business Park WOODLANDS / KRANJI Mauser Singapore ANG MO KIO / SERANGOON NORTH LOYANG / CHANGI CHANGI BRADDELL AIRPORT TUAS TAI SENG PAYA LEBAR / UBI EXPO CHECKPOINT INTERNATIONAL / KAK
Slide 19: Business Park Focused Portfolio
Business Park Focused Portfolio Portfolio Summary Total Number of Properties 7 Total Portfolio GFA 3,292,936 sq ft Net Lettable Area (NLA) 2,715,025 sq ft WALE (by rental income)* 3.5 years Weighted Average Land Lease (by valuation) 37.2 years Weighted Average Age of Building (by valuation) 9.9 year
Slide 20: Best in Class Portfolio – Properties Profile
Best in Class Portfolio – Properties Profile UE BizHub EAST Viva Business Park Mauser Singapore (“UEBH”) (“VBP”) Property Type Business Park Hotel Business Park Logistics Valuation S$355.0mn1 S$160.0mn1 S$330.0mn2 S$28.0mn1 GFA 626,018 sq. ft. 157,397 sq. ft. 1,524,685 sq. ft. 107,566 sq. ft. Age 3.
Slide 21: Best in Class Portfolio – Properties Profile (cont’d)
Best in Class Portfolio – Properties Profile (cont’d) Jackson Design Jackson Square 11 Ubi Road 1 Home-Fix Building Hub Property Type Light Industrial Light Industrial Light Industrial Light Industrial Valuation S$82.0mn1 S$33.4mn1 S$87.0mn2 S$47.8mn1 GFA 418,586 sq. ft. 85,070 sq. ft. 253,058 sq. f
Slide 22: Diversified Quality Tenant Mix
Diversified Quality Tenant Mix* Top 10 tenants/sub-tenants account for 46.1% of monthly committed rental income Cisco System 7.6% Meiban Group 6.2% 1-Net Singapore 5.5% McDermott Asia Pacific 5.3% NTUC Fair Price 4.6% Home-Fix 4.0% Decathlon Singapore 4.0% Johnson Controls 3.5% Jackson Global 2.7% C
Slide 23: Diversified Quality Tenant Mix
Diversified Quality Tenant Mix Breakdown of Tenant Type by Breakdown of Trade Sector by Underlying Gross Rental Underlying Gross Rental Income* Income* Retail General Engineering / Lifestyle & 8.5% Engineering Services Services 19.3% 8.8% GLC 5.3% F&B 4.8% Packaging & Storage 2.5% SME MNC E-Business
Slide 24: Staggered Lease Expiry Provides Income Stability
Staggered Lease Expiry Provides Income Stability Expiry by % of Underlying Gross Rental Income 50% 40% 30% 26.1% 24.7% 21.8% 19.6% 20% 10% 7.8% 0% FY2016 FY2017 FY2018 FY2019 FY2020 & beyond Secured approximately 205,000 sq ft of lease renewals and new leases in 1Q2016. * Based on committed leases a
Slide 25: AEI Updates
AEI Updates AEI Project An initiative to unlock the value of VBP (formerly known as TPCC) by converting up to 15% of GFA to “white” use, allowable under BP zoning Total GFA converted to 214,951 sq ft “white” Progress status AEI works completed, 750 – Level 1 pending issuance of TOP TOP obtained on 1
Slide 26: Latest Acquisition Completed
Latest Acquisition Completed Property Details 30 Pioneer Road, Location Singapore 628502 Purchase Cost S$50.3 million Land Premium Approximately S$5.3 million Valuation S$55.0 million1 30 years Land Tenure (wef 16 February 2007) Land Area 200,786 sq. ft. GFA 281,090 sq. ft. Leasable Area 281,090 sq.
Slide 27: Contents
Contents Key Highlights Financial Performance Capital Management Portfolio Updates Outlook 27
Slide 28: Outlook
Outlook Singapore Industrial VIT Plan Economy Property Sector • Based on advance estimates • According to Deutsche Bank’s • To obtain TOP for 750 VBP from the Ministry of Trade and market research, growth of and complete the AEI works Industry (“MTI”), the Singapore Singapore REITs remains for 750B
Slide 29: Thank you
Thank you For enquiries, please contact: Sherena Seow sherena.seow@vivaitrust.com 750 Chai Chee Road, #04-03 Viva Business Park, Singapore 469000 T. +65 6229 5555 F. +65 6229 5550 www.vivaitrust.com
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