Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — A-REIT (Ascendas Real Estate Investment Trust) — 3Q FY2007/08 Earnings Presentation
25 slides from Capitaland Ascendas Reit's earnings presentation, Jan 18, 2008
Slide 1: 3Q FY2007/08 Financial Results Presentation
3Q FY2007/08 Financial Results Presentation 18 January 2008 Disclaimers This Presentation is focused on comparing results for the nine months ended 31 December 2007 versus actual results year-on-year (“yoy”). This shall be read in conjunction with A-REIT’s Results for the period from 1 October 2007
Slide 2: Agenda; Key Highlights
Agenda • Key highlights • Financial performance • Capital and funds management • Investment highlights • Portfolio update • Market outlook • Going forward A-REIT 3Q FY07/08 Results .. 3 Key Highlights • 3Q FY07/08 net income available for distribution of $47.2m, up 15% year-on-year (yoy) over the sa
Slide 3: Distribution Details
Distribution Details Stock counter Distribution Period Distribution per unit (cents) Ascendasreit 1 Oct 07 to 31 Dec 07 3.56 Distribution Timetable Last day of trading on “cum” basis 25 January 2008 Ex-date 28 January 2008, 9.00 am Books closure date 30 January 2008, 5.00 pm Distribution payment dat
Slide 4: DPU – 3QFY07/08 is 11% above 3QFY06/07
DPU – 3QFY07/08 is 11% above 3QFY06/07 (S$’000) 3Q FY07/08 (1) 3Q FY06/07 (1) % Change Gross revenue 80,225 71,069 13 Less: Property operating expenses (18,868) (18,309) 3 Net property income 61,358 52,760 16 Borrowing costs(2) (10,758) (8,924) 21 FRS 39 F.V. Adjustments(3) (247) (663) (63) Non-prop
Slide 5: Revenue and NPI; Subsector Financial Highlights
Revenue and NPI - 20 quarters of continued growth since IPO Gross Revenue $'m Net Property Income $'m 90 70 80 60 70 60 50 50 40 40 30 30 20 20 10 10 0 0 4Q FY03 1Q FY04 2Q FY04 3Q FY04 4Q FY04 1Q FY05 2Q FY05 3Q FY05 4Q FY05 1Q FY06 2Q FY06 3Q FY06 4Q FY06 1Q FY07 2Q FY07 3Q FY07 4Q FY07 1Q FY08 2Q
Slide 6: Balance sheet
Agenda • Key highlights • Financial performance • Capital and funds management • Investment highlights • Portfolio update • Market outlook • Going forward A-REIT 3Q FY07/08 Results .. 11 Balance sheet (S$bn) As at 31 Dec 07 As at 31 Dec 06 Total Assets 3.4 3.0 Borrowings 1.3 1.1 Net assets attributa
Slide 7: Debt Profile; Proactive interest rate management
Debt Profile Debt Profile 31 Dec 2007 31 Dec 2006 Aggregate leverage (1) 38.9% 39.5% Total debt $1,285m S$1,126m • Fixed rate debt $1,131m S$991m Fixed as a % of total debt 88.0% 87.9% Weighted average all-up funding cost (2) 3.39% 3.38% Weighted average term for fixed debt 3.92yrs 4.21yrs Interest
Slide 8: Debt Maturity Profile
Debt Maturity Profile $450.0 30.7% $400.0 27.2% $350.0 33.3% $300.0 A m ount (S $'m ) $250.0 18.7% $154m $200.0 $395.0 $350.0 $150.0 $300.0 $100.0 $50.0 $85.7 $- FY2008/09 FY2009/10 FY2012/13 FY2014/15 Short-term Advance Facilities CMBS II Commercial Mortage Backed Security (CMBS) I CMBS III Hedged
Slide 9: Investment highlights: development projects
Investment highlights Investments in development projects in progress Value (S$m) Expected Completion Date HansaPoint @ Changi Business Park 29 4Q FY2007/08 Plot 7 & 8 Changi LogisPark 32 1Q FY2008/09 (Partial Built to Suit Facility for Zuellig Pharma) Ramp-Up Industrial Facility at Pioneer Walk 86
Slide 10: Investment highlights; Development projects: Updates
Investment highlights YTD Investment activities : Acquisitions Value (S$ m) Expected completion 1 Senoko Avenue 11 Completed Logistic & Distribution Centre at 23 Competed Pioneer Walk (Goldin Building) Phase 2 of SENKEE Logistics Hub 64 4Q FY2007/08 Total MOUs signed 201 Total 299 A-REIT 3Q FY07/08
Slide 11: Development projects: Updates
Development projects: Updates Plot 7 & 8 Changi LogisPark (North) • Partial built-to-suit logistics facility for Zuellig Pharma • Construction commenced in Feb 2007 and expected to complete in 2Q 2008 A-REIT 3Q FY07/08 Results .. 21 Development projects: Updates Pioneer Walk Industrial Facility • Tw
Slide 12: Development projects: Updates; Asset Enhancement Highlights
Development projects: Updates Plot 8 Changi Business Park: Suburban business space • Built-to-Suit development to be developed in 2 phases of approx. 21,000 sqm each. • Phase 1 TOP by 1Q 2009 and Phase 2 by 4Q 2010 • Pre-commitment of minimum 75% of space of each phase by Citigroup • Phase 1 lease w
Slide 13: Asset Enhancement - Work in Progress
Asset Enhancement - Work in Progress Alpha • Located in Singapore Science Park 2, it is in the final stages of constructing additional 3,527 sq m of space which will be leased to FJ Benjamin upon completion. • Expected completion in Feb 2008 Alpha upon completion of asset enhancement Hoya • Property
Slide 14: Portfolio Highlights
Agenda • Key highlights • Financial performance • Capital and funds management • Investment highlights • Portfolio update • Market outlook • Going forward A-REIT 3Q FY07/08 Results .. 27 Portfolio Highlights As at As at 31 Dec 07 31 Dec 06 A-REIT Portfolio occupancy 98.7% 96.1% A-REIT MTB (1) occupa
Slide 15: A-REIT Portfolio Occupancy
A-REIT Portfolio Occupancy Higher Than Market 99.9% 100.0% 97.6% 97.8% 98.5% 95.0% 90.3% 90.0% 87.1% 86.4% 86.4% 85.0% Occupancy Rate (%) 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% Business Park Light Industrial Hi-Tech Industrial Logistics A-REIT URA Source: URA Official Statistics as at Sep 2007 As
Slide 16: Portfolio Diversification by Value; Lease Expiry
Portfolio Diversification by Value Asset Class Mix of Sale-&-Leaseback vs Diversification Multi-tenanted Buildings Warehouse Retail Facilities Science & Business Parks Sale-&-Leaseback Logistics & 4% Distribution Centres 20% 27% 49% 51% 25% 8% Hi-Tech Industrial Multi-tenanted Flatted Factories 16%
Slide 17: Organic Growth – Positive Rental Reversion
Organic Growth – Positive Rental Reversion • Built-in Rental Growth • 49% of portfolio by value are sale-&-leaseback • Incorporates stepped annual rental increment, providing growth in earnings • Positive Rental Reversion • 51% of portfolio are multi-tenanted buildings where rental rates are marked
Slide 18: Split of short and long term leases; Breakdown of renewal
Spilt of short term & long term leases within sector Majority of leases in high growth sectors of business & science park and hi-tech industrial are on short term basis. Hence, potential to enjoy positive rental reversion Logistics and Distribution Centres (by NLA) Science and Business Park (by NLA)
Slide 19: Quality & Well-Diversified Tenant Base
Quality & Well-Diversified Tenant Base Top 10 tenants make up 28.4% of the total portfolio income compared to 33.8 % as at 31 December 2006 8.0% 6.9% 5.7% 4.0% 2.4% 2.3% 2.2% 2.1% 1.9% 1.8% 1.6% 1.5% 0.0% P l s e e l rd d C& na en re s gT ag Lt d e ka to Lt em tio gi or n te c as Si lo a e St Pa lP
Slide 20: Recovering Industrial Property Market
Recovering Industrial Property Market Rental index improved by 8.7% in 3Q 2007 and by 36.7% since the trough in 2004 100 95 Industrial Rental Index 90 85 80 75 70 65 0 1 0 2 0 3 01 4 0 1 01 2 0 3 0 4 02 1 0 2 02 3 0 4 0 1 0 2 0 3 0 4 04 1 0 2 04 3 0 4 0 1 0 2 0 3 0 4 0 1 06 2 0 3 07 4 0 1 07 2 3 20
Slide 21: Outlook for Industrial Property Market
Outlook for Industrial Property Market • Growth moderated in the 4th quarter of 2007. • Growth in the manufacturing sector decelerated due to cyclical decrease in output in the biomedical manufacturing sector • Economic growth of 4.5-6.5% expected for Singapore in 2008 • General outlook cautiously p
Slide 22: Outlook for Hi-Tech, Light Industrial and Logistics
Outlook for Hi-Tech Industrial and Light Industrial Property Market 100% 400 90% 300 80% Area ('000 sqm) 200 occupancy 70% 100 60% 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007F 2008F -100 50% Source: URA as at Sept 2007 -200 40% Net New Supply Net New Demand Occupancy Rate • Expecte
Slide 23: A-REIT's strengths
Agenda • Key highlights • Financial performance • Capital and funds management • Investment highlights • Portfolio update • Market outlook • Going forward A-REIT 3Q FY07/08 Results .. 45 A-REIT's strengths Diversity and Depth • Largest business and industrial REIT in Singapore • Solid and well diver
Slide 24: A-REIT's strengths and strategies
A-REIT's strengths Development capability • Has development capability to create own assets which are more yield accretive than acquisitions of income producing properties Operational platform • Dedicated sales/marketing, leasing and property management team of over 80 people • Possess in-depth unde
Slide 25: Thank you
Thank you Important Notice This presentation has been prepared by Ascendas-MGM Funds Management Limited as Manager for Ascendas Real Estate Investment Trust. The details in this presentation provide general information only. It is not intended as investment or financial advice and must not be relied
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