Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Ascendas Reit — FY2020 Earnings Presentation
70 slides from Singapore Exchange's earnings presentation, Feb 2, 2021
Slide 1: Ascendas Reit FY2020 Financial Results Presentation
ASCENDAS REIT FY2020 Financial Results Presentation 2 February 2021
Slide 2: Disclaimers
Disclaimers • This presentation may contain forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors i
Slide 3: Agenda
Agenda Key Highlights for FY2020 4 Financial Performance 6 Investment Management 11 Capital Management 23 Asset Management 29 Portfolio Resilience 46 Sustainability 51 COVID-19 Country Updates 56 Market Outlook 59 Additional Information 62 3
Slide 4: Key Highlights for FY2020
Key Highlights for FY2020 510 Townsend Street, San Francisco, US
Slide 5: Key Highlights for FY2020
Key Highlights for FY2020 Distributable Income Distribution per Unit Total Assets S$538.4 m 14.688 cents S$15.1 b +6.7% y-o-y -6.1% y-o-y Mainly attributable to newly Excluding the one-off Acquired S$973.2m of acquired properties in United distribution of rollover properties across the States, Austr
Slide 6: Financial Performance
Financial Performance The Capricorn, Singapore
Slide 7: FY2020 (12 months) vs 2019 (12 months)
FY2020 (12 months) vs 2019 (12 months) (S$’m) FY2020 2019 Variance Mainly attributable to: • Contribution from the US Portfolio of 28 business park properties, two Singapore business park properties, which were acquired in December 2019 and acquisition of two properties in San Francisco in November
Slide 8: 2H FY2020 vs 1H FY2020
2H FY2020 (Jul-Dec) vs 1H FY2020 (Jan-Jun) 2H 1H (S$’m) Variance FY2020 FY2020 Mainly attributable to: • Lower rent rebates provided to eligible tenants in 2H FY2020 • Completion of 254 Wellington Road, Australia in September 2020 Gross revenue 528.2 521.2 1.3% • Acquisition of two San Francisco pro
Slide 9: 2H FY2020 vs 2H 2019
2H FY2020 (Jul-Dec) vs 2H 2019 (Jul-Dec) 2H 2H (S$’m) Variance FY2020 2019 Mainly attributable to: • Contribution from the US Portfolio of 28 business park properties and two Singapore business park properties, which were acquired in December 2019 and the acquisition of two San Francisco properties
Slide 10: Distribution Details
Distribution Details Distribution Period DPU (Singapore cents) 1 19 November 2020 to 31 December 2020 (1) 1.678 Distribution timetable Last day of trading on “cum” basis 8 February 2021 (Monday) Ex-distribution date 9 February 2021(Tuesday), 9.00 am Record date 10 February 2021 (Wednesday), 5.00 pm
Slide 11: Investment Management
Investment Management 254 Wellington, Melbourne, Australia
Slide 12: Investment Highlights: Acquisitions
Investment Highlights: Acquisitions ▪ Completed S$973.2 m worth of acquisitions in FY2020. ▪ An additional S$535.2 m worth of investments to be completed within the next two years Purchase Consideration / Completion FY2020 City/Country Sub-segment Land & Development Cost (S$m) Date Completed Acquisi
Slide 13: Investment Highlights: Asset Enhancements
Investment Highlights: Asset Enhancements ▪ Completed seven asset enhancement initiatives for total cost of S$34.2 m Total Cost Completion FY2020 City/Country Sub-segment (S$m) Date Asset Enhancement Initiatives 34.2 The Capricorn Singapore Business & Science Park 6.0 20 Feb 2020 Plaza 8 Singapore B
Slide 14: Investment Highlights: Divestments
Investment Highlights: Divestments ▪ Divested three properties in Singapore for total sales proceeds of S$125.3 m Completion FY2020 Country Sub-segment Sale Price (S$m) Date Divestments 125.3 High-Specifications Wisma Gulab Singapore 88.0 23 Jan 2020 Industrial 202 Kallang Bahru Singapore Light Indu
Slide 15: Acquisition (Completed): Galaxis (25% stake), Singapore
Acquisition (Completed) : Galaxis (25% stake), Singapore Purchase Consideration (1) S$104.6 m Acquisition Fee(2), Stamp Duty and Other S$2.99 m Transaction Costs Total Acquisition Cost S$107.59 m MBK Real Estate Asia Pte Ltd, a wholly- Vendor owned subsidiary of Mitsui & Co, Ltd Agreed Property Valu
Slide 16: Acquisition (Completed): Wellington Road, Melbourne
Acquisition (Completed) : 254 Wellington Road, Melbourne, Australia Land and Development Costs (1)(2) S$100.6 m (A$104.5 m) Acquisition Fee(3) , Stamp duty and Other S$1.25 m (A$1.3 m) Transaction Costs Total Investment Cost S$101.9 m (A$105.8 m) Vendor/Developer ESR FPA (Wellington Road) Pty Limite
Slide 17: Acquisition (Completed): Townsend Street | Brannan Street, San Francisco
Acquisition (Completed): 510 Townsend Street | 505 Brannan Street San Francisco, United States 510 Townsend Street 505 Brannan Street Purchase Consideration(1) S$498.6 m (US$363.7 m) S$269.4 m (US$196.5 m ) Acquisition Fee (2), Stamp Duty and S$16.3 m (US$11.9 m) Other Transaction Costs Total Acquis
Slide 18: Acquisition: 1-5 Thomas Holt Drive, Macquarie Park, Sydney
Acquisition: 1 – 5 Thomas Holt Drive, Macquarie Park, Sydney, Australia Purchase Consideration(1)(2) S$284.0 m (A$288.9 m) 3 THD Acquisition Fee(3), Stamp Duty and S$19.3 m (A$19.6 m) Other Transaction Costs Total Acquisition Cost S$303.3 m (A$308.5 m) 5 THD 1 THD Vendor AMP Capital Valuation as at
Slide 19: Acquisition (Under development): Lot 7 Kiora Crescent, Yennora
Acquisition (Under development): Lot 7 Kiora Crescent, Yennora, Sydney, Australia Land and Development Costs(1) (2) S$21.1 m (A$23.5 m) Acquisition Fee(3), Stamp Duty and S$1.29 m (A$1.43 m) Other Transaction Costs Total Acquisition Cost S$22.39 m (A$24.93 m) Vendor/Developer Larapinta Project Pty L
Slide 20: Acquisition (Under development): 500 Green Road, Crestmead
Acquisition (Under development): 500 Green Road, Crestmead, Brisbane, Australia Land and Development Costs(1)(2) S$69.1m (A$70.3 m) Acquisition Fee(3), Stamp Duty and S$1.4 m (A$1.4 m) Other Transaction Costs Total Investment Cost S$70.5 m (A$71.7 m) Vendor/Developer GA12 Crestmead Trust / Goodman P
Slide 21: Acquisition (Under development): MQX4, Macquarie Park
Acquisition (Under development): MQX4, Macquarie Park, Sydney, Australia Land and Development Costs(1)(2) S$161.0 m (A$167.2 m) Total Investment Cost (3) S$159.8 m (A$166.0 m) Vendors/Developers Australand Industrial No. 122 Pty Limited and Winten (No 35) Pty Limited Valuation (as if complete basis)
Slide 22: Asset Enhancement Initiative (Completed): Aperia, Singapore
Asset Enhancement Initiative (Completed): Aperia, Singapore Enhancement works to the tower lift lobby and common corridors to create a premium look and feel. Description Enhancement works to the common area with the introduction of a new playground. Integrated Development Amenities and Property Segm
Slide 23: Capital Management
Capital Management 1,3 & 5 Changi Business Park Crescent, Singapore
Slide 24: Healthy Balance Sheet
Healthy Balance Sheet ▪ Aggregate leverage is healthy at 32.8% (1)(2) ▪ Available debt headroom of ~S$5.0 b (1)(2) to reach 50.0% aggregate leverage ▪ Total assets include cash and fixed deposits of ~S$278 m to meet current financial and operational obligations As at As at As at 31 Dec 2020 30 Jun 2
Slide 25: Well-spread Debt Maturity Profile
Well-spread Debt Maturity Profile ▪ Well-spread debt maturity with the longest debt maturing in FY2030 ▪ Average debt maturity stable at 3.7 years ▪ Refinanced and termed out a A$282 m (S$277 m) loan ▪ S$200 m of committed and ~S$2.1 b of uncommitted facilities are unutilised 1000 5% 868 868 7% 900
Slide 26: Key Funding Indicators
Key Funding Indicators ▪ Robust financial metrics that exceed bank loan covenants by a healthy margin ▪ A3 credit rating facilitates good access to wider funding options at competitive rates As at As at 31 Dec 2020 30 Jun 2020 Aggregate Leverage (1)(2)(3) 32.8% 36.1% Unencumbered Properties as % of
Slide 27: High Natural Hedge
High Natural Hedge ▪ Maintained high level of natural hedge for Australia (~70%), the United Kingdom (~100%) and United States (~60%) to minimise the effects of adverse exchange rate fluctuations AUD GBP USD Natural Hedge Natural Hedge Natural Hedge 2.5 ~70% ~100% ~60% US$1.5 b A$1.9 b (S$ 2.1 b) 2.
Slide 28: Annual Property Revaluation
Annual Property Revaluation • Total valuation of 197 investment properties(1) was S$13.70 b • Stable same-store valuation for 194 properties(2) at S$12.83 b (vs. S$12.70 b @ 31 Dec 2019) As at 31 Dec 2020 Valuation (S$b) Weighted Average Cap Rates Cap Rates Range Singapore portfolio (93 properties)
Slide 29: Asset Management
Asset Management Infineon Building , Singapore
Slide 30: Overview of Portfolio Occupancy
Overview of Portfolio Occupancy 97.4% 97.5% 97.4% 97.5% 97.5% 97.7% 92.9% 92.0% 93.9% 91.7% 91.9% 90.9% 88.4% 88.8% 87.2% Singapore United States Australia United Kingdom Total Dec-20 Sep-20 Dec-19 Gross Floor 3,001,293 357,065 828,197 (2) 509,908 (3) 4,696,463 Area (sqm) (1) (1) Gross Floor Area as
Slide 31: Singapore: Occupancy
Singapore: Occupancy ▪ Occupancy declined to 88.4% mainly due to the non-renewal of a lease at 11 Changi North Way (30 Sep 2020: 100%; 31 Dec 2020: 0%) As at 31 Dec 2020 30 Sep 2020 31 Dec 2019 Total Singapore Portfolio GFA (sqm) 3,001,293(1)(2)(3) 3,001,270(1)(2)(3) 3,061,210(1) Singapore Portfolio
Slide 32: United States: Occupancy
United States: Occupancy ▪ Occupancy rose to 92.9% mainly due to the newly acquired properties in San Francisco As at 31 Dec 2020 30 Sep 2020 31 Dec 2019 Total United States Portfolio GFA (sqm) 357,065 313,059 313,059 United States Portfolio Occupancy 91.9% 92.0% 93.7% (same store)(1) Occupancy of U
Slide 33: Australia: Occupancy
Australia: Occupancy ▪ Occupancy remained high at 97.4% As at 31 Dec 2020 30 Sep 2020 31 Dec 2019 Total Australian Portfolio GFA (sqm) 828,197 828,195 792,039 Australian Portfolio Occupancy 97.3% 97.5% 97.4% (same store)(1) Occupancy of Australian Investments 100%(2) 100%(2) N.A. Completed in the la
Slide 34: United Kingdom: Occupancy
United Kingdom: Occupancy ▪ Occupancy remained high at 97.5% As at 31 Dec 2020 30 Sep 2020 31 Dec 2019 Total United Kingdom Portfolio GFA (sqm) 509,908 509,907 509,907 Occupancy of United Kingdom Investments N.A. N.A. N.A. Completed in the last 12 months Overall United Kingdom Portfolio 97.5% 97.5%
Slide 35: Singapore: Sources of New Demand in 4Q FY2020
Singapore: Sources of New Demand in 4Q FY2020 ▪ Continues to attract demand from a wide spectrum of industries 3.8% 2.5% 3.2% 8.7% 2.4% 9.5% 7.4% 6.9% 1.1% 10.9% 0.8% 15.2% 16.1% By Gross By NLA Rental Income 22.3% 15.9% 30.5% 21.1% 21.7% Biomedical and Agri/Aquaculture Logistics & Supply Chain Mana
Slide 36: Singapore: Sources of New Demand in FY2020
Singapore: Sources of New Demand in FY2020 ▪ Continues to attract demand from a wide spectrum of industries 3.4% 2.5% 2.1% 2.1% 7.5% 5.1% 7.9% 4.4% 1.2% 1.4% 7.7% 9.0% 7.4% 8.6% 9.2% By Gross By NLA Rental 9.0% 10.0% Income 22.7% 35.1% 15.9% 11.5% 16.2% Logistics & Supply Chain Management Government
Slide 37: Portfolio Rental Reversions
Portfolio Rental Reversions ▪ Average portfolio rent reversion of 3.8% was recorded for leases renewed in FY2020 ▪ Rental reversion for FY2021 is expected to be in the low single-digit range in view of current market uncertainties 4Q FY2020 3Q FY2020 % Change in Renewal Rates for Multi-tenant Buildi
Slide 38: Weighted Average Lease Expiry
Weighted Average Lease Expiry (By gross revenue) ▪ Portfolio Weighted Average Lease Expiry (WALE) stood at 4.1 years WALE (as at 31 Dec 2020) Years Singapore 3.5 United States 5.1 Australia 4.1 United Kingdom 8.8 Portfolio 4.1 38
Slide 39: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile (as at 31 Dec 2020) Breakdown of expiring leases for FY2021 and FY2022 ▪ Portfolio weighted average lease to expiry (WALE) of 4.1 years. 4% 2%6% 14% 1% 9% ▪ Lease expiry is well-spread, extending beyond FY2034 36% 7% 33% ▪ About 16.3% of gross rental income is due for
Slide 40: Singapore: Lease Expiry Profile
Singapore: Lease Expiry Profile (as at 31 Dec 2020) Breakdown of expiring leases for FY2020 and FY2021 ▪ Singapore portfolio weighted average lease to expiry (WALE) of 3.5 years 10% ▪ Lease expiry is well-spread, extending beyond FY2034 ▪ 20.9% of Singapore’s gross rental income is due for renewal i
Slide 41: United States: Lease Expiry Profile
United States: Lease Expiry Profile (as at 31 Dec 2020) Breakdown of expiring leases for FY2020 and FY2021 ▪ United States portfolio weighted average lease to expiry (WALE) of 5.1 years 19% ▪ Lease expiry is well-spread, extending well beyond FY2032 ▪ 7.0% of United States’ gross rental income is du
Slide 42: Australia: Lease Expiry Profile
Australia: Lease Expiry Profile (as at 31 Dec 2020) Breakdown of expiring leases for FY2021 and FY2022 ▪ Australia portfolio weighted average lease to expiry (WALE) of 4.1 years ▪ Lease expiry is well-spread, extending beyond FY2030 28% 32% ▪ 5.7% of Australia’s gross rental income is due for renewa
Slide 43: United Kingdom: Lease Expiry Profile
United Kingdom: Lease Expiry Profile (as at 31 Dec 2020) Breakdown of expiring leases for FY2020 and FY2021 ▪ United Kingdom portfolio weighted average lease to expiry (WALE) of 8.8 years ▪ Lease expiry is well-spread, extending beyond FY2034 ▪ 5.5% of United Kingdom’s gross rental income is due for
Slide 44: Ongoing Projects: Improving Portfolio Quality
Ongoing Projects: Improving Portfolio Quality Estimated Country Estimated Total Cost (S$m) Completion Date Development 182.6 Built-to-suit business park Singapore 182.6 2Q 2021 development for Grab Redevelopments 119.3 UBIX (formerly 25 & 27 Ubi Road 4) Singapore 35.0 4Q 2021 iQuest@IBP Singapore 84
Slide 45: Asset Enhancement Initiative (New): Changi Logistics Centre
Asset Enhancement Initiative (New): Changi Logistics Centre, Singapore Enhancement works include upgrading of power transformer, warehouse spaces to Description latest fire code requirements and modernisation of toilets, cargo and passenger lifts Property Segment Logistics Net Lettable Area 39,460 s
Slide 46: Portfolio Resilience
Portfolio Resilience The Galen, Singapore
Slide 47: Diversified Portfolio
Diversified Portfolio By Value of Investment Properties United Kingdom, Australia, 13% 6% ▪ As at 31 Dec 2020, total investment properties Logistics and stood at S$13.7 b (197 Properties) Distribution United States, Suburban Centres Australia Offices 15% Logistics and 10% Australia Distribution 3% ▪
Slide 48: Customers' Industry Diversification
Customers’ Industry Diversification (By Monthly Gross Revenue) ▪ Diversified customer base across more than 20 industries More than 20 industries 48
Slide 49: Quality and Diversified Customer Base
Quality and Diversified Customer Base ▪ Total customer base of more than 1,450 tenants ▪ Top 10 customers (as at 31 Dec 20) account for about 20.5% of monthly portfolio gross revenue* ▪ On a portfolio basis, weighted average security deposit is about 5.9 months of rental income. geographical locatio
Slide 50: Diversified Portfolio
Diversified Portfolio No single property accounts for more than 4.2% of Ascendas Reit’s monthly gross revenue* * Monthly gross revenue has been adjusted to exclude the government grant related to property tax and rent relief support provided to tenants amid the COVID-19 pandemic. 50
Slide 51: Sustainability
Sustainability Techpoint, Singapore
Slide 52: Sustainability Achievements
Sustainability Achievements Aug 2020: Issued first S$100 m Green Bond Sep 2020: Issued first real estate S$300 m Green Perpetual Securities in Asia (1) Largest no. of BCA (2) Green Mark Properties amongst S-REITs – 34 Properties 1st industrial building in Largest no. of public Electrical Largest com
Slide 53: Powering Properties with Renewable Energy
Powering Properties with Renewable Energy • Common facilities' electricity usage at three buildings located at one-north will be 100% powered with renewable energy generated from Ascendas Reit’s solar farms by 2022 • In 2020, our solar farms have generated solar energy exceeding the amount required
Slide 54: Building a Green and Sustainable Portfolio
Building a Green and Sustainable Portfolio 36 Properties with Green Building Certifications Incorporating Green and Community Spaces New Developments Existing Properties 12 9 7 Grab’s HQ, Singapore Fustal courts @ Plaza 8, Singapore – Green Mark GoldPlus 6 2 BCA GM BCA GM BCA GM BCA GM LEED MQX4, Sy
Slide 55: Embracing Innovation and Technology
Embracing Innovation and Technology • Initiated the Smart Urban Co-Innovation Lab (located at The Galen, Singapore Science Park 2), Southeast Asia’s first industry- led lab for smart cities solutions development • Supported by the Infocomm Media Development Authority and Enterprise Singapore, the La
Slide 56: COVID-19 Country Updates
COVID-19 Country Updates Units 1a, 1b, 2 & 3 Upwell Street, Yorkshire & the Humber, United Kingdom 56
Slide 57: COVID-19 Country Update: Singapore and United States
COVID-19 Country Update Singapore United States Government • Phase 3 of Re-opening commenced from 28 Dec 2020 and includes the • In Dec 2020, a US$900 billion COVID-19 aid package was Measures following key measures: approved, including small-business aid and US$600 checks for Implemented ✓ Permitte
Slide 58: COVID-19 Country Update: Australia and United Kingdom
COVID-19 Country Update Australia United Kingdom Government • Mandatory code of conduct (for SMEs): landlords unable to • Up until 31 Mar 2021, landlords are not allowed to terminate Measures terminate leases/draw on deposits and to offer reductions in rent leases for any missed payments. The Secret
Slide 59: Market Outlook
Market Outlook 7 Grevillea Street, Sydney, Australia
Slide 60: Market Outlook
Market Outlook ▪ In January 2021, the International Monetary Fund (IMF) projected a return to global growth of 5.5% in 2021 from an estimated contraction of 3.5% in 2020. However, the recent resurgence of COVID-19 and new strains of the virus in many countries have triggered repeated lockdowns and r
Slide 61: Market Outlook
Market Outlook ▪ Australia exited a technical recession after recording 3.3% q-o-q GDP growth for 3Q 2020 although this represented a 3.8% contraction y-o-y (2021 GDP forecast: 4.5%). The Reserve Bank of Australia expects the positive momentum to continue in 4Q 2020, with the easing of lockdown meas
Slide 62: Additional Information
Additional Information 1 Historical Financial Results 2 Ascendas Reit’s Singapore Occupancy vs Industrial Average 3 Singapore Industrial Property Market 4 Singapore New Supply 62
Slide 63: Historical Financial Results
Historical Financial Results Financial Highlights FY2019 FY2020 1Q 2Q 3Q 1H 2H (S$ m) Total* Total (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Jun) (Jun-Dec) Gross Revenue 230 230 239 699 521 528 1,049 Net Property Income 178 178 182 538 388 388 776 Total Amount Available for 124 124 127 375 263 275 538 Dist
Slide 64: Ascendas Reit's Singapore Occupancy vs Industrial Average
Ascendas Reit’s Singapore Occupancy vs Industrial Average 100% 93.9% 95% 89.9% 90% 88.5% 88.5% 85.8% 87.0% 84.2% 85.6% 85% 80% Occupancy Rate 75% 70% 65% 60% 55% 50% Business and Science Park High-Specifications Industrial Light Industrial Logistics Ascendas Reit JTC Statistics Source : Ascendas Rei
Slide 65: Average Market Rents (Singapore) by Segment
Average Market Rents (Singapore) by Segment 120 Rental Index of All Singapore Industrial Property 100 90.9 Rental Index (4Q 2012 = 100) 90.3 89.5 89.6 80 60 40 20 Source : JTC’s 4Q 2020 Quarter Market Report $6.50 Average Market Rents (Singapore) by Segment Business Park (City Fringe): $5.80 psf pm
Slide 66: Singapore Industrial Market: New Supply
Singapore Industrial Market: New Supply ▪ Potential new supply of about 3.1 m sqm (~6.4% of existing stock) over next 4 years, of which 34% are pre- committed ▪ Island-wide occupancy improved to 89.9% as at 31 Dec 20 (from 89.6% as at 30 Sep 20) New Existing Supply % of New/ Sector ('000 sqm) 2021 2
Slide 67: Singapore Business & Science Parks: New Supply
Singapore Business & Science Parks: New Supply (1) Expected % Pre-committed Location Developer GFA (sqm) Completion (Estimated) 2021 one-north Wilmar International Limited 18,460 100% 2021 one-north Snakepit-BP LLP 16,460 100% 2021 Changi Business Park Kajima Development Pte Ltd 12,970 100% 2021 Jur
Slide 68: Singapore High-Specifications & Light Industrial: New Supply
Singapore High-Specifications & Light Industrial: New Supply (1) Expected % Pre-committed Location Developer GFA (sqm) Completion (Estimated) 2021 Senoko Drive/Senoko Road Tee Yih Jia Food Manufacturing Pte Ltd 79,580 100% 2021 Seletar North Link HL-Sunway JV Pte Ltd 62,480 100% 2021 Ang Mo Kio Stre
Slide 69: Singapore Logistics: New Supply
Singapore Logistics: New Supply (1) Expected % Pre-committed Location Developer GFA (sqm) Completion (Estimated) 2021 Gul Circle JTC Corporation 140,090 0% 2021 Tembusu Crescent S H Cogent Logistics Pte Ltd 87,500 0% NTUC Fairprice Co-operative 2022 Sunview Road 69,610 100% Ltd 2022 Pandan Crescent
Slide 70: Thank you
Thank you CapftaLand = Z)yassen