Esr-REIT · SGX:9A4U
Esr-REIT — Investor Presentation (September 2021)
52 slides from Esr-REIT's investor presentation, September 2021
Slide 1: ESR-REIT Investor Presentation September 2021
ESR-REIT Investor Presentation September 2021
Slide 2: Contents
Contents A Key Takeaways B Overview of ESR-REIT C Key Investment Highlights D Appendix 2
Slide 3: Key Takeaways
Key Takeaways Top: ESR BizPark @ Changi (formerly UE BizHub East) | Business Park Second: 7000 Ang Mo Kio Avenue 5 | High-Specs Industrial Bottom: 30 Marsiling Industrial Estate Road 8 | High-Specs Industrial
Slide 4: Execution of Our Business Strategy
Execution of Our Business Strategy Executed the following in 1H2021: (1) Acquisitions; (2) Asset Enhancement Initiatives; (3) Divestment of non- core assets; and (4) Early Refinancing ESR-REIT’s Acquisition & Business Strategy Organic Growth Capital Management Development Growth ▪ Divestment of two
Slide 5: 1H2021 at a Glance
1H2021 at a Glance Gross Net Property DPU Total NAV Per Unit Revenue Income (Cents) Assets (Cents) S$119.8m S$87.0m 1.554 S$3.4b(1) 39.8 Financial Proactive Prudent Performance Asset Management Capital Management ▪ 1H2021 DPU up 14.3% y-o-y to 1.554 ▪ Portfolio occupancy increased from 91.0% to ▪ Su
Slide 6: 1H2021 DPU Increased 14.3% Y-o-Y
1H2021 DPU Increased 14.3% Y-o-Y Demonstrates resilience despite tightening restrictions amidst P2(HA) 1H2021 DPU Increased 14.3% Y-o-Y to 1.554 Cents 2Q2021 DPU Increased 13.9% Y-o-Y to 0.754 Cents ▪ Absence of provision of COVID-19 rental rebates ▪ The increase is mainly due to: ▪ Higher Net Prope
Slide 7: ESR-REIT is Amongst the Top Industrial S-REITs
ESR-REIT is Amongst the Top 5 Industrial S-REITs Industrial S-REITs Total Assets(1) (S$ billion) Developer-backed S-REITs 17.3 11.1 7.0 6.7(2) 3.4(3) 2.0 1.9 1.8 1.0 A-REIT MLT MINT FLCT ALOG ECW AA-REIT Sabana Notes: (1) From latest company information available as at 30 Jun 2020. (2) As at 31 Marc
Slide 8: Overview of ESR-REIT
Overview of ESR-REIT Top: ESR BizPark @ Changi (formerly UE BizHub East) | Business Park Second: 7000 Ang Mo Kio Avenue 5 | High-Specs Industrial Bottom: 30 Marsiling Industrial Estate Road 8 | High-Specs Industrial
Slide 9: ESR-REIT's Assets Under Management (AUM)
ESR-REIT’s Assets Under Management (“AUM”) of S$3.2 billion Portfolio Geographical Diversification (by rental income(3)) 2.2% AUM S$3.2 billion 97.8% Australia Singapore Direct asset 10.0% interest Real Estate Portfolio ESR Australia Logistics Partnership S$3.2 billion(1) Valuation S$61.5 million eq
Slide 10: Well Located Portfolio Across Singapore
Well Located Portfolio Across Singapore Portfolio of 58 assets across 4 asset classes totalling S$3.2 billion(1), located close to major transportation hubs and within key industrial zones across Singapore Woodlands/ Kranji/Yishun 7000 Ang Mo Kio Avenue 5 15 Greenwich Drive 30 Marsiling Industrial E
Slide 11: Real Estate Portfolio Highlights
Real Estate Portfolio Highlights Located close 91.7 Above JTC Average %(1) 360 tenants to major transportation hubs and Portfolio of 90.1%(2) from different key industrial Occupancy trade sectors zones Diversified portfolio of 58 Singapore properties across Asset Valuation S$ 3.2 billion(3) Weighted
Slide 12: Ownership Structure
Ownership Structure ESR has 67.3% stake in the REIT Manager, 100% stake in Property Manager and is the REIT’s second largest unitholder with a c.9.3% REIT stake ESR Cayman Limited c. 9.3%(2) (“ESR”) c.20.9%(2) c.0.8%(1) 100% ESR Investment Mr Tong Mitsui & Co. Management Pte Ltd Jinquan. Ltd 100% 67
Slide 13: Key Investment Highlights
Key Investment Highlights Top: ESR BizPark @ Changi (formerly UE BizHub East) | Business Park Second: 7000 Ang Mo Kio Avenue 5 | High-Specs Industrial Bottom: 30 Marsiling Industrial Estate Road 8 | High-Specs Industrial
Slide 14: Key Investment Highlights
Key Investment Highlights Strategy Supported by Resilient & Strong & Balanced Committed Portfolio Sponsor 1 6 Experienced Diversified Management Tenant Team Network 5 2 4 3 Active Prudent Asset Capital and Management Risk Management 14
Slide 15: Resilient & Balanced Portfolio
1 Resilient & Balanced Portfolio Top: ESR BizPark @ Changi (formerly UE BizHub East) | Business Park Second: 7000 Ang Mo Kio Avenue 5 | High-Specs Industrial Bottom: 30 Marsiling Industrial Estate Road 8 | High-Specs Industrial
Slide 16: Diversified Portfolio Underpinned by Strong Fundamentals
1 Diversified Portfolio Underpinned by Strong Fundamentals Occupancy Maintained and Consistently Above JTC Average YTD Rental Reversions Occupancy fluctuations due to portfolio comprising approx. 75.7% Circuit Phase Two MTBs by rental income Breaker (Heightened Alert) 91.1% 90.8% 91.0% 90.8% 91.7% O
Slide 17: Proactive Lease Management
1 Proactive Lease Management ▪ During 1H2021, a total of 1.08 million sqft of leases were secured: Top 10 Tenant Concentration Risk ‒ New leases: 500,600 sqft (46.1%), primarily attributed to business park and general industrial segments Top 10 tenants account for 29.4% of rental income (as at 30 Ju
Slide 18: Well Staggered Portfolio Expiry Profile
1 Well Staggered Portfolio Expiry Profile ▪ Approximately 868,900 sqft was due to expire in 2Q2021. YTD Tenant Retention Rate Retention rate of 70.8% was achieved during the quarter with Retention rate of 70.8% was achieved during the quarter with YTD YTD retention rate of 73.7%. retention rate of 7
Slide 19: Singapore Industrial Market Outlook
1 Singapore Industrial Market Outlook ▪1 Rental and price index of industrial space in 2Q2021 Net Supply of Industrial Space(1) recorded slight improvements, overall occupancy rate (‘000 sqm) increased slightly by 0.1% to 90.1%(1) 2,500 Delay in ‒ Rental and price increased by 0.6% and 1.8% respecti
Slide 20: Diversified Tenant Network
2 Diversified Tenant Network Top: ESR BizPark @ Changi (formerly UE BizHub East) | Business Park Second: 7000 Ang Mo Kio Avenue 5 | High-Specs Industrial Bottom: 30 Marsiling Industrial Estate Road 8 | High-Specs Industrial
Slide 21: Reduced Tenant Concentration Risk and Well-Diversified Trade Mix
Reduced Tenant Concentration Risk and 2 Well-Diversified Trade Mix Top 10 Tenants Breakdown by Trade Sectors Remains stable accounting for 29.4% of Rental Income and Portfolio of 360 diverse tenants in 1H2021 increased against 25.2% by NLA in 1H2021 343 tenants in 1H2020 1.7% 0.7% Logistics & Wareho
Slide 22: Prudent Capital Management
3 Prudent Capital Management Top: ESR BizPark @ Changi (formerly UE BizHub East) | Business Park Second: 7000 Ang Mo Kio Avenue 5 | High-Specs Industrial Bottom: 30 Marsiling Industrial Estate Road 8 | High-Specs Industrial
Slide 23: Key Capital Management Indicators
3 Key Capital Management Indicators ▪ Announced up to S$150.0 million equity fund raising via a Private Placement Breakdown of Debt and Preferential Offering Total Debt of S$1,306.6m ▪ Successfully raised S$100 million via a Private Placement on 6 May 2021 3.8% 4.7% ‒ 3.4x subscribed with upsize opt
Slide 24: Well-Staggered Debt Maturity Profile
3 Well-Staggered Debt Maturity Profile ▪ WADE(1) as at 30 June 2021 was 2.6 years ▪ No refinancing requirements in FY2021 – successfully refinanced all expiring debt due in FY2021 ahead of expiry ▪ ESR-REIT remains well-supported by 11 lending banks on a 100% unsecured basis ▪ The Manager has proact
Slide 25: Successful Capital Raisings
3 Successful 3 Capital Raisings We have successfully tapped into new pools of capital and broadened our banking relationships 2018 2019 2020 2021 Mar 2018 Mar 2019 Feb 2020 Mar 2021 ▪ S$142m Preferential ▪ S$155m Committed ▪ S$200m Committed ▪ S$320m Committed Offering Unsecured Loan Facility Unsecu
Slide 26: Active Asset Management
4 Active Asset Management Top: ESR BizPark @ Changi (formerly UE BizHub East) | Business Park Second: 7000 Ang Mo Kio Avenue 5 | High-Specs Industrial Bottom: 30 Marsiling Industrial Estate Road 8 | High-Specs Industrial
Slide 27: 1H2021 Leasing Update: About 1.08 mil sqft Renewed and Newly Leased
1H2021 Leasing Update: 4 About 1.08 mil sqft Renewed and Newly Leased Selected new tenants secured during 1H2021: A General Industrial B General Industrial C High-Specs Industrial EGIS Nanotech Pte. Ltd. AF Global Logistics XP Power Limited Name of Tenant Location 8 Tuas South Lane 8 Tuas South Lane
Slide 28: AEI Update: 19 Tai Seng Avenue
Portfolio Rejuvenation: 4 AEI Update: 19 Tai Seng Avenue (“19TS”) Rejuvenation works on track to obtain temporary occupation permit (“TOP”) in 3Q2021, secured >63.0% committed occupancy Artist’s Impression Artist’s Impression +AEI Makeover of passenger lift lobbies The AEI of 19TS reflects our focus
Slide 29: Portfolio Rejuvenation: Upcoming AEIs of Two High-Specs Properties
Portfolio Rejuvenation: 4 Upcoming AEIs of Two High-Specs Properties Asset enhancement works planned for 16 Tai Seng Street and 7000 Ang Mo Kio Ave 5 ▪ The AEIs reflect the Manager’s commitment to seek organic growth continuously by active asset management to unlock value(1) ▪ Development of un-util
Slide 30: Portfolio Optimisation: Divestment of Three Non-Core Properties
Portfolio Optimisation: 4 Divestment of Three Non-Core Properties Divested at 5.0% premium to the total fair value of the properties Divested at 7.8% premium to fair value 11 Serangoon North Avenue 5 3C Toh Guan Road East 45 Changi South Avenue 2 Asset Type General Industrial Logistics & Warehouse G
Slide 31: Experienced Management Team
5 Experienced Management Team Top: ESR BizPark @ Changi (formerly UE BizHub East) | Business Park Second: 7000 Ang Mo Kio Avenue 5 | High-Specs Industrial Bottom: 30 Marsiling Industrial Estate Road 8 | High-Specs Industrial
Slide 32: Experienced Management Team
Experienced 5 Experienced Management Team Management Team Experienced Professionals with Proven Track Record and Real Estate Expertise Board of Directors Ooi Eng Peng Adrian Chui Stefanie Yuen Thio Wilson Ang Tong Jinquan Non-Executive CEO and Independent Chairperson Non-Executive Director Non-Execu
Slide 33: Strategy Supported by Strong & Committed Sponsor
6 Strategy Supported by Strong & Committed Sponsor Top: ESR BizPark @ Changi (formerly UE BizHub East) | Business Park Second: 7000 Ang Mo Kio Avenue 5 | High-Specs Industrial Bottom: 30 Marsiling Industrial Estate Road 8 | High-Specs Industrial
Slide 34: Our Long-Term Strategy
6 Our Long-Term Strategy Our three-pronged strategy focuses on optimising Unitholder returns while reducing risks Organic Growth Acquisition Capital and Development Management Growth Acquisition and Organic Growth Capital Management Development Growth ▪ AEIs to unlock value and ▪ Yield-accretive, sc
Slide 35: Supported by Committed Sponsor ESR Group
6 Supported by Committed Sponsor ESR Group ESR-REIT remains well-supported and can benefit from ESR Group’s operating platform, footprint, pipeline and network to create a leading Pan-Asian industrial REIT ESR Group’s Operating Platform and Capabilities ESR Group’s Regional Presence Largest APAC Lar
Slide 36: ESR Cayman: Strong Developer Sponsor
6 ESR Cayman: Strong Developer Sponsor #1 APAC Focused Logistics Real Estate Platform with Top Positions in Its Respective Markets ▪ ESR has over 20.1 million sqm GFA in operation and under development1 and a further c.7.2 million sqm GFA of development pipeline with MOUs2 signed across top tier mar
Slide 37: Strategically Diversified in Key APAC Markets
Strategically Diversified In 7 Key APAC Markets 6 Resilient to market changes and disruptions Revenue Contribution AUM By Region1 GFA By Region1 By Region1,2 India/Others India/Others 2% 4% India/Others 7% Australia Australia Australia 11% China China 7% 17% 23% 32% Singapore 10% Singapore China 9%
Slide 38: Strategic Achievements in 2020 and YTD 2021
6 Strategic Achievements in 2020 and YTD (1) 2021 BW and ESR formed JV for GIC and ESR CPPIB and an industrial development established ESR to upsize project near Ho Chi Minh US$750m JV to joint City, marking ESR’s first develop and investment in entry into Vietnam acquire assets in India Korea Incom
Slide 39: Supported by a Network of Quality Tenants
6 Supported by a Network of Quality Tenants Landlord of Well-staggered Revenue #1 E-commerce companies in China(1) 90% Portfolio Occupancy(2) 4.2 portfolio WALE 40% contributed by years by leased area top 10 tenants(3) Lease Profile by End User Industry(4) Portfolio Top 10 Tenants By Income(%)(3,5)
Slide 40: Conclusion
Conclusion Stabilised Portfolio Provides Strong Platform to Pursue Growth ▪ Larger, diversified portfolio across four asset sub-sectors and tenant trade sectors ▪ Portfolio resilience underpinned by stable and improving portfolio operations metrics 1 ▪ Provides a strong platform for ESR-REIT to purs
Slide 41: For enquires, please contact:
For enquires, please contact: Gloria Low Lyn Ong Corporate Communications Manager Investor Relations Manager Tel: (65) 6222 3339 Tel: (65) 6222 3339 Fax: (65) 6827 9339 Fax: (65) 6827 9339 Email: gloria.low@esr-reit.com.sg Email: lyn.ong@esr-reit.com.sg
Slide 42: Appendix
Appendix Top: ESR BizPark @ Changi (formerly UE BizHub East) | Business Park Second: 7000 Ang Mo Kio Avenue 5 | High-Specs Industrial Bottom: 30 Marsiling Industrial Estate Road 8 | High-Specs Industrial
Slide 43: Summary of Financial Results
Summary of Financial Results 1H2021 1H2020 +/(-) (S$ million) (S$ million) (%) Gross Revenue(1) 119.8 113.8 5.4 Net Property Income (“NPI”)(1)(2) 87.0 80.2 8.4 Amount available for distribution to Unitholders(3) 56.8 47.8 18.7 Applicable number of units for 3,653.6 3,519.4 3.8 calculation of DPU (mi
Slide 44: Financial Position
Financial Position As at 30 Jun 2021 As at 31 Dec 2020 (S$ million) (S$ million) Investment Properties (1) 2,976.5 2,889.3 Investment Properties Held for Divestment (2) 52.6 - Investment at fair value through profit and loss (3) 61.5 - Right-of-use of Leasehold Land (FRS 116) 233.8 229.8 Other Asset
Slide 45: Real Estate Portfolio Statistics
Real Estate Portfolio Statistics As at As at As at 30 Jun 2021 31 Dec 2020 30 Jun 2020 Number of Properties 58 57 57 Valuation (S$ million)(1) 3,233.0 3,113.4 3,117.1 GFA (million sqft) 15.6 15.1 15.1 NLA (million sqft) 14.0 13.4 13.4 Weighted Average Lease Expiry (“WALE”) (years) 2.8 3.0 3.4 Weight
Slide 46: Future Supply and Pre-Commitment Status 2Q2021 to 2024
Future Supply and Pre-Commitment(1) Status 2Q2021 to 2024 Future Supply and Pre-Commitments for Business Park Future Supply and Pre-Commitments for High-Specs Industrial Estimated GFA (mil sqft) Estimated GFA (mil sqft) 3.0 2.5 2,440,000 1,999,000 2.5 2.0 2,039,000 2.0 1.5 69% 1.5 1.0 1.0 783,000 30
Slide 47: ESR-REIT Portfolio Details
ESR-REIT Portfolio Details Business Park Asset type Business Park Asset type Business Park Asset type Business Park Fair Value S$32.0m Fair Value S$280.4m Fair Value S$545.7m Term of lease 60.0 years Term of lease 60.0/43.0 years Term of lease 60.0 years Remaining land lease 35.1 years Remaining lan
Slide 48: ESR-REIT Portfolio Details (cont'd)
ESR-REIT Portfolio Details (cont’d) Logistics & Warehouse Asset type Logistics & Warehouse Asset type Logistics & Warehouse Asset type Logistics & Warehouse Fair Value S$10.4m Fair Value S$96.4m Fair Value S$12.2m Term of lease 30.0 years Term of lease 30.0 years Term of lease 60.0 years Remaining l
Slide 49: ESR-REIT Portfolio Details (cont'd)
ESR-REIT Portfolio Details (cont’d) General Industrial Asset type General Industrial Asset type General Industrial Asset type General Industrial Fair Value S$22.4m Fair Value S$36.7m Fair Value S$43.0m Term of lease 60.0/60.0 years Term of lease 60.0 years Term of lease 60.0 years Remaining land lea
Slide 50: ESR-REIT Portfolio Details (cont'd)
ESR-REIT Portfolio Details (cont’d) General Industrial Asset type General Industrial Asset type General Industrial Asset type General Industrial Fair Value S$17.3m Fair Value S$35.5m Fair Value S$30.5m Term of lease 60.0 years Term of lease 60.0 years Term of lease 32.0 years Remaining land lease 34
Slide 51: ESR-REIT Portfolio Details (cont'd)
ESR-REIT Portfolio Details (cont’d) General Industrial Asset type General Industrial Asset type General Industrial Asset type General Industrial Fair Value S$11.7m Fair Value S$15.3m Fair Value S$12.6m Term of lease 60.0 years Term of lease 60.0 years Term of lease 60.0 years Remaining land lease 30
Slide 52: Important Notice
Important Notice This material shall be read in conjunction with ESR-REIT’s results announcements for the half year ended 30 June 2021. Important Notice The value of units in ESR-REIT ("Units") and the income derived from them may fall as well as rise. Units are not investments or deposits in, or li