Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Cache Logistics Trust — Investor Presentation (September 2017)
36 slides from Singapore Exchange's investor presentation, Sep 11, 2017
Slide 1: Cache Logistics Trust Underwritten and Renounceable Rights Issue
Cache Logistics Trust Underwritten and Renounceable Rights Issue 11 September 2017
Slide 2: Important Notice
Important Notice This presentation does not constitute a prospectus, offering circular, offering memorandum or other offering document. This presentation is for information only and does not constitute or form part of an invitation, offer, solicitation or recommendation to acquire, purchase or subsc
Slide 3: Agenda
Agenda Slide Overview of the Rights Issue 4 Cache’s Growth Strategies 7 Rights Issue Rationale 14 Pro Forma Financial Effects of the Rights 19 Issue Indicative Timetable 21 Appendix: Overview of Cache 23 3
Slide 4: Overview of the Rights Issue
1 Overview of the Rights Issue CWT Commodity Hub is one of Singapore’s largest warehouses and one of the largest in SE Asia. Measuring close to 2.3m square foot (“sf”), the large floor plates and high CWT Commodity Hub, ceiling height appeals to Third-Party Logistics Providers. Singapore
Slide 5: Rights Issue Terms
1 Overview of the Rights Issue Rights Issue Terms Securities New ordinary units of Cache Logistics Trust Offering Type Underwritten Renounceable Rights Issue S$0.632 per Rights Unit, representing a discount of: Issue Price – Approximately 25.0% to theoretical ex-rights price (“TERP”) of S$0.842 – Ap
Slide 6: Strong Support from Sponsor & Manager
1 Strong Support from Sponsor & Manager Strong Management Team with a Proven Track Record The Manager(1) leverages on the complementary strengths of ARA and CWT Real estate fund manager focused A leading provider of integrated on the management of publicly- logistics and supply chain solutions l
Slide 7: Cache's Growth Strategies
2 Cache’s Growth Strategies Pan Asia Logistics Centre is on a 10-year master lease to Pan Asia Logistics Singapore Pan Asia Logistics Centre, Pte Ltd, a global provider of integrated logistics and supply chain solutions. Singapore
Slide 8: Cache's Growth Strategies
2 Cache’s Growth Strategies OUR VISION: To provide our customers high quality, best-in-class logistics real estate solutions in Asia Pacific Investment Pursuits Proactive Portfolio Management Pursue yield-accretive acquisitions Work closely with the Leverage on broad Asia- master lessees and e
Slide 9: Cache's Growth Strategies: Key Milestones
Cache’s Growth Strategies: 2 Key Milestones Listed on SGX Mainboard Acquisition of Pan Asia Commenced Continued to maintain a with six properties valued Logistics Centre for development of DHL strong operating at S$729.9m approximately S$35.2m Supply Chain Advanced performance through a Ac
Slide 10: Cache's Growth Strategies: Strong Track Record
Cache’s Growth Strategies: 2 Strong Track Record A proven track record of growing the assets under management through acquisitions (S$m) ,500 19 19 20 18 14 16 13 ,000 12 14 10 12 6 10 1,308 1,236 8 500 1,035 1,120 972 6 744 843 4 2 0 0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 3.9m 4.3m 4.8m
Slide 11: Cache's Growth Strategies: Portfolio Rebalancing & Growth
Cache’s Growth Strategies: 2 Portfolio Rebalancing & Growth Divestment of Cache Changi Acquisition of 217 – 225 Boundary Road, Districentre 3, Singapore Laverton North, Victoria, Australia Recycling capital by way of: • Divesting existing properties that are: (i) difficult to lease; (ii) limited in
Slide 12: Cache's Growth Strategies: Australia
Cache’s Growth Strategies: 2 Australia Increased contribution from investments in Australia to Portfolio Valuation Australia, • Since listing in FY2010, 16% Cache expanded into China (in FY2011) and Australia (in China, FY2015) through various 1% FY2010 acquisitions 2QFY2017 Portfolio • In FY2015, C
Slide 13: Cache's Growth Strategies: Singapore ROFR
Cache’s Growth Strategies: 2 Singapore ROFR Granted by the Sponsor and C&P on properties in Asia Pacific Properties covered by ROFR 17 properties with approximately 8.5m sf in GFA Located in Singapore and Malaysia Selected properties covered by the ROFR: No. Name Description Year of Completion
Slide 14: Rights Issue Rationale
3 Rights Issue Rationale Located within the established industrial suburb of Wacol, the property is 203 Viking Drive, Wacol master-leased to Western Star Trucks Australia Pty Ltd for a long WALE of 7.9 years at the time of purchase. Queensland, Australia
Slide 15: Rationale I: Strengthen balance sheet and financial flexibility
3 Rights Issue Rationale I Strengthen Cache’s balance sheet and increase its financial flexibility Aggregate Leverage (1) 45.0% Post Rights Issue, aggregate leverage is 43.4% expected to be reduced from 43.4% (as at 30 35.5% June 2017) to 35.5% Strengthens Cache’s balance sheet and (2) 30 June 2
Slide 16: Rationale II: Increase debt headroom to support future growth
3 Rights Issue Rationale II Increase debt headroom to support future growth via asset acquisitions, build-to-suit opportunities and proactive asset management initiatives Asset acquisitions in Australia to improve overall portfolio WALE and NPI yield C D E F G Provide debt headroom of S$218.1m to
Slide 17: Rationale III: Opportunity to participate at attractive Issue Price
3 Rights Issue Rationale Provide an opportunity for Eligible Unitholders(1) to participate in an equity fund III raising exercise at an attractive Issue Price Rights Issue Price (S$) Rights Units Issue Price is offered at a discount 25.0% 28.2% of approximately 28.2% to Closing Price, approximatel
Slide 18: Rationale IV: Potential increase in trading liquidity
3 Rights Issue Rationale IV Potential increase in trading liquidity Number of Units in Issue (m) 1,065.7 Rights Issue will increase the number of Units in issue by approximately 162.6m Increase in the total number of Units in issue may improve trading liquidity 903.1 903.1 30 June 2017 Post Righ
Slide 19: Pro Forma Financial Effects of the Rights Issue
Pro Forma Financial Effects of 4 the Rights Issue Build-to-Suit development for DHL Supply Chain completed in July 2015. DHL Supply Chain The logistics facility houses DHL Supply Chain’s Asia Pacific Solutions & Innovation Advanced Regional Centre, Centre, the first innovation center for DHL outside
Slide 20: Pro Forma Financial Effects of Rights Issue
Pro Forma Financial Effects of 4 the Rights Issue Pro Forma Financial Effects(1) of Rights Issue Before Rights Issue After Rights Issue Income Available for 69,318(2) 72,943 Distribution (S$’000) Units in issue (’000) 900,450(3) 1,063,016 DPU (cents) 7.725 6.882 Distribution yield (%) 8.78(4) 8.17(5
Slide 21: Indicative Timeline
5 Indicative Timeline Completed in 2011, the property provides a floor loading capacity of up to 50KN/m2 and Pandan Logistics Hub, is well located near to major roads and the sea ports in Singapore. It was converted from a single-use master lease to multi-tenanted property in July 2015. Singapore
Slide 22: Indicative Timeline
5 Indicative Timeline Event Dates and Times Last day of “cum-rights” trading 7 September 2017, Thursday First day of “ex-rights” trading 8 September 2017, Friday Rights Issue Books Closure Date 12 September 2017, Tuesday at 5.00 p.m. Despatch of the Offer Information Statement (and the 15 September
Slide 23: Appendix: Overview of Cache
6 Appendix: Overview of Cache The largest freight logistics property located at the Airport Logistics Park of Singapore, Schenker Megahub, Schenker Megahub allows quick turnaround in logistics services without leaving the free-trade zone. Singapore
Slide 24: Portfolio Overview
Overview of Cache 6 Portfolio Overview Quality properties in strategic locations in Singapore, Australia and China Portfolio Statistics Singapore 19 Properties 1. CWT Commodity Hub Singapore, Australia & China 2. Cache Cold Centre 7.6m sf GFA S$1.2bn property value(1) 3. Pandan Logistics Hub
Slide 25: Portfolio Statistics
Overview of Cache 6 Portfolio Statistics Property Portfolio Statistics As at 30 June 2017 11 – Singapore 19 Logistics Warehouse Properties 7 – Australia 1 – China Total Valuation(1) S$1.23bn Gross Floor Area 7.6m sf Portfolio Committed Occupancy 98.3% Average Building Age 11.8 years WALE by NLA 3.5
Slide 26: Singapore Portfolio
Overview of Cache 6 Singapore Portfolio Changi North / Loyang Airport Logistics Park 9 Pan Asia Logistics Centre 10 Air Market Logistics Centre 5 Schenker Megahub 6 Hi-Speed Logistics Centre 21 Changi North Way 22 Loyang Lane Sembawang 51 Alps Avenue 40 Alps Avenue Johor Wharves Causeway Link Tampin
Slide 27: Australia Portfolio
Overview of Cache 6 Australia Portfolio Brisbane, Queensland 15 51 Musgrave Road, 16 203 Viking Drive, 17 223 Viking Drive, Coopers Plains Wacol Wacol Brisbane Sydney, New South Wales Sydney Adelaide Melbourne 13 127 Orchard Road, Chester Hill Adelaide, South Australia Melbourne, Victoria 14 404 – 4
Slide 28: Lease Expiry Profile
Overview of Cache 6 Lease Expiry Profile WALE by NLA : 3.5 years WALE by Gross Rental Income : 3.4 years • 2Q FY2017: Approx. 260,400 sf of leases secured • New leases/renewals at Pandan Logistics Hub, Cold Centre, DHL Supply Chain ARC and 51 Musgrave Road, Coopers Plains 35% Portfolio Lease Expiry
Slide 29: Portfolio Diversification
Overview of Cache 6 Portfolio Diversification 1. Greater Balance between Multi-Tenanted and 2. Geographical Diversification beyond Singapore Single-User Lease Structures 16% 1% Australia 2Q FY2017 Single-User 2Q FY2017 44% China Gross Revenue Multi-Tenanted Gross Revenue Singapore 56% 83% 3. Credit
Slide 30: Status of 51 Alps Avenue
Overview of Cache 6 Status of 51 Alps Avenue Located at 51 Alps Avenue Singapore, Schenker Megahub is the largest freight and logistics property located at the Airport Logistics Park of Singapore, the free trade zone adjacent to Changi International Airport. Date Updates 31 Aug 2010 HSBC Institution
Slide 31: Singapore Market Supply/ Demand
Overview of Cache 6 Singapore Market Supply/ Demand Singapore: Abundant Supply of Warehouse Space Cautious Outlook on Business Environment Singapore Warehouse Annual Net Completion, Absorption and Vacancy Rate (%) 1,200 16.0 2Q 2017 Island-wide 14.0 1,000 Vacancy: 11.9% Grey bars refer to committed
Slide 32: Australia: Market Economic Indicators
Overview of Cache 6 Australia: Market Economic Indicators Australia: Higher GDP growth is expected in the short-to-medium term Interest rates remain low at present • GDP grew quarterly at 0.3% in March 2017 following quarterly growth of 1.1% in the December 2016. In 2016, GDP grew annually at 1.7% a
Slide 33: Australia: Infrastructure Development
Overview of Cache 6 Australia: Infrastructure Development • Eastern Seaboard states (NSW, VIC, QLD) have been the beneficiary of highest growth in the country and where Government is focusing most of the infrastructure improvements. These factors continue to drive demand growth in the logistics busi
Slide 34: Investment Merits
Overview of Cache 6 Investment Merits Quality Portfolio in established logistics clusters Stable Cash Flows Strong Sponsor Professional Support Management Resilient Earnings Sustainable Distributions Long WALE High Committed of 3.5 years Occupancy of (by NLA) 98.3% 34
Slide 35: Stock Fundamentals
Overview of Cache 6 Stock Fundamentals Cache as at 4 September 2017 Unit Price SGD0.880 Issued and Paid-up Units(1) 903,143,000 Market Capitalization SGD794.8m 52 week High SGD0.945 52 week Low SGD0.790 3 month average daily trading volume(1) 2,248,000 Pro Forma NAV per unit(2) 0.753 Price / NAV 1.1
Slide 36: Contact Information
Contact Information Investor Relations Contact: Judy Tan Assistant Director, Investor Relations judytan@ara.com.hk ARA-CWT Trust Management (Cache) Limited 6 Temasek Boulevard #16-02 Suntec Tower Four Singapore 038986 Tel: +65 6835 9232 Website: www.cache-reit.com 36
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