Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — Ascendas Real Estate Investment Trust — Shareholder Meeting (June 2010)
25 slides from Capitaland Ascendas Reit's shareholder meeting presentation, Jun 28, 2010
Slide 1: Annual General Meeting 28 June 2010
Business & Light Industrial Warehouse Science Park Retail Facilities Logistics and Hi-Tech Industrial Distribution Annual General Meeting 28 June 2010 Members of the Panel Mr David Wong (Chairman, Independent Director) Ms Chong Siak Ching (Vice Chairman, Non-executive Director) Mr Joseph Chen, (Inde
Slide 2: Agenda
Business & Light Industrial Warehouse Science Park Retail Facilities Logistics and Hi-Tech Industrial Distribution OVERVIEW OF FY09/10 PERFORMANCE Agenda • Overview of A-REIT • FY09/10 Performance • Capital Management • Investment Update • Portfolio Update • A-REIT’s strengths Managed by Ascendas Fu
Slide 3: Overview of Ascendas REIT and A-REIT's Properties
Overview of Ascendas Real Estate Investment Trust • First and largest business space and industrial REIT listed on the Singapore Exchange • Has a diversified portfolio of 93 properties in Singapore comprising: • Baa1 corporate rating • Total Assets of about S$4.9 bn • Tenant base of about 930 local
Slide 4: A-REIT's strategies
A-REIT's strategies Total returns Predictable income Capital stability Proactive and dedicated Outcome Stability Growth Manager with proven track Prudent Proactive record Strategies Value-Adding Capital & Risk Asset Investments Management Management Fund Manager: Fund Manager: Perfor- Property Manag
Slide 5: Key Highlights for FY09/10
Key Highlights for FY09/10 • Net property income increased by 7.9 % y-o-y • Income available for distribution increased by 11.4% y-o-y to S$235m • Completed three development projects and two acquisitions totalling S$423.8m • Portfolio occupancy of 95.7%; occupancy for multi-tenanted properties is 9
Slide 6: DPU – FY09/10 vs FY08/09
DPU – FY09/10 vs FY08/09 (S$’000) FY09/10(1) FY08/09(1) % inc/(dec) Total return for the year 147,973 85,306 73.5 Non tax deductible expenses(2) 33,236 10,174 226.7 Net depreciation on revaluation of 53,682 115,443 (53.5) investment properties Available for distribution 234,891 210,923 11.4 No. of u
Slide 7: Strong Balance Sheet
Agenda • Overview of A-REIT • FY09/10 Performance • Capital Management • Investment Update • Portfolio Update • A-REIT’s strengths Managed by Ascendas Funds Management (S) Limited ……13 ……13 Strong Balance Sheet (S$ mil) As at 31 Mar 10 As at 31 Mar 09 Total Assets 4,854 4,548 Net assets attributable
Slide 8: Interest Rate Risk Management and Debt Maturity Profile
Interest Rate Risk Management 100% of interest rate exposure fixed for the next 3.1 years Debt Profile 31 Mar 2010 31 Mar 2009 Aggregate leverage 31.6%(1) 35.5% Total debt S$1,522m S$1,590m Fixed as a % of total debt 100% 90.0% Weighted average all-in funding cost(2) 3.94% 3.67% Weighted average ter
Slide 9: Enhanced Capital Structure
Enhanced Capital Structure Revolving Credit Facilities • Early redemption of €165 million 3% CMBS due in 2012 at discount to par Term Loan • Issued first ever ECS at coupon of Facility Medium Term 1.6% pa and exchange price of 20% Note 18% S$2.45 (56% premium over NAV) • Financial flexibility improv
Slide 10: Portfolio Growth since IPO; FY09/10 Investment Highlights
Portfolio Growth since IPO $6,000 100 90 $5,000 80 $4,000 70 60 $3,000 50 40 $2,000 30 $1,000 20 10 $0 0 Mar 03 Mar 04 Mar 05 Mar 06 Mar 07 Mar 08 Mar 09 Mar 10 Total assets ($m) Number of properties in portfolio Managed by Ascendas Funds Management (S) Limited ……19 ……19 FY09/10 Investment Highlight
Slide 11: A-REIT's Development Projects
A-REIT’s Development Projects Completed Completion Actual Book Value @ % Developments Date Development 31 Mar 10 increase Cost (S$m) (S$’m) in value Courts Megastore Nov 06 46.0 61.0 32.6% Giant Hypermart Feb 07 65.4 76.1 16.4% Hansapoint Jan 08 26.1 81.4 211.9% 15 Changi North Way Jul 08 36.2 44.5
Slide 12: Development in Progress
Development in Progress: Phase II Plot 8 Changi Business Park • Partial built-to-suit business park facility for Citibank N.A . A similar built-to-suit facility (Ph 1) for Citibank N.A. was completed in Feb 09 • Citibank N.A. has committed to take up 50% of net lettable area when completed for lease
Slide 13: High Occupancy; Long Leases
Agenda • Overview of A-REIT • FY09/10 Performance • Capital Management • Investment Update • Portfolio Update • A-REIT’s strengths Managed by Ascendas Funds Management (S) Limited ……25 ……25 High Occupancy; Long Leases • GFA increased by about 94,000 sqm (4.2%) y-o-y • MTB occupancy rate moderated to
Slide 14: Sources of New Demand and Occupancy Rates
FY09/10 Sources of New Demand Continue to attract new demand from tenants from various sectors due to diversity of properties in the portfolio R&D 1% Others IT 14% 14% Telecommunication & Datacentre 7% Biomedical 8% Food Products & Beverages 4% Lifestyle and Apparels 3% Transport and Storage Electro
Slide 15: Lease Expiry Profile
Lease Expiry Profile as at 31 Mar 2010 • Weighted average lease to expiry for the portfolio of about 4.8 years • Lease expiry is well-spread out, extending beyond 2024 • 15.3% due for renewal in FY10/11 Business & Light Industrial, Science Parks, 20.4% 23.3% 20% REIT Property Income Logistics & Hi T
Slide 16: Well Diversified Portfolio
Well Diversified Portfolio - by Asset Value Warehouse Retail Facilities 28.1% 3% 42.5% 57.5% 71.9% Logistics & Distribution Business & Centres Science Park 24% 33% Flatted Factories 6% Light Industrial 23.2% 12% Hi-Tech 46.0% Industrial 22% 54.0% 76.8% Long Term Leases Short Term Leases Managed by A
Slide 17: Low exposure to conventional manufacturing
Low exposure to conventional manufacturing FY09/10 tenants’ business activities by net lettable area • 23% of NLA occupied by tenants engaged in conventional manufacturing activities • Manufacturing activities include food & Manuf acturing beverages, aeronautical auxiliary 23% equipment, precision e
Slide 18: Security Deposits and In-place Rents
Security Deposits for Single Tenanted Properties • Weighted average security deposits for single tenanted properties range from 7 to 14 months of rental income • On a portfolio basis, weighted average security deposit is 7 months of rental income No. of single Weighted average tenanted properties se
Slide 19: Average Market Gross Rents by Sector
Average Market Gross Rents by Sector $4.50 $4.00 $3.70 $3.50 $3.00 $2.50 $2.45 $2.00 $1.50 $1.40 $1.00 $1.35 $0.50 Business & Science Parks Hi Tech Light Industrial Logistics Source : URA 1Q2010 Report and CBRE 1Q2010 Press release Managed by Ascendas Funds Management (S) Limited ……37 ……37 Agenda •
Slide 20: A-REIT's strengths
A-REIT's strengths Diversity and Depth • Largest business and industrial REIT in Singapore • Solid and well diversified portfolio Six property asset classes Well-located quality properties Balance of long term vs short term leases provides stability with potential for positive rental reversions No s
Slide 21: A-REIT's strengths and Accolades
A-REIT's strengths Operational platform (Property Manager, Ascendas Services Pte Ltd) • Dedicated asset management, sales/marketing, leasing and property management team of over 80 people • Possess in-depth understanding of this property sector Customer focus • About 930 tenants from international a
Slide 22: Thank you
Thank you Important Notice This presentation has been prepared by Ascendas Funds Management (S) 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
Slide 23: Resolutions
Resolutions Managed by Ascendas Funds Management (S) Limited ……45 ……45 Resolution 1 (Ordinary Resolution) Ordinary Business To receive and adopt the Report of HSBC Institutional Trust Services (Singapore) Limited (as Trustee of A-REIT), the Statement by Ascendas Funds Management (S) Limited (as Mana
Slide 24: Resolutions 2 and 3
Resolution 2 (Ordinary Resolution) Ordinary Business To re-appoint KPMG LLP as Auditors of A-REIT to hold office until the conclusion of the next AGM of A-REIT, and to authorise the Manager to fix their remuneration KPMG LLP has expressed its willingness to continue in office Managed by Ascendas Fun
Slide 25: Board Recommends Unitholders Vote in Favor; Q&A
The Board Recommends that Unitholders Vote in Favor of the Resolutions Resolution 1 To receive and adopt the Report of the trustee of A- REIT, the Statement by the manager of A-REIT, and the Audited Financial Statements of A-REIT for the financial year ended 31 March 2010 and the Auditors’ Report th
Ascendas Real Estate Investment Trust — Shareholder Meeting (June 2010) on 6ix