Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — A-REIT (Ascendas Real Estate Investment Trust) — Q2 FY2007/08 Earnings Presentation
29 slides from Capitaland Ascendas Reit's earnings presentation, Oct 19, 2007
Slide 1: 2Q FY2007/08 Financial Results Presentation
2Q FY2007/08 Financial Results Presentation 19 October 2007 Disclaimers This Presentation is focused on comparing results for the six months ended 30 September 2007 versus actual results year-on-year (“yoy”). This shall be read in conjunction with A-REIT’s Results for the period from 1 April 2007 to
Slide 2: Agenda; Key Highlights
Agenda • Key highlights • Financial performance • Capital and funds management • Investment update • Portfolio update • Market outlook • Going forward A-REIT 2Q FY07/08 Results .. 3 Key Highlights • 2Q FY07/08 net income available for distribution of $46.5m, up 15% year-on-year (yoy) • DPU of 3.51 c
Slide 3: Distribution Details
Distribution Details Stock counter Distribution Period Distribution per unit (cents) Ascendasreit 1 Jul 07 to 30 Sept 07 3.51 Distribution Timetable Last day of trading on “cum” basis 26 October 2007 Ex-date 29 October 2007, 9.00 am Books closure date 31 October 2007, 5.00 pm Distribution payment da
Slide 4: DPU – 1H FY07/08 is 10.1% above 1H FY06/07
DPU – 1HFY07/08 is 10.1% above 1H FY06/07 (S$’000) 1H FY07/08 (1) 1H FY06/07 (1) % Change Gross revenue 157,581(3) 137,897 14 Less: Property operating expenses (39,406) (35,912) 10 Net property income 118,175 101,986 16 Borrowing costs(2) (20,547) (16,341) 26 FRS 39 F.V. Adjustments (724) (1,534) (5
Slide 5: Revenue and NPI
Revenue and NPI - 19 quarters of continued growth since IPO Gross Revenue Net Property Income $'m $'m 90 70 80 60 70 50 60 50 40 40 30 30 20 20 10 10 0 0 4Q FY03 1Q FY04 2Q FY04 3Q FY04 4Q FY04 1Q FY05 2Q FY05 3Q FY05 4Q FY05 1Q FY06 2Q FY06 3Q FY06 4Q FY06 1Q FY07 2Q FY07 3Q FY07 4Q FY07 1Q FY08 2Q
Slide 6: Balance sheet; Capital Management
Balance sheet (S$bn) As at 30 Sep 07 As at 30 Sep 06 Total Assets 3.4 3.0 Borrowings 1.2 1.1 Net assets attributable to unitholders 2.0 1.7 Aggregate Leverage 38.4% 38.6% Net asset value per unit 148 cents 136 cents Available debt capacity of more than $400m to fund near term acquisition and develop
Slide 7: Proactive interest rate management; Fund Management Fee
Proactive interest rate management • Staggered maturities in hedging profile to manage interest rate risks • Interest rate cap which matured in May 2007 has been replaced with fixed rate swaps • As at 30 September 2007, 91% of interest exposure is fixed with a weighted average term of 4.2 years at a
Slide 8: Pioneer Walk Industrial Facility
Agenda • Key highlights • Financial performance • Capital and funds management • Investment update • Portfolio update • Market outlook • Going forward A-REIT 2Q FY07/08 Results .. 15 Pioneer Walk Industrial Facility • Located along Pioneer Walk, off Jalan Ahmad Ibrahim in Jurong • Two blocks of 6-st
Slide 9: Plot 8 Changi Business Park
Plot 8 Changi Business Park Suburban business space • Built-to-Suit development to be developed in 2 phases of approx. 21,000 sqm each. • Phase 1 TOP by 1Q 2009 and Phase 2 by 4Q 2010 • A major international financial institution has committed to lease a minimum of 75% of space of each phase. Artist
Slide 10: Investment highlights: development projects
Investment highlights • New investments in development projects confirmed Value Target Expected (S$m) Commencement Completion Date of Date Construction Ramp-Up Industrial Facility at 86 Started 3Q FY2008/09 Pioneer Walk Changi Business Park Build-to-Suit 61 3Q FY 2007/08 4Q FY2008/09 Phase 1 Changi
Slide 11: Development projects: Updates
Development projects: Updates HansaPoint @ CBP (Plot 15 Changi Business Park) • Construction commenced in Nov 2006. On schedule to complete in 1Q 2008 • Pre-committed space increased from 28% to 84% currently • Rental rates improved from initial $2.40 to more than S$3.50 psf pm Dec 06 - Site cleared
Slide 12: Investment highlights; Asset Enhancement Highlights
Investment highlights $87m worth of investment awaiting completion as follows : Acquisitions Value (S$ m) Expected completion 1 Senoko Avenue 11 Completed Logistic & Distribution Centre at 23 3Q FY2007/08 Pioneer Walk Phase 2 of SENKEE Logistics Hub 64 4Q FY2007/08 Total pending completion 87 Total
Slide 13: Asset Enhancement - Alpha Building; Techplace II
Asset Enhancement - Alpha Building • Property is located in Singapore Science Park 2. In process of constructing additional 3,527 sq m of space which will be leased to FJ Benjamin upon completion. • Expected completion in December 2007 Alpha upon completion of asset enhancement A-REIT 2Q FY07/08 Res
Slide 14: Asset Enhancements - Hoya Building; Thales Building
Asset Enhancements - Hoya Building • Property is located along Jalan Ahmad Ibrahim • Construction of annex block which will create 1,190 sqm of new lettable space • Space has been fully committed by existing tenant, Hoya. • Expected completion : Apr 2008 A-REIT 2Q FY07/08 Results .. 27 Asset Enhance
Slide 15: Asset Enhancement Highlights; Committed Gross Revenue from Development Projects
Asset Enhancement Highlights Value (S$m) Expected completion Alpha 9 Dec 2007 TechPlace II 10.6 Dec 2008 Hoya 1.8 Apr 2008 Thales 1.6 May 2008 Total 23.0 A-REIT 2Q FY07/08 Results .. 29 Committed Gross Revenue from Development Projects Project FY 08/09 FY09/10 FY10/11 $m $m $m HansaPoint@CBP ZP (Cha
Slide 16: Creating space to meet future demand
Creating space to meet future demand Portfolio (Multi-Tenanted Buildings) Occupancy Existing New (MTB) as at MTB Stock Supply 30 Sep 07 (sq m) Created (%) (sq m) Business & Science Park Portfolio 95.4 135,904 36,200 Hi-tech Industrial Portfolio 96.6 184,396 - Light Industrial Portfolio 95.7 203,378
Slide 17: Portfolio Highlights; Sources of demand for new leases
Portfolio Highlights As at As at 30 Sep 07 30 Sep 06 A-REIT Portfolio occupancy 98.3% 97.2% A-REIT MTB (1) occupancy 96.2% 94.3% Total Portfolio renewals/new leases (sqm) 71,433(2) 46,510(3) Total New leases/Expansions (sqm) 20,718(2) 21,512(3) Total Renewals (sqm) 50,725(2) 24,998(3) Weighted Avera
Slide 18: Organic Growth – Positive Rental Reversion
Subsector Performance • Significant increase in occupancy and rental rates achieved for suburban properties in 2QFY07/08 compared to a year ago • Achieve positive rental reversion for renewals throughout all sectors. Incr. in Increase in new take renewal up rates Occupancy Occupancy rates (vs (vs Q1
Slide 19: Portfolio Diversification by Value
Portfolio Diversification by Value Asset Class Mix of Sale-&-Leaseback vs Diversification Multi-tenanted Buildings Warehouse Retail Facilities Science & Business Parks Sale-&-Leaseback 4% Logistics & Distribution Centres 20% 27% 49% 51% 25% 8% Hi-Tech Industrial Flatted Factories 16% Multi-tenanted
Slide 20: Weighted Average Lease Term to Expiry
Weighted Average Lease Term to Expiry • Weighted average term to expiry remains stable at 6.4 years • Lease expiry profile is well balanced and extends beyond 2021 20% % of A-REIT Property Income 10% 16.3% 13.5% 12.4% 12.4% 11.8% 11.7% 10.6% 10.0% 9.1% 8.9% 8.5% 7.9% 7.8% 7.7% 7.0% 6.2% 5.6% 5.3% 3.
Slide 21: Quality & Well-Diversified Tenant Base; Portfolio Occupancy
Quality & Well-Diversified Tenant Base Top 10 tenants make up 28.9% of the total portfolio income compared to 33.4 % as at 30 September 2006 8.0% 7.0% 5.7% 4.0% 2.5% 2.3% 2.3% 2.1% 2.0% 1.8% 1.6% 1.6% 0.0% P l ts s e ge l C& d rd en na gT s ur Lt d ka e ra m tio Co gi n Lt te o c Si e lo St a Pa lP
Slide 22: Recovering Industrial Property Market
Agenda • Key highlights • Financial performance • Capital and funds management • Investment update • Portfolio update • Market outlook • Going forward A-REIT 2Q FY07/08 Results .. 43 Recovering Industrial Property Market Rental index improved by 7.7% in 2Q 2007 and by 25.7% since the trough in 2004
Slide 23: Rents by Sub-sectors; Outlook for Industrial Property Market
Rents by Sub-sectors • Expansion demand as well as some relocation of back office users from more costly CBD offices helped lift rents in suburban business space • Average signing gross rents for all industrial space sectors rose by about 20% (as per Colliers) in 2QFY2006/07 corresponding to the res
Slide 24: Outlook for Business Parks and Hi-Tech Industrial Property Market
Outlook for Business Parks Property Market 135 100% 90% 115 80% 95 70% Area ('000sqm) 60% occupancy 75 50% 55 40% 35 30% 20% 15 10% -5 0% 2003 2004 2005 2006 2007F 2008F Net New Supply Net New Demand Occupancy Rate Source: URA as at Jun 2007 • Positive outlook for Science & Business Parks sector • L
Slide 25: Outlook for Logistic Property Market; Rental Reversion analysis
Outlook for Logistic Property Market 500 95% 450 90% 400 350 85% Area ('000sqm) 300 Occupancy 80% 250 75% 200 150 70% 100 65% 50 0 60% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007F 2008F Net New Supply Net New Demand Occupancy Rate Source: URA as at Jun 2007 • Outlook for logistics se
Slide 26: Returns: Singapore versus Region
Returns: Singapore versus Region Country 10-yr Govt Prime Lending Initial Yield / Cap Sovereign Bond Yield % Rate (%)* Rate % Rating (S&P) Singapore 2.7 5.3 6 – 7%* AAA China 4.4 6.6 Beijing : 6.5 – 7%* A Shanghai: ~ 9%* Japan 1.7 2.1 Tokyo: 4.9 – 6%* AA India 7.9 11.5 8-9%# BBB- Vietnam - 11.5 11%#
Slide 27: 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 and potential for positive rental reversions No si
Slide 28: A-REIT's strategies; Thank you
A-REIT's strategies Total returns Predictable Predictable income income Capital Capital stability stability Proactive and dedicated Outcome Stability Stability Growth Growth manager with track record Proactive Proactive Strategies Strategies Optimise Optimise Value-Adding Value-Adding asset asset ca
Slide 29: 2Q FY2007/08 Financial Results Presentation
2Q FY2007/08 Financial Results Presentation 19 October 2007 29
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