Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — A-REIT (Ascendas Real Estate Investment Trust) — H1 FY2005 Earnings Presentation
42 slides from Capitaland Ascendas Reit's earnings presentation, Oct 14, 2004
Slide 1: 1H FY 04/05 Results and Proposed Equity Raising Presentation
1H FY 04/05 Results and Proposed Equity Raising Presentation Thursday, 14 October 2004
Slide 2: This Presentation is focused on comparing actual results versus forecasts outlined in the A-REIT
This Presentation is focused on comparing actual results versus forecasts outlined in the A-REIT Circular of 18 February 2004 and actual results in the prior corresponding period. This shall be read in conjunction with A-REIT’s First Half-Year Financial Statement for the period from 1 April to 30 Se
Slide 3: Agenda
Agenda • Half-Year FY 04/05 In Review – Financial Highlights – Capital Management – Portfolio Update • Proposed Equity Raising – Offer Structure – Benefits to Unitholders – Timetable
Slide 4: Half-Year Review
Half-Year Review Half-Year • Enhanced Unitholders’ value FY04/05 In Review Financial Highlights – DPU: 10% above previous corresponding period and 4% above forecast Capital Management (1) – Unit price : up by 22% in the 6 months under review Portfolio Update – Quarterly distributions to be paid from
Slide 5: Half-Year Review
Half-Year Review • Organic growth from active portfolio management Half-Year FY04/05 In Review Financial – Portfolio occupancy of 92.7% as at 30 Sept 04 up from 88.8% as at 31 Mar Highlights 04 through acquisitions and portfolio management Capital Management – New leases and renewals of 52,071 sqm f
Slide 6: Half-Year Review
Half-Year Review • Corporate governance - accolades Half-Year FY04/05 In Review Financial Highlights – Ranked no. 9 in BT Corporate Transparency Index 2004 Capital Management – Awarded Most Transparent Company under REIT Portfolio Update category in SIAS Investors’ Choice Awards 2004 Proposed Equity
Slide 7: Strategy Delivers...
Strategy Delivers… Half-Year FY04/05 In Review Financial Highlights Portfolio Update Capital Management SSt Equity Raising atba Strategy Going ibl il wth Forward tyity Gro Yield 7
Slide 8: Agenda
Agenda • Half-Year FY 04/05 In Review – Financial Highlights – Capital Management – Portfolio Update • Proposed Equity Raising – Offer Structure – Benefits to Unitholders – Timetable
Slide 9: Distributable Income Per Unit – 10% above corresponding period last FY
Distributable Income Per Unit – 10% above corresponding period last FY Half-Year FY04/05 In Review Actual Actual (1) Financial Variance (%) Highlights (1/4/04 to (1/4/03 to Incr / (Decr) Capital Management 30/9/04) 30/9/03) Portfolio Update Proposed Gross revenue 54,399 31,905 71 Equity Raising Offe
Slide 10: Distributable Income Per Unit – 4% above forecast
Distributable Income Per Unit – 4% above forecast of 18 Feb 04 Half-Year Six Months FY04/05 In Review (1/4/04 to 30/9/04) Financial Highlights S$’000 Capital Management Variance (%) Portfolio Actual Forecast (1) Update Incr / (Decr) Proposed Equity Raising Gross revenue 54,399 50,497 8 Offer Structu
Slide 11: Balance Sheet
Balance Sheet Half-Year Actual as at Actual as at Actual as FY04/05 In Review 30/9/04 31/3/04 at 30/9/03 Financial Highlights S$’000 S$’000 S$’000 Capital Management Portfolio Total Assets 1,252,166 1,020,712 656,709 Update Proposed Equity Raising Borrowings 359,000 263,800 128,500 Offer Structure B
Slide 12: Unit Price and Volume
Unit Price and Volume • A-REIT’s ability to deliver DPU growth has driven capital growth Half-Year FY04/05 In Review Financial 1.60 Unit price performance to-date 60 Highlights Capital Management 1.49 1.55 1.50 1.48 Portfolio 1.43 1.45 50 Update 1.40 Proposed Equity Raising 1.33 Vol Weighted Ave Pri
Slide 13: Distribution Details
Distribution Details Half-Year Stock counter Distribution Period Distribution per FY04/05 In Review unit (cents) Financial Highlights Capital Ascendasreit 4 Mar to 31 Mar 2004 0.63 Management 1 Apr to 30 Sep 2004 4.46 Portfolio Update 5.09 Proposed Equity Raising Ascendasreit A 23 Jun to 30 Sep 2004
Slide 14: Agenda
Agenda • Half-Year FY 04/05 In Review – Financial Highlights – Capital Management – Portfolio Update • Proposed Equity Raising – Offer Structure – Benefits to Unitholders – Timetable
Slide 15: Capital Management
Capital Management • Commercial Mortgage Banking Securities (CMBS) Half-Year FY04/05 In Review – Established a S$1 billion multi-currency secured Medium Term Financial Highlights Note Programme Capital Management Portfolio – Initial issuance of S$300m equivalent in Euros of AAA-rated Update Proposed
Slide 16: Mitigating Interest Rate Risk
Mitigating Interest Rate Risk Half-Year FY04/05 • Historically, the correlation for movement between US$ and S$ In Review Financial interest rate is about 1:0.6 Highlights Capital Management • MAS gearing limit of 35% for REITs Portfolio Update Proposed Equity Raising • A-REIT has a policy of hedgin
Slide 17: Agenda
Agenda • Half-Year FY 04/05 In Review – Financial Highlights – Capital Management – Portfolio Management Update • Proposed Equity Raising – Offer Structure – Benefits to Unitholders – Timetable
Slide 18: Portfolio Highlights
Portfolio Highlights Half-Year FY04/05 In Review Financial • Portfolio occupancy as at 30 Sept 2004 92.7% Highlights Capital Management Portfolio • Portfolio renewals/leasing (1) 52,071 sqm Update Proposed Equity Raising Offer • % of Gross Rental Income attributable Structure Benefits to to committe
Slide 19: Historical Rental Rates
Historical Rental Rates Half-Year FY04/05 In Review A-REIT average gross rental rates are in line with forecast Financial Highlights Capital 30 Management Portfolio Update Science Park/Business Park 25 Proposed Average gross rental rates Equity Raising Offer Structure 20 Hi-tech Industrial Benefits
Slide 20: Weighted Average Lease Term to Expiry
Weighted Average Lease Term to Expiry The longer term leases extends the lease expiry profile of A-REIT Half-Year FY04/05 In Review Financial Weighted Lease Expiry Profile By Income Highlights Capital Management 25% 21.2% Portfolio Income Update 20% PropertyIncom Proposed 17.2% Equity Raising 14.5%
Slide 21: A-REIT Portfolio Occupancy Higher Than Market
A-REIT Portfolio Occupancy Higher Than Market Half-Year FY04/05 In Review Financial 120% A-REIT Highlights A-REIT A-REIT 99.3% Capital 100% A-REIT URA 94.4% URA URA Management 89.3% 82.4% URA 81.6% 81.6% 84.9% Portfolio Occupancy (% 80% 72.5% Update Proposed Equity Raising 60% Offer Structure 40% Be
Slide 22: Development Update & Asset Enhancement
Development Update & Asset Enhancement Half-Year FY04/05 In Review • Development Partnership with Ascendas Financial Highlights Capital Management – Infineon Building, TOP issued on 27 Sep 2004 Portfolio Update – HP Build-to-Suit, Depot Road (est. TOP Apr 2006) Proposed Equity Raising Offer Structur
Slide 23: Announced Property Acquisitions
Announced Property Acquisitions Property Purchase First year Property Weighted lease NLA as at Price Yield term to expiry 31/8/04 (S$m) (%) (yrs) (sqm) Half-Year FY04/05 In Review Infineon Building (1) 50.9 8.2 12.0 26,925 (2) Financial Highlights Techpoint (1) 75.0 8.5 2.4 42,230 Capital (3) Manage
Slide 24: Well Located, Diversified Portfolio of new Properties
Well Located, Diversified Portfolio of new Properties 19 Half-Year FY04/05 In Review Financial Highlights Capital Management Portfolio Update Proposed Equity Raising Offer Structure Benefits to Unitholders Timetable 1. Infineon Building 8. Freight Links (Changi) Building 2. Techpoint 9. Freight Link
Slide 25: Agenda
Agenda • Half-Year FY 04/05 In Review – Financial Highlights – Capital Management – Portfolio Update • Proposed Equity Raising – Offer Structure – Benefits to Unitholders – Timetable
Slide 26: Proposed Issue
Proposed Issue Half-Year FY04/05 In Review Financial Highlights S$ million Capital Management Purchase price of 13 properties 421.4 Portfolio Update Proposed Stamp duty (3%) 12.6 Equity Raising Offer Structure Acquisition Fee (1%) 4.2 Benefits to Unitholders Other Acquisition costs (0.5%) 3.0 Timeta
Slide 27: Offer Structure
Offer Structure Half-Year FY04/05 In Review Financial Highlights Capital Management Total S$402.5m Portfolio Update Acquisition To Be Financed By : Proposed Equity Raising Costs Offer Structure Issue S$5.9m New Equity S$ 400.0 m Benefits to Unitholders Costs Timetable Total Costs S$408.4m Debt Finan
Slide 28: Offer Structure
Offer Structure New Equity Half-Year Consideration Units FY04/05 In Review Financial • For purchase of Infineon Building and Issue of S$400 million Highlights Techpoint from Ascendas Capital of new equity Management Portfolio Update Preferential Offering Proposed Equity Raising • To be underwritten
Slide 29: Financial Impact of proposed offer
Financial Impact of proposed offer Half-Year FY04/05 In Review Forecast FY 06 (1) Before (2) After (3) Financial Highlights Capital Management Units in issue (m) 791.7 1,066.8 Portfolio Update Proposed DPU (cents) 9.25 9.86 Equity Raising Offer Structure Distribution Yield (%) 6.17 6.57 Benefits to
Slide 30: Agenda
Agenda • Half-Year FY 04/05 In Review – Financial Highlights – Capital Management – Portfolio Update • Proposed Equity Raising – Offer Structure – Benefits to Unitholders – Timetable
Slide 31: Increased Earnings and Distributions
9 Increased Earnings and Distributions Half-Year FY2006 Forecast DPU FY2006 Indicative Yield(1) FY04/05 In Review Financial cents + 6.6% % + 6.6% Highlights 9.86 Capital 10 9.25 6.57 Management 6.17 Portfolio Update 6 Proposed 8 Equity Raising Offer Structure Benefits to 6 4 Unitholders Timetable 4
Slide 32: Increased Earnings and Distributions
9 Increased Earnings and Distributions Half-Year FY04/05 In Review • Enhancement to Unitholders will depend on issue price Financial Highlights Capital Issue No. of DPU (cents) FY 2006 Distribution Yield FY 2006 Management Price new Portfolio Update S$ units issued Before After Variance Before After
Slide 33: Enhanced Stability of Income and Distributions
9 Enhanced Stability of Income and Distributions Half-Year FY04/05 In Review Financial Highlights Weighted Average Forecast FY06 Rental Income Capital Management Lease Term to Expiry Attributable to Committed Portfolio Update By income Leases Proposed Equity Raising Offer Years % + 3.2% Structure +
Slide 34: Enhanced Tenant Base
9 Enhanced Tenant Base Half-Year FY04/05 Æ New tenants such as: In Review Financial – Federal Express Highlights Capital – Motorola Electronics Management Portfolio – National Library Board Update Proposed – Autron Singapore Equity Raising – Volex Offer Structure – RSH Limited Benefits to Unitholder
Slide 35: Increase in Market Cap
9Increase in Market Cap + 38.3% S$’000 Half-Year FY04/05 + 36.4% 1,587.50 In Review Financial Highlights + 33.9% 1,148.0 Capital Management + 9.7% Portfolio + 19.5% Update 841.6 Proposed Equity Raising 628.7 Offer 573.2 Structure 479.6 Benefits to Unitholders Timetable Upon listing After the Feb Off
Slide 36: Further Asset Class Diversification by Portfolio Value
9 Further Asset Class Diversification by Portfolio Value Half-Year FY04/05 In Review Financial Highlights Capital Management Before (1) After (2) Portfolio Update Proposed Business Park Business Park Equity Raising Offer Structure Logistics & Distribution 25% Logistics & Distribution 18% Benefits to
Slide 37: Portfolio Details
9 Portfolio Details Half-Year FY04/05 In Review Financial Before (1) After (2) Highlights Capital Management Net Lettable Area (sqm) 606,807 819,104 Portfolio Update Proposed Total assets (S$m) 1,289 1,780 Equity Raising Offer Structure Occupancy rate (as at 31 Aug 04) 92.2% 96.1% Benefits to Unitho
Slide 38: Additional Benefits
9 Additional Benefits Æ Growth Half-Year FY04/05 In Review Financial Contractual stepped rental increases Highlights Capital Management incorporated into long term leases underpin Portfolio Update future growth in earnings and distributions from Proposed Equity Raising Offer 8 of the 13 properties
Slide 39: Unitholder Approvals Required
Unitholder Approvals Required Half-Year 1. Proposed acquisition of Infineon Building FY04/05 In Review Financial 2. Proposed issue of new units as partial consideration for the proposed Highlights acquisition of Infineon Building Capital Management Portfolio 3. Proposed acquisition of Techpoint Upda
Slide 40: Agenda
Agenda • Half-Year FY 04/05 In Review – Financial Highlights – Capital Management – Portfolio Update • Proposed Equity Raising – Offer Structure – Benefits to Unitholders – Timetable
Slide 41: Indicative Offer Timetable
Indicative Offer Timetable (1) Half-Year FY04/05 In Review If unit-holders’ approvals are obtained: Financial Highlights Capital Management Commencement of Equity Fund Raising Portfolio Update To be determined but no later than end Nov 2004 Proposed Equity Raising Offer Structure Closing of Equity F
Slide 42: Thank You
Thank You Disclaimer This presentation has been prepared by Ascendas-MGM Funds Management 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 upon
A-REIT (Ascendas Real Estate Investment Trust) — H1 FY2005 Earnings Presentation on 6ix