Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — Ascendas Real Estate Investment Trust — Investor Presentation (May 2012)
35 slides from Capitaland Ascendas Reit's investor presentation, May 2012
Slide 1: Investor Presentation May 2012
Investor Presentation May 2012 Disclaimers A-REIT’s results include consolidation of 100% in Ascendas Zpark (S) Pte. Ltd. and its subsidiary, Ascendas Hi-Tech Development (Beijing) Co., Limited, which was acquired on 3 October 2011. The financial results for the current financial year are based on G
Slide 2: Overview of Ascendas Real Estate Investment Trust
Agenda • Overview of A-REIT • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion Managed by Ascendas Funds Management (S) Ltd.. 3 Overview of Ascendas Real Estate Investment Trust
Slide 3: Singapore: Diversified portfolio positioned for future growth of Singapore economy
Singapore: Diversified portfolio positioned for future growth of Singapore economy Sub-sector Business Parks Science Parks Hi-Tech Industrial Data Centres Portfolio GFA(sqm) 294,913 178,612 364,719 58,014 % of A-REIT (by GFA) 13.2% 8.0% 16.3% 2.6% % of A-REIT (by asset 24.1% 14.5% 17.1% 4.0% value)
Slide 4: A-REIT's Singapore Property Map
A-REIT’s Singapore Property Map • Strategically located along major expressways • Business & Science Park properties and some Hi-tech Industrial properties are in close proximity to CBD • Light Industrial and Hi-tech Industrial properties are primarily centrally located near major housing areas • Lo
Slide 5: Key Highlights
Agenda • Overview of A-REIT • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion Managed by Ascendas Funds Management (S) Ltd.. 9 Key Highlights • Gross revenue increased by 12.4%
Slide 6: A-REIT's Steady Growth since Listing; FY11/12 vs FY10/11
A-REIT’s Steady Growth since Listing (S$’m) Managed by Ascendas Funds Management (S) Ltd.. 11 FY11/12 vs FY10/11 (S$’000) FY11/12(1) FY10/11(1) % inc/(dec) Gross revenue(2) 503,304 447,634 12.4 Less: Property operating expenses(3) (134,967) (108,208) 24.7 Net property income 368,337 339,426 8.5 Inte
Slide 7: DPU - FY11/12 vs FY10/11
DPU - FY11/12 vs FY10/11 (S$’000) FY11/12(1) FY10/11(1) % inc/(dec) Total return for the year before income tax 494,784 579,586 (14.6) Income tax expense(2) (1,616) (976) 65.6 Total return for the year after income tax 493,168 578,610 (14.8) Net non tax deductible expenses and other 7,894 3,274 141.
Slide 8: DPU - 4Q FY11/12 vs 3Q FY11/12
DPU - 4Q FY11/12 vs 3Q FY11/12 (S$’000) 4Q FY11/12(1) 3Q FY11/12(1) % inc/(dec) Total return for the period before income tax 271,440 83,731 nm Income tax expense(2) (778) (427) 82.2 Total return for the period after income tax 270,662 83,304 nm Net non tax deductible expenses/(taxable income) 8,605
Slide 9: Investment Highlights
Investment Highlights Total Investments in FY11/12 Value (S$’m) - Acquisition of income producing properties 545.4 - Development projects 248.2 - Asset Enhancement projects 152.8 Total Investment in FY11/12 946.4 Investment committed in prior FY - Forward Purchase of a Business Park Property at Jinq
Slide 10: Acquisition Highlights
Acquisition Highlights - Business Parks Name Nordic European Centre Segment Business Park Address 3 International Business Park Description 7- storey business park building which is easily accessible via major expressways. Sited within the Jurong Lake District Masterplan area, this is A- REIT’s 6th
Slide 11: Acquisition Highlights: Ascendas Z-Link, Cintech
Acquisition Highlights: Ascendas Z-Link in Z-Park Ascendas Z-Link In Beijing, China • Located in Zhongguancun Software Park (Z-Park) (中关村软件园) • Z-Park has two construction zones, compriising over 292 hectares of land • Over 180 resident companies with nearly 15,000 professionals. • About five minute
Slide 12: Enhancing Market Leadership Position: Business & Science Park segment
Enhancing Market Leadership Position: Business & Science Park segment • Increasing presence in the science park segment to achieve economies of scale and operational efficiency due to clustering effect • Increased connectivity to sub- urban business space with the development of the Mass Rapid Trans
Slide 13: Development Highlights
Development Highlights: FedEx Singapore Regional Hub at 90 Alps Avenue • Located at the eastern part of Singapore, in close proximity to the Airport Logistics Park of Singapore • A part 1-storey, part 2-storey air cargo express facility • GFA: 26,277 sqm • 100% committed by FedEx for 10 years with a
Slide 14: Development Highlights: Fusionopolis Business Park
Development Highlights: Business Park development at Fusionopolis • Located within the one-north masterplan area in the central part of Singapore. Easily accessible via major expressways and proximity to the one- north Mass Rapid Transit station • Development of 2 blocks of 6-storey business park an
Slide 15: Completed Asset Enhancement
Investment Highlights Asset Enhancement projects • Maximising plot ratio • Repositioning for higher value usage • Enhancing attactiveness & marketability Building Value (S$ m) Status Techview 4.3 Completed Food Axis @ Senoko 57.8 Completed Phase 1, 10 Toh Guan Road 20.2 Completed Phase 2, 10 Toh Gua
Slide 16: Asset Enhancement: FoodAxis @ Senoko, 10 Toh Guan Road
Completed Asset Enhancement: FoodAxis @ Senoko • Redevelop to maximise plot ratio from 0.6x to maximum of 2.5x, creating an additional GFA of 34,519 sqm; Total GFA of 43,362 sqm • Located at the northern part of Singapore and easily accessible by major expressways Artist Impression • Currently 25.5%
Slide 17: Asset Enhancement: Changi South Street, Techplace II
Asset Enhancement: 9 Changi South Street 3 • Strategically located in Changi International LogisPark and is easily accessible via the East Coast Park Expressway • Decommissioned about 3,007 sqm by removal of automated storage & retrieval system • Maximise plot ratio from 1.6x to 1.98x creating addit
Slide 18: Forward purchase of business park property in China
Acquisition Highlights: Forward purchase of business park property in China Details Forward purchase of business park property at Jinqiao within JEPZ, Pudong New District, Shanghai, China Specifications 8 blocks with total GFA of 79,880 sqm Location Located in North Jinqiao and within the Jinqiao Ex
Slide 19: Net Revaluation gain of S$224.5 million
Net Revaluation gain of S$224.5 million - at average cap rate 6.6% Cap Rate S$224m S$6,170m Weighted Range S$98m Average S$593m Business & 6.00% - 6.1% Science Parks 6.25% Hi-Tech 6.00% - 6.6% Industrial 7.15% S$5,255m 6.75% - Light Industrial 7.2% 8.00% Logistics & 7.00% - Distribution 7.0% 7.25% C
Slide 20: Interest Rate Risk Management
Interest Rate Risk Management • Issuance of ¥10.0 billion 2.55% pa notes due 2024 in April 2012, fully swapped into Singapore Dollars to eliminate foreign exchange exposure • Issuance of 150m new units in A-REIT at S$1.99 (6.0% above NAV) to raise approximately S$300m After bond issuance 31 Mar 11 a
Slide 21: A-REIT Unit Price Performance
A-REIT Unit Price Performance vs relevant indices A-REIT outperforms relevant indices 110.00 105.00 100.00 95.00 90.00 85.00 80.00 75.00 70.00 May-11 May-11 May-11 Jun-11 Jun-11 Jul-11 Jul-11 Oct-11 Oct-11 Oct-11 Nov-11 Nov-11 Dec-11 Dec-11 Jan-12 Jan-12 Feb-12 Feb-12 Mar-12 Mar-12 Apr-11 Apr-11 Aug
Slide 22: Healthy Occupancy; Long Leases
Healthy Occupancy; Long Leases • Increase portfolio gross floor area by about 11% y-o-y to 2.7 m sqm Completed investments GFA (sqm) Portfolio Total in FY11/12 As at 2,462,671 - 2,462,671 31 Mar 2011 As at 11% 2,463,641 278,134 2,741,775 31 Mar 2012 • Occupancy for multi-tenanted properties and port
Slide 23: A-REIT vs Industrial Average Occupancy
A-REIT vs Industrial Average Occupancy 100.0% 97.4% 94.7% 94.3% 95.0% 93.7% 93.7% 91.6% 90.7% 90.0% 85.0% 82.8% Occupancy Rate (%) 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% Business Park Hi-Tech Industrial Light Industrial Logistics A-REIT URA Note : A-REIT’s Singapore portfolio as at 31 March 2012
Slide 24: Lease Expiry Profile as at Mar 2012
Lease Expiry Profile as at 31 Mar 2012 • Weighted average lease to expiry of 4 years • About 13.8% due for renewal in FY12/13. Lease expiry is well spread, extending beyond 2024 Light Science Industrial, Parks, 19.2% 17.9% Logistics, Business 17.4% Parks, 24.2% Hi Tech, 21.3% Managed by Ascendas Fun
Slide 25: Well Diversified Portfolio
Well Diversified Portfolio - by Lease Tenure Single- Typically 3-year rolling tenanted leases Buildings 38% Multi- tenanted Buildings 62% Long term leases typically with periodic rental escalation, of which 32.2% of these leases are pegged to CPI Mix of Single-tenanted vs Multi-tenanted Buildings by
Slide 26: Tenants' Industry Diversification
Tenants’ Industry Diversification 3rd Party Logistics, Freight Forwarding 14.3% Electronics 10.9% Telecommunication & Datacentre 9.9% M&E and Machinery & Equipment 9.7% Information Technology 9.4% Financial 6.6% Life Science 5.8% Distributors, trading company 5.7% Food Products & Beverages 2.2% Text
Slide 27: Quality and Diversified Tenant Base
Quality and Diversified Tenant Base • Total tenant base of over 1,100 tenants • Top 10 tenants account for 25.5% of total portfolio income 7.0% 6.0% 6.0% 5.0% 4.0% 3.7% 3.0% 2.8% 2.8% 2.0% 2.0% 1.7% 1.7% 1.6% 1.6% 1.6% 1.0% 0.0% SingTel C&P Citibank, N.A Creative DBS Bank Federal Biomedical Siemens
Slide 28: Security Deposits for Single-tenanted Properties
Security Deposits for Single-tenanted Properties • Weighted average security deposits for single-tenanted properties range from 7 to 12 months of rental income • On a portfolio basis, weighted average security deposit is about 6 months of rental income No. of single Weighted average tenanted propert
Slide 29: Segmental Rental Performance
Agenda • Overview of A-REIT • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion Managed by Ascendas Funds Management (S) Ltd.. 57 Segmental Rental Performance Positive rental reve
Slide 30: Average Market Rents by Segment
In-place rent for space due for renewal in FY12/13 & FY13/14 • Current market rental rate is between 16% and 32% higher than the weighted average passing rental for the area due for renewal in FY12/13 Left Axis Right Axis Managed by Ascendas Funds Management (S) Ltd.. 59 Average Market Rents by Segm
Slide 31: Market Outlook
Agenda • Overview of A-REIT • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion Managed by Ascendas Funds Management (S) Ltd.. 61 Market Outlook • According to Ministry of Trade &
Slide 32: Potential New Supply
Potential New Supply • Current total stock: 38.4 m sqm, of which • Business & Science Parks account for 1.4 m sqm (3.7% of total stock) • Logistics & Distribution Centres account for 7.1 m sqm (18.5% of total stock) • Remaining stock are factory space • Potential new supply of about 3.6 m sqm (9.4%)
Slide 33: A-REIT's strengths
Agenda • Overview of A-REIT • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion Managed by Ascendas Funds Management (S) Ltd.. 65 A-REIT's strengths Diversity and Depth • Largest
Slide 34: A-REIT's strengths
A-REIT's strengths • Downside protection in earnings • Stable portfolio with 86.2% of portfolio revenue committed for the FY and a portfolio average lease to expiry of about 4 years. • Mix of long term and short term leases provide earnings stability Long term leases have a weighted average lease to
Slide 35: A-REIT's strategies
A-REIT's strategies Total returns Predictable income Capital stability Proactive and dedicated Outcome Stability Growth manager with track record Prudent Proactive Strategies Value-Adding Capital & Risk Asset Investments Management Management Fund Manager: Fund Manager: Perfor- Property Manager: Asc
Ascendas Real Estate Investment Trust — Investor Presentation (May 2012) on 6ix