Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — A-Reit — Q1 FY2004 Earnings Presentation
24 slides from Capitaland Ascendas Reit's earnings presentation, Jul 17, 2003
Slide 1: Financial Results For First Quarter of Financial Year Ending 31 March 2004
Financial Results For First Quarter of Financial Year Ending 31 March 2004 Thursday, 17 July 2003
Slide 2: Presentation basis and forward-looking statements
This Presentation is focused on comparing actual results versus forecasts outlined in the A-REIT Prospectus of 5 November 2002. This shall be read in conjunction with Paragraph 9 of A-REIT’s First Quarter Financial Statement for period from 1 April to 30 June 2003 in the Masnet announcement. This pr
Slide 3: Agenda
Agenda • Highlights • Financial Performance • Portfolio • Capital Management • Strategy
Slide 4: A-REIT's distributable income above forecast by 13.6%
Highlights A-REIT’s distributable income above forecast by 13.6% 6.4 % 12,000 13.6 % 8.7 % 10,000 8,000 6,000 Actual Forecast 4,000 2,000 0 Net Property Net Profit Distributable Income Income Note: • Net property income of $11.5 m up 6.4% • Net profit of $9.8 m up 8.7% Source : A-REIT unaudited Firs
Slide 5: Financial Highlights
Highlights Financial Highlights • First Quarter Distribution per Unit (DPU) 1.97 cents (includes 11 days income from OSIM HQ building) • Forecast Annualised DPU 7.90 cents (based on first quarter DPU which includes only 11 days for OSIM HQ building)
Slide 6: Portfolio Highlights
Highlights Portfolio Highlights • Portfolio occupancy 81.2% (1) • Portfolio Renewals/Leasing 26,422 sqm (1) (11% of portfolio) • Level of committed revenue approximately 93% (For financial period ending 31 March 2004) Notes: (1) For 3-month period ended 30 June 2003 Source : Ascendas-MGM Funds Manag
Slide 7: A-REIT offers stable and attractive yield compared to other investments
Highlights A-REIT offers stable and attractive yield compared to other investments 10 8.3% 8 6 (%) 4 3.6% 2.5% 2.5% 2.3% 2 0.2% 0.4% 0.7% 0 Banks saving Interbank Banks Fixed 10 Year CPF (Ordinary SESPROP ST A-REIT Deposits overnight Deposit Government Account) (3) Dividend Index (4) Annualised inte
Slide 8: Agenda
Agenda • Highlights • Financial Performance • Portfolio • Capital Management • Strategy
Slide 9: Profit and loss Available for Distribution – 13.6% above forecast
Financial Performance Profit and loss Available for Distribution – 13.6% above forecast Actual Forecast Increase / 1st quarter 1st quarter (Decrease) ending 30 ending 30 % June 2003 June 2003(a) S$'000 S$'000 Gross revenue 15,758 15,854 (0.6) Property operating expenses (4,274) (5,059) (15.5) Net pr
Slide 10: Gross Revenue in line with forecast
Financial Performance Gross Revenue in line with forecast • Delivered revenue outlined in prospectus • Delivered revenues in challenging times and tough leasing market • Achieved stability from the diversified portfolio
Slide 11: Cost saving initiatives continues
Financial Performance Cost saving initiatives continues • Managed reduction in maintenance costs and other property expenses • Achieved savings in property tax • Attained borrowing costs which are lower than prospectus forecast
Slide 12: Balance Sheet
Financial Performance Balance Sheet Actual Actual As at 30 As at 31 June 2003 March 2003 $’m $’m Total assets 651.2 636.4 Borrowings 133.5 125.0 Net assets 493.6 498.2 Total unitholders’ funds 493.6 498.2 Source : A-REIT unaudited Financial Statements for period ended 30 June 2003
Slide 13: Balance Sheet Strength
Financial Performance Balance Sheet Strength Net Asset Value (NAV) As at 30 June 2003 As at 31 March 2003 NAV per unit $0.90 $0.91 (include net profit for the period) Adjusted NAV per $0.89 $0.89 unit (exclude net profit for the period) NAV per unit at IPO $0.89 $0.89 Source : A-REIT unaudited Finan
Slide 14: Agenda
Agenda • Highlights • Financial Performance • Portfolio • Capital Management • Strategy
Slide 15: A-REIT portfolio occupancy in line with market
Portfolio A-REIT portfolio occupancy in line with market 100.0 90.0 80.0 81.0 81.7 70.0 79.6 74.0 A-REIT URA 60.0 A-REIT URA % 50.0 40.0 30.0 20.0 10.0 0.0 Business Park Light Industrial Notes: • Business Park : A-REIT properties include business park (science park) in Central location and Honeywell
Slide 16: A-REIT properties command higher rates
Portfolio A-REIT properties command higher rates Gross Rent (S$ psm/mth) AREIT properties command higher rates 25 20 15 10 5 - FY00 FY01 FY02 FY03 Jun 03 AREIT URA Median Rental JTC Flatted factory JTC Std factory Source : JTC and Ascendas-MGM for period ended 30 June 2003
Slide 17: Diversified portfolio by net property income
Portfolio Diversified portfolio by net property income OSIM HQ Alpha Techlink 1% Business park Aries 8% 12% (including 6% Science Park) 48% Techplace I Capricorn 16% Light Industrial 15% 52% Gemini 12% Techplace II 21% Honeywell 9% Source : A-REIT’s portfolio and Net Property Income from 1 April to
Slide 18: OSIM HQ Building Acquisition Adds Stability
Portfolio OSIM HQ Building Acquisition Adds Stability Increased stability with OSIM HQ Building 11% of NLA are BTS leases (increased from 6% previously) 11% 89% Multi-tenanted BTS
Slide 19: Partners who grew with us
Portfolio Partners who grew with us New Leases Expansions Renewals Tenant Name Tenant Name Tenant Name IBIDEN Singapore Pte Ltd Sunmicro FA Pte Ltd Voium Communications Hygreen Systems Pte Ltd Magnetronic Technology Fujikura Technology Pte Ltd Singapore EnWorkz Sakura Tech (S) Pte Ltd Silesia Flavou
Slide 20: Agenda
Agenda • Highlights • Financial Performance • Portfolio • Capital Management • Strategy
Slide 21: Capital Management
Capital Management Capital Management • External borrowing of $133.5 m as at 30 June 2003 • Short term rates are very attractive (inter-bank rates of below 1%) and 3 year swap rate at 1.2%(1) (1) Indicative rates obtained on 10 July 2003
Slide 22: Agenda
Agenda • Highlights • Financial Performance • Portfolio • Capital Management • Strategy
Slide 23: Strategy
Strategy Strategy • Existing portfolio – Continue to maintain and improve occupancy – Continue to achieve high customer retention • New acquisitions – Manager is seeking similar opportunities like the OSIM HQ Building for quality tenants on long term leases which extends the lease expiry profile of
Slide 24: Thank You
areit Thank You