Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Global Logistic Properties — 3Q FY2013 Earnings Presentation
43 slides from Singapore Exchange's earnings presentation, February 2013
Slide 1: Analyst and Investor Meetings
Analyst and Investor Meetings February 2013
Slide 2: Disclaimer
Disclaimer The information contained in this presentation (the “Information”) is provided by Global Logistic Properties Limited (the “Company”) to you solely for your reference and may not be retransmitted or distributed to any other person. The Information has not been independently verified and ma
Slide 3: Company Overview
GLP Park Linjiang China 01. Company Overview GLP Park Pavuna GLP Tosu I GLP Park Hongqiao (West) 01. Company Overview Brazil Japan China 02. Market 03. Platform 04. Strategy 05. Appendix
Slide 4: About Global Logistic Properties
About Global Logistic Properties GLP is market leader in the world’s best markets for logistics facilities, operating GLP Park Suzhou China across 62 cities in China, Japan and Brazil, managing a US$16 billion property portfolio GLP provides the best solution of logistics infrastructure for MNCs and
Slide 5: Leading Provider of Modern Logistics Facilities in the Best Markets
Leading Provider of Modern Logistics Facilities in the Best Markets GLP’s Global Footprint China • Presence in 33 cities • 13.8mm sqm of GFA(1)(2) • 7.2mm sqm of completed GFA(1) • 6.6mm sqm of development pipeline(3) Brazil • 9.9mm sqm of land reserves(4) • Presence in 22 cities in 7 major markets
Slide 6: Proven Track Record of Delivering Growth
Proven Track Record of Delivering Growth GFA of Completed Properties(1) (2) (mm sqm) Portfolio Growth of GLP FY04 – 3QFY13 GFA CAGR: 59% 11.8 1.0 10.0 0.5 6.8 6.0 7.2 6.4 5.4 3.8 4.0 2.6 3.2 2.3 1.4 1.3 0.8 0.6 0.3 3.6 3.6 0.2 2.4 2.8 2.8 2.8 0.2 0.1 1.0 1.6 0.5 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY
Slide 7: Unrivalled Network in China, Japan and Brazil
Unrivalled Network in China, Japan and Brazil • Significant barriers to entry • Benefiting from the increased economies of scale China(1) Japan(2) Brazil(3) (mm sqm) (mm sqm) (mm sqm) 5.4 GLP Stake: 90–100% GLP Stake: 50–85% GLP Stake: 19.9% GLP Stake: 53.1% 3.6 2.5 2.1 Includes development pipeline
Slide 8: Fund Management Platform Poised for Growth
Fund Management Platform Poised for Growth Fund Management Platform Assets Under Management (US$bn)(1) AUM triples with Brazil Acquisition, J-REIT Monetization and additional capitalisation in GLP-CPPIB JV. Vintage Sep 2011 Dec 2011 Nov 2012 Nov 2012 Jan 2013 $2.6 Completed Asset US$2.2bn US$1.6bn U
Slide 9: Low Leverage and Significant Cash on Hand
Low Leverage and Significant Cash on Hand 6 Group Financial Position Proforma (Post J-REIT) As at As at Change As at (US$ million) JREIT Impact Dec 31, 2012 Mar 31, 2012 % Dec 31, 2012 Total assets 14,581 13,580 7.4 13,199 (1,382) Total equity 8,969 8,308 8.0 8,888 (81) Cash 1,137 1,616 (29.6) 2,141
Slide 10: Unique Investment Proposition with a Focus on the Best Markets
Unique Investment Proposition with a Focus on the Best Markets Outsourcing & e-commerce trends in Japan China & Brazil domestic consumption growth Strong capital structure Limited supply of modern Experienced facilities in China, Japan team Vast China & Brazil land bank Unrivalled network in Attract
Slide 11: Market
GLP Park Hermes Brazil 02. Market GLP Park Dianshanhu GLP Park Tokyo II GLP Mabe 01. Company Overview China Japan Brazil 02. Market 03. Platform 04. Strategy 05. Appendix
Slide 12: Over 75% of China Warehouses Do Not Meet Modern Logistics Requirements
Over 75% of China Warehouses Do Not Meet Modern Logistics Requirements & Face Demolition Amid Urbanization Current Supply of Logistics Facilities in the US is ~14 Limited Supply of Modern Logistics Facilities in China times that of China Warehouse stock: GFA (sqm) per capita Interior Exterior Charac
Slide 13: Domestic Consumption Driving Logistics Needs
Domestic Consumption Driving Logistics Needs Breakdown of Leased Area in China (Dec 2012) Retail sales have grown by CAGR of 17% in past 7 Import/ years1 export related Retail sales forecast to grow by 14.8% and 16.0% 20% in 2012 and 2013 respectively2 Urbanization trends boosting consumption Domest
Slide 14: Capitalizing on China's Fast Evolving Retail Landscape
Capitalizing on China’s Fast Evolving Retail Landscape Chain Store Sales as % of Total Retail 2006-2011 Online Retail Sales in China RMB Bn 80% 65% 900 774 800 60% 5-year CAGR:97% Huge room 700 to grow 600 498 40% 500 400 263 300 20% 200 128 10% 56 5% 100 26 0% 0 2006 2007 2008 2009 2010 2011 India
Slide 15: Limited Supply of Modern Logistics Facilities in Japan
Limited Supply of Modern Logistics Facilities in Japan Modern Logistics Facilities in Japan are Scarce¹ Various Features of Modern Logistics Facilities Modern Logistic Facilities 2.5% Large Floor Area High Ceilings High Load Tolerance Others 97.5% 10,000 sqm or more 5.5 m or more 1.5 t/sqm or more S
Slide 16: Growth of Outsourcing & E-Commerce Trends Drives Demand in Japan
Growth of Outsourcing & E-Commerce Trends Drives Demand for Modern Logistics Facilities in Japan Growth of Japanese Third Party Logistics (“3PL”) Market Market Size of B to C E-Commerce in Japan (JPY billion) (JPY billion) 2000 1,784 9,000 8,459 1800 7,788 8,000 1600 1,461 7,000 6,696 1400 1,306 1,2
Slide 17: Favorable Macro-economic Trends in Brazil
Favorable Macro-economic Trends in Brazil Key Growth Drivers Real GDP Growth (%) • 6th largest economy in the world by GDP Average: 4.0% 7.6% • Long term expanding economy 6.1% 5.2% • Thriving middle class spurring domestic consumption 3.9% • Young population to drive future economic growth 3.2% 2.7
Slide 18: Brazil Logistics Real Estate Market Overview
Brazil Logistics Real Estate Market Overview Market Overview Modern Logistics Facilities Account for ~20% of Supply • Less than 20% of existing stock is modern facilities with minimum clear heights of 10 meters and minimum floor Brazil: capacity of 6 ton / sqm 64mm sqm • Sao Paulo and Rio de Janeiro
Slide 19: Robust Supply and Demand Dynamics
Robust Supply and Demand Dynamics Key Trends Logistics Space Per Capita is 1/16th of the US • Logistics space per capita in Brazil is ~1/16th of the United (sqm per capita) States 5.16 • Logistics cost as a percentage of GDP is almost twice that of the United States – As production consolidates to d
Slide 20: Platform
GLP Tokyo II Japan 03. Platform GLP Park AGV Logistica GLP Park Xiqing GLP Misato III 01. Company Overview Brazil China Japan 02. Market 03. Platform 04. Strategy 05. Appendix
Slide 21: Accelerating Growth in China Portfolio
Accelerating Growth in China Portfolio Our Portfolio As at Dec 31, 2012 As at Sept 30, 2012 2 1 1,2 Pro-rata 2 1 1,2 Total GFA Pro-rata GFA Total valuation Pro-rata valuation Total GFA Pro-rata GFA Total valuation Pro-rata valuation valuation % (sqm million) (sqm million) (US$m) (US$m) (sqm million)
Slide 22: Business Highlights for 3Q FY2013
Business Highlights for 3Q FY2013 Strong Development Momentum for GLP’s China facilities 3Q FY2013 Land acquisition for future development of 1,858,136 sqm of Site Area – up 124% quarter-on-quarter 3Q YTD FY2013 Land acquisition for future development of 3,865,249 sqm of Site Area – up 140% year-on-
Slide 23: China Portfolio
China Portfolio Robust NAV Growth Portfolio Snapshot China Portfolio Dec 31, 2012 Sep 30, 2012 Total valuation1 US$6,343 million US$5,962 million 9.9 million sqm GFA of land reserves, providing a strong pipeline for future developments WALE 3.2 years 3.3 years Improving rental rates of 1.06 RMB/sqm/
Slide 24: Business Highlights for 3Q FY2013
Business Highlights for 3Q FY2013 Stable Performance of GLP’s Japan Facilities Stabilised logistics facilities lease ratio of 98% as of Dec 31, 2012. New and expansion leased area of 82,148 sqm of GFA 41,253 sqm leased in Tokyo to Rakuten Inc 12,212 sqm leased in Osaka to major 3PL company Developme
Slide 25: Japan Portfolio
Japan Portfolio Strong Growth in Fund Fees Portfolio Snapshot Japan Portfolio Dec 31, 2012 Sep 30, 2012 85% of completed GFA located in Tokyo and Osaka Total Valuation1 US$7,980 million US$8,673 million Portfolio well leased at 98%2 WALE 5.2 years 5.4 years Stable rents with high retention rate of 8
Slide 26: Brazil Portfolio
Brazil Portfolio Leading Position in the Market Portfolio Snapshot Geographical Breakdown by GFA Others, Development JV’s Incremental Development Spend – US$455 mm 13% Stabilized JV’s Incremental Development Spend – US$83 mm Healthy development pipeline of 0.8 mm sqm (vs completed GFA of 1.0 mm sqm)
Slide 27: Strategy
GLP Park Lingang China 04. Strategy GLP Park Ponto Frio Guarulhos GLP Yokohama GLP Park Lingang 01. Company Overview Brazil Japan China 02. Market 03. Platform 04. Strategy 05. Appendix
Slide 28: Strategically Growing the Portfolio
Strategically Growing the Portfolio China Japan Brazil Disciplined investment approach GLP Japan Development Venture GLP is partnered with CPPIB, CIC Enter new sub-markets with 50:50 JV with CPPIB to and GIC in two JVs to establish ≥ 75% lease ratio build modern logistics largest logistics platform
Slide 29: Recycling Capital to Enhance Shareholder Value
Recycling Capital to Enhance Shareholder Value Short cash conversion cycle enhances returns while limiting risk exposure Capital Recycling Model Logistic properties have short cash conversion cycle of 1.5 years from investment to achieving stabilized cash flows Short cash Utilize Other sectors such
Slide 30: Appendix
GLP Park Wuqing China 05. Appendix GLP Amagasaki GLP Park Suzhou GLP Park Colgate and Elog 01. Company Overview Japan China Brazil 02. Market 03. Platform 04. Strategy 05. Appendix
Slide 31: Key Events since September 2012
Key Events since 30 September 2012 Successful listing of GLP J-REIT, Japan’s largest real estate IPO1 GLP’s leverage falls to 8.7% subsequent to the monetization of 40% of Japan portfolio for US$2.6 billion Best-in-class structure setting new benchmarks within J-REIT industry Stock trading ~30% abov
Slide 32: GLP J-REIT Overview
GLP J-REIT Overview Overview Corporate Structure Asset Size JPY221.3 billion (US$2.4 billion) LTV Target 45-55% 100% Sponsor Group 33 modern logistics facilities in Japan, majority Right of First Look Portfolio Agreement in Tokyo and Osaka GFA 1,281,998 sqm Asset Manager 15% GLP Stake 15% Acquisitio
Slide 33: GLP Brazil Income Partners I Joint Venture Overview
GLP Brazil Income Partners I Joint Venture Overview Joint Venture Summary Geographical Breakdown by Owned GLA (%) Portfolio 29 Stabilized Assets Owned GLA 1,216,020 sqm Acquisition Price US$1,098mm Others 13% Incremental Development Spend US$83mm GLP Share of Incremental Development US$28mm Spend LT
Slide 34: GLP Brazil Development Partners I Joint Venture Overview
GLP Brazil Development Partners I Joint Venture Overview Joint Venture Overview Geographical Breakdown by Owned GLA (%) Portfolio 5 Development Projects Owned GLA 750,938 sqm Others Acquisition Price US$352mm 10% Incremental Development Spend US$455mm GLP Share of Incremental Development US$188mm Sp
Slide 35: 3Q FY2013 Key Highlights
3Q FY2013 Key Highlights Revenue increased by 20% to US$174 million China Revenue grew by 64% to US$68 million EBIT increased by 61% to US$218 million China EBIT increased by 92% to US$120 million PATMI increased by 31% to US$113 million Excluding FX losses, PATMI would have increased by 54% to US$1
Slide 36: 3Q YTD FY2013 Key Highlights
3Q YTD FY2013 Key Highlights Revenue increased by 25% to US$517 million China Revenue increased by 69% to US$184 million EBIT increased by 37% to US$656 million China EBIT grew by 41% to US$320 million PATMI increased by 20% to US$460 million Excluding FX losses, PATMI would have increased by 34% to
Slide 37: 3Q FY2013 Key Highlights
3Q FY2013 Key Highlights • Market-leading positions in China, Japan and Brazil STRONG • 525 properties with total 11.8 million sqm of completed GFA STRONG CORE CORE PORTFOLIO • High stabilised logistics lease ratios of 89%, 98% & 100% for China, Japan and Brazil respectively PORTFOLIO • China same-s
Slide 38: Diversified Exposure Across Industries
Diversified Exposure Across Industries Lease profile by End-user Industry1 (by Leased Area2) China Japan Brazil Auto & Pharma / Retail/Fast Parts, 9% Medical Food Chain, Instruments, 11% Retail/Fast FMCG, 41% 2% FMCG, 31% Food Chain, Electronics/ 27% High-tech, 15% Pharma / Electronics/ High- Medica
Slide 39: Well Staggered Lease Expiry Profile
Well Staggered Lease Expiry Profile Lease Expiry Profile (by Leased Area) 82% 30% 6% 5% 2% 19% 19% 14% 4% 2% 9% 46% 9% 11% 11% 14% 13% 5% Notes: 1. Group percentages in italics above the bars 39 2. Any discrepancy between individual amounts and total is due to rounding.
Slide 40: Detailed Notes to Financial Highlights and Portfolio Summary
Detailed Notes to Financial Highlights and Portfolio Summary Notes 1 Exchange rates used in the preparation of the full year financials and the portfolio summary are as follows: Balance sheet As at As at Income statement 1 Oct 12 1 Oct 11 1 April 12 1 April 11 items 31 Dec 12 31 Mar 12 items to 31 D
Slide 41: Consolidated Income Statements
Consolidated Income Statements (US$'000) Three-month Three-month Nine-month Nine-month period ended period ended period ended period ended Dec 31, 2012 Dec 31, 2011 Dec 31, 2012 Dec 31, 2011 Revenue 173,510 144,699 516,993 412,357 Other income 882 1,125 4,419 4,720 Management fees (464) (20) (1,008)
Slide 42: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position (US$'000) As at As at Dec 31, 2012 Mar 31, 2012 Investment properties 8,602,584 10,228,084 Jointly-controlled entities 1,105,839 791,267 Deferred tax assets 27,692 22,125 Plant and equipment 10,372 8,109 Intangible assets 496,399 498,158 Other investments
Slide 43: Investor Relations Contact
Investor Ambika Goel, CFA SVP- Capital Markets and Investor Relations Relations Tel: +65 6643 6372 Email: agoel@glprop.com Contact
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