Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — ARA LOGOS Logistics Trust — Shareholder Meeting (June 2020)
33 slides from Singapore Exchange's shareholder meeting presentation, Jun 3, 2020
Slide 1: ARA LOGOS Logistics Trust 10th Annual General Meeting Presentation
ARA LOGOS Logistics Trust 10th Annual General Meeting Presentation 3 June 2020
Slide 2: Agenda
Agenda 1 ARA LOGOS Logistics Trust Overview 2 FY2019 Key Highlights 3 COVID-19 Update 4 Looking Ahead 5 Appendix 2
Slide 3: ARA LOGOS Logistics Trust Overview
ARA LOGOS Logistics Trust Overview 41 – 51 Mills Road, Braeside, Victoria, AUS
Slide 4: Strong Sponsorship
Strong Sponsorship Positioning ALOG for the Next Stage of Growth Demonstrates Strong Commitment from ARA and LOGOS Access New Growth Markets, Alignment of Expansion and Interest with Providing Asset, Leading APAC Real Development Unitholders Investment and Opportunities Development Assets Fund Manag
Slide 5: ARA Overview
ARA Overview Leading APAC Real Assets Fund Manager with Global Reach Consistent, disciplined business expansion and launch of new products…. 2002 Founded in 2002 with a strong APAC focus Expanding global reach with Japan, Europe and US Global network, local expertise 2018- desks and Headquartered in
Slide 6: LOGOS Overview
LOGOS Overview Leading Logistics Developer and Real Estate Specialist in APAC Strong Regional Presence Vertically Integrated Platform with a Wide Offering • >US$1.5bil transacted in industrial and commercial real estate across the Transaction Group in last 12 months India GLA: 0.4mil sqm sourcing •
Slide 7: ARA and LOGOS Complementary Strengths
ARA and LOGOS Complementary Strengths Mixed Commercial Hospitality Infrastructure Logistics Logistics • Landmark, premium mixed • Upscale select-service hotels • Global infrastructure fund • Logistics warehouses in key commercial assets in carrying the Hyatt and Marriot backed by recognized, industr
Slide 8: Our Track Record Since Listing
Our Track Record Since Listing Towards a Stronger and More Resilient Portfolio FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 1Q2020 FY2010 FY2011 FY2015 FY2018 FY2019 1Q 2020 Listed Entered China Portfolio Rebalancing & Exited the China market with ARA and LOGOS ARA completed
Slide 9: FY2019 Update
FY2019 Update DHL Supply Chain Advanced Regional Centre, Singapore
Slide 10: FY2019 Key Highlights
FY2019 Key Highlights Sound Fundamentals; Well-positioned to Address Future Volatility Operating Prudent Strong Performance Capital Portfolio Management Performance Gross Revenue Aggregate Leverage Strong Portfolio Occupancy S$113.6 mil 40.1% 95.3% committed Singapore – 94.2% NPI All-in Financing Co
Slide 11: FY 2019 vs FY 2018 Financial Performance
FY 2019 vs FY 2018 Financial Performance Change Lower Gross Revenue and NPI of 6.6% S$’000 unless otherwise FY2019 FY2018 and 5.6% respectively, mainly due to: noted (%) • conversion of master lease to multi- Gross Revenue 113,555 121,540 (6.6) tenancy lease structure for two properties; NPI 85,844
Slide 12: 1Q 2020 vs 4Q 2019 Performance
1Q 2020 vs 4Q 2019 Performance Improved Overall Performance (S$ million) Adjusted DPU(1) (Cents) Excluding the retention of approx. S$2.5mil in 1Q 2020 and S$2.3mil one-off tax exempt distribution in 4Q 2019 from the divestment of Jinshan ◼ Stronger performance recorded in 1Q 2020 as compared to 4Q
Slide 13: Prudent Capital Management
Prudent Capital Management Stable Debt Maturity Profile Well-Staggered Debt Maturity Profile Interest Rate Hedging as at FY2019 (S$ million) ◼ 66.8% of total debt hedged. ◼ 71.5% of SGD debt and 50.0% of onshore AUD borrowings were hedged for an average term of 3.0 years. Forex Hedging as at FY2019
Slide 14: FY 2019 vs FY 2018 Performance
FY 2019 vs FY 2018 Performance Strong Track Record of Maintaining High Portfolio Occupancy Improved Overall Portfolio Occupancy by way of Proactive Marketing/Leasing and Asset Management Efforts 14
Slide 15: FY2019 Leasing Updates
FY2019 Leasing Updates Proactive Lease Management Efforts Well-Spread Lease Expiry Profile WALE by NLA (years) As at end-1Q 2020, FY2020 leases expiries has reduced to 7.8% by NLA and 8.1% by GRI. Portfolio NLA Lease Structures ◼ 23 new leases secured in FY2019, totaling approx. 1.5 mil sq.ft. or 16
Slide 16: Portfolio Diversification
Portfolio Diversification Well-Diversified and High-Quality Tenants 1 Geographical Diversification ✓ High Quality Tenant Base Comprising of a Majority of MNCs ✓ Underpinned by well-supported primary Gross ‘essential’ industries involved in handling Revenue Industrial and Consumer Goods, Food & Cold
Slide 17: Portfolio Rebalancing & Growth Strategy
Portfolio Rebalancing & Growth Strategy Successful Capital Recycling Efforts DIVESTMENTS ACQUISITIONS Strategically divested and re-invested a total of S$ 126.8 mil into good quality assets with credit-worthy tenants, sustainable earnings and 41 – 45 Hydrive Close, 196 Viking Drive, longer WALE Dand
Slide 18: Asset Enhancement Initiatives
Asset Enhancement Initiatives Maintaining Competitiveness and High Quality Portfolio • Upgraded sprinkler systems for over 600,000 sq.ft. of lettable area to meet modern logistics warehouse requirements, enhancing safety features and leasability of properties. • Achieved higher rentals by converting
Slide 19: ESG Initiatives
ESG Initiatives Reducing ALOG’s Carbon Footprint ESG Project Completed June 2019 ▪ Partnered with Sembcorp to install solar panels across building rooftops of three of ALOG’s warehouses • ALOG Commodity Hub • Pandan Logistics Hub • ALOG Changi DistriCentre 1 ▪ Capacity of new facilities able to reac
Slide 20: COVID-19 Update
COVID-19 Update Pandan Logistics Hub, Singapore
Slide 21: COVID-19 Outbreak Management's Commitment and Proactive Engagement
COVID-19 Outbreak Management’s Commitment and Proactive Engagement To ensure the health, safety and public welfare of our tenants, their workforce and visitors Proactively engaging those tenants experiencing challenges and quickly extend assistance where appropriate to secure best outcome for all st
Slide 22: Portfolio Update (COVID-19)
Portfolio Update (COVID-19) Management’s Commitment and Measures Taken Business as Usual ◼ ALOG’s properties remain open and Management continues to support tenants. ◼ Service levels are being maintained given the present circumstances (enhanced by ways described below). ◼ Marketing continues for va
Slide 23: Looking Ahead
Looking Ahead 11-19 Kellar Street, Berrinba, Queensland, AUS
Slide 24: Market Outlook - Singapore and Australia
Market Outlook - Singapore and Australia Stable Logistics Market Fundamentals through end-1Q20 ▪ Warehousing in SG was the only segment that saw higher demand. (1) ▪ Growth in AUS industrial market underpinned by a ▪ Demand driven by way of increase in inventory, heightened demand in e-commerce. sto
Slide 25: Targeted Vision & Strategy
Targeted Vision & Strategy Provide High Quality, Best-in-Class Logistics Real Estate Solutions to Our Customers Acquisitions Environmental, Social, and Asset Governance Management (ESG) Focused Development OUR MISSION: Long-term sustainable growth in DPU and NAV per unit to Unitholders 25
Slide 26: Key Conclusions
Key Conclusions Transformative and Positive Outlook Ahead 1 Transformative Change Ahead with LOGOS as Sponsor 2 Improved Growth Outlook 3 Defensive Portfolio 4 Well-Positioned for Sustainable Long-Term Growth 26
Slide 27: Contact Information
Contact Information For enquiries: Cassandra Seet ARA LOGOS Logistics Trust Manager, Investor Relations Management Limited cassandraseet@ara- 5 Temasek Boulevard #12-01 group.com Suntec Tower Five Singapore 038985 Tel: +65 6835 9232 Website: www.aralogos-reit.com 27
Slide 28: Appendix
Appendix 223 Viking Drive, Wacol, Queensland, AUS
Slide 29: ARA LOGOS Logistics Trust Who We Are
ARA LOGOS Logistics Trust Who We Are ARA LOGOS Logistics Trust, “ALOG”, (previously Cache Logistics Trust (1)) is Portfolio Statistics a leading Asian logistics REIT with a 27 Properties across Singapore and Australia S$1.26 billion(2) portfolio across Singapore and Australia. 9.0 mil sf GFA Listed
Slide 30: Portfolio Statistics
Portfolio Statistics (as at end 1Q 2020) 27 Logistics Warehouse Properties Singapore - 10 Australia - 17 Total Valuation(1) S$1.26 bil Gross Floor Area (GFA, approx) 9.0 mil sq ft Committed Occupancy Portfolio – 97.1% Singapore – 97.2% Australia – 96.9% Average Building Age 15.8 years Weighted Avera
Slide 31: Portfolio Overview: Singapore
Portfolio Overview: Singapore Changi North / Loyang Airport Logistics Park Sembawang Pan Asia Logistics Centre Air Market Logistics Wharves Schenker Megahub 8 9 5 21 Changi North Way Centre 22 Loyang Lane Johor 51 Alps Avenue Causeway Link Changi South Tampines LogisPark Pulau Ubin Second link 10 9
Slide 32: Portfolio Overview: Australia
Portfolio Overview: Australia Brisbane, Queensland Sydney, New South Wales Adelaide, South Australia 51 Musgrave Road, 203 Viking Drive, 223 Viking Drive, 127 Orchard Road, 3 Sanitarium Drive, 404 – 450 Findon 11 Coopers Plains 12 13 16 Chester Hill 17 Berkeley Drive 26 Road, Kidman Park Wacol Wacol
Slide 33: Disclaimer
Disclaimer This presentation has been prepared by ARA LOGOS Logistics Trust Management Limited, in its capacity as the manager of ALOG (the “Manager”) and includes market and industry data and forecast that have been obtained from internal survey, reports and studies, where appropriate, as well as m
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