Capitaland Ascendas Reit · SGX:A17U

Capitaland Ascendas Reit — Ascendas Real Estate Investment Trust (A-REIT) — Shareholder Meeting (June 2016)

41 slides from Capitaland Ascendas Reit's shareholder meeting presentation, Jun 28, 2016

  1. Slide 1: Review of FY15/16 Performance Annual General Meeting

    DBS Asia Hub 2 2-34 Aylesbury Drive ONE@Changi City Review of FY15/16 Performance Annual General Meeting 28 June 2016 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group

  2. Slide 2: Disclaimers

    Disclaimers This material shall be read in conjunction with A-REIT’s financial statements for the financial year ended 31 March 2016. This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ

  3. Slide 3: Agenda

    Agenda Financial Performance & Key Highlights Investment Management Capital Management Portfolio Management Market Outlook A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group 7

  4. Slide 4: Financial Performance

    Financial Performance (S$’000) FY15/16 FY14/15 % fav/ (unfav) Gross revenue 760,988 673,487 13.0 Net property income 533,701 462,727 15.3 Total amount available for distribution 378,321 351,140 7.7 DPU before performance fees (cents) 16.053 14.600 10.0 DPU after performance fees (cents) 15.357 14.60

  5. Slide 5: Key Growth Drivers

    Key Growth Drivers  Contributions from new acquisitions:  Australian Portfolio  Aperia, Kendall, Hyflux Innovation Centre and ONE@Changi City in Singapore  Increase in occupancy at certain properties  positive rental reversion of 7.0% achieved over preceding contracted rental rates A-REIT is ma

  6. Slide 6: Key Highlights

    Key Highlights  Assets Under Management (AUM) increased 21% to S$9.9b 2.0 X 1.6 X 3.1 X A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group 10

  7. Slide 7: Key Highlights

    Key Highlights  Annual Property Revaluation • Total valuation of A-REIT’s 133 properties was S$9,659 million • Singapore portfolio capitalisation rate at 6.3% (vs 6.46% in FY14/15)  Proactive Capital Management • Moody’s re-affirmed A-REIT’s A3 credit rating • Healthy aggregate leverage of 37.2% w

  8. Slide 8: Agenda

    Agenda Financial Performance & Key Highlights Investment Management Capital Management Portfolio Management Market Outlook A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group 12

  9. Slide 9: Investment Highlights in FY15/16

    Investment Highlights in FY15/16 Purchase Consideration Country Completion date / Value (S$m) Acquisitions 1,546.8 26 logistics properties in 23 Oct: 10 properties Australia 1,047.61 Sydney, Melbourne, Brisbane & Perth 18 Nov: 16 properties 6-20 Clunies Ross Street, Pemulwuy, Australia 79.21 Feb 201

  10. Slide 10: Acquisition in FY15/16: Logistics Properties in Australia

    Acquisition in FY15/16: 27 Logistics Properties in Australia  27 modern logistics properties located in key cities: Sydney, Melbourne, Brisbane and Perth  GFA 669,526 sqm ranks A- 10 REIT as 8th largest industrial landlord in Australia  Healthy occupancy (94.7%); Long WALE (5.2 years); Triple net

  11. Slide 11: Acquisition in FY15/16: ONE@Changi City, Singapore

    Acquisition in FY15/16: ONE@Changi City, Singapore Purchase S$420.0 million Consideration Acquisition fee to S$4.2 million Manager Stamp Duty and Other Approximately S$17.3 million transaction costs (including stamp duty of about S$12.6 m) Total Acquisition Cost S$437.3 million Vendor Ascendas Frase

  12. Slide 12: Development in FY15/16: DBS Asia Hub Phase 2

    Development in FY15/16: DBS Asia Hub Phase 2 Description Development of a 6-storey business park building next to the existing DBS Asia Hub, which will be fully leased to DBS Bank Ltd in 2Q 2015 Cost Approx. S$21.8 million Valuation S$168.2 million (DBS Phase 1 and 2) as at 31 Mar 16 Completion Apri

  13. Slide 13: Development in FY15/16: A-REIT Jiashan Logistics Centre

    Development in FY15/16: A-REIT Jiashan Logistics Centre Property to be Single-storey logistics facility Developed Total Development ~RMB 100.5 million Costs (incl land cost)^ (~S$20.9 million) Valuation RMB 120.0 million as at 31 Mar 16 (S$24.9 million) Completion (TOP Date) Mar 2016 Land Lease Expi

  14. Slide 14: Divestments in FY15/16

    Divestments in FY15/16 26 Senoko Way BBR Building Description 2-storey light industrial bldg with a 4- Part 2-storey and part 3-storey light storey linked extension block industrial building Remaining Land Tenure 36 years 42 years NLA 10,725 sqm 5,421 sqm Acquisition Year / Price 2007 / S$15.5 milli

  15. Slide 15: Divestments 1QFY16/17

    Divestments 1QFY16/17 Four Acres Singapore Ascendas Z-Link A-REIT Jiashan Logistics Centre Description Built-to-suit global Business Park Single-storey logsitics facility development & training centre for Unilever Remaining Land Tenure 25 years 38 years 49 years NLA 9,170 sqm 27,595 sqm 35,206 sqm A

  16. Slide 16: Ongoing Projects: Improve portfolio quality

    Ongoing Projects: Improve portfolio quality Estimated Value Estimated (S$m) Completion Acer Building 10.7 2Q 2016 2 Senoko South Road 12.1 2Q 2016 The Kendall 1.6 3Q 2016 AzkoNobel House 6.5 4Q 2016 The Aries 4.7 4Q 2016 (Part of The Aries, Sparkle & Gemini) Total Asset Enhancements (AEI) 35.6 A-REI

  17. Slide 17: Agenda

    Agenda Financial Performance & Key Highlights Investment Management Capital Management Portfolio Management Market Outlook A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group 21

  18. Slide 18: Healthy Balance Sheet

    Healthy Balance Sheet  Aggregate leverage increased to 37.3% (from 33.5% in March 2015) following about S$1.5b acquisitions in FY15/16 As at As at 31 Mar 16 31 Mar 15 Total debt (S$m) (1) 3,678 (3) 2,735 Total assets (S$m) 9,870^ 8,160 Aggregate leverage 37.3% (3)^ 33.5% Unitholders' funds (S$m) 5,

  19. Slide 19: Well-spread Debt Maturity Profile

    Well-spread Debt Maturity Profile  Maintain a balanced debt maturity profile with no more than 20% debt maturing in a single year 8% 10% 9% Diversified 36% Financial Resources 800 20% of total debt 37% - - 600 SGD (million) 150* 248 - - 100 150* 95 400 306 - 200 286 400 442 - - 356 350 - - 165 192

  20. Slide 20: Key Funding Indicators

    Key Funding Indicators  Robust indicators enable A-REIT to borrow at competitive costs As at As at 31 Mar 16 31 Mar 15 Aggregate Leverage 37.3% (2)^ 33.5% Unencumbered properties as % of total 77.2% 86.1% investment properties(1) Interest cover ratio 5.5 x 6.1 x Total debt / EBITDA 7.9 x 6.5 x Weig

  21. Slide 21: Annual Property Revaluation

    Annual Property Revaluation  Total valuation of A-REIT’s 133 properties was S$9,659 million @ 31 Mar 2016  Net revaluation loss of S$6.9 million, attributed to Australia  Capitalisation rate of 6.30% for Singapore portfolio (vs. 6.46% as at 31 Mar 2015) Weighted Average Range Business & Science P

  22. Slide 22: Agenda

    Agenda Financial Performance & Key Highlights Investment Management Capital Management Portfolio Management Market Outlook A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group 26

  23. Slide 23: Well Diversified Portfolio

    Well Diversified Portfolio By value of Investment Properties 9.9 9.3% % Logistics & Logistics and Business Science Distribution Distribution Park Park Integrated Centres, 14% AREIT Beijing, Centres Development, 2% 90.1 Australia, 11% 90.7% Amenities & % AREIT Retail, 7% Australia, Shanghai, 2% Flatt

  24. Slide 24: Tenants' Industry Diversification

    Tenants’ Industry Diversification  Total: ~1,470 customers 3rd Party Logistics, Freight Forwarding 10.8% Distributors, trading company 10.5% Information Technology 9.3% Financial 9.1% M&E and Machinery & Equipment 8.5% Telecommunication & Datacentre 7.8% Electronics 6.9% Life Science 5.0% Food Prod

  25. Slide 25: Low Exposure to Manufacturing

    Low Exposure to Manufacturing As at 31 March 2016  10.1% of NLA occupied by tenants engaged in manufacturing activities 10.1%  Manufacturing activities include food & beverages, aeronautical auxiliary equipment, precision engineering etc. Tenants’ business activities by NLA  Non-manufacturing act

  26. Slide 26: Quality and Diversified Customer Base

    Quality and Diversified Customer Base  Total customer base of around 1,470 tenants  Top 10 customers (as at 31 March 2016) account for about 18.2% of portfolio gross rental income  Security deposits for single-tenant properties range from 5 to 11 months of rental income  On a portfolio basis, we

  27. Slide 27: Overview of Portfolio Occupancy

    Overview of Portfolio Occupancy 100.0% 94.7% 87.9% 88.6% 87.6% 87.7% 90.0% 80.0% 70.0% 67.3% 60.0% 51.2% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Singapore Australia N.A. China Total Mar-16 Mar-15 Gross Floor 2,967,778* 669,525 147,036 3,784,339 Area (sqm) Note: - The Australia properties were acquired in

  28. Slide 28: Singapore Occupancy

    Singapore Occupancy  Singapore occupancy declined to 87.9% mainly due to the single tenant lease expiry at IDS Logistics Corporate HQ  Excluding IDS, Singapore occupancy is about 88.7% underpinned by new properties such as One@Changi City, DBS Asia Hub As at 31 Mar 2016 31 Mar 2015 Total Singapore

  29. Slide 29: Singapore: Sources of New Demand

    Singapore: Sources of New Demand 2.5% 2.6% 2.0% 2.2% 4.1% 2.9% 4.1% 3.9% 1.5% 4.7% 28.7% 1.0% 34.0% 1.4% 7.7% 1.4% 5.7% By By NLA Gross 8.7% 7.7% Income 8.5% 16.2% 19.4% 16.9% 12.0% Transport and Storage Electronics Others Food Products & Beverages IT Biomedical Telecommunication & Datacentre Precis

  30. Slide 30: Singapore: Achieved Positive Rental Reversion

    Singapore: Achieved Positive Rental Reversion  Achieved +7.0% rental reversion for leases renewed in FY15/16  Positive rental reversion was registered across all segments Multi-tenant properties (1) FY15/16 increase in renewal rates (3) Business & Science Parks 9.6% Hi-Specs Industrial 4.5% Light

  31. Slide 31: Weighted Average Lease Expiry (By gross revenue)

    Weighted Average Lease Expiry (By gross revenue)  Portfolio Weighted Average Lease Expiry (WALE) maintained at 3.7 years WALE (years) 31 Mar 2016 Singapore 3.5 Australia 5.2 China 2.6 Portfolio 3.7 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group 35

  32. Slide 32: Portfolio Lease Expiry Profile (as at March 2016)

    Portfolio Lease Expiry Profile (as at 31 March 2016)  Portfolio weighted average lease to expiry (WALE) of 3.7 years Breakdown of expiring leases for FY16/17 and  Lease expiry is well-spread, extending beyond 2029 FY17/18  About 19.4% of gross revenue is due for renewal in balance of FY16/17 1% 4

  33. Slide 33: Singapore: In-place rent for space due for renewal in FY16/17 and FY17/18

    Singapore: In-place rent for space due for renewal in FY16/17 and FY17/18  Current market rental rate is slightly above the weighted average passing rental for most of the multi-tenant space due for renewal in FY16/17  Expect modest rental reversion in the low-single digit or flat for FY16/17 * *

  34. Slide 34: Agenda

    Agenda Financial Performance & Key Highlights Investment Management Capital Management Portfolio Management Market Outlook A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group 38

  35. Slide 35: Market Outlook

    Market Outlook  According to Ministry of Trade and Industry's advance estimates, Singapore’s 1Q 2016 economy grew 1.8% y-o-y. This is in line with earlier estimates of between 1.0% to 3.0%  JTC industrial property price and rental index declined by 2.5% and 2.7% q-o-q respectively in 1Q 2016  Acc

  36. Slide 36: Review of FY15/16 Performance Annual General Meeting

    DBS Asia Hub 2 2-34 Aylesbury Drive ONE@Changi City Review of FY15/16 Performance Annual General Meeting 28 June 2016 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group

  37. Slide 37: Resolutions

    Resolutions A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group 41

  38. Slide 38: Resolution 1 (Ordinary Resolution)

    Resolution 1 (Ordinary Resolution) Ordinary Business To receive and adopt:  the Report of HSBC Institutional Trust Services (Singapore) Limited (as Trustee of A-REIT),  the Statement by Ascendas Funds Management (S) Limited (as Manager of A-REIT), and  the Audited Financial Statements of A-REIT f

  39. Slide 39: Resolution 2 (Ordinary Resolution)

    Resolution 2 (Ordinary Resolution) Ordinary Business To appoint Ernst & Young LLP as Auditors of A-REIT to hold office until the conclusion of the next AGM of A-REIT in place of the retiring Auditors, KPMG LLP, and to authorise the Manager to fix their remuneration A-REIT is managed by Ascendas Fund

  40. Slide 40: Resolution 3 (Ordinary Resolution)

    Resolution 3 (Ordinary Resolution) Special Business To authorise the Manager or, as the case may be, the Trustee, to issue Units and to make or grant instruments convertible into Units and issue Units pursuant to such instruments Such units must not, in aggregate, exceed 50% of the total number of i

  41. Slide 41: Review of FY15/16 Performance Annual General Meeting

    DBS Asia Hub 2 2-34 Aylesbury Drive ONE@Changi City Review of FY15/16 Performance Annual General Meeting 28 June 2016 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group

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