Aims Apac Reit · SGX:O5RU
Aims Apac Reit — MacarthurCook Industrial REIT — FY2009 Earnings Presentation
37 slides from Aims Apac Reit's earnings presentation, May 22, 2009
Slide 1: FY2009 Financial Results Presentation
FY2009 Financial Results Presentation 22 May 2009
Slide 2: Important Notice
Important Notice This Presentation is focused on comparing actual results for the financial period from 1 April 2008 to 31 March 2009 (“FY2009”) and 1 January 2009 to 31 March 2009 (“4Q 2009”) versus actual results year-on-year (“y-o-y”) and quarter-on-quarter (“q-o-q”). This Presentation shall be r
Slide 3: Important Notice
Important Notice The presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Rep
Slide 4: Agenda
Agenda 1. Key Highlights 2. Financial Performance 3. Capital Management 4. Portfolio Management 5. Outlook 6. MacarthurCook Limited 4
Slide 5: MI-REIT Key Highlights
MI-REIT Key Highlights MI-REIT Distributions: – FY2009 distributable income of S$23.4 million, up 19.4% y-o-y – FY2009 distribution per unit (“DPU”) of 8.925 cents, up 18.7% y-o-y – 4Q 2009 distributable income of S$5.0 million, down 13.9% y-o-y – 4Q 2009 distribution per unit (“DPU”) of 1.875 cen
Slide 6: MI-REIT Key Highlights (Continued)
MI-REIT Key Highlights (Continued) Capital Management: – Announced today that MI-REIT has achieved a credit approval for an extension of its existing drawn Singapore debt facility of S$202.3 million (the “Facility”) to 31 December 2009 with an all in interest margin of 5% per annum. – This extensi
Slide 7: Distribution Details
Distribution Details Stock Counter Distribution Period Distribution per unit (S$ Cents) MacCookIReit 1 January 2009 to 31 1.875 March 2009 Distribution Timetable Ex-Date: 1 June 2009, 9.00am (Units will be traded ex-distribution) Books Closure Date: 3 June 2009, 5.00pm Distribution Payment Date: 29
Slide 8: Financial Performance
Financial Performance 8
Slide 9: DPU – FY2009 is 18.7% higher than FY2008
DPU – FY2009 is 18.7% higher than FY2008 FY2009 FY2008 Variance FY2009 Variance S$’000 S$’000 S$’000 Actual Actual (%) Forecast1 (%) Gross Revenue 50,827 32,214 +57.8 35,373 +43.7 Net Property Income 36,856 24,824 +48.5 25,079 +47.0 Total return after income (26,988) 52,969 >(100) 19,803 >(100) tax
Slide 10: DPU – 4Q2009 vs 4Q 2008 vs forecast
DPU – 4Q2009 vs 4Q 2008 vs forecast 4Q2009 4Q2008 Variance 4Q2009 Variance S$’000 S$’000 S$’000 Actual Actual (%) Forecast (%) 1 Gross Revenue 13,065 10,852 +20.4 8,852 +47.6 Net Property Income 9,272 8,017 +15.7 6,270 +47.9 Total return after income (36,760) 2,156 >(100) 4,957 >(100) tax and minori
Slide 11: DPU and Net Property Income
DPU and Net Property Income DPU Cents 2.22 2.35 2.35 2.35 2.5 1.86 1.92 1.875 2 1.52 1.5 1 0.5 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q2009 3Q2009 4Q2009 S$'m Net Property Income 10 9.1 9.3 9.3 9.3 8.0 8 5.9 6.3 6 4.7 4 2 0 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q2009 3Q2009 4Q2009 11
Slide 12: FY2009 Distributions to Unitholders supported by
FY2009 Distributions to Unitholders supported by: Secure income stream from strong and diversified tenant profile – Portfolio is 98.64% occupied Secure income stream – 65.0% of rental income from publicly listed tenants (or subsidiaries of publicly listed companies)1 – Security deposits on all pro
Slide 13: Capital Management
Capital Management 13
Slide 14: Balance Sheet
Balance Sheet 31 March 2009 31 March 2008 Total Assets (S$’M) 544.0 569.3 Comprising (S$’M): - Investment Properties 530.3 555.4 - Cash and Cash Equivalents 10.0 9.6 - Trade and Other Receivables 3.7 3.1 Total Liabilities (S$’M) 254.9 231.7 Net Assets attributable to Unitholders (S$’M) 289.0 337.6 N
Slide 15: Debt and Gearing Profile
Debt and Gearing Profile Gearing of 41.2% as at 31 March 2009 Total debt facility of S$243.9 million S$’m Aggregate Leverage 600.0 544.0 Bank Loan Total Assets 323.5 Gearing 300.0 of 41.2% . 224.0 Gearing 27.5 of 8.5% 0.0 At IPO & 30-Jun-07 31-Mar-09 15
Slide 16: Capital Management
Capital Management ¾ Announced on 22 May 2009 that MI-REIT had achieved credit approval for an extension of its existing drawn Singapore debt facility to 31 December 2009, with an all in interest margin of 5% per annum. This extension gives MI-REIT additional time to secure a longer term debt refina
Slide 17: Portfolio Management
Portfolio Management 18
Slide 18: A Resilient Portfolio
A Resilient Portfolio As at 31 March 2009, MI-REIT’s rental income continues to be supported by the following factors: Portfolio is 98.64% occupied; 65.0% of rental income derived from companies that are publicly listed or are subsidiaries of publicly listed companies; 18 properties acquired i
Slide 19: MI-REIT's Portfolio as at March 2009
MI-REIT’s Portfolio as at 31 March 2009 Property / Address Fair Value as at 31 Fair Value as at 31 March 2009 (S$’m)1 March 2008 (S$’m) 8 & 10 Pandan Crescent 131.3 137.9 1 External valuations were prepared 31 Admiralty Road 14.2 14.8 by Colliers for MI-REIT’s Singapore 10 Changi South Lane 33.5 35.
Slide 20: Security of Income Stream
Security of Income Stream 1) Head Lease Arrangements The portfolio is 98.64% occupied, with 19 properties in the portfolio under head lease arrangements 18 properties were acquired in sale and lease-back transactions, which allow a greater degree of financial due diligence to be conducted on the
Slide 21: Organic Rental Growth
Organic Rental Growth Built-in Rental Escalations 19 of the properties have contracted rental escalations staggered throughout their leases; 17 of the properties have escalations that range from 2.5% to 8.0%, whilst one has annual escalation of 1.5% and another at Consumer Price Index; The foll
Slide 22: A Focused Investment Approach
A Focused Investment Approach MI-REIT’s investment objectives continue to be supported by our three pronged investment strategy* Strategy Investment Objectives Prudent capital and risk Maintain a strong balance sheet and reduce debt to a management strategy sustainable long term gearing level Ma
Slide 23: Built-in Rental Escalations Support Organic Growth
Built-in Rental Escalations Support Organic Growth Property Year of Lease Year of Rental Escalation from Lease % of Rental Escalation per Year commencement Commencement Date 1 FY2008 Annual 1.50% 2 FY2008 Year 2 2.50% 3 FY2008 Years 3,5,7 3.00% 4 FY2008 Year 3, 5 3.25% 5 FY2008 Years 3, 5 5.00% 6 FY
Slide 24: Greater Diversification By Rental Income
Greater Diversification By Rental Income1 MI-REIT’s tenant diversification has improved, with no single tenant contributing more than 20.2% of rental income as at 31 March 2009. This compares to 33.6% at listing. Top 10 tenants accounted for 67.3% of the total portfolio income as at 31 March 200
Slide 25: Balanced Lease Expiry Profile
Balanced Lease Expiry Profile Income stability from relatively long average lease duration - Only 0.3% of rental income is subject to lease expiry in FY2010 - The majority of leases do not expire until FY2013 (44.7%), FY2015 (18.4%) and FY2017 and after (23.8%) Lease Expiry Profile by Rental Incom
Slide 26: Long Leasehold For Underlying Land
Long Leasehold For Underlying Land Remaining years to expiry of underlying land 12 properties as at IPO 21 properties as at 31 March 2009 60.0% 54.00% 50.0% 40.8% 40.0% 33.8% 30.0% 25.4% 22.79% 20.06% 20.0% 10.0% 3.15% 0.0% Expiries in 2037-2046 Expiries in 2047-2056 Expiries in 2068 Freehold Initia
Slide 27: Singapore Portfolio
Singapore Portfolio Presence throughout key industrial precincts Logistics and Warehousing 1 8 & 10 Pandan Crescent 2 31 Admiralty Road 3 23 Changi South Avenue 2 Causeway 2 9 4 10 Changi South Lane 5 7 Clementi Loop 7 17 6 103 Defu Lane 10 7 61 Yishun Industrial Park A 8 11 Changi South Street 3 19
Slide 28: And in Japan
And in Japan Asahi Ohmiya Warehouse Address: 1-398-3, 11, 13 Yoshinocho, Kita-Ku, Saitama City, Japan Kusatsu Ulsunomiya Maebashi Mito Yoshinohara Yoshino- station Saitama cho Higashi Ohmiya bypass Tokyo Narita Kawasaki Chiba Yokohama Kamakura Asahi Ohmiya Yoshino-cho interchange Warehouse Konba 200
Slide 29: Portfolio Diversity and Strength
Portfolio Diversity and Strength Well diversified Portfolio by Property Usage 98.64% occupied as at 31 March 2009 Property Usage by Net Lettable Area (As at 31 March 2009) Manufacturing, 39.6% Warehouse and Logistics, Research and 58.2% Technology, 2.2% 30
Slide 30: Diverse Tenant Industry Mix: Warehouse and Logistics
Portfolio Diversity and Strength Diverse Tenant Industry Mix: Warehouse and Logistics By Rental Income as at 31 March 2009 Approximately 61.4% of YTD rental income is contributed by tenants who are engaged in warehousing and logistics. Warehouse and Logistics (By Rental Income as at 31 March 2009)
Slide 31: Diverse Tenant Industry Mix: Manufacturing
Portfolio Diversity and Strength Diverse Tenant Industry Mix: Manufacturing By Rental Income as at 31 March 2009 Approximately 35.6% of YTD rental income is contributed by tenants who are engaged in manufacturing. Manufacturing (By Rental Income as at 31 March 2009) Metals trading & equipment cons
Slide 32: Outlook
Outlook 34
Slide 33: Outlook for the Singapore and Japanese economy
Outlook for the Singapore and Japanese economy The Singapore economy grew by 1.1% for the year 2008 versus 7.7% growth in 2007. However, in April 2009, advance estimates by Singapore’s Ministry of Trade and Industry (“MTI”) forecast a GDP contraction of 6.0% to 9.0% in 20091. To alleviate the im
Slide 34: Outlook for Industrial Property Market in Singapore
Outlook for Industrial Property Market in Singapore Singapore Industrial capital values and rents have experienced downward pressure. In the first quarter of 2009, prices and rentals of multiple-user factory space contracted by 9.9% and 6.1%, while that of multiple-user warehouse space fell by 12.
Slide 35: Our View
Our View Given that Singapore and Japan’s predominantly export dependent economies are experiencing contraction as major trade partners in the developed countries are well into recession, the Manager expects that the next twelve months will be challenging. Industrial tenants are not immune from th
Slide 36: MacarthurCook Limited
MacarthurCook Limited Over the year, MacarthurCook Limited (“MacarthurCook”) which owns 92.5% of the Manager, has taken these steps to strengthen its foundation in Asia as a specialist international real estate funds manager: Focusing on its core strategy and strengths of providing international i
Slide 37: Thank You
Thank You 37
MacarthurCook Industrial REIT — FY2009 Earnings Presentation on 6ix