Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — Ascendas Reit — Shareholder Meeting (June 2017)
32 slides from Capitaland Ascendas Reit's shareholder meeting presentation, Jun 29, 2017
Slide 1: Review of FY16/17 Performance Annual General Meeting
12, 14 & 16 Science Park Drive, Singapore 197-201 Coward Street, Sydney, Australia Review of FY16/17 Performance Annual General Meeting 29 June 2017
Slide 2: Disclaimers
Disclaimers This material shall be read in conjunction with Ascendas Reit’s financial statements for the financial year ended 31 March 2017. This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may
Slide 3: Agenda
Agenda Financial Performance & Key Highlights Investment Management Capital Management Portfolio Management Market Outlook 3
Slide 4: Financial Performance
Financial Performance (S$’000) FY16/17 FY15/16 % fav/ (unfav) Gross revenue 830,592 760,988 9.1 Net property income 610,954 533,701 14.5 Total amount available for distribution 446,304 378,321 18.0 DPU after performance fee (cents) 15.743 15.357 2.5 Note: Please refer to Ascendas Reit’s financial an
Slide 5: Key Highlights
Key Highlights Key growth drivers: • Full year contributions from FY15/16 acquisitions: • Australian Logistics Portfolio • ONE@Changi City (Singapore) • Maiden contributions from FY16/17 acquisitions: • 197-201 Coward Street (Australia) • 12, 14 & 16 Science Park Drive (DNV/DSO, Singapore) • One-o
Slide 6: Key Highlights
Key Highlights Assets under Management grew 3% to $10.2 billion Stable Property Valuation • Same-store valuation of 127 properties was stable at S$9,276.2m (vs S$9,176.6m @ 31 Mar 2016^ ) • Portfolio capitalisation rate at 6.29% (vs 6.34% @ 31 Mar 2016 ) Proactive Capital Management • Moody’s
Slide 7: Agenda
Agenda Financial Performance & Key Highlights Investment Management Capital Management Portfolio Management Market Outlook 7
Slide 8: Investment Highlights
Investment Highlights Assets under Management grew 3% to $10.2b Acquired Asset Divested S$565.6m Enhancements/ $436m Development $150m 12, 14, 16 Science Park Completed: 3 China properties Drive ($420m) 5 projects (S$36m) (S$408m) 197-201 Coward Street, Ongoing: Four Acres Spore (S$34m) Sydney ($1
Slide 9: High Quality Science Park Acquisition: 12, 14 & 16 Science Park Drive
High Quality Science Park Acquisition: 12, 14 & 16 Science Park Drive (DNV/DSO) Purchase Consideration S$420.0m Acquisition Fee, Stamp S$17.5m Duty and Other transaction costs Total Acquisition Cost S$437.5m Vendor Ascendas Land (Singapore) Pte Ltd Valuation (as at 31 S$440.0m March 2017) Land Area
Slide 10: First Australian Business Park Acquisition: 197-201 Coward Street, Mascot, Sydney
First Australian Business Park Acquisition: 197-201 Coward Street, Mascot, Sydney Purchase Consideration A$143.4m Acquisition Fee, Stamp A$10.0m Duty and Other transaction costs Total Acquisition Cost A$153.4m Vendor Frasers Property Australia Valuation (as at 31 March A$148.0m by Knight Frank 2017)
Slide 11: Ongoing Projects: Improve Portfolio Quality
Ongoing Projects: Improve Portfolio Quality Estimated Value Estimated (S$m) Completion Re-development 106.6 20 Tuas Ave 1 61.4 1Q 2018 50 Kallang Avenue 45.2 2Q 2017 Asset Enhancement Initiatives (AEI) 7.7 The Gemini 7.7 3Q 2017 Total AEI + Re-development 114.3 11
Slide 12: Divestments to Recycle Capital
Divestments to Recycle Capital Divested 4 properties, realising total capital gains of S$194.6m over original costs Four Acres Singapore A-REIT Jiashan Logistics Centre Ascendas Z-Link A-REIT City @Jinqiao Description Built-to-suit global Single-storey logistics facility Business Park Business Par
Slide 13: Agenda
Agenda Financial Performance & Key Highlights Investment Management Capital Management Portfolio Management Market Outlook 13
Slide 14: Healthy Balance Sheet
Healthy Balance Sheet Aggregate leverage improved to 33.8% (from 37.3% in March 2016) on the back of divestment proceeds, equity fund raising and Exchangeable Collateralised Securities (ECS) conversion into Units Available debt headroom of S$2.1b to reach 45.0% aggregate leverage As at As at 31
Slide 15: Well-spread Debt Maturity Profile
Well-spread Debt Maturity Profile Well-spread debt maturity with the longest debt maturing in 2029 Average debt maturity: 3.3 years 17% 43% Diversified 12% Financial 800 Resources 700 600 248 28% 500 100 SGD (million) 95 400 301 300 593 200 451 200 350 357 100 200 200 192 154 - - - - - - - - - -
Slide 16: Key Funding Indicators
Key Funding Indicators Robust indicators enable Ascendas Reit to borrow at competitive costs As at As at As at 31 Mar 17 31 Dec 16 31 Mar 16 Aggregate Leverage 33.8%(2) 31.8% 37.3% Unencumbered properties as % of total 89.3% 77.3% 77.2% investment properties(1) Interest cover ratio 5.7 x 5.6 x 5.5
Slide 17: Annual Property Revaluation
Annual Property Revaluation Total valuation of 129 properties was S$9,874.2m Same-store valuation of 127 properties @ 31 Mar 2017(2) was stable at S$9,276m (vs. S$9,177m @ 31 Mar 2016(3)) Capitalisation rate of 6.29% for total portfolio (vs. 6.34% @ 31 Mar 2016) As at 31 Mar 2017 Valuation (S$
Slide 18: Agenda
Agenda Financial Performance & Key Highlights Investment Management Capital Management Portfolio Management Market Outlook 18
Slide 19: Well Diversified Portfolio
Well Diversified Portfolio By value of Investment Properties Australia 13% Singapore 87% 19
Slide 20: Australia Portfolio
Australia Portfolio 27 modern logistics properties located in key cities: Sydney, Melbourne, Brisbane and Perth 11 1 business park in Sydney GFA 692,153 sqm 20
Slide 21: Well Diversified Portfolio
Well Diversified Portfolio By value of Investment Properties Logistics & Business Park Logistics & Distribution Australia, 2% Distribution Centres Australia, Centres Singapore, 11% 13% Integrated Development, Amenities & Retail, 7% Australia 13% Business Flatted Factories, Park, 18% 3% Light Industr
Slide 22: Tenants' Industry Diversification
Tenants’ Industry Diversification (by Monthly Gross Revenue) 3rd Party Logistics, Freight Forwarding 10.6% Distributors, trading company 9.8% Financial 9.7% M&E and Machinery & Equipment 8.6% Information Technology 7.4% Telecommunication & Datacentre 6.9% Electronics 6.8% Life Science 4.6% Food Prod
Slide 23: Quality and Diversified Customer Base
Quality and Diversified Customer Base Top 10 customers (as at 31 Mar 2017) account for about 20.8% of portfolio gross rental income 4.8% 3.2% 2.1% 2.1% 1.9% 1.6% 1.5% 1.2% 1.2% 1.2% Singapore DSO Citibank, DBS Bank Wesfarmers Ceva JPMorgan Biomedical Hydrochem Siemens Telecomm National N.A Ltd Gro
Slide 24: Overview of Portfolio Occupancy
Overview of Portfolio Occupancy 100.0% 96.3% 94.7% 88.6% 87.9% 90.2% 87.6% 90.0% 80.0% 70.0% 60.0% 51.2% 50.0% 40.0% 30.0% 20.0% 10.0% N.A.(1)N.A.(1) 0.0% Singapore Australia China Total Mar-17 Mar-16 Gross Floor 3,025,823(3) 692,153(4) N.A. 3,717,976 Area(2) (sqm) Note: (1) All Ascendas Reit’s Chin
Slide 25: Singapore: Occupancy
Singapore: Occupancy Occupancy rose by 70 bps y-o-y to 88.6% boosted by 12, 14 & 16 Science Park Drive and 40 Penjuru Lane As at 31 Mar 2017 31 Mar 2016 Total Singapore Portfolio GFA (sqm) 3,025,823(1)(2)(3) 2,967,777(4) Singapore Portfolio occupancy (same store) (5) 88.4% 88.9% Singapore MTB occu
Slide 26: Australia: Occupancy
Australia: Occupancy Occupancy rose 160 bps y-o-y to 96.3% mainly due to the higher occupancy at 162 Australis Drive (Melbourne) and 62 Stradbroke Street (Brisbane) As at 31 Mar 2017 31 Mar 2016 Total Australian Portfolio GFA (sqm) 692,153(1) 669,525 Australian Portfolio occupancy (same store) (2)
Slide 27: Achieved Positive Portfolio Rental Reversions
Achieved Positive Portfolio Rental Reversions Achieved +3.1% rental reversion for leases renewed in FY16/17 Rental reversion is expected to be subdued or flat in view of current global uncertainty, lower anticipated demand and excessive supply of industrial properties in Singapore Multi-tenant B
Slide 28: Weighted Average Lease Expiry
Weighted Average Lease Expiry (By gross revenue) Portfolio Weighted Average Lease Expiry (WALE) at 4.3 years WALE (as at 31 March 2017) Years Singapore 4.3 Australia 4.9 Portfolio 4.3 28
Slide 29: Portfolio Lease Expiry Profile
Portfolio Lease expiry profile (as at 31 Mar 2017) Portfolio weighted average lease to expiry (WALE) of 4.3 years Breakdown of expiring leases in FY17/18 Lease expiry is well-spread, extending beyond 2030 2% About 16.6% of gross revenue is due for renewal in FY17/18 23% 26% FY17/18 6% 18.6% 17
Slide 30: Agenda
Agenda Financial Performance & Key Highlights Investment Management Capital Management Portfolio Management Market Outlook 30
Slide 31: Market Outlook
Market Outlook Singapore Economy is expected to grow at 1.0% to 3.0% in 2017 (source: MTI). Potential incoming supply of about 2.4m sqm of industrial space in 2017, will put further pressure on rental rates and occupancy (source: JTC). There is growing optimism over global economic prospects.
Slide 32: Thank you
Thank you 32