Aims Apac REIT · SGX:O5RU
Aims Apac REIT — Q3 FY2021 Earnings Presentation
39 slides from Aims Apac REIT's earnings presentation, Jan 28, 2021
Slide 1: FY2021: Third Quarter Financial Results
AIMS APAC REIT FY2021: Third Quarter Financial Results Ended 31 December 2020 28 January 2021 Results Presentation
Slide 2: Important Notice
AIMS APAC REIT Important Notice Disclaimer This Presentation is focused on comparing actual results for the financial period from 1 October 2020 to 31 December 2020 (“3Q FY2021”) versus actual results year-on-year (“y-o-y”) and quarter-on-quarter (“q-o-q”). This Presentation shall be read in conjunc
Slide 3: Contents
AIMS APAC REIT Contents 1. Highlights for 3Q FY2021 2. 3Q FY2021 Financial Results 3. Prudent Capital Management 4. Portfolio Performance 5. Market Outlook and Strategy 6. Updates on COVID-19 3
Slide 4: Highlights for 3Q FY2021
1 HIGHLIGHTS FOR 3Q FY2021 4
Slide 5: Highlights For 3Q FY2021: Resilient Financial Performance
AIMS APAC REIT Highlights For 3Q FY2021 Resilient Financial Performance • DPU performance: 2.05 cents per Unit for the quarter1 • Gross revenue for 3Q FY2021 of S$32.1 million was S$1.7 million higher than the preceding quarter primarily due to the maiden rental contribution from the recently acquir
Slide 6: Highlights For 3Q FY2021: Active lease management
AIMS APAC REIT Highlights For 3Q FY2021 Active lease management • Executed 21 new and renewal leases in 3Q FY2021, representing 107,871 sqm1. • Portfolio occupancy increased to 95.7%2 mainly due to the addition of 7 Bulim Street to the portfolio, new master tenant at 541 Yishun Industrial Park A as
Slide 7: Highlights For 3Q FY2021: Prudent Capital Management
AIMS APAC REIT Highlights For 3Q FY2021 Prudent Capital Management • Maintain a healthy leverage of 34.1% and interest coverage ratio of 3.8 times. • Overall blended funding cost of 3.1% with 78.9% of the portfolio’s interest rates fixed taking into account interest rate swaps and fixed rate notes.
Slide 8: Attractive Return On Investment
AIMS APAC REIT Attractive Return On Investment 8.00% 6.26% % yield per annum 4.24% 542 bps spread 4.00% 2.50% 0.84% 0.25% 0.00% 1 AA REIT Yield FTSE ST REIT 12-month CPF Ordinary Account 3 Singapore Government 10- Bank 12-month fixed Yield 2 year bond 2 deposits2 1 Based on closing price of S$1.29 o
Slide 9: Total Distribution And Unitholders' Funds Since FY2011
Total Distribution And Unitholders’ Funds Since AIMS APAC REIT FY2011 1000.0 962.1 955.0 944.1 940.7 939.0 928.5 Total Unitholders Funds (S$’m) 911.9 888.4 900.0 800.0 700.0 665.3 626.2 586.2 600.0 30.00 80.00 500.0 72.06 70.50 70.50 69.20 67.37 66.51 Distributions per Unit (Singapore cents) 70.00 T
Slide 10: 3Q FY2021 Financial Results
2 3Q FY2021 FINANCIAL RESULTS 10
Slide 11: Distribution details
AIMS APAC REIT Distribution details Stock Counter Distribution Period DPU (cents) AIMS APAC REIT For 1 October 2020 to 31 2.05 Code: O5RU December 2020 Distribution Period For 1 October 2020 to 31 December 2020 Ex-date 4 February 2021, 9.00am Record date 5 February 2021, 5.00pm Return of Tax Declara
Slide 12: 3Q FY2021 Results
AIMS APAC REIT 3Q FY2021 Results (S$’000 unless otherwise 3Q 2Q Q-o-Q 3Q Y-o-Y YTD YTD Y-o-Y stated) FY2021 FY2021 (%) FY2020 (%) FY2021 FY2020 (%) Gross Revenue1 32,142 30,492 5.4 29,458 9.1 89,874 90,642 (0.8) Net Property Income1 23,579 21,324 10.6 23,110 2.0 63,532 68,541 (7.3) Share of profits
Slide 13: Balance Sheet
AIMS APAC REIT Balance Sheet (S$ million unless otherwise stated) As at As at 31 December 2020 30 September 2020 Total Assets 1,824.4 1,803.6 Comprising: - Investment properties 1,492.1 1,361.2 - Joint venture 310.0 290.8 - Trade and other receivables 7.5 9.6 - Cash and cash equivalents 14.8 142.0 T
Slide 14: Key Financial Metrics for 3Q FY2021
AIMS APAC REIT Key Financial Metrics for 3Q FY2021 3Q FY2021 2Q FY2021 Portfolio Value (S$ million)1 1,702.8 1,549.5 Market Capitalisation (S$ million)2 911.6 855.1 NAV per Unit (S$) 1.34 1.34 Share Price (S$)2 1.29 1.21 Discount to NAV (%)2 (3.7) (9.7) Aggregate Leverage (%)3 34.1 33.6 Interest Cov
Slide 15: Prudent Capital Management
3 PRUDENT CAPITAL MANAGEMENT 15
Slide 16: Debt facilities as at 31 December 2020
AIMS APAC REIT Debt facilities as at 31 December 2020 Secured SGD borrowings • Total secured facility of S$345.0 million1 comprising: • 4-year revolving credit facility of S$120.0 million, maturing in November 2021 • 4-year term loan facility of S$125.0 million, maturing in July 2022 • 4-year term l
Slide 17: Debt facilities as at 31 December 2020 (cont'd)
Debt facilities as at 31 December 2020 (cont’d) AIMS APAC REIT Unsecured borrowings • S$50.0 million 5-year fixed rate notes at 3.60% maturing in March 2022. • S$100.0 million 5-year fixed rate notes at 3.60% maturing in November 2024. Summary • Overall blended funding cost of 3.1%. • 78.9% of the p
Slide 18: Debt facilities as at 31 December 2020 (cont'd)
Debt facilities as at 31 December 2020 (cont’d) AIMS APAC REIT Maturity date S$’m 22 Due in November 2021 (FY2022) 30.9 Due in March 2022 (FY2022) 50.0 S$25.3m undrawn 66 Due in June 2022 (FY2023) 40.9 100 50 Due in July 2022 (FY2023) 100.0 S$25m undrawn Due in July 2023 (FY2024) 112.1 112 S$89.1m D
Slide 19: Portfolio Performance
PORTFOLIO & PERFORMANCE AIMS 19
Slide 20: Revenue Performance Since FY2011
AIMS APAC REIT Revenue Performance Since FY2011 140,000 124,389 120,119 118,860 116,916 118,078 120,000 115,432 108,240 100,000 92,082 89,054 89,874 83,983 82,329 80,013 79,433 78,493 S$’000 80,000 76,417 73,245 71,895 63,532 59,071 59,896 60,000 52,982 40,000 20,000 - FY2011 FY2012 FY2013 FY2014 FY
Slide 21: Key Portfolio Statistics
AIMS APAC REIT Key Portfolio Statistics As at As at 31 December 2020 30 September 2020 Number of Properties 28 27 Portfolio Value (S$ million)1 1,702.8 1,549.5 Net Lettable Area (sq m) 741,227 672,050 Number of Tenants 196 193 Portfolio Occupancy (%) 95.7 94.5 Weighted Average Lease Expiry (WALE) 3.
Slide 22: Portfolio Breakdown
Portfolio Breakdown AIMS APAC REIT By 3Q FY2021 gross rental income Master Leases, Business Park 34.9% 15.9% Multi-tenanted, 65.1% Hi Tech Space 8.5% Logistics and Warehouse 50.4% Occupancy (%) Light Industrial 11.2% Total Portfolio 95.7 (28 properties) Master Leases1,2 100.0 General Industrial Mult
Slide 23: Diversified Tenant/Industry Base
AIMS APAC REIT Diversified Tenant/Industry Base1,2 (By 3Q FY2021 Gross Rental Income) IT & Electronics, 3.1% Fashion and Apparels, 4.5% Consumer products, 6.3% Infrastructure, 0.8% FMCG, 2.5% Furniture, 2.6% Pharmaceutical/Healthcare/ Biotech / Life Cosmetics, 5.7% Sciences, 8.3% Self-storage, 2.1%
Slide 24: Active Lease Management
AIMS APAC REIT Active Lease Management Lease Expiry Profile as at 31 December 2020 (By 3Q FY2021 Gross Rental Income) % of total 3Q FY2021 sqm NLA Total new leases signed1 13 96,123 13.0 Total renewal leases signed2 8 11,748 1.6 35.0% 30.0% 28.5% 23.9% % of gross rental income 25.0% 20.0% 17.8% 15.2
Slide 25: Quality Tenant Base
AIMS APAC REIT Quality Tenant Base Top 10 tenants by 3Q FY2021 Gross Rental Income Tenant % Optus Administration Pty Limited 12.6 Illumina Singapore Pte Ltd 8.3 KWE-Kintetsu World Express (S) Pte Ltd 7.3 Beyonics International Pte Ltd 3.7 Resmed Asia Pte Ltd 3.4 GSM (Operation) Pty Ltd 2.7 CWT Pte L
Slide 26: Long Land Lease Expiry – 34.8 Years
Long Land Lease Expiry – 34.8 Years AIMS APAC REIT The weighted average unexpired land lease* was 34.8 years as at 31 December 2020 60.0% 49.4% 50.0% % of Net Lettable Area 40.0% 34.1% 30.0% 20.0% 8.9% 10.0% 7.6% 0.0% 0.0% >20 to 30 years > 30 to 40 years > 40 to 50 years > 50 to 60 years > 60 years
Slide 27: Comparisons To Singapore's Industrial Average Occupancy Levels
Comparisons To Singapore’s Industrial AIMS APAC REIT Average Occupancy Levels 100.0% 97.0% 95.7% 94.8% 95.0% % Occupancy 90.0% 89.6% 89.0% 89.1% 87.8% 85.4% 85.0% 80.0% 75.0% Overall Business Park Warehouse Industrial AA REIT JTC's 3Q 2020 Source: Based on JTC’s 3rd Quarter 2020 statistics. 27
Slide 28: Portfolio Summary
AIMS APAC REIT Portfolio Summary Built-in rent Occupancy escalations of 95.7% for Master Leases Diversified Weighted tenancies Average and industry Lease Expiry base of 3.94 years 28
Slide 29: Portfolio Expansion
AIMS APAC REIT Portfolio Expansion Continued pursuit of yield-accretive opportunities for portfolio growth Announced the acquisition of a light industrial asset, strategically located at the focal point of Singapore’s city- fringe and premium showroom precinct at 315 Alexandra Road – Sime Darby Busi
Slide 30: Market Outlook and Strategy
5 MARKET OUTLOOK AND STRATEGY 30
Slide 31: Market Update and Outlook
AIMS APAC REIT Market Update and Outlook Macro Singapore Economy • Globally, news on the COVID-19 situation • Based on advance estimates for the fourth continues to be mixed. The number of quarter of 2020 by the Ministry of Trade and infected COVID-19 cases has increased Industry, the Singapore econ
Slide 32: Strategy
AIMS APAC REIT Strategy Portfolio Active asset and Prudent capital and Management leasing risk management management • To pursue accretive • Prudent capital investment • Continual focus on management by opportunities in proactive asset and substantially hedging Singapore and lease management. intere
Slide 33: Potential Opportunities Within AA REIT's Portfolio
Potential Opportunities Within AA REIT’s AIMS APAC REIT Portfolio A large proportion of current portfolio have under-utilised plot ratios; with potential organic opportunities. 2 Ang Mo Kio Street 65 8 Senoko South Road 11 Changi South Street 3 10 Changi South Lane 3 Toh Tuck Link 7 Clementi Loop 54
Slide 34: Environment, Social and Governance
AIMS APAC REIT Environment, Social and Governance We are committed to incorporating ESG factors into AA REIT’s strategy and operations, to ensure Unitholders with long-term sustainable returns. Our ESG Focus Areas Improve and minimise environmental impact Promote inclusive and sustainable econom
Slide 35: Updates on COVID-19
6 UPDATES ON COVID-19 35
Slide 36: Resilience of Portfolio
AIMS APAC REIT Resilience of Portfolio Diversified tenant base • Portfolio occupancy improved by 1.2 percentage points to 95.7% (JTC industrial average was 89.6%). • AA REIT’s portfolio is backed by a diversified tenant base, with 196 tenants across 28 properties in Singapore and Australia operating
Slide 37: Government Relief Measures for Eligible Tenants
AIMS APAC REIT Government Relief Measures for Eligible Tenants Property tax rebate – Singapore Government’s Resilience Budget • Qualifying non-residential properties will be granted an enhanced property tax rebate for the period from 1 January 2020 to 31 December 2020. The applicable rebate is 30% f
Slide 38: Government Relief Measures for Eligible Tenants (cont'd)
Government Relief Measures for Eligible Tenants AIMS APAC REIT (cont’d) Re-Align Framework to Renegotiate Contracts for Businesses Significantly Impacted by COVID-19 • In November 2020, the Ministry of Law announced the introduction of the Re-Align Framework (Framework) to help eligible small and mi
Slide 39: Thank You
THANK YOU For enquiries, kindly contact: Email: investorrelations@aimsapac.com / AAREIT@citigatedewerogerson.com Tel: +65 6309 1050 / +65 6534 5122 Awarded Platinum Award at the Awarded Gold Awards for Excellence in Awarded Shareholder Ranked 3rd at the Awarded the Honours Award 2020 Hermes Creative