Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — Ascendas Real Estate Investment Trust (A-REIT) — Q1 FY13/14 Earnings Presentation
62 slides from Capitaland Ascendas Reit's earnings presentation, Jul 16, 2013
Slide 1: 1Q FY13/14 Financial Results Presentation
Hi-Specs Industrial 1Q FY13/14 Financial Results Presentation 16 July 2013
Slide 2: Disclaimers
Disclaimers A-REIT’s results include consolidation of a 100% in Ascendas Zpark (S) Pte. Ltd. and its subsidiary, Ascendas Hi-Tech Development (Beijing) Co., Limited (“AHTDBC”), which were acquired on 3 October 2011. The financial results for the current financial year are based on Group results unle
Slide 3: Agenda
Agenda • Key Highlights • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion A-REIT 1QFY13/14 Results .. 3
Slide 4: 1Q FY13/14 Key Highlights
1Q FY13/14 Key Highlights • Gross revenue increased 6.3% y-o-y to S$150.9 million • Net property income increased 6.8% y-o-y to S$108.0 million • Amount available for distribution increased 11.3% y-o-y to S$85.2 million • Distribution per Unit grew by 5.3% q-o-q, from 3.37 cents per Unit (before per
Slide 5: Agenda
Agenda • Key Highlights • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion A-REIT 1QFY13/14 Results .. 5
Slide 6: 1Q FY13/14 vs 1Q FY12/13
1Q FY13/14 vs 1Q FY12/13 Notes: (1) 103 properties (including 1 property which is (S$’000) 1Q FY13/14(1) 1Q FY12/13(1) % inc/(dec) classified as finance lease receivable) as at 30 Jun 2013; 102 properties as at 30 Jun Gross revenue(2) 150,925 141,960 6.3 2012. (2) Increased mainly due to revenue fro
Slide 7: 1Q FY13/14 vs 1Q FY12/13
1Q FY13/14 vs 1Q FY12/13 (S$’000) 1Q FY13/14(1) 1Q FY12/13(1) % inc/(dec) Notes: (1) 103 properties (including 1 property which is classified as finance lease receivable) Total return for the period 131,422 76,989 70.7 as at 30 Jun 2013; 102 properties as at 30 before income tax Jun 2012. (2) Mainly
Slide 8: 1Q FY13/14 vs 4Q FY12/13
1Q FY13/14 vs 4Q FY12/13 Notes: (1) 103 properties (including 1 which is (S$’000) 1Q FY13/14(1) 4Q FY12/13(1) % inc/(dec) classified as finance lease receivable) as at 30 Jun 2013. 103 properties as at 31 Mar Gross revenue(2) 150,925 145,383 3.8 2013. (2) Increased mainly from full quarter revenue L
Slide 9: DPU - 1Q FY13/14 vs 4Q FY12/13
DPU - 1Q FY13/14 vs 4Q FY12/13 Notes: (S$’000) 1Q FY13/14(1) 4Q FY12/13(1) % inc/(dec) (1) 103 properties (including 1 which is classified as finance lease Total return for the period 131,422 123,910 6.1 receivable) as at 30 Jun 2013. before income tax 103 properties as at 31 Mar 2013. (2) Decreased
Slide 10: Distribution Details
Distribution Details Stock Counter Distribution Period Income Distribution per Unit (cents) Ascendas REIT 1 April 2013 to 3.55# 30 June 2013 Distribution Timetable Last day of trading on “cum” basis 19 July 2013 (Friday) Ex-date 22 July 2013 (Monday) Books closure date 24 July 2013 (Wednesday) Distr
Slide 11: Agenda
Agenda • Key Highlights • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion A-REIT 1QFY13/14 Results .. 11
Slide 12: Investment Highlights: New asset enhancement works
Investment Highlights New asset enhancement works in 1Q FY13/14 • Continue to identify yield-accretive investment opportunities • Enhance returns from existing buildings through asset enhancement works • Embarking on 3 new asset enhancement works in 1Q FY13/14 • Including prior year’s committed inve
Slide 13: Asset Enhancement (New): Techquest
Asset Enhancement (New) Techquest • Located within International Business Park and the Jurong Lake District. Easily accessible via major expressways (PIE and AYE) • One of six buildings in International Business Park owned by A-REIT • Improving building efficiency and specifications through reconfig
Slide 14: Asset Enhancement (New): LogisTech
Asset Enhancement (New) LogisTech • Located in Changi International LogisPark (north), and in close proximity to Changi Airport and easily accessible via major expressways (ECP, PIE and TPE) • Maximisation plot ratio from existing 1.16x to 1.25x by constructing a new 2-storey air-conditioned warehou
Slide 15: Asset Enhancement (New): Corporation Place
Asset Enhancement (New) Corporation Place • Located at Corporation Road and enjoys immediate access to the Ayer Rajah Expressway (AYE) • Upgrading all lifts and toilets and creating extended lobbies and physical connectivity between all lobbies to improve marketability of the building • Estimated co
Slide 16: Investment Highlights: Projects committed in prior years
Investment Highlights Projects committed in prior years • Completed forward purchase of A-REIT City@Jinqiao in July 2013 for S$124.6 million. This is A-REIT’s second business park property in China and its first in Shanghai Acquisition Value (S$m) Expected Completion A-REIT City@Jinqiao, Shanghai, C
Slide 17: Acquisition: A-REIT City@Jinqiao
Acquisition: A-REIT City@Jinqiao • Located in North Jinqiao within the Jinqiao Economic and Technological Zone, 30 km from Pudong International Airport. In close proximity to subway stations of Line 12 (completing by end of 2013) and the future Line 9 &14 • 8 blocks of business park buildings target
Slide 18: Divestment of properties
Divestment of properties • Completed divestment of 6 Pioneer Walk. Realised gains of S$7.2 million • In process of completing divestment of Block 5006 Techplace II Block 5006 Techplace II 6 Pioneer Walk Description One of existing 6 blocks of A 2-storey warehouse with a ramp-up flatted factory build
Slide 19: Agenda
Agenda • Key Highlights • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion A-REIT 1QFY13/14 Results .. 19
Slide 20: Strong Balance Sheet
Strong Balance Sheet • Aggregate leverage of 28.6% which is expected to increase to 30.5% after funding committed investments • A further debt headroom of S$1.9 billion to reach 45.0% aggregate leverage As at As at As at (S$m) 30 Jun 13 31 Mar 13 30 Jun 12 Total assets 7,017 6,959 6,614 Net assets a
Slide 21: Interest Rate Management
Interest Rate Management As at As at As at 30 Jun 13 31 Mar 13 30 Jun 12 Aggregate leverage 28.6% 28.3% 32.7% Total debt (S$m) 2,006 1,971 2,166 Fixed as a % of total debt 68.1% 74.8% 68.9% Weighted average all-in borrowing 3.09% 3.32% 3.17% cost(1) Weighted average term of debt 3.6 3.9 4.4 (years)
Slide 22: Debt Maturity Profile
Debt Maturity Profile 450 (S$ million) 400 350 14 300 250 145 200 395 375 150 300 100 200 125 150 148 154 50 - 2013 2014 2015 2016 2017 2018 2019 2020 2010 2022 2023 2024 Commercial Mortgage Backed Securities Exchangeable Collateralised Securities Medium Term Notes Medium Term Notes (JPY denominated
Slide 23: Interest Rate Movement
Interest Rate Movement Distributable Income / DPU Sensitivity • 68.1% of A-REIT’s interest rate exposure is fixed for an average term of 4.0 years • A 0.5% point increase in interest rate is expected to result in S$3.2 million decline in distributable income or 0.13 cent in DPU Increase in Decrease
Slide 24: Agenda
Agenda • Key Highlights • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion A-REIT 1QFY13/14 Results .. 24
Slide 25: Healthy Occupancy
Healthy Occupancy As at 30 Jun 13 31 Mar 13 30 Jun 12 Total Portfolio GFA (sqm) 2,770,050 2,780,984 2,741,775 Portfolio occupancy (same store) (2) 94.3% 95.2% 94.9% MTB(1) occupancy (same store) (2) 92.0% 92.6% 90.4% Occupancy of investments completed in 77.3% 62.5% n.a. the last 12 months Portfolio
Slide 26: Occupancy History: Stable through the cycles
Occupancy History: Stable through the cycles 98.4% 97.8% 100% 94.1% 95.0% 96.6% 95.7% 96.0% 94.3% 94.0% 93.6% 80 88.8% 82.5% 96.4% 95.3% 93.7% 91.2% 92.1% 89.5% 89.6% 89.3% 89.0% 91.4% Occupancy Rate / Singapore GDP Growth 70 80% 85.1% Singapore Puchasing Manager's Index (PMI) 82.5% 60 60% 53.4 50.8
Slide 27: A-REIT vs Industry Average Occupancy
A-REIT vs Industry Average Occupancy 100% 96.1% 94.6% 95% 93.5% 93.5% 92.9% 91.4% 90.3% 90% 85% 82.8% Occupancy Rate (%) 80% 75% 70% 65% 60% 55% 50% Business Parks Hi-Specs Industrial Light Industrial Logistics A-REIT Market Notes : A-REIT’s Singapore portfolio as at 30 June 2013. Market: URA (Urban
Slide 28: 1Q FY13/14 Sources of New Demand
1Q FY13/14 Sources of New Demand - by Net Lettable Area Continue to attract demand from a wide spectrum of industries Others IT Structural 7% 7% Engineering 7% Biomedical Telecommunication 9% & Datacentre 1% General Manufacturing 3% Precision Engineering 6% Financial Service 23% Food Products & Beve
Slide 29: Lease Expiry Profile
Lease Expiry Profile • Weighted average lease to expiry of 3.9 years • Lease expiry is well spread, extending beyond 2027 • About 14.8% due for renewal in FY13/14 versus 21.4% at 31 March 2013 25% Breakdown of expiring leases 22.5% for FY13/14 and FY14/15 18.9% 20% FY13/14 5% 16% % of Gross Rental I
Slide 30: Agenda
Agenda • Key Highlights • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion A-REIT 1QFY13/14 Results .. 30
Slide 31: Well Diversified Portfolio
Well Diversified Portfolio - by Asset Value 12% Business Park (China) 1% Warehouse Retail 47% Facilities 2% 53% Science Parks 88% Logistics & 17% Distribution Centres 20% 11% Flatted Factories Business Parks 5% 20% Light Industrial 89% 10% Hi-Specs Industrial (Data Centre) 36% 8% Hi-Specs Industrial
Slide 32: Tenants' Industry Diversification
Tenants’ Industry Diversification - by Gross Rental Income 3rd Party Logistics, Freight Forwarding 12.4% Electronics 10.3% Telecommunication & Datacentre 9.2% M&E and Machinery & Equipment 9.2% Distributors, trading company 7.4% Financial 7.4% Information Technology 7.4% Life Science 5.2% Food Produ
Slide 33: Low exposure to conventional manufacturing
Low exposure to conventional manufacturing Tenants’ business activities by net lettable area • 19.3% of NLA occupied by tenants engaged in conventional manufacturing activities. Manufacturing Manufacturing 19.3% • Manufacturing activities include food 19.8% & beverages, aeronautical auxiliary equipm
Slide 34: Quality and Diversified Tenant Base
Quality and Diversified Tenant Base • Total tenant base of over 1,200 tenants • Top 10 tenants account for 22.6% of portfolio rental income 7.0% 6.3% 6.0% 5.0% 4.0% 3.2% 3.0% 2.5% 2.4% 2.0% 1.5% 1.4% 1.4% 1.4% 1.3% 1.2% 1.0% 0.0% Singapore C&P Citibank, N.A DBS Biomedical Siemens SenKee Cold Storage
Slide 35: Diversified Portfolio
Diversified Portfolio No single property accounts for more than 4.5% of A-REIT’s monthly gross revenue 1, 3, 5 Changi Business Park Kim Chuan Crescent, 4.5% Telecommunication Complex , 3.6% Neuros & Immunos, 3.4% C&P Logistic Hub, 3.2% TelePark, 3.1% Others, 32.5% TechPoint, 2.7% TechPlace II, 2.6%
Slide 36: Security Deposit for Single-tenanted Properties
Security Deposit for Single-tenanted Properties • Weighted average security deposits for single-tenanted properties range from 6 to 16 months of rental income • On a portfolio basis, weighted average security deposit is about 6 months of rental income No. of single Weighted average tenanted properti
Slide 37: MTB Occupancy & Rental Rate: NPI / DPU Sensitivity
MTB Occupancy & Rental Rate: NPI / DPU Sensitivity A 2.0% change in MTB occupancy or rental rate is expected to result in a S$7.4 million change in net property income or about 0.31 cents change in DPU % change in MTB Expected change Change as % of Impact on full occupancy / in annualized FY12/13 NP
Slide 38: Agenda
Agenda • Key Highlights • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion A-REIT 1QFY13/14 Results .. 38
Slide 39: Segmental Rental Performance
Segmental Rental Performance • Positive rental reversions registered across all segments Multi-tenanted Net lettable Vacant space 1Q FY13/14 Increase / properties (1) area (sqm) (sqm) increase in (decrease) in renewal new take up As at 30 June 2013 rates (2) rates (3) Business & Science 387,036 38,5
Slide 40: Average Market Rents by Segment
Average Market Rents by Segment Psf pm 140 130 URA Industrial Rental Index 120 (4Q1998 : 100) 110 $4.50 100 90 $4.00 80 $4.05 70 60 $3.50 50 $3.00 $3.00 $2.50 $2.00 $1.94 $1.79 $1.50 $1.00 $0.50 Business & Science Parks Hi-Specs Industrial Light Industrial Logistics Source : Urban Redevelopment Auth
Slide 41: In-place rent for space due for renewal
In-place rent for space due for renewal in FY13/14 & FY14/15 Current market rental rate is between 15% and 41% higher than the weighted average passing rental for the area due for renewal in FY13/14 Left Axis Right Axis A-REIT 1QFY13/14 Results .. 41
Slide 42: Agenda
Agenda • Key Highlights • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion A-REIT 1QFY13/14 Results .. 42
Slide 43: Market Outlook
Market Outlook • Singapore’s economy grew 3.7% on a year-on-year basis in 2Q 2013, compared to 0.2% in 1Q 2013. The growth was partly due to expansion in the manufacturing sector, which grew by 1.1% in 2Q 2013, a reversal from the 6.9% contraction in 1Q 2013. For 2013, the government has projected a
Slide 44: Potential New Supply
Potential New Supply • Current total stock: 39.6 million sqm, of which Business & Science Parks account for 1.5 million sqm (3.9% of total stock) Logistics & Distribution Centres account for 7.4 million sqm (18.7% of total stock) Remaining stock are factory space • Potential new supply of abou
Slide 45: Potential New Supply - Business & Science Parks
Potential New Supply - Business & Science Parks* Space in the various locations may not be directly substitutable Expected Completion Location GFA (sm) % Pre-committed (est) 2013 Nexus@one-north 25,510 56% 2013 Mediapolis (one-north) 21,610 100% 2013 Biopolis (one-north) 45,560 2% 2013 Science Park
Slide 46: Agenda
Agenda • Key Highlights • Financial Performance • Investment Management • Capital Management • Asset Management Portfolio Update Portfolio Resilience Portfolio Growth • Market Outlook • Conclusion A-REIT 1QFY13/14 Results .. 46
Slide 47: A-REIT's Strengths
A-REIT's Strengths Diversity and Depth • Solid and well diversified portfolio Six property segments Well-located quality properties Balance of long term vs. short term leases provides stability with potential for positive rental reversions No single property accounts for more than 4.5% of re
Slide 48: A-REIT's Strengths
A-REIT's Strengths • Downside protection in earnings – Stable portfolio with 85.2% of portfolio revenue committed for FY13/14 and a portfolio average lease to expiry of about 3.9 years – Mix of long term and short term leases provide earnings stability Long term leases have a weighted average leas
Slide 49: A-REIT's Strengths
A-REIT's Strengths Development capability • Has capability and capacity to create own assets which could be more yield accretive than acquisitions of income producing properties Operational platform (Property Manager, Ascendas Services Pte Ltd) • Dedicated asset management, sales/marketing, leasing
Slide 50: A-REIT's Strategies
A-REIT's Strategies Total returns Predictable income Capital stability Proactive and dedicated Outcome Stability Growth manager with track record Strategies Capital & Risk Portfolio Value-Adding Management Management Investments Property Fund Manager: Fund Manager: Perfor- Manager: Ascendas Funds As
Slide 51: Thank you
Thank you Important Notice This presentation has been prepared by Ascendas Funds Management (S) Limited as Manager for Ascendas Real Estate Investment Trust. The details in this presentation provide general information only. It is not intended as investment or financial advice and must not be relied
Slide 52: Annex: Other previously announced investments
Annex Other previously announced investments A-REIT 1QFY13/14 Results .. 52
Slide 53: Development: Nexus@one-north
Development: Nexus@one-north • Located within the one-north masterplan area in the central part of Singapore. Easily accessible via major expressways and proximity to the one-north MRT station • 2 blocks of 6-storey business park and office mix-use development with basement car parks, a landscape sk
Slide 54: Development: DBS Asia Hub Phase 2
Development: DBS Asia Hub Phase 2 • Located within the Changi Business Park. Easily accessible via major expressways (PIE and ECP) and a short walking distance from the Singapore Expo and Expo MRT station • Development of a 6-storey business park building next to the existing DBS Asia Hub, which wil
Slide 55: Asset Enhancement: Ubi Road
Asset Enhancement: 31 Ubi Road 1 • Strategically located within Ubi Industrial Estate, easily accessible via Pan-Island Expressway (PIE) and MacPherson MRT station • Upgrading of building specifications to re-position it as a high-specs industrial building • Estimated cost: S$7.0 million • Expected
Slide 56: Asset Enhancement: Xilin Districentre Building D
Asset Enhancement: Sept 2012: Work in progress Xilin Districentre Building D Jun 2013: Demolition of 8th storey office completed • Located in Changi International LogisPark (South) within close proximity to Changi Airport, easily accessible via East Coast Parkway Expressway • Conversion of ancillary
Slide 57: Asset Enhancement: Techplace II
Asset Enhancement: Techplace II • Strategically located in Ang Mo Kio and easily accessible to the Central Expressway and Yio Chu Kang MRT station • Substantially completed enhancement of external façade of existing buildings • Developing a new factory block of about 24,016 sqm with ancillary F&B sp
Slide 58: Asset Enhancement: 1 Changi Business Park Avenue 1
Asset Enhancement: 1 Changi Business Park Avenue 1 • One of six buildings in Changi Business Park owned by A-REIT • Upgrading of building specifications, finishes and facilities to meet current business park requirements • Estimated cost: S$12.0 million • Expected completion: 1 Changi Business Park
Slide 59: Asset Enhancement: International Business Park
Asset Enhancement: 31 International Business Park Artist impression of 31 International Business Park • Located within International Business Park, opposite the upcoming Jurong Lake District. Easily accessible via major expressways (PIE and AYE) and within walking distance from the Jurong East MRT s
Slide 60: Asset Enhancement: Techpoint
Asset Enhancement: Techpoint • Located along Ang Mo Kio St 65. Easily accessible via major expressways (CTE and PIE) • To enhance existing building Main Lift Lobby Sheltered Linkway specifications to improve marketability • Gross floor area: 56,107 sqm • Estimated cost: S$7.0 million • Expected comp
Slide 61: Asset Enhancement: Toh Guan Road East
Asset Enhancement 5 Toh Guan Road East • Located within Toh Guan LogisPark. Easily accessible via major roads and expressways (PIE and AYE). 5 minutes’ drive away from Jurong East MRT station • Upgrading of building specifications internally to improve marketability for logistics usage • Estimated c
Slide 62: The End
The End Important Notice This presentation has been prepared by Ascendas Funds Management (S) Limited as Manager for Ascendas Real Estate Investment Trust. The details in this presentation provide general information only. It is not intended as investment or financial advice and must not be relied u
Ascendas Real Estate Investment Trust (A-REIT) — Q1 FY13/14 Earnings Presentation on 6ix