Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Cache Logistics Trust — FY2017 Earnings Presentation
37 slides from Singapore Exchange's earnings presentation, Jan 18, 2018
Slide 1: 4Q FY17 / FY17 Full-Year Financial Results
4Q FY17 / FY17 FULL-YEAR FINANCIAL RESULTS 18 January 2018
Slide 2: Agenda
Agenda 01 KEY HIGHLIGHTS 02 FINANCIAL PERFORMANCE 03 PORTFOLIO PERFORMANCE/ UPDATE 04 MARKET OUTLOOK & STRATEGY 05 MORE INFO ON CACHE
Slide 3: Key Highlights
01 KEY HIGHLIGHTS CWT Commodity Hub is one of Singapore’s largest warehouses and one of the largest in SE Asia. Measuring close to 2.3 million sf, the large floor plate and high ceiling height appeals to 3 rd Party Logistics Providers.
Slide 4: Key Highlights
01 Key Highlights DPU 4Q FY17: 1.597 cents FY17 All-in Financing Cost Aggregate Leverage FY17: 6.583 cents(1) 3.56% 36.3% Multi-currency Debt Programme launched % of Borrowings Hedged S$1 billion 76.8% Portfolio Occupancy 96.6% Portfolio Rebalancing & Growth Quality of the portfolio continues to imp
Slide 5: Financial Performance
02 FINANCIAL PERFORMANCE Build-to-Suit development for DHL Supply Chain completed in July 2015. The logistics facility houses significant storage and retrieval automation as well as DHL Supply Chain’s Asia Pacific Solutions & Innovation Centre.
Slide 6: 4Q FY17 Y-o-Y Financial Performance
02 4Q FY17 Y-o-Y Financial Performance 4Q FY17 Gross Revenue and NPI rose 8.5% and 10.2% respectively Without the effect of the Rights Issue, 4Q FY17 DPU fell marginally by 1.1% S$’000 unless otherwise noted 4Q FY17 4Q FY16 Chg (%) Gross Revenue 29,576 27,266 8.5 Net Property Income (NPI) 23,520 21,
Slide 7: 4Q FY17 Q-o-Q Financial Performance
02 4Q FY17 Q-o-Q Financial Performance Compared to 3Q FY17, 4Q FY17 DPU rose by 3.6% S$’000 unless otherwise noted 4Q FY17 3Q FY17 Chg (%) Gross Revenue 29,576 27,432 7.8 Net Property Income (NPI) 23,520 21,338 10.2 Income Available for Distribution 17,079 16,448 3.8 - from operations 17,079 15,883
Slide 8: FY17 Financial Performance
02 FY17 Financial Performance FY17 Gross Revenue/ NPI held steady Without the effect of the Rights Issue, FY17 DPU fell by a moderate 6.2% S$’000 unless otherwise noted FY17 FY16 Chg (%) Gross Revenue 111,960 111,271 0.6 Net Property Income (NPI) 87,291 88,014 (0.8) Income Available for Distribution
Slide 9: Balance Sheet
02 Balance Sheet 31 December 30 September S$’000 unless otherwise noted as at 2017 2017 Investment Properties 1,137,913 1,241,942 Asset Held for Sale 69,000 - Other Assets 22,038 16,133 Total Assets 1,228,951 1,258,075 Debt, at amortised cost (444,663) (546,057) Other Liabilities (18,620) (16,180) T
Slide 10: Capital Management
023 Capital Management Reduced Aggregate Leverage and diversified funding sources • Rights issue launched in September 2017 successfully raised S$102.7 million and was 187.3% oversubscribed • As part of its capital management strategy to diversify its funding sources, Cache has established a S$1 bil
Slide 11: Capital Management
02 Capital Management Reduced Aggregate Leverage and diversified funding sources Floating Rate 250 Debt Maturity Profile ($ million) 23.2% Interest Rate Hedging A$30.0 200 Fixed Repaid S$99.9 Rate million of SGD A$29.3 76.8% loan facilities 150 S$99.9 • 76.8% of borrowings hedged for 1.1 years. • 90
Slide 12: Distribution Details
02 Distribution Details SGX Distribution Per Unit Payment Distribution Period Stock Code (S$) Date K2LU 1 October – 31 December 2017 1.597 cents 27 February 2018 Distribution Timetable Last day of trading on “cum” basis 23 January 2018 Ex-Dividend Date 24 January 2018 Books Closure Date 26 January 2
Slide 13: Portfolio Performance
03 PORTFOLIO PERFORMANCE This warehouse facility is located in a well-established inner west precinct approx. 20km west of the Sydney CBD and is fully-leased to McPhee Distribution Services, an Australian-owned transport family business established in 1923.
Slide 14: Portfolio Overview
03 Portfolio Overview 1 Quality, Resilient Portfolio in Singapore, Australia and China Portfolio Statistics Singapore 19 Properties 1. CWT Commodity Hub Singapore, Australia & China 2. Cache Cold Centre 7.6 mil sf GFA 3. Pandan Logistics Hub S$1.2 bil in property value(1) WALE of 3.4 years
Slide 15: Portfolio Statistics
031 Portfolio Statistics 1 Quality, Resilient Portfolio in Singapore, Australia and China Property Portfolio Statistics as at 31 December 2017 11 – Singapore(1) 19 Logistics Warehouse Properties 7 – Australia 1 – China Total Valuation(2) S$1.21 bil Gross Floor Area (GFA) 7.6 million sf Portfolio Com
Slide 16: Independent Property Valuation
03 Independent Property Valuation Property No. of Valuation Average No. of Valuation Average Location Properties ($’mil) Cap Rate Properties ($’mil) Cap Rate As at 31 December 2017 (1)(2) As at 31 December 2016 (3)(4) Singapore 11 S$986.4 6.4% 12 S$1,044.0 6.4% A$195.9 A$168.6 Australia 7 6.9% 6 7.2
Slide 17: Portfolio Overview: Singapore
03 Portfolio Overview: Singapore Changi North/ Loyang Airport Logistics Park 9 Pan Asia Logistics Centre 10 Air Market Logistics Centre Sembawang 5 Schenker Megahub 6 Hi-Speed Logistics Centre 21 Changi North Way 22 Loyang Lane Wharves 51 Alps Avenue 40 Alps Avenue(1) Johor Causeway Link Tampines Lo
Slide 18: Portfolio Overview: Australia
03 Portfolio Overview: Australia Brisbane, Queensland 15 51 Musgrave Road, 16 203 Viking Drive, 17 223 Viking Drive, Coopers Plains Wacol Wacol Brisbane Sydney, New South Wales Sydney Adelaide Melbourne 13 127 Orchard Road, Chester Hill Adelaide, South Australia Melbourne, Victoria 14 404 – 450 Find
Slide 19: Lease Expiry Profile
031 Lease Expiry Profile 2 Proactive Lease Management: Well-staggered lease expiry profile WALE by NLA : 3.4 years WALE by Gross Rental Income : 3.2 years 30% Portfolio Lease Expiry Profile By NLA By Gross Rental Income 25% 24.6% 23.2% 21.6% 20.0% 20% 19.3% 18.3% 18.1% 17.1% 14.6% 15% 13.0% 10% 5.8%
Slide 20: Portfolio Rebalancing & Growth
03 Portfolio Rebalancing & Growth 3 Successful execution of Portfolio Rebalancing & Growth strategy Divestment of Acquisition of Spotlight Warehouse, Changi Districentre 3, Singapore Laverton North, Victoria, Australia • Cache expanded into China in FY2011 Australia and into Australia in FY2015 17%
Slide 21: Portfolio Rebalancing & Growth
03 Portfolio Rebalancing & Growth 3 Successful execution of Portfolio Rebalancing & Growth strategy Australia Australia Australia 22% 16% 17% China China China 1% 2% 1% Gross Gross Portfolio Floor Area Revenue Valuation Singapore Singapore Singapore 76% 83% 82% Longer WALE from Australian Portfolio
Slide 22: Portfolio Diversification
03 Portfolio Diversification 4 Diversification across geographies and tenant base 1. Greater Balance between Multi-tenanted and 2. Geographical Diversification beyond Singapore Single-User Lease Structures Australia 16% Multi- tenanted Single-User 42% 58% Gross Gross Revenue Revenue China 1% Singapo
Slide 23: Positive Outcome at 51 Alps Ave, SG Addressed Lease Dispute
031 Positive Outcome at 51 Alps Ave, SG 5 Addressed Lease Dispute – Unitholders to receive market rent Located at Airport Logistics Park of Singapore, the free trade zone adjacent to Changi International Airport, Schenker Megahub is the largest freight and logistics property located in that area. Si
Slide 24: Proposed Divestment of Hi-Speed Logistics Centre, 40 Alps Ave
03 Portfolio Rebalancing & Growth 6 Proposed Divestment of Hi-Speed Logistics Centre, 40 Alps Ave Singapore 40 Alps Ave, Singapore Transaction Information Occupancy 74% GFA c.309,000 sq ft Sale Consideration S$73.8 million Valuation S$69.0 million(1) Acquisition Date 12 April 2010 (IPO) Existing ten
Slide 25: Market Outlook & Strategy
04 MARKET OUTLOOK & STRATEGY Located within the established industrial suburb of Wacol, the property is fully-leased to Western Star Trucks Australia Pty Ltd for a long WALE of 7.9 years at the time of purchase.
Slide 26: Singapore: Imbalance in Demand and Supply of Warehouse Space
045 Market Outlook & Strategy Singapore: Imbalance in demand and supply of warehouse space Singapore Warehouse Annual Supply, Demand and Vacancy Rate (%) 1,000 16.0 Grey bars refer to committed supply. Figures for 2017- 900 3Q 2017 Island-wide 2021(E) are based on total 14.0 Vacancy: 12.5% new suppl
Slide 27: Australia: Stable Economic Performance, Cash Rate Steady
04 Market Outlook & Strategy Australia: Stable economic performance, cash rate remains steady GDP Growth Cash Rate Source: Reserve Bank of Australia State Share of Output (Gross State Product) Source: Reserve Bank of Australia Surge in LNG (Gas) exports GSP increases in 2019 to expected in 2017-2018
Slide 28: Australia: Industrial Markets Remain Healthy
04 Market Outlook & Strategy Australia: Industrial markets remain healthy Sydney Melbourne Brisbane Adelaide Gross Take-up Activity (>5,000 sqm) Gross Take-up Activity (>5,000 sqm) Gross Take-up Activity (>5,000 sqm) Gross Take-up Activity (>3,000 sqm) Year-to-date gross take-up Vacancy rate remains
Slide 29: Market Outlook & Strategy: Vision and Mission
046 Market Outlook & Strategy OUR VISION: Provide highest quality, best-in-class logistics real estate solutions to our customers in Asia Pacific Proactive Asset/Portfolio Investment Pursuits Management Pursue yield-accretive Work closely with the master acquisitions lessees and end-users to L
Slide 30: Rights of First Refusal (ROFR)
046 Market Outlook & Strategy Rights of First Refusal (‘ROFR’)(1) • Granted by Sponsor (CWT Limited) on properties in Asia Pacific Properties Covered by ROFR • 14 properties with approx. 6.8 million square feet in GFA • Located in Singapore and Malaysia Selected properties covered by the ROFR: Year
Slide 31: Contact Information
04 Contact Information Investor Relations Contact: Judy Tan Assistant Director, Investor Relations judytan@ara.com.hk ARA-CWT Trust Management (Cache) Limited 6 Temasek Boulevard #16-02 Suntec Tower 4 Singapore 038986 Tel: +65 6835 9232 Website: www.cache-reit.com 31
Slide 32: More Info on Cache
05 MORE INFO ON CACHE Located 2km from the Adelaide Airport, this large distribution facility which comprises four single-storey warehouses, a cold store and freezer warehouse and an administrative office block, is fully-leased to Metcash Trading.
Slide 33: Overview of Cache Logistics Trust
05 Overview of Cache Logistics Trust Sponsor CWT Limited Shareholding Structure REIT Manager ARA-CWT Trust Management (Cache) Limited ARA Cache Property Management Pte Ltd Public CWT Property Manager Group Listing Date 12 April 2010 92.5% 4.1% 3.4% Market Capitalisation ~S$915 million(1) No. of unit
Slide 34: Support from Manager & Sponsor
05 Support from Manager & Sponsor Strong Management Team with a Proven Track Record The Manager(1) leverages on the complementary strengths of ARA and CWT Real estate fund manager focused on the management of publicly- A leading provider of integrated listed and private real estate funds logisti
Slide 35: Key Milestones
052 Key Milestones Listed on SGX Mainboard Acquisition of Pan Asia Commenced development Continued to maintain a with six properties valued at Logistics Centre for of DHL Supply Chain strong operating S$729.9 mil approx S$35.2 mil Advanced Regional Centre performance through a Acquisition
Slide 36: Experienced Management Team
052 Experienced Management Team Mr. Daniel Cerf Mr. Ho Jiann Ching Chief Executive Officer Director, Head of Investment More than 30 years of experience in Asia real estate More than 20 years of regional experience in real estate investment, development and related management investment, develop
Slide 37: Disclaimer
Disclaimer This presentation has been prepared by ARA-CWT Trust Management (Cache) Limited, in its capacity as the manager of Cache (the “Manager”) and includes market and industry data and forecast that have been obtained from internal survey, reports and studies, where appropriate, as well as mark