Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Ascendas Reit — Shareholder Meeting (June 2020)
39 slides from Singapore Exchange's shareholder meeting presentation, Jun 29, 2020
Slide 1: Ascendas Reit Annual General Meeting
ASCENDAS REIT Annual General Meeting 29 June 2020
Slide 2: Disclaimers
Disclaimers • This presentation may contain forward-looking statements that involve assumptions, 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 assum
Slide 3: Agenda
Agenda Making an Impact in FY2019 4 FY2019 Financial Performance & Key Highlights 7 Investment Management 10 Capital Management 17 Asset Management 22 Sustainability 29 COVID-19 Updates 31 3
Slide 4: Making an Impact in FY2019
Making an Impact in FY2019 Nexus @one-north, Singapore
Slide 5: Making an Impact in FY2019
Making an Impact in FY2019 INVESTMENT PROPERTIES DIVERSIFIED PORTFOLIO ACROSS GREW 15%(1) TO 4 DEVELOPED MARKETS S$12.8 Billion 72% SINGAPORE 28% OVERSEAS AUM: S$9.1 Billion UNITED KINGDOM 99 Properties Across 5 industrial subsegments UNITED STATES SINGAPORE AUSTRALIA AUM: S$1.3 Billion AUM: S$0.8 B
Slide 6: Ascendas Reit Unit Price Outperformed
Ascendas Reit Unit Price Outperformed • In FY2019, Ascendas Reit (+4%) outperformed the STI (-0.9%) 125.0 S-REITS 106.6 Ascendas Reit 109.3 115.0 Ascendas Reit 104.0 @ S$3.12 @ S$2.97 105.0 S-REITS 87.6 95.0 Straits Times Index 99.1 85.0 75.0 Straits Times FY2019 Index 81.1 65.0 19-Jun-20 31-Mar-19
Slide 7: Financial Performance & Key Highlights
Financial Performance & Key Highlights Aperia, Singapore
Slide 8: FY2019 Financial Highlights (April to Dec)
FY2019 Financial Highlights (April to Dec)* Distributable Income Distribution per Unit Total Assets S$375.4 m 11.490 cents S$13.9 b +5.2% y-o-y (1) -3.3% y-o-y (1) As at 31 Dec 2019 Mainly attributed Due to mismatch in Acquired S$1.77 b to newly acquired timing between the of properties across prope
Slide 9: FY2019 Key Highlights (April to Dec)
FY2019 Key Highlights (April to Dec)* Stable Portfolio Lower Aggregate Occupancy Leverage at 90.9 % 35.1% As at 31 Dec 2019 From 36.3% as at 31 Mar 2019 Positive Portfolio Stable Same-store Rental Reversion# Valuation +6.0% S$11.13 b (vs. S$11.10 b as at 31 Mar 2019) * Ascendas Reit has changed its
Slide 10: Investment Management
Investment Management 15378 Avenue of Science San Diego, United States
Slide 11: Investment Highlights
Investment Highlights A Record Year of Singapore Acquisitions S$380 m S$1.77 b United States ✓ Nucleos ✓ FM Global S$1,282 m ✓ A portfolio of 28 business park Australia properties S$104 m Dec ✓ 254 Wellington Road Recycled Capital: S$27 m 8 Loyang Way 1 (Sep) Dec Completed Asset Enhancement Initiati
Slide 12: Deepening Presence in Australia
Deepening Presence in Australia Profile Land and Development ✓ Well located in Monash cost Technology Precinct S$104.4 m(1) ✓ 8-level state-of-the-art (A$110.9 m) office accorded with 5- star NABERS energy NPI Yield (post transaction rating and 5 Star Green cost) Star Design ✓ Nissan will lease 65.2
Slide 13: Diversifying Geographically with US Portfolio
Diversifying Geographically with US Portfolio Profile Agreed Portfolio Value S$1,281.7 m(1) ✓ 28 business park (US$937.6 m) properties across the US NPI Yield (post tech cities of San Diego, transaction cost) Raleigh and Portland 6.2% San Diego Raleigh Portland ✓ Well-located in close Land Tenure pr
Slide 14: Strengthening Singapore Business Park Portfolio
Strengthening Singapore Business Park Portfolio Nucleos, Singapore FM Global Centre, Singapore Profile Purchase Price Profile Purchase Price S$289.0 m S$91.0 m ✓ 7-storey twin tower ✓ 6-storey built-to-suit business park property NPI Yield (post business park NPI Yield (post transaction transaction
Slide 15: Recent Investment Activities (1Q FY2020)
Recent Investment Activities (1Q FY2020) 3 Divestments Generated Acquired 25% stake in Galaxis for S$102.9m Total Sales Proceeds of S$125.3 m ✓ Premium business park property with a 17-storey business park/office space, a 2-storey retail/F&B podium and a 5-storey building with work lofts ✓ BCA Green
Slide 16: On-going Build-to-Suit and Redevelopment
On-going Build-to-Suit and Redevelopment Build-to-Suit Development Redevelopment (S$35.0 m) Redevelopment (S$84.3 m) (S$181.2 m) UBIX (formerly 25 & 27 Ubi Road 4), Grab’s Singapore Headquarter Formerly iQuest@IBP, Singapore Singapore • Business park property located • Redeveloping two existing ligh
Slide 17: Capital Management
Capital Management Unit 2 Wellesbourne Distribution Park, West Midlands, United Kingdom
Slide 18: Healthy Balance Sheet
Healthy Balance Sheet • Robust financial metrics that exceed bank loan covenants by a healthy margin • Available debt headroom of ~$3.8 b to reach 50% aggregate leverage 3 Aggregate Leverage(1) Weighted Tenure Average all-in Moody’s Rating Of Debt Debt Cost As at 31 Dec 2019 35.1% 4.0 years 2.9% As
Slide 19: Well-Spread Debt Maturity Profile
Well-Spread Debt Maturity Profile • Well-spread debt maturity with the longest debt maturing in FY2029 • Average debt maturity maintained to 4.0 years as at 31 Dec 2019(Mar 2019: 4.0 years) • No refinancing requirements in 1H2020 5% 900 875 8% 811 831 800 154 41% 200 S$ (million) 700 350 587 600 500
Slide 20: High Level of Currency Hedge
High Level of Currency Hedge • Maintained high level of natural hedge for Australia (73.8%), the UK(100%) and the US (75.8%) to minimise the effects of adverse exchange rate fluctuations. AUD GBP USD Natural Hedge Natural Hedge Natural Hedge 73.8% 100% 75.8% 1.8 A$1.7 b (S$ 1.6 b) 1.6 US$1.0 b 1.4 A
Slide 21: Annual Property Revaluation
Annual Property Revaluation • Total valuation of 198 properties (1) was S$12.84 b • Stable same-store valuation for 168 properties(2) at S$11.13 b (vs. S$11.10 b @ 31 Mar 2019) Weighted Average Cap Cap Rates As at 31 Dec 2019 Valuation (S$b) Rates Range Singapore portfolio (97 properties) 9.16 6.02%
Slide 22: Asset Management
Asset Management ONE@Changi City, Singapore
Slide 23: Healthy Portfolio Occupancy
Healthy Portfolio Occupancy • Stable portfolio occupancy rate 97.4% 98.0% 97.7% 100.0% 93.9% 90.9% 91.9% 87.2% 88.3% N.A. Singapore Australia United Kingdom United States Total Dec-19 Mar-19 Gross Floor Area (sqm) (1) 3,061,210 792,039(2) 509,907 (3) 313,059 4,676,215 (1) Gross Floor Area as at 31 D
Slide 24: Positive Rental Reversions in FY2019
Positive Rental Reversions in FY2019 • Average portfolio rent reversion of +6.0% was recorded for leases renewed in FY2019 • Rental reversion for FY2020 is expected to be flat in view of the current uncertainties % Change in Renewal Rates for Multi-tenant Buildings (1) FY2019 FY18/19 Singapore 6.2%
Slide 25: Stable Weighted Average Lease Expiry
Stable Weighted Average Lease Expiry (By gross revenue) • Portfolio Weighted Average Lease Expiry (WALE) stood at 3.9 years WALE (in years) As at 31 Dec 2019 Singapore 3.5 Australia 4.4 United Kingdom 8.8 United States 4.1 Portfolio 3.9 25
Slide 26: Well-Diversified Portfolio
Well-Diversified Portfolio By Value of Investment Properties United Australia, 12% Kingdom, 6% United • As at 31 Dec 2019, total investment Logistics and States, 10% properties stood at S$12.84 b Logistics and Distribution Suburban Distribution Centres Offices Centres United Australia Australia Logi
Slide 27: Well-Diversified Customers' Base
Well-Diversified Customers’ base (By Monthly Gross Revenue) • Customers are operating in more than 20 industries Engineering 13.2% Logistics & Supply Chain Management 12.2% Biomedical Sciences 11.3% Information & Communications Technology 9.7% Electronics 8.5% Financial Services 8.4% Government 5.9%
Slide 28: Quality and Diversified Customer Base
Quality and Diversified Customer Base • Total customer base of around 1,490 tenants • Top 10 customers (as at 31 Dec 2019) account for about 17.9% of monthly portfolio gross revenue • On a portfolio basis, weighted average security deposit is about 4.7 months of rental income 4.1% 2.7% 1.8% 1.7% 1.4
Slide 29: Sustainability
Sustainability Techpoint, Singapore
Slide 30: Sustainability Achievements
Sustainability Achievements 1st industrial building in Largest number of Largest combined solar Singapore awarded Green electrical Vehicle (EV) installation by a real estate Mark Platinum Super Low charging lots in Singapore company in Singapore Energy (SLE) status by BCA(1) LogisTech, Singapore 80
Slide 31: COVID-19 Updates
COVID-19 Updates Units 1a, 1b, 2 & 3 Upwell Street, Yorkshire & the Humber, United Kingdom
Slide 32: COVID-19 Country Update: Singapore
COVID-19 Country Update: Singapore – Providing support to SME tenants Government • Government assistance: Measures ✓ Property tax rebate (Retail/F&B/amenities: 100%, Industrial: 30%) Implemented ✓ For SMEs: additional cash grant (Retail/F&B/amenities: 0.8 months, Industrial: 0.64 months) • For quali
Slide 33: COVID-19 Country Update: Australia
COVID-19 Country Update Australia – Reopening of retail outlets and leisure activities Government • Mandatory code of conduct (for SMEs): landlords unable to terminate Measures leases/draw on deposits and to offer reductions in rent (as waivers or deferrals) Implemented based on the tenant’s reducti
Slide 34: COVID-19 Country Update: United Kingdom
COVID-19 Country Update United Kingdom – Easing lockdown in England Government • Up until 30 Jun 2020, landlords are not allowed to terminate leases for any Measures missed payments. The UK government has the option to extend this if needed. Implemented Tenants will still be liable to pay rent i.e.
Slide 35: COVID-19 Country Update: United States
COVID-19 Country Update United States – Cautious outlook Government • Landlords are not allowed to evict tenants due to non-payment of rents in Measures Portland, Oregon (until 7 Jul 2020), San Diego, California (until 25 Sep 2020) and Implemented Raleigh, North Carolina (until 20 Dec 2020) Impact •
Slide 36: Key Policy
Key Policy New Measures • Higher aggregate leverage (gearing) limit to 50% (from 45%) (By Monetary Authority • Extension to distribute at least 90% of S-REIT’s taxable income for FY ending in of Singapore, Ministry 2020 from 3 months (after the end of the FY) to 31 Dec 2021 to qualify for tax of Fin
Slide 37: Prudent Capital Management
Prudent Capital Management Robust Financial • Healthy aggregate leverage at ~36% Metrics • Financial metrics exceed key bank covenant thresholds • Sufficient cashflow to meet financial and operational obligations as they come due • Has reserves of S$490 m, comprising of S$290 m in cash and S$200 m i
Slide 38: Outlook & Strategy
Outlook & Strategy • The onset of the COVID-19 outbreak since the beginning of the year has caused varying knock-on effect on all of us – tenants, landlord and Unitholders. • We will continue to assess and respond to the changing situation • Strong financial profile and well diversified portfolio wi
Slide 39: Thank you
CapftaLand §— Zpassens Thank you