Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — Ascendas Real Estate Investment Trust (A-REIT) — Shareholder Meeting (June 2013)
59 slides from Capitaland Ascendas Reit's shareholder meeting presentation, Jun 28, 2013
Slide 1: Review of FY12/13 Performance Annual General Meeting 2013
Hi-Specs Industrial Review of FY12/13 Performance Annual General Meeting 2013 28 June 2013
Slide 2: Agenda
Agenda • Key Highlights for FY12/13 • Financial Highlights • Investment Management • Capital & Risk Management • Portfolio Management • Market Outlook and Conclusion Managed by Ascendas Funds Management (S) Ltd.. 2
Slide 3: Key Highlights for FY12/13
Key Highlights for FY12/13 • Financial Performance Gross revenue 14.4% y-o-y to S$575.8 million Net property income 11.0% y-o-y to S$408.8 million DPU 3.6% y-o-y to 14.05 cents, before performance fee Achieved net revaluation gain of about S$72.8 million. Total assets of about S$7.0 bi
Slide 4: Key Highlights for FY12/13
Key Highlights for FY12/13 • Proactive Capital Management Raised S$704.9 million from 2 equity fund raising exercises to fund new investments and to provide A-REIT with greater financial flexibility. Currently has about S$1.9 billion of debt headroom before reaching aggregate leverage of 45% Fur
Slide 5: Agenda
Agenda • Key Highlights for FY12/13 • Financial Highlights • Investment Management • Capital & Risk Management • Portfolio Management • Market Outlook and Conclusion Managed by Ascendas Funds Management (S) Ltd.. 5
Slide 6: Distributable Income: Steady Growth
Distributable Income: Steady Growth • Portfolio grew from 8 properties at listing to 103 properties • AUM from $0.6 billion to $7.0 billion • Steady increase in income available for distribution while maintaining aggregate leverage at a healthy level Managed by Ascendas Funds Management (S) Ltd.. 6
Slide 7: FY12/13 vs FY11/12
FY12/13 vs FY11/12 (S$’000) FY12/13(1) FY11/12(1) % inc/(dec) Gross revenue(2) 575,837 503,304 14.4 Less: Property operating expenses(3) (167,027) (134,967) 23.8 Net property income 408,810 368,337 11.0 Interest expense(4) (70,272) (60,533) 16.1 Other borrowing costs(5) (1,392) (2,529) (45.0) Non-pr
Slide 8: Agenda
Agenda • Key Highlights for FY12/13 • Financial Highlights • Investment Management • Capital & Risk Management • Portfolio Management • Market Outlook and Conclusion Managed by Ascendas Funds Management (S) Ltd.. 8
Slide 9: Investment Highlights: New initiatives in FY12/13
Investment Highlights New initiatives in FY12/13 • Continued to identify yield-accretive investment opportunities • Enhanced returns from existing buildings through asset enhancement works Acquisition Value (S$m) Status The Galen 127.5 Completed in Mar 2013 Development Expected Expected Commencement
Slide 10: Acquisition Highlights: The Galen
Acquisition Highlights: The Galen • Located within Singapore Science Park II. Easily one-north masterplan accessible via West Coast Highway and the nearby Haw Par Villa MRT Station • 6-storey multi-tenanted science park building with gross floor area of 30,685 sqm • Further strengthen A-REIT’s footp
Slide 11: Development Highlights: DBS Asia Hub Phase 2
Development Highlights : Development of 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 exist
Slide 12: Asset Enhancement: Ubi Road
Asset Enhancement: 31 Ubi Road 1 Building before AEI • Strategically located within Ubi Industrial estate, easily accessible via Pan-Island Expressway and MacPherson MRT station • Upgrading of building specifications to re-position it as a high- specs industrial building • Gross floor area: 15,934 s
Slide 13: Asset Enhancement: Xilin Districentre Building D
Asset Enhancement: Sept 2012: Work in progress Xilin Districentre Building D Dec 2012: enlargement of columns • Located in Changi International LogisPark (South) and casting of floor slab within close proximity to Changi Airport, Changi Business Park and Singapore Expo and easily accessible via East
Slide 14: Asset Enhancement: Changi Business Park Ave 1
Asset Enhancement: 1 Changi Business Park Ave 1 Artist impression of 1 Changi Business Park Ave 1 • Property was decommissioned with effect from October 2012 for asset enhancement works • Upgrading of building specifications, finishes and facilities to meet current business park requirements • Gross
Slide 15: 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 16: 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 specifications to improve marketability • Gross floor area: 56,107 sqm • Estimated cost: S$7.0 million • Expected completion: 1Q 2014 Location map. Sour
Slide 17: Asset Enhancement: Toh Guan Road East
Asset Enhancement : 5 Toh Guan Road East • Located within Toh Guan LogisPark. Easily accessible via major roads and expressways (PIE and AYE). 5 minutes’ drive away from Jurong East MRT station • Upgrading of building specifications internally to improve marketability for logistics usage • Gross flo
Slide 18: Investment Highlights: Projects committed in prior years
Investment Highlights Projects committed in prior years • Completed asset enhancement works at 10 Toh Guan Road (Phase 2) and 9 Changi South Street 3 in FY12/13 Acquisition Value (S$m) Status Forward purchase of A-REIT 124.6 Completion expected in 3Q 2013 City@Jinqiao, Shanghai, China Developments U
Slide 19: Acquisition Highlights: A-REIT City@Jinqiao, Shanghai
Acquisition Highlights: Forward Purchase of A-REIT City@Jinqiao, Shanghai, China • Located within the Jinqiao Economic and Artist Impression Technological Zone in Pudong • 8 blocks of business park buildings targeting MNCs and large local enterprises • Gross floor area: 79,880 sqm • Officially opene
Slide 20: Development Highlights (Completed): Unilever Four Acres Singapore
Development Highlights (Completed): Unilever Four Acres Singapore • Built-to-suit facility for Unilever Asia Private Limited • Unilever’s first global leadership development centre in Asia and second in the world • Land area of 22,950 sqm • Total GFA of about 9,180 sqm comprising a 4-storey training
Slide 21: Development Highlights: Nexus@one-north
Development Highlights: Nexus@one-north • Located within the one-north masterplan area in the central part of Singapore. Easily accessible via major expressways and within walking distance to the one-north MRT station • 2 blocks of 6-storey business park and office mix- use development with basement
Slide 22: Asset Enhancement (Completed): Toh Guan Road
Asset Enhancement (Completed): 10 Toh Guan Road After asset enhancement • Sited within the new Jurong Lake District regional centre; within walking distance to Jurong East MRT station and major retail malls • Phase 1 completed in May 2012 with showroom fully occupied • Phase 2 completed in August 20
Slide 23: Asset Enhancement (Completed): Changi South Street 3
Asset Enhancement (Completed): 9 Changi South Street 3 9 Changi South Street 3. • Strategically located in Changi International LogisPark and easily accessible via the East Coast Park Expressway • Gross floor area: 28,648 sqm • Estimated cost: S$14.6 million • Completed in Dec 2012 • Created an addi
Slide 24: 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. Currently comprises 6 blocks of flatted factory buildings and a canteen block • Developing a new factory block of about 24,016 sqm with ancillary F&B s
Slide 25: Divestment of properties
Divestment of properties Block 5006 Techplace II 6 Pioneer Walk Description One of existing 6 blocks of A 2-storey warehouse with a ramp-up flatted factory buildings at driveway, a 4-storey ancillary office and a Techplace II single storey workshop and a container yard GFA 18,018 sqm 20,094 sqm Acqu
Slide 26: Annual Valuation of Properties
Annual Valuation of Properties Revaluation gain of S$73 million with stable cap rate Cap Rate Weighted Range S$6,447m Average S$73m Business & 6.1% 6.0% to 6.3% S$77m Science Parks Hi-Specs S$127m 6.5% 6.0% to 7.2% Industrial Light Industrial 7.2% 6.8% to 8.0% S$6,170m Logistics & Distribution 7.0%
Slide 27: Leveraging Development Capabilities
Leveraging Development Capabilities: Cumulative S$296.5 m capital gains A-REIT Development Sector Development Revaluation as at Completion Capabilities Cost (S$m) 31 Mar 2013 (S$’m) Warehouse 1 Courts Megastore 46.0 65.9 Nov 2006 Retail Facility Warehouse 2 Giant Hypermart 65.4 87.5 Feb 2007 Retail
Slide 28: Agenda
Agenda • Key Highlights for FY12/13 • Financial Highlights • Investment Management • Capital & Risk Management • Portfolio Management • Market Outlook and Conclusion Managed by Ascendas Funds Management (S) Ltd.. 28
Slide 29: Strong Balance Sheet
Strong Balance Sheet • Issued 310 million new units to raise approximately S$704.9 million to fund investment opportunities • Aggregate leverage reduced to 28.3%; expected to increase to 30.4% after funding committed investments. Available debt headroom of S$1.9 billion to reach 45.0% aggregate leve
Slide 30: Interest Rate Management
Interest Rate Management As at As at 31 Mar 13 31 Mar 12 Aggregate leverage 28.3% 36.6% Total debt (S$m) 1,971 2,401 Fixed as a % of total debt 74.8% 55.8% Weighted average all-in borrowing cost(1) 3.32% 2.83% Weighted average term of debt (years) 3.9 3.5 Weighted average term of fixed rate debt (ye
Slide 31: Debt Maturity Profile
Debt Maturity Profile 450 (S$ million) 400 350 14 300 250 200 395 110 375 150 300 100 200 150 148 154 50 125 - 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Commercial Mortgage Backed Securities Exchangeable Collaterised Securities Medium Term Note Medium Term Note (JPY) Term Loan Faci
Slide 32: Agenda
Agenda • Key Highlights for FY12/13 • Financial Highlights • Investment Management • Capital & Risk Management • Portfolio Management • Market Outlook and Conclusion Managed by Ascendas Funds Management (S) Ltd.. 32
Slide 33: Well Diversified Portfolio - by Lease Tenure
Well Diversified Portfolio - by Lease Tenure Typically 3-year rolling leases Single- tenanted Buildings 35% Multi- tenanted Buildings Long term leases 65% typically with periodic rental escalation, of which 33.6% of these leases are pegged to CPI Mix of Single-tenanted vs Multi-tenanted Buildings by
Slide 34: Well Diversified Portfolio - by value of Investment Properties
Well Diversified Portfolio - by value of Investment Properties Business Park 29% (China) Warehouse Retail 1% Facilities 48% 2% 71% 52% Business Park 19% Logistics & Distribution Centres 21% 7% Flatted Factories 5% Science Park 16% Light Industrial 11% 93% High-Specs Industrial (Data Centres) 35% 4%
Slide 35: Quality and Diversified Tenant Base
Quality and Diversified Tenant Base • Total tenant base of over 1,200 tenants • Top 10 tenants account for 24.1% of rental income 6.0% 5.7% 5.0% 4.0% 3.5% 3.0% 2.7% 2.7% 2.0% 2.0% 1.6% 1.5% 1.5% 1.5% 1.4% 1.0% 0.0% Singapore C&P Holdings Pte Citibank, N.A Creative DBS Bank Ltd. Biomedical Sciences S
Slide 36: Tenants' Industry Diversification
Tenants’ Industry Diversification - by Gross Rental Revenue 3rd Party Logistics, Freight Forwarding 12.5% Electronics 9.8% M&E and Machinery & Equipment 9.5% Telecommunication & Datacentre 9.3% Information Technology 7.8% Financial 6.9% Distributors, Trading Companies 6.9% Life Science 5.3% Food Pro
Slide 37: Low exposure to conventional manufacturing
Low exposure to conventional manufacturing Tenants’ business activities by net lettable area • 19.5% of NLA occupied by tenants engaged in conventional manufacturing activities. Manufacturing Manufacturing 19.5% • Manufacturing activities include food 19.8% & beverages, aeronautical auxiliary equipm
Slide 38: Healthy Occupancy
Healthy Occupancy As at 31 Mar 13 31 Dec 12 31 Mar 12 Total Portfolio GFA (sqm) 2,780,984 2,747,215 2,741,775 Portfolio occupancy (same-store) 95.2% 95.6% 94.7% MTB(1) occupancy (same-store) 91.5% 92.2% 90.6% Occupancy of investments completed in 62.5% 44.2% n.a. the last 12 months Portfolio occupan
Slide 39: A-REIT vs Industrial Average Occupancy
A-REIT vs Industrial Average Occupancy 100.0% 94.2% 93.7% 94.4% 93.7% 93.6%92.9% 95.0% 92.8% 90.0% 85.0% 80.9% 80.0% Occupancy Rate 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% Business & Science Hi-Tech Industrial Light Industrial Logistics Parks A-REIT URA Notes : A-REIT’s Singapore portfolio as at 31 Marc
Slide 40: Occupancy History: Stable through the cycles
Occupancy History: Stable through the cycles 96.6% 98.4% 97.8% 95.7% 96.0% 94.3% 100% 94.1% 95.0% 94.0% 80 88.8% 96.4% 95.3% 82.5% 93.7% 89.0% 91.4% 91.2% 92.1% 89.5% 89.6% 70 Occupancy Rate / Singapore GDP Growth 80% 85.1% Singapore Puchasing Manager's Index (PMI) 82.5% 60 60% 53.4 49.7 50.8 51.1 5
Slide 41: Segmental Rental Performance
Segmental Rental Performance • Positive rental reversions registered across all segments Multi-tenanted Net lettable Vacant FY12/13 4Q FY12/13 Increase / properties (1) area (sqm) space (sqm) increase in increase in (decrease) in renewal renewal new take up As at 31 March 2013 rates (2) rates (3) ra
Slide 42: Lease Expiry Profile as at Mar 2013
Lease Expiry Profile as at 31 Mar 2013 • Weighted average lease to expiry of 3.7 years • Lease expiry is well spread, extending beyond 2025 • About 21.4% due for renewal in FY13/14 versus 24.6% as at 31 December 2012 25% Breakdown of expiring leases 22.5% for FY13/14 and FY14/15 21.4% 2.6% FY13/14 1
Slide 43: Average Market Rents by Segment
Average Market Rents by Segment 140 Psf pm 120 URA Industrial Rental Index 100 $4.50 80 60 $4.00 40 $3.81 $3.50 $3.00 $2.86 $2.50 $2.00 $1.94 $1.79 $1.50 $1.00 $0.50 Business & Science Parks Hi-Specs Industrial Light Industrial Logistics Source : URA 4Q 2012 Report for business park rental, CBRE Rep
Slide 44: 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 9% and 35% higher than the weighted average passing rental for the area due for renewal in FY13/14 Left Axis Right Axis Managed by Ascendas Funds Management (S) Ltd.. 44
Slide 45: Agenda
Agenda • Key Highlights for FY12/13 • Financial Highlights • Investment Management • Capital & Risk Management • Portfolio Management • Market Outlook and Conclusion Managed by Ascendas Funds Management (S) Ltd.. 45
Slide 46: Market Outlook
Market Outlook • The Singapore economy is expected to grow at a slower pace. With the economic restructuring underway and tightening labour market, there is an increasing trend in the cost of operations • URA industrial property price index declined 0.7% in 4Q 2012, after 12 consecutive quarters of
Slide 47: 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 48: A-REIT's strengths
A-REIT's strengths Diversity and Depth • Largest business and industrial REIT in Singapore • 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
Slide 49: A-REIT's strengths
A-REIT's strengths • Downside protection in earnings • Stable portfolio with 78.6% of portfolio revenue committed for FY13/14 and a portfolio average lease to expiry of about 3.7 years • Mix of long term and short term leases provide earnings stability Long term leases have a weighted average leas
Slide 50: 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 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: Annual General Meeting 28 June 2013
Hi-Specs Industrial Annual General Meeting 28 June 2013 Managed by Ascendas Funds Management (S) Ltd.. 52
Slide 53: Members of the Panel
Members of the Panel 1. Mr. Koh Soo Keong (Chairman, Independent Director) 2. Ms. Chong Siak Ching (Vice Chairman, Non-executive Director) 3. Mr. Henry Tan (Independent Director, Chairman of Audit Committee) 4. Mr. Manohar Khiatani (Non-executive Director) 5. Mr. Chia Kim Huat (Independent Director)
Slide 54: Resolutions
Resolutions Managed by Ascendas Funds Management (S) Ltd.. 54
Slide 55: Resolution 1 (Ordinary Resolution)
Resolution 1 (Ordinary Resolution) Ordinary Business To receive and adopt: • the Report of HSBC Institutional Trust Services (Singapore) Limited (as Trustee of A-REIT), • the Statement by Ascendas Funds Management (S) Limited (as Manager of A-REIT), and • the Audited Financial Statements of A-REIT f
Slide 56: Resolution 2 (Ordinary Resolution)
Resolution 2 (Ordinary Resolution) Ordinary Business To re-appoint KPMG LLP as Auditors of A-REIT to hold office until the conclusion of the next AGM of A-REIT, and to authorise the Manager to fix their remuneration KPMG LLP has expressed its willingness to continue in office Managed by Ascendas Fun
Slide 57: Resolution 3 (Ordinary Resolution)
Resolution 3 (Ordinary Resolution) Special Business To authorise the Manager or, as the case may be, the Trustee, to issue Units and to make or grant instruments convertible into Units and issue Units pursuant to such instruments Such units must not, in aggregate, exceed 50% of the total number of i
Slide 58: 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 59: Annual General Meeting June 2013
Hi-Specs Industrial Annual General Meeting 28 June 2013 Managed by Ascendas Funds Management (S) Ltd.. 59
Ascendas Real Estate Investment Trust (A-REIT) — Shareholder Meeting (June 2013) on 6ix