Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — AIMS AMP Capital Industrial REIT — Macquarie Asean Conference 2012
40 slides from Singapore Exchange's conference presentation, Aug 30, 2012
Slide 1: AIMS AMP Capital Industrial REIT – Presentation to the Macquarie Asean Conference
AIMS AMP CAPITAL INDUSTRIAL REIT Presentation to the Macquarie Asean Conference 29 & 30 August 2012
Slide 2: Important Notice
Important Notice Disclaimer This Presentation is focused on comparing actual results for the financial period from 1 April 2012 to 30 June 2012 (“1Q FY2013”) versus actual results year-on-year (“y-o-y”) and quarter-on-quarter (“q-o-q”). This Presentation shall be read in conjunction with AIMS AMP Ca
Slide 3: Contents
Contents Highlights for the Quarter 1Q FY2013 Financial Results Portfolio Review Execution on Strategy Strategy for FY2013 Substantial Unitholders 3 AIMS AMP CAPITAL INDUSTRIAL REIT
Slide 4: Highlights for 1Q FY2013
Highlights for 1Q FY2013 Stable DPU performance: 2.50 cents per unit for the quarter (despite the loss of income from 31 Admiralty Road and 20 Gul Way) Strong increase in amount available for distribution to Unitholders of 7.9% in 1Q FY2013 compared to 4Q FY2012 Rated investment grade BBB- by Standa
Slide 5: Stable and Attractive Yield
Stable and Attractive Yield 9.00% 7.60% 8.00% 7.00% 6.00% 5.00% % yield per annum 4.00% 3.00% 2.50% 2.00% 1.61% 1.00% 0.29% 0.00% 1 2 3 2 1QFY2013 Yield S'pore Govt 10-yr bond CPF Ordinary Account Bank 12mths FDs 1 Based on closing price of $1.315 on 18 July 2012 and annualised DPU of 10.0 cents. An
Slide 6: Stable DPU performance
Stable DPU performance 3.00 2.688 2.688 2.700 2.700 2.650 2.600 2.550 2.500 2.500 2.50 1.984 2.00 1.795 Distribution per unit (cents) 1.50 1.00 0.50 0.00 3QFY10 1 4QFY101 1QFY111 2QFY111 3QFY111 4QFY111 1QFY121 2QFY12 3QFY12 4QFY12 1QFY13 1 The number of Units used to calculate the distribution per
Slide 7: 1Q FY2013 Financial Results
1Q FY2013 Financial Results 7 AIMS AMP CAPITAL INDUSTRIAL REIT
Slide 8: Distribution Details
Distribution Details Stock counter Distribution period DPU (cents) AIMSAMPIReit 1 April 2012 to 30 June 2012 2.50 Code: O5RU Distribution Timetable Ex-date 30 July 2012, 9.00am Books closure date 1 August 2012, 5.00pm Tax Declaration Forms 27 August 2012, 5.00pm DRP Notice of Election Forms 27 Augus
Slide 9: Results for 1Q FY2013
Results for 1Q FY2013 1Q FY2013 4Q FY2012 Q-o-Q 1Q FY2012 Y-o-Y S$’000 S$’000 % S$’000 % Gross Revenue 20,948 20,296 3.2 20,995 (0.2) Net Property Income 14,897 13,990 6.5 14,341 3.9 Amount available for 11,405 10,574 7.9 12,084 (5.6) Distribution to Unitholders DPU (cents) 2.501 2.70 (7.4) 2.652 (5
Slide 10: Balance Sheet
Balance Sheet 30 June 2012 31 March 2012 31 December 2011 Total Assets (S$’M) 939.5 939.0 907.1 Comprising (S$’M): - Investment Properties 830.2 830.0 809.7 - Investment Properties under development 102.6 84.5 68.7 - Investment Properties held for sale - 16.4 15.1 - Plant and equipment 0.1 0.1 0.1 -
Slide 11: Key Financial Metrics
Key Financial Metrics 1Q FY2013 4Q FY2012 Appraised Value of Property Portfolio S$932.71 million S$930.9 million Market Capitalisation2 S$586.4 million S$526.0 million NAV per Unit S$1.400 S$1.406 Discount to NAV2 6.1% 15.7% Aggregate Leverage3 29.7% 30.0% Interest Cover Ratio4 6.0 times 6.2 times W
Slide 12: Debt Facilities as at 30 June 2012
Debt Facilities as at 30 June 2012 Bank syndicate comprising UOB, SCB, CBA and ING Average debt maturity of 2.3 years All in pricing of 234bps (margin + upfront fee) S$430.0 million debt facility • Term loan of S$200.0 million, split equally between tenor of 3 years and 5 years maturing in October 2
Slide 13: Debt Facilities – Medium Term Notes issuance
Debt Facilities – Medium Term Notes issuance Established S$500 million Multicurrency Medium Term Note programme on 25 July 2012 Issued S$100 million 4 year Fixed Rate Notes at 4.9% on 8 August 2012 Use of proceeds: repayment of S$100 million bank debt due October 2013 Average debt maturity increases
Slide 14: Gearing Level since IPO
Gearing Level since IPO Target LVR between 30 – 40%, max 45% (bank covenant) 50.0 44.7 Bank covenant: Aggregate leverage max 45% 45.0 41.2 41.8 40 39.6 39.6 39.7 maintained gearing at around 30% for 11 consecutive quarters 40.0 35.0 34.0 32.0 30.4 30.0 30.7 30.0 29.7 30.0 28.9 28.9 28.8 28.9 27.6 %
Slide 15: Total Assets since IPO
Total Assets since IPO 1,000.0 939.0 939.5 907.1 900.0 874.7 863.3 883.6 818.8 800.0 700.0 658.2 657.7 660.4 659.9 Total Assets (S$mil) 600.0 569.3 570.0 568.3 566.2 544.0 538.8 505.2 500.0 473.4 400.0 361.8 323.7 300.0 200.0 100.0 - 15 AIMS AMP CAPITAL INDUSTRIAL REIT
Slide 16: Revenue performance since IPO
Revenue performance since IPO 25.0 21.5 21.2 20.8 21.0 20.9 20.3 20.0 19.6 16.8 16.0 15.6 15.4 15.2 14.9 15.0 14.5 14.4 14.3 14.0 12.9 13.1 12.4 12.4 12.6 S$millon 11.8 12.0 11.9 11.7 10.9 11.0 9.9 10.0 9.1 9.3 9.4 9.3 9.3 9.1 8.4 8.2 7.3 6.3 5.6 5.9 5.0 4.7 - NPI (S$mil) Gross Revenue (S$mil) 16 AI
Slide 17: Portfolio Review
Portfolio Review 17 AIMS AMP CAPITAL INDUSTRIAL REIT
Slide 18: Key Portfolio Statistics
Key Portfolio Statistics As at As at As at 19 April 2007 30 June 2012 31 March 2012 (Listing) Number of Properties 25 26 12 Appraised Value (S$ million) 932.71 930.91 316.5 Net Lettable Area (sq m) 416,465.9 456,607.1 194,980.7 Number of Tenants 98 70 12 Occupancy (%) 99.1 99.2 100.0 Weighted Averag
Slide 19: Portfolio Breakdown (By 1Q FY2013 Rental Income)
Portfolio Breakdown (By 1Q FY2013 Rental Income) Breakdown by Property Sector Master Leases vs Multi-tenancy Business Park / Hi-Tech Space Multi-tenancy 18.3% 33.2% Warehousing and Logistics 44.7% Master Leases Manufacturing 66.8% 17.6% Ramp up Warehouse 19.4% 19 AIMS AMP CAPITAL INDUSTRIAL REIT
Slide 20: Diversification Reduces Risk
Diversification Reduces Risk Tenant Base by Industry (By 1Q FY2013 Rental Income) Pharmaceutical/Healthcare/ F&B Cosmetics 4.2% 6.9% Fashion and Apparels 6.0% Printing 2.9% Logistics & Warehousing 30.1% Metal Recycling 2.7% Telecommunications 7.1% Plastic Products Construction and Engineering and Di
Slide 21: Intensive Lease Management
Intensive Lease Management To Manage Lease Expiry Profile Risk Lease Expiry Profile as at 30 June 2012 (by 1Q FY2013 Net Lettable Area) 35.0% As at 17 August 2012: underlying lease expiry position for FY2013 was 15%. 30.0% 28.8% FY2013 Sqm Total new/renewal leases signed 22 76,032.7 25.0% % of total
Slide 22: FY2013 Lease Expiry: 28.8% of portfolio
FY2013 Lease Expiry: 28.8% of portfolio Management of Lease Expiry Risk Expiry % of NLA Status Risk mitigated by underlying subleases: 82.4% of Master Leases expiring in FY2013 are supported Multi-Tenanted 3.5% Negotiations commenced by underlying subleases. Master Lease Expiry % of NLA Status Area
Slide 23: Quality Tenant Base
Quality Tenant Base Top 10 Tenants As at 30 June 2012 Top Ten Tenants by 1Q FY2013 Rental Income Tenant % C & P Holdings Pte Ltd 27 Penjuru Lane 19.4% Eurochem Corporation Pte Ltd 9.7% Ban Teck Han Group 5.0% Crescendas Group1 4.8% Ossia International Limited 4.0% Broadcom Singapore Pte Ltd 3.6% Bui
Slide 24: Strong and Stable Cashflows
Strong and Stable Cashflows Average security deposit per Occupancy property of of 99.1% approx. 7.2 months Weighted Built-in rent average escalation lease expiry of 2.66 years 24 AIMS AMP CAPITAL INDUSTRIAL REIT
Slide 25: Long Land Lease to Expiry – 41.8 years
Long Land Lease to Expiry – 41.8 years The weighted average unexpired land lease was 41.8 years as at 30 June 2012 % of Net Lettable Area 45.0% 39.3% 40.0% 35.0% % of Net Lettable Area 30.0% 26.2% 25.0% 21.9% 20.0% 15.0% 12.6% 10.0% 5.0% 0.0% 21 - 30 yrs 31 - 40 yrs 41 - 50 yrs 51 - 60 yrs 25 proper
Slide 26: Comparisons to Singapore Industrial Average Occupancy Levels
Comparisons to Singapore Industrial Average Occupancy Levels High Occupancy Levels The Trust vs the Singapore industrial average 99.1% 94.7% 94.0% 93.2% The Trust Factory Space Warehouse Space URA Industrial Average Source: Based on URA 1st quarter 2012 statistics. URA Industrial average is the aver
Slide 27: Execution on Strategy
Execution on Strategy 27 AIMS AMP CAPITAL INDUSTRIAL REIT
Slide 28: Objectives
Objectives Stable distributions, Increase Unitholders’ value and liquidity Prudent Capital and Risk Management Intensive Asset and Lease Management Repositioning of Trust’s portfolio & recycling of capital AIMS AMP CAPITAL INDUSTRIAL REIT 28 AIMS AMP CAPITAL INDUSTRIAL REIT
Slide 29: Execution on Strategy – Acquisitions
Execution on Strategy S$301.6 mil Acquisitions since January 2010 – increasing the size and improving the quality of the Portfolio 27 Penjuru Lane (Oct 2010) 29 Woodlands Industrial Park E1 (Feb 2011) (S$161 mil) (S$72 mil) 3 Toh Tuck Link (Jan 2010) 23 Tai Seng Drive (Jan 2010) 56 Serangoon Nth Ave
Slide 30: Execution on Strategy – Divestments
Execution on Strategy Divestments - Repositioning of Trust’s portfolio and recycling of capital 23 Changi South Ave 2, Asahi Ohmiya Warehouse, 31 Admiralty Road, Singapore Japan Singapore Sale of smaller asset in Disposal of Japan property Sale of smaller asset in Singapore Singapore Sale completed
Slide 31: Asset Enhancement / Redevelopment: Gul Way
Execution on Strategy Asset Enhancement / Redevelopment 20 Gul Way – Redevelopment Before Before Cluster of 10 single storey buildings with an underutilised plot ratio. After AIMS AMP CAPITAL INDUSTRIAL REIT After Purpose built five storey ramp up warehouse facility maximising 20 Gul Way’s plot rati
Slide 32: Gul Way – Redevelopment (Site Plans Before and After)
20 Gul Way – Redevelopment (Site Plans Before and After) Before Cluttered layout of single storey buildings After Five storey ramp up warehouse maximising plot ratio together AIMS AMP CAPITAL INDUSTRIAL REIT with an extensive marshalling yard for use by tenants Phase 1 Phase 2 32 32 AIMS AMP CAPITAL
Slide 33: Gul Way – Fact Sheet
20 Gul Way – Fact Sheet Prior Post Redevelopment Property 10 single storey buildings Five storey ramp up warehouse (completed in 2 Phases) Valuation S$41.8 m1 S$214.0 m2 Annual Rental Income S$3.6 m1 S$16.3 m (when completed) Plot Ratio 0.46 1.4 Maximum Plot Ratio 1.4 1.4 Land Area 828,248 sqft 828,
Slide 34: Gul Way – Post Redevelopment
20 Gul Way – Post Redevelopment S$ million 1. Gross development value upon completion 214.0 2. Project redevelopment cost (155.0) 3. Land cost (41.8) 4. Net rental income during redevelopment 6.8 5. Profit 24.0 6. Profit margin 12.2% 7. Project IRR (unleveraged) 10.7% 8. DPU impact1 (pre Unit Consol
Slide 35: Strategy for FY2013
Strategy for FY2013 35 AIMS AMP CAPITAL INDUSTRIAL REIT
Slide 36: Focused strategic execution
Focused strategic execution Financial Performance - Stable & Growing DPU Strong Active Portfolio Management Financial Strength Management & Sponsors Repositioning of portfolio by divesting Proven track record of maintaining Experienced management team smaller assets and focusing on larger gearing ar
Slide 37: Strategy for FY2013
Strategy for FY2013 • Focus on successful delivery of 20 Gul Way redevelopment on time and within budget. Singapore • Enhancement of selected asset(s). investments • Evaluation of further redevelopment opportunities in Singapore. • Continued evaluation of yield accretive investment opportunities in
Slide 38: Substantial Unitholders
Substantial Unitholders 38 AIMS AMP CAPITAL INDUSTRIAL REIT
Slide 39: Substantial Unitholders – June 2012
Substantial Unitholders – 30 June 2012 No. of Units Name of Substantial Unitholder (‘000) % AMP Capital Investors Limited 64,579 14.48 Dragon Pacific Assets Limited 52,900 11.86 APG Algemene Pensioen 41,578 9.32 George Wang 31,959 7.17 Universities Superannuation Scheme Limited 31,449 7.05 39 AIMS A
Slide 40: Thank you
Thank you For enquiries, kindly contact: AIMS AMP Capital Industrial REIT Management Limited Nicholas McGrath Joanne Loh Chief Executive Officer Asst Fund Manager / Investor Relations Tel: + 65 6309 1050 Tel: + 65 6309 1057 Email:nmcgrath@aimsampcapital.com Email:jloh@aimsampcapital.com 40 AIMS AMP
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