Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — Ascendas Reit — Investor Presentation (May 2021)
48 slides from Capitaland Ascendas Reit's investor presentation, May 2021
Slide 1: Ascendas Reit Investor Presentation May 2021
ASCENDAS REIT Investor Presentation May 2021
Slide 2: Disclaimers
Disclaimers • This presentation may contain forward-looking statements. 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 assumptions. Representative examples of these factors i
Slide 3: Agenda
Agenda Overview of Ascendas Reit 4 1Q FY2021 Key Highlights 15 Investment Management 17 Proposed Acquisition of remaining 75% interest in Galaxis 22 Capital Management 28 Asset Management 32 Market Outlook 41 Sustainability 44 3
Slide 4: Overview of Ascendas Reit
Overview of Ascendas Reit ONE@Changi City, Singapore
Slide 5: Largest Singapore Industrial REIT by assets under management
0 5,000 10,000 15,000 20,000 25,000 S$m Sabana REIT 931 Soilbuild Business Space REIT 1,345 ARA Logos Logistics Trust 1,412 EC World REIT 1,816 Source: Bloomberg AIMS AMP Capital REIT 1,824 Ascendas India Trust 2,651 ESR REIT 3,187 Industrial Keppel DC REIT 3,350 Ave: S$4.5b Cromwell European Reit 3
Slide 6: Largest Singapore Industrial REIT
Largest Singapore Industrial REIT ▪ Ascendas Reit’s business space and industrial properties are located across 4 Investment Properties developed markets – Singapore, Australia, the United States (US) and the United Kingdom (UK)/Europe ~ S$15 b United Kingdom / Europe Market Capitalisation United St
Slide 7: Achieved Steady Growth since IPO
Achieved Steady Growth since IPO Investment Properties and Distributions per Unit (DPU) has grown via ▪ Third party acquisitions: 51% ▪ Acquisitions from Sponsor: 38% ▪ Developments: 11% Investment Properties (S$ b) Distribution per Unit (cents) 15.1 14.688 12.9 8.050 0.6 31 DEC 2003 31 DEC 2020 3 1
Slide 8: Diversified Portfolio
Diversified Portfolio By Value of Investment Properties Australia, 15% Singapore, ▪ As at 31 Mar 2021, total investment properties stood at 60% S$15.1 b (209 properties(1)) ▪ Diversified geographically: United Total Investment States, 14% Properties(5) ▪ Singapore portfolio: S$9.0 b ~S$15.1 b ▪ Aust
Slide 9: Singapore: 96 properties
Singapore: 96 properties Widest variety of industrial Properties are well-located along major properties expressways, airport, seaport and proximity to MRT stations Integrated Development, Light industrial Amenities & Logistics & and Flatted Retail Distribution Factories 8% 10% Centres Singapore 13%
Slide 10: Australia: 37 properties
Australia: 37 properties (32 logistics, 5 suburban offices) Breakdown by City Located in 4 key cities: Sydney, Melbourne, Brisbane and Perth Melbourne 26% Brisbane 206,825 sqm Logistics 9 properties Perth 20,895 sqm Suburban Office 2 Properties Perth Logistics 1 property 2% Brisbane Investment 24% P
Slide 11: United Kingdom/Europe: 49 properties
United Kingdom/Europe: 49 properties (38 logistics, 11 data centres) 38 Logistics 509,908 sqm Breakdown by Geography 3 Data Centres 29,189 sqm France The 11% Netherlands Switzerland 14% 2% 3 Data Centres 22,006 sqm Investment Properties S$1.8b United Kingdom 73% Breakdown by Asset Class Logistics 54
Slide 12: United States: 30 Business Park Properties
United States: 30 Business Park Properties Breakdown by City Portland, Oregon 106,506 sqm Business Park 15 properties San Francisco 37% Investment San Francisco, California 44,006 sqm Office 2 properties Properties San Diego S$2.1b Raleigh 29% 20% Portland 14% Raleigh, North Carolina 110,093 sqm Bus
Slide 13: Customers' Industry Diversification
Customers’ Industry Diversification (By Monthly Rental Income) ▪ Diversified customer base across more than 20 industries More than 20 industries 13
Slide 14: Quality and Diversified Customer Base
Quality and Diversified Customer Base ▪ Total customer base of more than 1,460 tenants ▪ Top 10 customers (as at 31 Mar 2021) account for about 19.3% of monthly portfolio gross revenue* ▪ On a portfolio basis, weighted average security deposit is about 4.8 months of rental income. geographical locat
Slide 15: 1Q FY2021 Key Highlights
1Q FY2021 Key Highlights The Capricorn, Singapore
Slide 16: 1Q FY2021 Key Highlights
1Q FY2021 Key Highlights Investment Management • Acquired 11 data centres across 5 key European cities for S$904.6 m • Completed the acquisition of a suburban office at 1-5 Thomas Holt Drive, Sydney, Australia, for S$284.0 m Capital Management Asset Management Healthy Aggregate High Level of Portfol
Slide 17: Investment Management
Investment Management Croydon, London, United Kingdom
Slide 18: Investment Highlights: Acquisitions
Investment Highlights: Acquisitions ▪ Completed S$1,188.6 m worth of acquisitions in 1Q FY2021 ▪ An additional S$251.2 m worth of investments under development were secured and expected to complete within the next two years Purchase Consideration / Completion 1Q FY2021 City/Country Sub-segment Land
Slide 19: Acquisition (Completed): 1-5 Thomas Holt Drive, Sydney
Acquisition (Completed): 1 – 5 Thomas Holt Drive, Macquarie Park, Sydney, Australia Purchase Consideration(1)(2) S$284.0 m (A$288.9 m) 3 THD Acquisition Fee(3), Stamp Duty and S$19.3 m (A$19.6 m) Other Transaction Costs 5 THD Total Acquisition Cost S$303.3 m (A$308.5 m) 1 THD Vendor AMP Capital Valu
Slide 20: Acquisition (Completed): Data Centres in Europe
Acquisition (Completed): 11 Data Centres in Europe S$904.6 m Total Consideration (1) 4 data centres in UK: £250.25 m 7 data centres in Netherlands/France/Switzerland: €276.85 m Acquisition Fee (2), Stamp Duty London Amsterdam S$55.4 m and Other Transaction Costs Paris Geneva Total Acquisition Cost S
Slide 21: Divestment: Changi North Way, Singapore
Divestment (Newly Completed in 2Q 2021): 11 Changi North Way, Singapore Sales Price(1) S$16.0 m Buyer Hafary Pte Ltd Book Value/Valuation(2) (as at 31 Dec 2020) S$15.0 m Acquisition Year / Purchase Price 2005/ S$11.0 m Remaining Land Tenure 42 years (at point of sale) Net Lettable Area 9,494 sqm 11
Slide 22: Proposed Acquisition of remaining 75% interest in Galaxis
Proposed Acquisition of remaining 75% interest in Galaxis Galaxis, Singapore
Slide 23: Proposed Acquisition: 75% interest in Galaxis
Proposed Acquisition: 75% interest in Galaxis, Singapore, a top-notch high-end business park in one-north Purchase Consideration (1) S$534.4 m Acquisition Fee(2), Stamp Duty and S$9.4 m Other Transaction Costs Total Acquisition Cost S$543.8 m Vendor Ascendas Fusion 5 Holding Pte Ltd (3) Agreed Prope
Slide 24: Key Merits of the Investment
Key Merits of the Investment Buona Vista one-north ▪ Enlarges Ascendas Reit’s business park portfolio in one-north, Singapore • Asset value of the Business & Science Park segment in Singapore will grow by 17.6% from ~S$4.1 b to ~S$4.9 b (1) • Total NLA of the business and science park segment in Sin
Slide 25: Key Merits of the Investment
Key Merits of the Investment ▪ Rare opportunity to acquire and achieve full control of a Singapore property with long remaining land lease tenure • Long remaining land lease tenure of about 51 years, which is rare given JTC Corporation’s current practice of releasing shorter tenure land plots of bet
Slide 26: Key Merits of the Investment
Key Merits of the Investment ▪ High occupancy rate underpinned by renowned tenants • Key tenants include renowned companies such as Sea, Canon and Oracle • Higher rental contributions from Information & Communications Technology and Electronics customers • Enjoys high occupancy rate of 98.6% as at 3
Slide 27: Pro Forma Financial Impact
Pro Forma Financial Impact (Based on 75% interest of Galaxis) Pro Forma In Singapore cents Before Acquisition After Acquisition Financial Impact +0.059 DPU (1) 14.688 14.747 (0.40% accretion) +2 NAV per Unit (2) 221 223 (0.90% accretion) NPI Yield in Year 1 (3) Pre-transaction cost 5.4% Post-transac
Slide 28: Capital Management
Capital Management 1,3 & 5 Changi Business Park Crescent, Singapore
Slide 29: Healthy Balance Sheet
Healthy Balance Sheet ▪ Aggregate leverage is healthy at 38.0% (1)(2) ▪ Robust financial metrics that exceed bank loan covenants by a healthy margin ▪ A3 credit rating facilitates good access to wider funding options at competitive rates ▪ Available debt headroom of ~S$3.8 b (1)(2) to reach MAS’s ag
Slide 30: Well-spread Debt Maturity Profile
Well-spread Debt Maturity Profile ▪ Well-spread debt maturity with the longest debt maturing in FY2030 ▪ Average debt maturity stable at 3.3 years ▪ Secured new green loans of US$448.6m (S$593.6m) in 1Q 2021 ▪ To date, green financing of S$994m (1) accounts for about 16% of total borrowing of S$6.3
Slide 31: High Natural Hedge
High Natural Hedge ▪ Maintained high level of natural hedge for Australia (72.3%), the United Kingdom (70.7%), the United States (89.0%) and Europe(75.4%) to minimise the effects of adverse exchange rate fluctuations A$ Natural Hedge US$ Natural Hedge £ Natural Hedge € Natural Hedge 72.3% 89.0% 70.7
Slide 32: Asset Management
Asset Management 254 Wellington, Melbourne, Australia
Slide 33: Overview of Portfolio Occupancy
Overview of Portfolio Occupancy 98.6% 97.5%(1) 97.5%(1) 94.9% 97.4% 97.3% 92.5% 92.9% 92.9% 90.6% 91.7% 91.7% 86.9% 88.4% 88.6% Singapore Australia United States United Kingdom / Europe Total Mar-21 Dec-20 Mar-20 Gross Floor 3,001,293 867,383 (3) 357,065 590,377 (4) 4,816,118 Area (sqm) (2) (1) Refe
Slide 34: Singapore: Sources of New Demand in 1Q FY2021
Singapore: Sources of New Demand in 1Q FY2021 ▪ Continues to attract demand from a wide spectrum of industries 3.6% 4.4% 2.3% 3.0% 5.8% 6.5%6.4% 8.1% 4.4% 7.0% 1.1% 1.4% 7.2% 1.1% 9.7% 0.6% By Gross Rental By NLA Income 31.8% 32.1% 29.3% 34.0% Electronics Biomedical and Agri/Aquaculture Distributors
Slide 35: Portfolio Rental Reversions
Portfolio Rental Reversions ▪ Average portfolio rent reversion of 3.0% was recorded for leases renewed in 1Q FY2021. ▪ Rental reversion for FY2021 is expected to be in the positive low single-digit range in view of current market uncertainties % Change in Renewal Rates for Multi-tenant Buildings (1)
Slide 36: Weighted Average Lease Expiry
Weighted Average Lease Expiry (By gross revenue) ▪ Portfolio Weighted Average Lease Expiry (WALE) stood at 4.1 years WALE (as at 31 Mar 2021) Years Singapore 3.6 Australia 4.0 United States 4.9 United Kingdom/Europe 6.2 Portfolio 4.1 36
Slide 37: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile (as at 31 Mar 2021) Breakdown of expiring leases for FY2021 and FY2022 ▪ Portfolio WALE of 4.1 years. ▪ Lease expiry is well-spread, extending beyond FY2035 13% 2%6% 29% 13% ▪ About 9.9% of gross rental income is due for renewal in the remaining of 7% 8% 43% FY2021 FY2
Slide 38: Ongoing Projects: Improving Portfolio Quality
Ongoing Projects: Improving Portfolio Quality Estimated City/Country Estimated Total Cost (S$m) Completion Date Development 184.6 Built-to-suit business park Singapore 184.6 3Q 2021(1) development for Grab Redevelopments 119.3 UBIX (formerly 25 & 27 Ubi Road 4) Singapore 35.0 4Q 2021 iQuest@IBP Sing
Slide 39: Asset Enhancement Initiative (New): Hansapoint
Asset Enhancement Initiative (New): Hansapoint, Singapore The asset enhancement works include upgrading of the main entrance and lift lobby, upgrading of the common corridors Description and toilets, driveway upgrading works, erection of new driveway canopy, and construction of a new gymnasium and e
Slide 40: Expanding Flexible Workspace Solutions
Expanding Flexible Workspace Solutions • Launched Ascendas Reit’s third flexible workspace location, The Workshop @ Bukit Merah, in Apr 2021 at Pacific Tech Centre, Singapore • The Workshop offers workpods, storage solutions, event spaces, broadcast and photography studios(1) 2018 2020 2021 1 The Wo
Slide 41: Market Outlook
Market Outlook 505 Brannan Street San Francisco, United States
Slide 42: Market Outlook
Market Outlook • In Apr 2021, the International Monetary Fund (IMF) projected the global economy to grow by a stronger 6.0% y-o-y in 2021 (revised from Jan 2021 forecast of 5.5%) supported by government policies and COVID-19 vaccines. However, until the pandemic is brought under control globally, ma
Slide 43: Market Outlook
Market Outlook • The US economy recorded a contraction of 3.5% y-o-y in 2020 and is expected to rebound to a growth of 6.4% in 2021. ➢ The US portfolio is located in the US technology cities of San Francisco, San Diego, Raleigh and Portland and is well- positioned to benefit from the growing technol
Slide 44: Sustainability
Sustainability The Galen, Singapore
Slide 45: Green Initiatives
Green Initiatives Green Financing Renewable Energy • Established Green Finance • Largest no. of public Electric Vehicle Framework in FY2020 (EV) charging points in Singapore by a • Issued maiden S$100 million Green S-REIT: 40 Bond and S$300 million Green • 10,385 MWh of solar power generated Perpetu
Slide 46: Committed to Reduce Carbon Footprint
Committed to Reduce Carbon Footprint • In 2020, common facilities’ electricity usage at Neuros & Immunos was 100% powered by renewable energy generated from solar farms installed on the roofs of 6 of Ascendas Reit’s properties • By 2022, Ascendas Reit aims to power the common facilities’ electricity
Slide 47: Recent Acquisitions of Green Buildings
Recent Acquisitions of Green Buildings Under Development 510 Townsend Street, San Francisco, US 505 Brannan Street, San Francisco, US 254 Wellington Road, Melbourne, Australia MQX4, Sydney, Australia 5 Star Green Star Design & 6 Star Green Star Design & As-Built rating LEED Platinum (Building Design
Slide 48: Thank you
Thank you CapjtaLand — Zpaseens