Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Sabana Shari'ah Compliant Industrial REIT — Q2 2017 Earnings Presentation
32 slides from Singapore Exchange's earnings presentation, Jul 25, 2017
Slide 1: Sabana Shari'ah Compliant Industrial REIT 2Q 2017 Financial Results Presentation
SABANA SHARI’AH COMPLIANT INDUSTRIAL REIT 2Q 2017: Second Quarter Ended 30 June 2017 Financial Results Presentation 25 July 2017
Slide 2: Important Notice
Important Notice Disclaimer This presentation shall be read in conjunction with the financial information of Sabana Shari’ah Compliant Industrial Real Estate Investment Trust (“Sabana REIT” or the “Trust”) for the second quarter from 1 April 2017 to 30 June 2017 (“2Q 2017”). This presentation may co
Slide 3: Contents
Contents I. Key Highlights 5 II. Financial Performance 7 III. Capital Management 12 IV. Portfolio Performance 15 V. Outlook and Strategy 25 VI. 2Q 2017 Non-Shari’ah Income 29 VII. Distribution Details 31 3
Slide 4: Contents: Key Highlights
Contents I. Key Highlights 5 II. Financial Performance 7 III. Capital Management 12 IV. Portfolio Performance 15 V. Outlook and Strategy 25 VI. 2Q 2017 Non-Shari’ah Income 29 VII. Distribution Details 31 4
Slide 5: Key Highlights for 2Q 2017
Key Highlights for 2Q 2017 • Distribution per Unit (“DPU”) and distributable income of 0.81 Singapore cents and S$8.6 million respectively for 2Q 2017 • Continued commitment to support DPU for Unitholders - One-off waiver of base fees by 25% for the quarter: • DPU would have been 0.87 cents had the
Slide 6: Contents: Financial Performance
Contents I. Key Highlights 5 II. Financial Performance 7 III. Capital Management 12 IV. Portfolio Performance 15 V. Outlook and Strategy 25 VI. 2Q 2017 Non-Shari’ah Income 29 VII. Distribution Details 31 6
Slide 7: Financial Performance
Financial Performance For the quarter ended 30 June 2017 Variance Variance (in S$'000) 2Q 2017 1Q 2017 2Q 2017 2Q 2016 (%) (%) Gross revenue 21,964 21,978 (0.1) 21,964 22,630 (2.9) Net property income (“NPI”) 12,933 13,335 (3.0) 12,933 13,965 (7.4) Income available for distribution 8,568 9,318 (8.0)
Slide 8: 2Q 2017 QoQ Financial Performance
2Q 2017 QoQ Financial Performance Variance Gross Revenue was maintained at a steady (in S$'000) 2Q 2017 1Q 2017 S$22.0 million. (%) Property expenses increased by 4.5% mainly due Gross revenue 21,964 21,978 (0.1) to the higher impairment losses on trade receivables provided for 6 Woodlands Loop and
Slide 9: 2Q 2017 YoY Financial Performance
2Q 2017 YoY Financial Performance Gross revenue decreased by 2.9% year-on-year Variance(1) (“YoY”) mainly due to a lower contribution from (in S$'000) 2Q 2017 2Q 2016 (%) five multi-tenanted properties in 2Q 2017 and the conversion of 39 Ubi Road 1 into multi-tenanted Gross revenue 21,964 22,630 (2.
Slide 10: Balance Sheet
Balance Sheet As at 30 June 2017 S$'000 Investment properties 964,000 Investment properties held for divestment 12,800 Other assets 18,011 Total assets 994,811 Borrowings, at amortised cost 365,772 Other liabilities 28,283 Total liabilities 394,055 Net assets attributable to Unitholders 600,756 Unit
Slide 11: Contents: Capital Management
Contents I. Key Highlights 5 II. Financial Performance 7 III. Capital Management 12 IV. Portfolio Performance 15 V. Outlook and Strategy 25 VI. 2Q 2017 Non-Shari’ah Income 29 VII. Distribution Details 31 11
Slide 12: Capital Structure At A Glance
Capital Structure At A Glance As at 30 June 2017 Borrowings S$367.8 million Aggregate leverage(1) 37.0% Proportion of total borrowings on fixed rates 87.8% Average all-in financing cost(2) 4.0% Outstanding Term CMF S$135.0 million Convertible Sukuk due 2017 S$42.8 million Trust Certificates S$190.0
Slide 13: Borrowings Maturity Profile
Borrowings Maturity Profile As at 30 June 2017 250 200 150 130.0 S$ millions 100 90.0(1) 90.0(2) 57.8 100.0 50 90.0 90.0 42.8 30.0 15.0 0 2017 2018 2019 2020 Term CMF Convertible Sukuk Multicurrency Islamic Trust Certificates Revolving Murabahah Facility Revolving CMF Maturities of total outstanding
Slide 14: Contents: Portfolio Performance
Contents I. Key Highlights 5 II. Financial Performance 7 III. Capital Management 12 IV. Portfolio Performance 15 V. Outlook and Strategy 25 VI. 2Q 2017 Non-Shari’ah Income 29 VII. Distribution Details 31 14
Slide 15: Property Locations
Property Locations Our properties are diversified into four industrial segments across Singapore, close to expressways and public transportation. 15
Slide 16: Occupancy Rates
Occupancy Rates As at As at 30 June 2017 31 March 2017 Total portfolio GFA 4,403,674 sq ft 4,403,674 sq ft Portfolio occupancy 10 properties, master leases(1) 100.0% 100.0% 10 properties, multi-tenanted(2) 80.4% 80.4% 21 properties, total portfolio(3) 87.3% 87.3% Weighted average master lease term t
Slide 17: Occupancy Levels Since Listing
Occupancy Levels Since Listing Comparisons to Singapore industrial average occupancy levels 100% 90% 80% 70% 60% (2) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2013 2014 2015 2016 2017 (1) (1) Sabana REIT Portfolio Industry (Factory) Industry (Warehouse)
Slide 18: Diverse Asset Types
Diverse Asset Types Sabana REIT’s portfolio is diversified in the following asset types: • High-tech Industrial • Warehouse & Logistics • Chemical Warehouse & Logistics • General Industrial Asset Breakdown by NLA for 2Q 2017(1) Gross Revenue by Asset Type for 2Q 2017 Chemical Chemical Warehouse Ware
Slide 19: Long Weighted Average Leasehold For Underlying Land
Long Weighted Average Leasehold For Underlying Land Percentage of unexpired land lease term by GFA(1) 50.8% 20.5% 12.7% 9.4% 6.6% - - 2032 - 2036 2037 - 2041 2042 -2046 2047 -2051 2052 - 2056 2057- 2061 Beyond 2061 Well distributed, long underlying land leases, with an average of 34.1 years by GFA.
Slide 20: Quality Assets Attract Quality Tenants
Quality Assets Attract Quality Tenants As at As at 30 June 2017 31 March 2017 Total NLA (sq ft) 3,604,730(1) 3,605,294 Total number of direct and sub-tenants 118 116 Weighted average lease term to expiry (mths)(2) 28.9 29.3 (1) Decrease due to reconfiguration of space. (2) Weighted by sub-tenancy gr
Slide 21: Diverse Sub-tenant Base
Diverse Sub-tenant Base Sub-tenants’ industry diversification by NLA(1): Others Logistics 12.3% 9.3% R&D Printing 1.1% 2.4% Healthcare 3.4% Info Technology 12.8% Engineering 7.0% Storage Construction & Utilities 5.7% 3.3% Chemical Telecommunication & 8.2% Data Warehousing 10.3% F&B 1.1% General Manu
Slide 22: Lease Management
Lease Management Lease Expiry by NLA(1) 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 9.6% 20.0% 5.3%(2) 12.2% 12.9% 10.0% 11.1% 17.3%(3) 7.7% 6.5% 8.1% 9.3% 0.0% 2017 2018 2019 2020 Beyond 2020 Master Lease Multi-tenanted (1) As at 30 June 2017. (2) Two properties: 21 Joo Koon Crescent and 6 Woo
Slide 23: Lease Management
Lease Management Lease Type by NLA for 2Q 2017(1) Master Leases 40.7% Multi- tenanted 59.3% (1) As at 30 June 2017. Excludes 218 Pandan Loop, which is currently vacant, pending completion of divestment announced on 5 December 2016. 23
Slide 24: Contents: Outlook and Strategy
Contents I. Key Highlights 5 II. Financial Performance 7 III. Capital Management 12 IV. Portfolio Performance 15 V. Outlook and Strategy 25 VI. 2Q 2017 Non-Shari’ah Income 29 VII. Distribution Details 31 24
Slide 25: Outlook
Outlook Singapore’s economic growth outlook for 2Q 2017 • According to the advance estimates released by the Ministry of Trade and Industry (MTI), the Singapore economy expanded by 2.5% in the second quarter of 2017 on a y-o-y basis, a same pace of growth as the previous quarter. On a quarter-on- Si
Slide 26: Strategy
Strategy Management Strategy • Ahead of their maturity, the Manager has commenced discussions with the relevant parties on the possible renewal of the five master leases expiring this year(1), three of which are Sponsor-related properties. • After taking into account feedback from Unitholders, the M
Slide 27: Strategy
Strategy • While the Manager expects market conditions to remain challenging, it is focusing on managing short-term volatility through marketing and leasing efforts, retaining existing tenants while improving its occupancy levels in the multi-tenanted buildings to secure long-term value for Unithold
Slide 28: Contents: 2Q 2017 Non-Shari'ah Income
Contents I. Key Highlights 5 II. Financial Performance 7 III. Capital Management 12 IV. Portfolio Performance 15 V. Outlook and Strategy 25 VI. 2Q 2017 Non-Shari’ah Income 29 VII. Distribution Details 31 28
Slide 29: 2Q 2017 Non-Shari'ah Income
2Q 2017 Non-Shari’ah Income Sabana REIT gives out its non-Shari’ah income on a quarterly basis, to charitable causes After taking into consideration the uncollected Ta’widh and Ta’widh processing cost for the quarter, there will be no non-Shari’ah compliant income subjected to cleansing and to be do
Slide 30: Contents: Distribution Details
Contents I. Key Highlights 5 II. Financial Performance 7 III. Capital Management 12 IV. Portfolio Performance 15 V. Outlook and Strategy 25 VI. 2Q 2017 Non-Shari’ah Income 29 VII. Distribution Details 31 30
Slide 31: Distribution Details
Distribution Details Sabana REIT Code: MIGU Distribution period DPU (cents) 1 April 2017 to 30 June 2017 0.81 Distribution Timetable Last date that the Units are quoted on a “cum”- distribution basis 28 July 2017 Ex-date 31 July 2017, 9am Books closure date 2 August 2017, 5pm Distribution payment da
Slide 32: Thank you
Thank you Sabana Real Estate Investment Management Pte. Ltd. 151 Lorong Chuan #02-03 New Tech Park Singapore 556741 www.sabana-reit.com Tel: +65 6580 7750 Fax: +65 6280 4700 For enquiries, please contact: Mr Bobby Tay Chief Strategy Officer & Head of Investor Relations Tel: +65 6580 7750 Email: bobb
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