Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — A-REIT (Ascendas Real Estate Investment Trust) — FY2005/06 Earnings Presentation
42 slides from Capitaland Ascendas Reit's earnings presentation, Apr 13, 2006
Slide 1: FY2005/06 Full Year Results
FY2005/06 Full Year Results 13 April 2006
Slide 2: Disclaimer
Disclaimer This Presentation is focused on comparing actual results for the year ended 31 March 2006 versus forecasts derived on the best estimate as stated in the A-REIT Circular of 20 September 2005 and actual results in the prior corresponding period (“pcp”). This shall be read in conjunction wit
Slide 3: Agenda
Agenda • Key highlights • Financial performance • Capital and funds management • Portfolio highlights • Portfolio diversification • Going forward A-REIT FY05/06 Full Year Results .. 3
Slide 4: Key Highlights
Key Highlights • Distributable net income of S$142.63m, up 69% on pcp • DPU of 11.68 cents, up 22.2% on pcp • Acquired 28 properties for S$639m • Total assets grew to S$2.8b in Mar 06 from S$2.1b in Mar 05 • S$226m of acquisitions pending completion • First to pioneer 2 projects worth S$128m under t
Slide 5: Agenda
Agenda • Key highlights • Financial performance • Capital and funds management • Portfolio highlights • Portfolio diversification • Going forward A-REIT FY05/06 Full Year Results .. 5
Slide 6: DPU – 22% above pcp
DPU – 22% above pcp Actual (1) Actual (1) 01/04/05 to 01/04/04 to % 31/03/06 31/03/05 Change (S$’000) (S$’000) Gross revenue 227,153 128,987 76% Property operating expenses (53,596) (32,873) 63% Net property income 173,557 96,114 81% Borrowing costs (22,293) (8,506) 162% Non-property expenses (19,27
Slide 7: DPU – 3% above Forecast
DPU – 3% above Forecast(1) Actual Forecast (1) 01/04/05 to 01/04/05 to % 31/03/06 31/03/06 Change (S$’000) (S$’000) Gross revenue 227,153 219,726 3% Property operating expenses (53,595) (51,689) 4% Net property income 173,558 168,037 3% Non-property expenses (41,566) (40,334) 3% Net income 131,992 1
Slide 8: Balance sheet
Balance sheet (S$bn) As at 31 Mar 06 As at 31 Mar 05 Total Assets 2.8 2.1 Borrowings 1.0 0.6 Net assets attributable to 1.7 1.4 unitholders Gearing 36.9% 30.2% (inclusive of deferred payments) Net asset value per unit 134 cents (1) 123 cents Note: (1) Based on most recent valuation or total acquisit
Slide 9: Financial performance growing
Financial performance growing S$m 240 227 FY2006 210 180 174 FY2006 150 129 120 FY2005 96 90 66 FY2005 60 50 FY2004 30 23 FY2004 17 133 days 133 days FY2003 FY2003 0 Gross Revenue Net Property Income A-REIT FY05/06 Full Year Results .. 9
Slide 10: DPU growth since listing
DPU growth since listing Regular and stable distributions Cents 11.68 12 + 22.2% 2.92 cents 9.56 + 17.0% in + 6.9% 4Q06 8.16 7.63 8 4 0 2002/03 2003/04 2004/05 2005/06 Notes: (1) FY2003 Actual DPU is annualised. The actual DPU was 2.78 cents for the 133 days ended 31 March 2003 A-REIT FY05/06 Full Y
Slide 11: Comparable returns
Comparable returns % 6.0 5.4 3.9 4.0 3.6 3.3 2.5 2.0 0.9 0.3 0.0 Bank savings Bank fixed CPF (ordinary Interbank 10 Year STI Index (5) A-REIT deposits deposit (12 account) (2) overnight government annualised months) (1) interest rate (3) bond (4) yield (6) Notes: (1) Bank fixed deposit rate (12 mont
Slide 12: Yield returns compared to 10-year bond and S-REITs
Yield returns compared to 10-year bond and S-REITs S-REITs yield range from low of 4.4% to high of 6.0% 8.0% 8.0% 6.0% 6.0% 5.2% 240 bps 180 bps 5.2% 4.0% 80 bps 4.0% spread spread spread 6.0% 5.4% 2.0% 4.4% 2.0% 3.6% 3.6% 3.6% 0.0% 0.0% S-REIT High A-REIT S-REIT Low Yield (LHS) 10-year bond yield (
Slide 13: Distribution Details
Distribution Details Stock counter Distribution Period Distribution per unit (cents) Ascendasreit 1 Jan 06 to 31 Mar 06 2.92 Distribution Timetable Notice of books closure date 13 April 2006 Last day of trading on “cum” basis 21 April 2006 Ex-date 24 April 2006, 9.00 am Books closure date 26 April 2
Slide 14: Agenda
Agenda • Key highlights • Financial performance • Capital and fund management • Portfolio highlights • Portfolio diversification • Going forward A-REIT FY05/06 Full Year Results .. 14
Slide 15: Performance to date: Market cap and liquidity
Performance to date Market cap and liquidity 2746 2782 2772 2772 120,000 2700 2570 2607 2523 2548 2491 100,000 2302 2339 2269 Total Mthly Vol (‘000) 2300 Market Cap (S$m) 80,000 60,000 1900 40,000 1500 20,000 1100 0 5 6 5 5 5 05 5 6 6 5 5 5 '0 '0 '0 '0 l '0 '0 '0 '0 '0 '0 '0 r' ar ay ov g b n n ec p
Slide 16: Capital Management
Capital Management Debt Profile 31 Mar 2006 31 Mar 2005 - Gearing (inclusive of deferred payments) 36.9% 30.2% - Total debt S$973m S$556m • Fixed rate debt S$733m S$423m - Weighted average all-up funding cost (1) 3.49% 2.77% - Interest cover ratio 6.96 times 9.8 times (1) Including margins and weigh
Slide 17: Hedging of existing debt
Hedging of existing debt As at 31 Mar 06 As at 31 Mar 05 - Fixed as a % of total debt 88.5% 75.9% - Weighted average term of fixed debt 4.30 years 3.22 years 100% 12 12 25 30 80% 45 62 60% 76 92 88 88 40% 75 70 55 20% 38 24 8 0% Mar 06 Mar 07 Mar 08 Mar 09 Mar 10 Mar 11 Mar 12 Mar 13 Financial year
Slide 18: Capital Market Activities
Capital Market Activities May 2005 – Debt funding • Second CMBS issuance of Euro 165.0 million (approximately S$350 million equivalent) under the S$1 billion programme established in August 2004 Oct 2005 – Equity raising • Preferential offer and private placement of S$240 million at an issue price S
Slide 19: Agenda
Agenda • Key highlights • Financial performance • Capital and funds management • Portfolio highlights • Portfolio diversification • Going forward A-REIT FY05/06 Full Year Results .. 19
Slide 20: Acquisitions made in FY2005/06
Acquisitions made in FY2005/06 Sub-sector Purchase Price (S$m) Business Park/Science Park 64.5 Hi-Tech Industrial 227.6 Light Industrial 210.2 Logistics and Distribution Centres 136.8 Total 639.1 A-REIT FY05/06 Full Year Results .. 20
Slide 21: Agreements signed
Agreements signed Properties Price Expected to (S$m) complete 1 LabOne Building 20 Mid-2006 2 Courts Megastore 62(1) Nov 2006 3 Giant Hypermarket 66(1) Mar 2007 (Cold Storage) 4 Sembawang Kimtrans 20 May 2006 Logistics Centre 5 Logistics 21 58 May 2006 Total 226 (1) Courts Megastore and Giant Hyperm
Slide 22: Singapore Industrial Acquisitions Jan – Dec 05
Singapore Industrial Acquisitions Jan – Dec 05 Others, 9.7% (1) Cambridge , 27.0% Mapletree Investments, 3.4% AREIT, 49.0% Mapletree Logistics Trust, 10.8% (1) Cambridge figures are based on options signed pending completion upon IPO and are based on management estimates Source: CBRE Research A-REIT
Slide 23: Warehouse Retail Scheme (WRS)
Warehouse Retail Scheme (WRS) • S$128 m for 2 WRS projects for Courts and Cold Storage • Facilitate integrated businesses that encompass regional headquarters, retail, warehousing and industrial activities to operate on industrial sites. At least 60% of GFA must be for industrial use • Value on comp
Slide 24: Portfolio Highlights
Portfolio Highlights As at As at 31 Mar 06 31 Mar 05 A-REIT Portfolio occupancy (%) 95.0% 94.1% A-REIT MTB (1) occupancy (%) 91.4% 89.0% Total Portfolio renewals/new leases (sqm) 151,163 102,570 Total New leases/Expansions (sqm) 53,941 39,278 Total Renewals (sqm) 97,222 63,292 Weighted Average Lease
Slide 25: Sources of new demand – broad based
Sources of new demand – broad based Tenants sector by net lettable area (2H FY05/06) Chemical Biomedical 5% IT 1% 12% Electronics Precision Eng 24% 18% Transport & General Mfg Ind storage 25% 15% A-REIT FY05/06 Full Year Results .. 25
Slide 26: Sources of demand 1HFY06 vs. 2HFY06
Sources of demand 1HFY06 vs. 2HFY06 1HFY06 2HFY06 5% Chemical 2% 1% Biomedical 3% 24% Electronics 25% 25% General Mfg Ind 26% 15% Transport & storage 9% 18% Precision Eng 34% 12% IT 1% 0% 5% 10% 15% 20% 25% 30% 35% 40% A-REIT FY05/06 Full Year Results .. 26
Slide 27: A-REIT Portfolio Occupancy Higher Than Market
A-REIT Portfolio Occupancy Higher Than Market A-REIT URA 100.0% 97.3% 96.5% 95.0% 92.2% 90.9% Occupancy rate (%) 90.0% 87.0% 85.0% 84.0% 84.0% 82.4% 80.0% 75.0% 70.0% Business Park Light Industrial Hi-Tech Industrial Logistics Source: Urban Redevelopment Authority Official Statistics as at Dec 2005
Slide 28: URA Industrial Rental Index
URA Industrial Rental Index Rental index improved 2.5% in Q4 2005, and 4.5% for 2005. 150 75 140 74 130 73 72 120 71 Industrial Rental Index 70 110 69 100 68 Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 90 80 70 Base year 60 50 Q496 Q297 Q497 Q298 Q498 Q299 Q499 Q200 Q400 Q201 Q401 Q202 Q402 Q2
Slide 29: Low Occupancy Buildings Improving
Low Occupancy Buildings Improving Properties As at As at 31 Mar 06 31 Mar 05 1 The Alpha 82.4% 66.3% 2 The Gemini 67.5%(1) 62.7% 3 KA Centre 74.5%(2) 57.2% 4 KA Place 57.4% 36.2% (1) : The occupancy rate for The Gemini is expected to increase to 76.2% in June 06 (2) : The occupancy rate for KA Centr
Slide 30: Recent Acquisitions - Significant Improvement in Occupancy in 4Q06
Recent Acquisitions - Significant Improvement in Occupancy in 4Q06 Properties As at As at 31 Mar 06 31 Dec 05 1 Techquest 100.0% 80.9% 2 11 Tampines Street 92 94.6% 90.8% 3 Pacific Tech Centre 94.2% 90.3% A-REIT FY05/06 Full Year Results .. 30
Slide 31: Agenda
Agenda • Key highlights • Good financial performance • Capital and funds management • Portfolio highlights • Portfolio diversification • Going forward A-REIT FY05/06 Full Year Results .. 31
Slide 32: Tenant Concentration
Tenant Concentration Top 10 tenants make up 33.9% of the total portfolio income compared to 44.8% in the prior corresponding period Top 10 Tenants by Gross Rental Income 12.0% % of Gross Rental Income 9.2% 8.0% 7.3% 4.0% 3.2% 2.8% 2.3% 2.2% 1.9% 1.8% 1.7% 1.5% 0.0% l es l ks na &P l s PC P s l Te we
Slide 33: Portfolio Diversification by Value
Portfolio Diversification by Value Asset Class Mix of Sale & Leaseback vs Diversification Multi-tenanted Buildings Business Logistics & Park Sale & Leaseback Distribution Centres 21% 29% 45% 55% 26% 24% Hi-Tech Light Industrial Industrial Multi-tenanted Buildings A-REIT FY05/06 Full Year Results ..
Slide 34: Weighted Average Lease Term to Expiry
Weighted Average Lease Term to Expiry The lease expiry profile is well balanced. 20% % of A-REIT Property Income 10% 14.8% 14.4% 13.4% 12.2% 12.0% 10.7% 10.5% 9.1% 8.9% 8.0% 7.9% 7.7% 7.6% 7.2% 6.6% 6.6% 6.4% 5.8% 4.1% 3.8% 0.0% 3.5% 1.4% 1.2% 1.5% 2.2% 1.7% 0.0% 1.1% 3.2% 1.9% 2.4% 0.0% 2.2% 0% 06
Slide 35: Agenda
Agenda • Key highlights • Financial performance • Capital and funds management • Portfolio highlights • Portfolio diversification • Going Forward A-REIT FY05/06 Full Year Results .. 35
Slide 36: Outlook for Singapore industrial property market
Outlook for Singapore industrial property market • According to CB Richard Ellis 4Q2005 Singapore Real Estate research report, the outlook for industrial property market for 2006 is positive. • Industrial property market had bottomed out by 2005. • Demand for industrial space has been exceeding supp
Slide 37: A-REIT's strengths
A-REIT's strengths • Well diversified: 9 Focus in business space and industrial property sector 9 Four property asset classes 9 Well-located quality properties 9 Balance of long term vs short term leases provides stability and potential for positive rental reversions 9 No single property accounts fo
Slide 38: A-REIT's strengths
A-REIT's strengths • Market leader 9 Ascendas has a track record of more than 20 years 9 Committed sponsors • Operational platform 9 Dedicated sales/marketing, leasing and property management team of over 80 people 9 Possess in-depth understanding of this property sector • Customer focus 9 Track rec
Slide 39: A-REIT's strategies
A-REIT's strategies Total returns Predictable Predictable income income Capital Capital stability stability Proactive and dedicated Outcome Stability Stability Growth Growth manager with track record Proactive Proactive Strategies Strategies Optimise Optimise Yield Yield accretive accretive asset as
Slide 40: A-REIT's strategies
A-REIT's strategies A-REIT will continue to deliver stable returns via: • Pro-actively managing the portfolio • Occupancy rates • Rental rates • Cost management • Acquisition pipeline • Significant opportunities in Singapore • Right of first refusal from Ascendas properties in Singapore • Properties
Slide 41: Q&A
Q&A A-REIT FY05/06 Full Year Results .. 41
Slide 42: Thank you
Thank you Important Notice This presentation has been prepared by Ascendas-MGM Funds Management 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
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