Aims Apac REIT · SGX:O5RU
Aims Apac REIT — H1 FY2022 Earnings Presentation
37 slides from Aims Apac REIT's earnings presentation, Oct 13, 2021
Slide 1: AIMS APAC REIT FY2022 Half Year Financial Results
AIMS APAC REIT FY2022: Half Year Financial Results Ended 30 September 2021 13 October 2021 3 TUAS AVE 2, SINGAPORE
Slide 2: Important Notice
Important Notice Disclaimer This Presentation is focused on comparing actual results for the financial period from 1 April 2021 to 30 September 2021 (“1H FY2022”) 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 A
Slide 3: Contents
Contents Highlights: 1H FY2022 1H FY2022 Financial Results Prudent Capital Management Portfolio Performance Market Outlook & Strategy 3 TUAS AVE 2, SINGAPORE 3
Slide 4: Highlights: 1H FY2022
Highlights: 1H FY2022 7 BULIM STREET, SINGAPORE 4
Slide 5: Highlights for 1H FY2022
Highlights for 1H FY2022 Growing DPU Net Property Income Growth 1H FY2022 Net Property Income of DPU of 2.50 cents per Unit for 2Q S$47.7 million, an increase of S$7.8 FY2022, an increase by 25.0% y-o-y million or 19.4% from 1H FY2021 DPU of 4.75 cents for 1H FY2022 Contributed by the acquis
Slide 6: Highlights for 1H FY2022 (cont'd)
Highlights for 1H FY2022 (cont’d) Established Resilient Portfolio Resilient performance backed by established portfolio, with over 50% comprising of warehouse and logistics sectors • Diverse, reputable tenant base comprising 190 reputable global and local companies across multiple industries Con
Slide 7: Attractive Return on Investment
Attractive Return on Investment 8% 6.51% 6% % yield per annum 4.25% 4% 492 bps spread 2.50% 2% 1.59% 0.24% 0% AA REIT Yield1 FTSE ST REIT CPF Ordinary Singapore Govt Bank 12-mth 12-month Yield2 Account3 10-year bond2 fixed deposits2 1 Based on the closing price of S$1.46 on 12 October 2021 and annua
Slide 8: Total Distributions Since 2011
Total Distributions Since 2011 30.00 80.0 72.06 69.2 70.5 70.5 67.37 66.51 70.0 Distributions Per Unit (Singapore Cents) 63.25 57.2 60.0 Total Distributions (S$ `m) 20.00 48.06 50.0 46.32 37.2 40.0 33.6 11.07 11.35 10.72 10.53 11.05 9.92 10.45 10.3 10.25 30.0 10.00 9.5 8.95 20.0 4.75 10.0 0.00 1 1 0
Slide 9: Investment Property - Valuation Uplift
Investment Property - Valuation Uplift Total revaluation gain of S$37.1 million increases AA REIT’s portfolio value to S$1.746 billion Valuation as at Valuation as at No. of Change Change 30 September 2021 31 March 2021 Properties ($’000) (%) ($’000) ($’000) Singapore 26 S$1,357,600 S$1,348,200 S$9,
Slide 10: 1H FY2022 Financial Results
1H FY2022 Financial Results 29 W OODLANDS INDUSTRIAL PARK E1, SINGAPORE 10 10
Slide 11: Distribution Details
Distribution Details Stock Counter Distribution Period DPU Cents AIMS APAC REIT For 1 July 2021 to 30 September 2021 2.50 Code: O5RU Distribution Period For 1 July 2021 to 30 September 2021 Ex-Date 26 October 2021, 9.00am Record Date 27 October 2021, 5.00pm Return of Tax Declaration Forms 17 Novembe
Slide 12: 1H FY2022 Results
1H FY2022 Results1 1H 1H Y-o-Y (S$’000 unless otherwise stated) FY2022 FY2021 (%) Gross Revenue 65,246 57,732 13.0 Net Property Income 47,709 39,953 19.4 Share of Profits of Joint Venture (net of tax) 2 27,264 7,624 >100.0 Distributions to Unitholders 33,603 28,268 18.9 DPU (cents) 4.75 4.00 18.8 1
Slide 13: Balance Sheet
Balance Sheet As at As at (S$ million unless otherwise stated) 30 September 2021 31 March 2021 Total Assets 1,991.2 1,846.6 Comprising: Investment properties 1,506.7 1,489.0 Joint venture 341.7 335.7 Trade and other receivables 33.6 9.6 Derivative financial instruments 0.9 1.1 Cash and cas
Slide 14: Key Financial Metrics – 2Q FY2022
Key Financial Metrics – 2Q FY2022 2Q 2Q FY2022 FY2021 Portfolio Value (S$ million)1 1,746.5 1,549.5 Market Capitalisation (S$ million)2 1,032.9 855.1 NAV per Unit (S$) 1.40 1.34 Share Price (S$) 1.46 1.21 Premium over / (Discount to) NAV (%)2 4.3 (9.7) Aggregate Leverage (%)3 24.7 33.6 Interest Cove
Slide 15: Prudent Capital Management
Prudent Capital Management 1A INTERNATIONAL BUSINESS PARK, SINGAPORE 15
Slide 16: Debt Facilities as at 30 September 2021
Debt Facilities as at 30 September 2021 Secured SGD Borrowings Total secured facility of S$245.0 million comprising: 4-year revolving credit facility of S$120.0 million maturing in November 2021 4-year term loan facility of S$25.0, maturing in July 2022 4-year term loan facility of S$100.0, ma
Slide 17: Debt Facilities as at 30 September 2021 (cont'd)
Debt Facilities as at 30 September 2021 (cont’d) Unsecured Borrowings S$50.0 million 5-year fixed rate notes at 3.60% maturing in March 2022. S$100.0 million 5-year fixed rate notes at 3.60% maturing in November 2024. Summary Overall blended debt funding cost of 2.8%. 98.1% of the portfolio’
Slide 18: Debt Facilities as at 30 September 2021 (cont'd)
Debt Facilities as at 30 September 2021 (cont’d) Pro Forma refinancing of existing secured facilities MATURITY DATE S$'M 2021 November (FY2022) 10.9 100 2022 March (FY2022) 50.0 49 2022 June (FY2023) 46.1 S$109.1m undrawn 32 49 120 2023 July (FY2024) 107.8 15 2023 November (FY2024) 31.8 All undrawn
Slide 19: Portfolio Performance
Portfolio Performance 15 TAI SENG DRIVE, SINGAPORE 19
Slide 20: Revenue Performance since 2011
Revenue Performance since 2011 140,000 124,389 120,119 118,078 118,860 120,000 115,432 116,916 112,633 108,240 100,000 92,082 89,054 87,532 83,983 82,329 80,013 79,433 78,493 (S$ `000) 80,000 76,417 73,245 71,895 65,246 59,071 58,896 60,000 52,982 47,709 40,000 20,000 0 FY2011 FY2012 FY2013 FY2014 F
Slide 21: Key Portfolio Statistics
Key Portfolio Statistics As at As at 30 September 2021 30 June 2021 Number of Properties 28 28 Portfolio Value (S$ million) 1 1,746.5 1,724.5 Net Lettable Area (sqm) 740,503 740,942 Number of Tenants 190 188 Portfolio Occupancy (%) 97.3 95.7 Weighted Average Lease Expiry (WALE) (years) 2 3.98 3.98 W
Slide 22: Portfolio Operating Metrics
Portfolio Operating Metrics PORTFOLIO NLA GROSS RENTAL INCOME Australia, 7.6% Australia, 16.7% Singapore, 83.3% Singapore, 92.4% PORTFOLIO BREAKDOWN MULTI-TENANTED/MASTER LEASE Hi Tech Space, 7.9% Light Industrial, Master Leases, 36.4% 9.7% Logistics & Warehouse, By 2Q General Industrial, FY2022 14.
Slide 23: Diversified Tenant/Industry Base
Diversified Tenant/Industry Base 1 IT & Electronics, 1.7% Others, 4.1% Data Centre, 1.9% Self-Storage, 2.0% FMCG, 2.1% Furniture, 2.5% Fashion & Apparels, 4.3% Pharma/Healthcare/Cosmetics, Logistics, 35.7% 5.2% Tenant/ Industry Base Consumer Products, 6.2% By 2Q FY2022 Gross Rental Income Bio-Tech/L
Slide 24: Active Lease Management
Active Lease Management Lease Expiry Profile as of 30 September 2021 (By 2Q FY2022 Gross Rental Income) 2Q FY2022 NET AREA % OF TOTAL NLA New Leases Signed: 13 New Leases: 20,947 sqm New and Renewal Leases Renewal Leases Signed1: 13 represent 6.2% of total NLA Renewal Leases: 24,775 sqm executed in
Slide 25: Quality Tenant Base
Quality Tenant Base Resilient sectors such as logistics & w arehouse, bio -medical & life science, telecommunications & data centre operators account for 7 of our top 10 tenants TO P 1 0 T E N AN T S B Y 2 Q F Y 2 0 2 2 G R O S S R E N TAL I N C O M E 14.1% 7.7% 7.4% 4.4% 3.7% 3.1% 2.6% 1.9% 1.9% 1.
Slide 26: Long Land Lease Expiry of 45.4 years
Long Land Lease Expiry* of 45.4 years Our portfolio land lease tenure (by valuation) is one of the longest amongst our peers 35% 31.1% 30% 25.3% % of Portfolio Valuation 25% 22.3% 20% 15% 12.7% 10% 8.6% 5% 0% 15 to 20 years >20 to 30 years >30 to 40 years >40 to 50 years >50 years * For the calculat
Slide 27: Portfolio Occupancy vs JTC Average
Portfolio Occupancy vs JTC Average Our portfolio occupancy across all segments has consistently outperformed the market 100.0% 98.1% 97.3% 97.5% 95.0% 90.1% 90.1% 89.7% 89.7% 90.0% 84.8% 85.0% 80.0% 75.0% Overall Business Park Warehouse Industrial AA REIT JTC's 2Q 2021 Source: Based on JTC 2Q 2021 i
Slide 28: Portfolio Expansion – Woolworths HQ
Portfolio Expansion – Woolworths HQ Purchase Consideration A$463.25 million (S$454.0 million1) Independent Valuation A$463.25 million2 (S$454.0 million1) NPI Yield 5.17%3 Stamp Duty A$25.5 million (S$25.0 million1) Transaction Cost A$5.5 million4 (S$5.4 million1) Total Acquisition Cost A$494.3 milli
Slide 29: Property Information
Property Information Master-tenanted corporate campus comprising (i) three multi-level interconnecting buildings housing A-grade office accommodation, Property Description (ii) a data centre operation and amenities; and (iii) an on grade car park, a car park building and a four-storey multi-storey c
Slide 30: Market Outlook & Strategy
Market Outlook & Strategy 29 W OODLANDS INDUSTRIAL PARK E1, SINGAPORE 30
Slide 31: Market Outlook
Market Outlook MACRO Overall, economic growth is recovering after the pandemic-related slowdown in 2020, although economic prospects in the global recovery have diverged further across countries. The International Monetary Fund has retained its global growth forecast for 2021 at 6.0%. SINGAPORE'S
Slide 32: Our Strategy
Our Strategy Active Asset Capital & Business Strategic Prudent Capital & & Leasing Partnerships for Investments Risk Management Management Growth Continued evaluation of total Unlocking value of selected Staggering of debt Building new capital return investment and built- assets within the portfolio
Slide 33: Redevelopment Opportunities within Portfolio
Redevelopment Opportunities within Portfolio A large proportion of the current portfolio has under-utilised plot ratios; with potential organic growth opportunities Potential Untapped GFA ≈ 502,707 sqft 2 Ang Mo Kio St 65 8 Senoko South Rd 11 Changi South St 3 10 Changi South Lane 3 Toh Tuck Link 7
Slide 34: Our Resilient Portfolio
Our Resilient Portfolio HIGHLY RESILIENT HIGH OCCUPANCY HIGHLY DIVERSIFIED SECTOR High portfolio occupancy Logistics & Warehouse AA REIT's portfolio is rate of 97.3% versus account for 50.2% of AA backed by 190 tenants JTC's industry average REIT's portfolio by Gross across 28 properties in which st
Slide 35: Environment, Social & Governance
Environment, Social & Governance We are committed to incorporating Our ESG Focus Areas ESG factors into AA REIT’s strategy • Improve and minimise environmental impact and operations, to ensure Unitholders • Promote inclusive and sustainable economic growth with long-term sustainable returns • Unders
Slide 36: Key Accolades
Key Accolades 2017 2018 2020 2020 2020 2021 Awarded Honours Award Gold Excellence in Platinum Award 3rd at the 13th at the Shareholder in Traditional Corporate for Print Media/ Governance Singapore Communications Annual Report Governance, Publications – Index for Trust Governance Excellence Social A
Slide 37: Thank you!
1 KALLANG WAY 2A, SINGAPORE For enquiries, kindly contact: Thank you! Phone Number +65 6309 1063/1050 / +65 6534 5122 Looking forward to your support. Email Address investorrelations@aimsapac.com / AAREIT@citigatedewerogerson.com