Ireit Global · SGX:8U7U
Ireit Global — Non-Deal Roadshow (March 2015)
36 slides from Ireit Global's roadshow presentation, Mar 20, 2015
Slide 1: IREIT Global Investor Non-deal Roadshow
IREIT Global Investor Non-deal Roadshow 20 March 2015 1
Slide 2: Disclaimer
Disclaimer This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for any units of IREIT Global (“Unit”). This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future perf
Slide 3: Agenda
Agenda Overview German Market Review Investment Strategy Portfolio Highlights Financial Highlights Outlook & Strategy 3
Slide 4: Overview
IREITGlobal INVEST GLOBALLY SAVE LOCALLY OVERVIEW 4 ns Ww WW.ireitglobal.com
Slide 5: Snapshot
Snapshot Income-producing real estate in Europe which is used primarily Investment for office purposes, with an initial focus on Germany and United Mandate Kingdom • 4 freehold office properties located in Germany • Total net lettable area: 121,506 sqm • Total car park spaces: 2,945 Portfolio • Comm
Slide 6: Trust Structure
Trust Structure Principal Unitholders of IREIT and their Unitholdings: Unitholders Unitholdings Mr Tong Jinquan and Summit 57.5% SPV Mr Lim Chap Huat (Controlling 18.9% shareholder of Soilbuild Group Holdings Ltd.) Public and institutional 23.6% investors Total 100.0% Percentage calculated based on
Slide 7: Experienced Management Team
REIT Manager Experienced Management Team Mr Itzhak Sella Chief Executive Officer 25 years of international real estate experience and has been involved in over US$2 billion worth of real estate acquisitions in Europe, USA and Israel Founded Sella Capital Investments Ltd, the REIT Manager for Sella C
Slide 8: German Market Review
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Slide 9: Strong German Economy
Strong German Economy S-REIT pure play in European office real estate, with initial assets in Germany Largest economy in the Eurozone(1), contributes to approximately 20.9% of Eurozone’s GDP(2) 4th largest economy in the world(3) 3rd largest exporter in the world(4) AAA credit rating from Fitch Inc.
Slide 10: Strategically Located In Key German Cities
Strategically Located In Key German Cities 1 IREIT’s portfolio of Bonn Campus, Darmstadt Campus, Münster Campus and Concor Park were strategically chosen based on its “ABBA” strategy(1) German office real estate market is relatively 2 dispersed throughout the country due to: Clustering of business a
Slide 11: Office Property Key Market Drivers 2015
Office Property Key Market Drivers 2015 Office properties in Germany continues to be priority sector with Q1 – Q3, 2014, office transaction volume was €11.73 billion.(1) Germany’s positive economic growth, a stable employment market and a reliable political environment remains attractive to investor
Slide 12: Investment Strategy
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Slide 13: "ABBA" Investment Strategy
“ABBA” Investment Strategy Bonn Campus, Darmstadt Campus, Münster Campus and Concor Park were strategically chosen based on the “ABBA” strategy Management team of the Manager has been involved in European real estate for many years and is familiar with the developments and investment opportunities i
Slide 14: Portfolio Highlights
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Slide 15: Portfolio at a Glance
Portfolio at a Glance Bonn Campus Darmstadt Münster Concor Park Total Campus Campus Location Bonn Darmstadt Münster Munich Net Lettable Area 32,736 30,371 27,183 31,216 121,506 (sqm) Car Park Spaces 656 1,189 588 512 2,945 Occupancy rate (1) 100% 100% 100% 100% 100% Number of Tenants 1 1 1 12 13 Key
Slide 16: Portfolio at a Glance
Portfolio at a Glance €’million Asset Valuation By Property 120.0 100.0 100.0 100.0 74.1 80.3 80.0 59.1 60.5 60.0 50.9 49.8 40.0 20.0 0.0 Bonn Campus Darmstadt Campus Münster Campus Concor Park As at 31 March 2014 As at 31 December 2014 Gross Revenue by Property (1) NPI by Property (1) Notes: 1) Bas
Slide 17: Stable and Long Leases
Stable and Long Leases Leases are incorporated with hurdle rate pegged to German CPI index provides potential rental uplift Lease Expiry by Gross Rental Income as at 31 December 2014 80.0% 73.0% 60.0% 40.0% 20.0% 9.3% 8.3% 7.6% 0.0% 0.0% 0.0% FY2015 FY2016 FY2017 FY2018 FY 2019 FY2020 and As at 31 D
Slide 18: Strong Tenant Profile
Strong Tenant Profile Tenant profile remained stable since IPO Strong tenant base with key occupiers such as Deutsche Telekom and other global companies Top 5 Tenants (1) 100.0% 79.1% 80.0% 60.0% 40.0% 20.0% 6.4% 5.2% 4.7% 2.0% 2.6% 0.0% Others Note: 1) By Gross Rental Income for the month of Decemb
Slide 19: Bonn Campus
Bonn Campus Bonn Campus Deutsche Pedestrian Bridge to Telekom Global Deutsche Telekom Global HQ HQ Land Tenure Freehold Located in Bundesviertel (federal quarter), the prime Completion Year 2008 office area within the city Number of Floors 2, 4 or 6 Directly opposite and linked to the global headqua
Slide 20: Bonn Campus
Bonn Campus Cologne Bonn Bonn City Airport (26 km) Centre (5 km) World Conference Centre United Nations (UN) Campus B9 Solar World HQ Deutsche Post DHL HQ (Post Tower) A562 Gronau District Deutsche Telekom U-Bahn station Ericsson Cisco Haribo HQ Deutsche Postbank Dottendorf Bonn District Deutsche Ca
Slide 21: Darmstadt Campus
Darmstadt Campus Darmstadt Central Station Darmstadt Campus Darmstadt Campus Car Park New building for Deutsche Telekom Land Tenure Freehold Completion Year 2007 Darmstadt is the city with the largest concentration of Deutsche Telekom offices outside Bonn Number of Floors 5 or 7 Net Lettable Area (1
Slide 22: Darmstadt Campus
Darmstadt Campus Frankfurt (30 km) S-Bahn Darmstadt Darmstadt Haupbahnhof Central Station Weststadt Employment Frankfurt Rhein District Main Airport (25 km) Darmstadt City European Space Centre Operations Center Bus Stop B26 Darmstadt B3 Campus New building for Deutsche Telekom (under construction)
Slide 23: Münster Campus
Münster Campus Zentrum Nord Central Station Münster North Campus Münster Campus Münster South (Carpark) Campus Land Tenure Freehold Located in Zentrum Nord, one of the largest office Completion Year 2007 locations in Münster and approximately 2.5km to the city centre Number of Floors 6 Net Lettable
Slide 24: Münster Campus
Münster Campus Münster Osnabrück International Airport (26 km) K13 K8 Zentrum Nord Central Station IBM Münster B219 K13 Sparda-Bank Campus B219 Darmstadt Campus Zentrum Nord Darmstadt University of Applied Science German State PensionP&G Wella & Insurance K6 K6 Münster City Centre (2.5 km) Transport
Slide 25: Concor Park
Concor Park Concor Park Land Tenure Freehold First redevelopment project in Germany to have received the Green Building Silver Certificate from Completion Year Fully refurbished 2011 the Germany Society for Sustainable Building in Number of Floors 5 July 2014 Net Lettable Area (1) 31,216 sqm Car Par
Slide 26: Concor Park
Concor Park A9 BMW HQ Munich Airport (38 km) (Also known as Franz Josef Strauss MAN AG HQ International Airport) Munich RE HQ A99 Ascheim-Dornach Allianz HQ Concor Park Siemens HQ Riem S-Bahn A94 HypoVereinsbank HQ Munich Conference and Fair Grounds Munich City Centre Riem Arcaden Messe Munchen Inte
Slide 27: Financial Highlights
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Slide 28: Performance in Brief
Performance in Brief For the period 13 August 2014 – 31 December 2014 (1) Gross revenue was slightly lower Gross Revenue than the forecast due to lower Actual (€ '000) Forecast (€ '000) ∆ % service charge which is in tandem 8,326 8,478 -1.8 with the lower operating expenses incurred Net Property Inc
Slide 29: Healthy Balance Sheet
Healthy Balance Sheet As at € ‘000 31 December 2014 Investment Properties 290,600 Total Assets 306,514 Borrowings 95,359 Total Liabilities 106,540 Net Assets Attributable to 199,974 Unitholders NAV per Unit (€/unit) 0.48 (1) Note: 1) The NAV per Unit is computed based on the Units in issue and to be
Slide 30: Prudent Capital Structure
Prudent Capital Structure As at 31 December 2014 Five year secured term loan repayable on a bullet basis in FY2019 Secured on the properties, the assignment of rental proceeds and a fixed charge over the rent and deposit accounts Aggregate Leverage Ratio (1) Effective Interest Rate 31.5% 2.1% per an
Slide 31: Forex Risk Management
Forex Risk Management Use of Euro denominated borrowings acts as a natural hedge to match the currency of assets and cashflows at the property level Distributable income in EUR will be paid out in SGD and has been hedged as follows: % Average Hedge Rate Distributable Income 2014 100 ~S$1.68 per EUR
Slide 32: Superior Returns vis-à-vis Comparable Office S-REITs
Superior Returns vis-à-vis Comparable Office S-REITs CY2014 Traded Yields of Comparable Office S-REIT IREIT offers CY2014 DPU Yield superior returns 10 year govt bond yield Post-tax 6.7% 8.8% (2) 6.0% 5.8% Spread Spread 4.9% 3.9% 3.`4% Spread Spread Spread 3.6% (1) 8.6% 2.5% (1) (1) 2.8% 2.4% 2.4% 2
Slide 33: Outlook & Strategy
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Slide 34: Outlook for 2015
Outlook for 2015 The German government lifted its economic growth forecast for 2015 to 1.5% in January 2015, higher compared to an earlier forecast of 1.3% made in October 2014, as growth in consumer spending and wages accelerates.(1) Although Germany’s economy is expected to show positive growth, d
Slide 35: Strategy
Strategy Actively pursuing acquisition opportunities in Germany through networking with vendors, banks, private funds, brokers and others Proactive asset management and tenant management initiatives to provide value add services to tenants Deploying prudent capital management strategies to ens
Slide 36: Thank You
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