Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Global Logistic Properties — 2016 Citi Global Property CEO Conference
37 slides from Singapore Exchange's conference presentation, Mar 14, 2016
Slide 1: 2016 Citi Global Property CEO Conference
2016 Citi Global Property CEO Conference Hollywood, Florida March 14, 2016
Slide 2: GLP – Leading Global Provider of Modern Logistics Facilities
GLP – Leading Global Provider of Modern Logistics Facilities GLP’s US$34 billion1 property portfolio encompasses 538 million NAV breakdown3 sq ft (50 million sqm) of logistics facilities across China, Japan, Brazil and USA GLP’s growth strategy is centered on being the best operator, China creat
Slide 3: GLP Global Footprint
GLP Global Footprint China • Presence in 38 cities • 273m sq ft total area United States of America • 146m sq ft completed • Presence in 37 key markets • 127m sq ft development pipeline • 173m sq ft total and completed • 136m sq ft land reserves area • Fast-growing logistics market supported Japan •
Slide 4: GLP Business Model: GLP's Network Effect
GLP Business Model FUND MANAGEMENT • US$34 billion fund management platform GLP partners with world class investors to grow • FY16 Fund fee run-rate: US$150 million1 its network. Its fund management platform provides superior risk-adjusted returns while • Enhances GLP’s returns by 300–500 bps1 enabl
Slide 5: Operations: Dominant Market Positions
Operations: Dominant Market Positions GLP’s unrivaled network enables customers to seamlessly expand their distribution capabilities and reach consumers more efficiently China Japan Brazil United States (m sqm) (m sqm) (m sqm) (m sq ft) 316 13.6 4.6 GLP Stake: 19.9% 173 2.7 2.5 2.3 121 88 85 85 1.
Slide 6: Operations: Portfolio Snapshot
Operations: Portfolio Snapshot China Japan Brazil US Total Presence in 38 key 91% Sao Paulo & Rio Presence in 37 key Presence in 118 Key Markets 89% Tokyo & Osaka markets de Janeiro markets markets Total Assets US$11.5 billion US$8.2 billion US$1.8 billion US$12.9 billion US$34.4 billion Lease Ratio
Slide 7: "Network Effect" Generating Powerful Results
“Network Effect” Generating Powerful Results GLP’s “Network Effect” Flexible Expansion with GLP GLP's rapid development cycle and operational expertise have provided significant scale and scope. JD.com is one of China’s largest e-commerce companies, GLP is able to generate a "Network Effect", levera
Slide 8: Development: Value Creation
Development: Value Creation Development of modern logistics facilities is one of GLP’s key engines of growth Significant demand for modern logistics facilities in China, Japan, and Brazil FY16 target: US$2.9 billion of development starts and US$2.0 billion of development completions Strong c
Slide 9: Development: Track Record
Development: Track Record Value Creation Track Record US$ millions (GLP share) 23% 33% 24% 36% 25%1 Development Value Creation Value Creation Margin $1,350 $250 $1,100 $200 US$186m 27% $650 $700 $600 $100 $150 $1,100 $200 $900 $500 $500 $500 YTD FY16 YTD FY16 FY12 FY13 FY14 FY15 FY16E Development Co
Slide 10: Fund Management Platform Delivers Superior Risk-Adjusted Returns
Fund Management Platform Delivers Superior Risk-Adjusted Returns Expanding Network, Increasing Returns GLP’s fund management platform with leading, global long term investors provides reliable and sustainable third-party capital while increasing its market share and returns through recurring fees an
Slide 11: GLP's Fund Management Platform
GLP’s Fund Management Platform 3Q FY16 Fund fees rose 19% yoy to US$37 million US$26 million of asset & property management fees, US$11 million of development and acquisition fees AUM1 Growth Breakdown of Investment Type FY12–Latest CAGR: 90% AUM: US$34bn US$34bn US$20bn Latest US$11.1bn Uncalle
Slide 12: 1. Market Overview
GLP Guarulhos Brazil 1. Market Overview 1. Market Overview 2. Appendix
Slide 13: China: Domestic Consumption is the Key Demand Driver
China: Domestic Consumption is the Key Demand Driver China’s expanding middle class is driving unprecedented growth in e-commerce activity and retail chain store sales. The weight of domestic consumption is increasing rapidly relative to total GDP and the movement of consumer goods related to this
Slide 14: China: GLP Leading the Modernization Wave in Logistics Facilities
China: GLP Leading the Modernization Wave in Logistics Facilities The supply of modern logistics buildings in China is limited. With its strategic relationships and development track record, GLP is well positioned to continue being the leading developer in the market Current Supply of Logistics Fa
Slide 15: Japan: Modern Economy with Outdated Logistics Infrastructure
Japan: Modern Economy with Outdated Logistics Infrastructure Modernizing an outdated stock of existing warehouses is the opportunity in Japan. As the largest owner and developer in the market, GLP is well positioned to continue modernizing and consolidating the warehouse property market in Japan M
Slide 16: Brazil: Economic Headlines are Masking the Opportunity
Brazil: Economic Headlines are Masking the Opportunity Brazil’s explosive economic growth has slowed, but favorable trends persist for owners of modern warehouses. Companies continue to shift towards leasing, rather that owning, their warehouses. The current economic challenges are creating intere
Slide 17: United States: Favorable Market Dynamics Expected to Continue
United States: Favorable Market Dynamics Expected to Continue Trade, output and employment levels are all growing, generating rising demand for industrial real estate, highlighted by 5 consecutive years of positive absorption. Despite the unprecedented growth, the room for e-commerce opportunities
Slide 18: 2. Appendix
Miami International #2 Miami, FL, US 2. Appendix 1. Market Overview 2. Appendix
Slide 19: GLP Group Structure
GLP Group Structure GLP AUM: US$34.4bn China Consortium Includes China Life Insurance, China Development ~66% Bank, Bank of China Group Investment, China Post, 100% 100% 100% HOPU Funds and others ~34%1 China Japan Brazil USA AUM: US$11.5bn AUM: US$8.2bn AUM: US$1.8bn AUM: US$12.9bn 100% 50% Brazil
Slide 20: GLP Fund Management Platform
GLP Fund Management Platform GLP provides its institutional investment partners a range of country specific funds with return targets ranging from core to opportunistic Assets under Investment Total Equity GLP Co- Fund Name Vintage Type Joint Venture Partners Management1 To-Date Commitment Investm
Slide 21: GLP Total Portfolio
GLP Total Portfolio Pro-rata Pro-rata Total Area Pro-rata Total Pro-rata Total Area Pro-rata Total Pro-rata valuation % valuation % As at Dec 31, 2015 (sqm Area (sqm valuation valuation (sqm Area (sqm valuation valuation change change million) million) (US$m) (US$m) million) million) (US$m) (US$m) (
Slide 22: Proven Track Record of Delivering Growth
Proven Track Record of Delivering Growth GLP Completed Area (m sqm) Japan China Brazil US GLP Portfolio Growth 36.9 FY04 – Latest CAGR: 56% 28.9 16.1 10.7 2.6 14.8 2.4 12.2 1.4 10.0 1.0 13.6 11.8 6.0 6.8 9.5 5.4 6.4 7.6 3.8 2.4 2.6 3.2 4.0 0.6 1.3 1.4 0.2 0.8 2.8 2.8 2.8 3.6 3.6 3.9 4.0 4.6 0.3 1.0
Slide 23: GLP China Portfolio
GLP China Portfolio Founded: 2003 GLP China Office Locations Headquarters: Shanghai Locations: 38 cities1 Number of GLP parks: 218 Number of completed properties: 822 Completed area: 13.6 million sqm Region # of Cities Completed area Shenyang Beijing East 15 7.3 million sqm Tianjin Dalian West 8 2.6
Slide 24: China Portfolio: Continued Leasing Momentum
China Portfolio Continued Leasing Momentum China Portfolio Dec 31, 2015 Sep 30, 2015 Portfolio Snapshot Cap rates at 6.4% Total valuation US$11,492 million US$10,822 million 3Q FY16 same property NOI growth up WALE 2.6 years 2.7 years 7.1% yoy Lease ratios 88% 89% Effective rent growth on rene
Slide 25: Japan Portfolio: Stable Portfolio
Japan Portfolio Stable Portfolio Portfolio Snapshot Japan Portfolio Dec 31, 2015 Sep 30, 2015 85% of completed area located in Tokyo and Total Valuation US$8,245 million US$7,905 million Osaka WALE 5.3 years 5.4 years Maintained high lease ratio of 99% Lease ratios 99% 99% High retention rate
Slide 26: Brazil Portfolio: Leading Position in the Market
Brazil Portfolio Leading Position in the Market Portfolio Snapshot Brazil Portfolio Dec 31, 2015 Sep 30, 2015 Healthy lease ratio of 95% Total Valuation US$1,775 million US$1,688 million Long WALE of 5.4 years WALE 5.4 years 5.4 years Same-property NOI up 7.2% yoy Lease ratios 95% 95% Effect
Slide 27: US Portfolio
US Portfolio High Quality Portfolio with Embedded Growth Potential Portfolio Snapshot US Portfolio Dec 31, 2015 Sep 30, 2015 Lease ratio on completed portfolio increased to Total Valuation US$12,856 million US$8,251 million 95% WALE 3.7 years 3.0 years Effective rent growth on renewal leases up
Slide 28: Diversified Exposure Across Industries
Diversified Exposure Across Industries Lease profile by End-user Industry (by Leased Area) Group China Retail / Retail / Fast Food Fast Food Chain, 32% Pharmaceuticals/ Pharmaceuticals/ Chain, 22% Medical, 3% Others, 4% Medical, 5% Machinery, 1% Machinery, 6% Others, 17% General Auto & Parts, 8% Log
Slide 29: Key Financial Highlights
Key Financial Highlights 3Q 3Q YTD YTD (US$ million) Change Change FY2016 FY2015 3Q FY16 3Q FY15 Revenue 199 179 11% 578 541 7% EBIT 427 223 91% 1,109 696 59% PATMI 184 112 64% 566 381 49% 3Q FY16 PATMI increased US$72 million (64%) primarily arising from: Fair value gains arising from cap rate
Slide 30: Key Financial Highlights - Breakdown by Country Segments
Key Financial Highlights - Breakdown by Country Segments PATMI 3Q 3Q Change Comments (US$ million) FY2016 FY2015 - 3Q FY16: 25 bps cap rate compression in selected mid-tier cities China 103 69 34 50% - Portfolio growth - completion and lease-up Japan 63 47 16 34% - Higher fair value gain on completi
Slide 31: Low Leverage & Significant Cash on Hand
Low Leverage & Significant Cash on Hand Group Financial Position As at As at Change (US$ million) Dec 31, 2015 Mar 31, 2015 % Total assets 2 19,576 17,462 12.1 Cash 1,137 1,446 (21.4) Total loans and borrowings 4,489 2,848 57.6 Net debt 3,352 1,402 139.1 Weighted average interest cost 3.0% 3.4% (0.4
Slide 32: Prudent Capital Management
Prudent Capital Management GLP’s main objectives are to build a strong capital base to sustain growth and mitigate risk GLP’s financial position today considers the Group’s capital requirements for the next three years Access to diverse sources of funds – debt, cash, third party capital Metric
Slide 33: Notes to the Results Presentation
Notes to the Results Presentation Notes to Financial Information 1. Country NAV refers to GLP share of the consolidated net asset value of the entities representing its operations in China, Japan, Brazil and US. Segment NAV refers to Country NAV and adjusted to exclude intercompany loans from GLP. C
Slide 34: Notes to the Results Presentation (cont'd)
Notes to the Results Presentation (cont’d) Notes to Portfolio Assets under Management information 1. Completed Asset Value relates to carrying value of the completed properties, expected completed value of the properties under development and/or targeted completed properties value based on approved
Slide 35: Notes to the Results Presentation (cont'd)
Notes to the Results Presentation (cont’d) Notes to Portfolio Assets under Management information (cont’d) 10. Other facilities includes container yard and parking lot facilities, which are in various stages of completion. 11. Properties under development or being repositioned consists of four sub-c
Slide 36: Disclaimer
Disclaimer The information contained in this presentation (the “Information”) is provided by Global Logistic Properties Limited (the “Company”) to you solely for your reference and may not be retransmitted or distributed to any other person. The Information has not been independently verified and ma
Slide 37: Investor Relations Contact
GLP Tianjin Pujia China Investor Relations Contact Ambika Goel, CFA SVP - Capital Markets and Investor Relations Tel: +65 6643 6372 Email: agoel@glprop.com
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