Aims Apac Reit · SGX:O5RU
Aims Apac Reit — Shareholder Meeting (July 2021)
40 slides from Aims Apac Reit's shareholder meeting presentation, Jul 28, 2021
Slide 1: AIMS APAC REIT 12th Annual General Meeting
AIMS APAC REIT 12 th Annual General Meeting 28 July 2021, 2.00 p.m. by electronic means 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 2020 to 31 March 2021 (“FY2021”) and from 1 April 2021 to 30 June 2021 (“1Q FY2022”) versus actual results year-on-year (“y-o-y”). This Presentation shall be read in conjunction
Slide 3: Contents
Contents Highlights for FY2021 / Recent Developments 1Q FY2022 Financial Highlights Portfolio Performance Market Outlook & Strategy 3 TUAS AVE 2, SINGAPORE 3
Slide 4: Highlights for FY2021 / Recent Developments
Highlights for FY2021 / Recent Developments 7 BULIM STREET, SINGAPORE 4
Slide 5: Portfolio Expansion: 7 Bulim Street
Portfolio Expansion Continued pursuit of yield-accretive opportunities for portfolio growth Completed acquisition of 7 Bulim Street on 9 October 2020 • Close proximity to the future Tuas Mega Port • Master leased to KWE – Kintetsu World Express (S) Pte Ltd, a wholly-owned subsidiary of a major Japan
Slide 6: Portfolio Expansion: 315 Alexandra Road
Portfolio Expansion Continued pursuit of yield-accretive opportunities for portfolio growth Announced proposed acquisition of 315 Alexandra Road on 27 January 2021 • Maiden acquisition in a city fringe location • Long asset WALE, anchored for 10 years by anchor tenant upon completion Purchase Consid
Slide 7: Long-Term Tenant Partnership
Long-Term Tenant Partnership Building momentum through active asset and lease management 541 Yishun Industrial Park A Secured new master tenant, a subsidiary of a major Japanese energy and environment group for entire premises of 541 Yishun Industrial Park A in 3QFY2021 Gross Floor Area 8,770.90 sqm
Slide 8: Highlights for FY2021
Highlights for FY2021 Proactive Lease Management, Establishing Resilient Portfolio Executed a total of 105 new and renewal leases in FY2021, representing 259,933 sqm (35.1% of portfolio’s net lettable area) Achieved healthy occupancy rate of 95.4%, above JTC’s industrial average of 90.0% for the
Slide 9: Highlights for FY2021
Highlights for FY2021 Inclusion into Indices AA REIT was included in the: MSCI Singapore Small Cap Index (29 May 2020) FTSE Russell ST Singapore Shariah Index (21 December 2020) Higher trading liquidity and visibility among global institutional investors, helping to diversify the investor ba
Slide 10: 1Q FY2022 Financial Highlights
1Q FY2022 Financial Highlights 29 W OODLANDS INDUSTRIAL PARK E1, SINGAPORE 10 10
Slide 11: 1Q FY2022 Results
1Q FY2022 Results 1Q 1Q Y-o-Y (S$’000 unless otherwise stated) FY2022 FY2021 (%) Gross Revenue 31,813 27,240 16.8 Net Property Income 23,080 18,629 23.9 Share of Profits of Joint Venture (net of tax) 3,774 3,315 13.8 Distributions to Unitholders1 15,917 14,134 12.6 DPU (cents) 2.25 2.00 12.5 1 The M
Slide 12: Attractive Return on Investment
Attractive Return on Investment 8% 6% 5.81% % yield per annum 4.05% 4% 423 bps spread 2.50% 2% 1.58% 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$1.55 on 27 July 2021 and annualis
Slide 13: Total Distributions Since 2011
Total Distributions Since 2011 30.00 80.0 72.06 69.2 70.5 70.5 67.37 66.51 70.0 Distributions Per Unit (Singapore Cents) 63.25 57.2 60.0 Total Distributions (S$ `m) 20.00 48.06 50.0 46.32 37.2 40.0 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 15.92 20.0 2.25 10.0 0.00 1 1
Slide 14: Key Financial Metrics – 1Q FY2022
Key Financial Metrics – 1Q FY2022 1Q 1Q FY2022 FY2021 Portfolio Value (S$ million) 1 1,724.5 1,557.5 Market Capitalisation (S$ million) 2 1,096.5 885.1 NAV per Unit (S$) 1.35 1.36 Share Price (S$) 1.55 1.21 Premium over / (Discount to) NAV (%) 2 14.8 (11.0) Aggregate Leverage (%) 3 34.3 35.4 Interes
Slide 15: Debt Facilities as at 30 June 2021
Debt Facilities as at 30 June 2021 Pro Forma refinancing of existing secured facilities MATURITY DATE S$'M 2021 November (FY2022) 36.9 2022 March (FY2022) 50.0 15 100 2022 June (FY2023) 47.4 S$25m undrawn 50 2022 July (FY2023) 100.0 S$83.2m undrawn 33 50 120 125 2023 July (FY2024) 110.9 2023 Novembe
Slide 16: Portfolio Performance
Portfolio Performance 15 TAI SENG DRIVE, SINGAPORE 16
Slide 17: Active Lease Management
Active Lease Management Lease Expiry Profile as of 30 June 2021 (By 1QFY2022 Gross Rental Income) 1Q FY2022 NET AREA % OF TOTAL NLA New Leases Signed: 15 New Leases: 24,641 sqm New and Renewal Leases Renewal Leases Signed1: 23 represent 9.8% of total NLA Renewal Leases: 48,074 sqm executed in 1Q FY2
Slide 18: Key Portfolio Statistics
Key Portfolio Statistics As at As at 30 June 2021 31 March 2021 Number of Properties 28 28 Portfolio Value (S$ million) 1 1,724.5 1,724.7 Net Lettable Area (sqm) 740,942 740,738 Number of Tenants 188 193 Portfolio Occupancy (%) 95.7 95.4 Weighted Average Lease Expiry (WALE) (years) 2 3.98 3.95 Weigh
Slide 19: Portfolio Breakdown
Portfolio Breakdown Hi Tech Space, 8.4% Light Industrial, 10.2% Portfolio Breakdown Logistics & General Industrial, Warehouse, 50.5% By 1Q FY2022 14.2% Gross Rental Income Business Park, 16.7% 19
Slide 20: Diversified Tenant/Industry Base
Diversified Tenant/Industry Base 1 Others, 4.9% IT & Electronics, 1.9% Data Centre, 2.0% Self-Storage, 2.1% FMCG, 2.3% Furniture, 2.5% Fashion & Apparels, 4.9% Logistics, 34.7% Pharma/Healthcare/Cosmetics, Tenant/ 5.1% Industry Base By 1Q FY2022 Gross Rental Income Consumer Products, 6.0% Bio-Tech/L
Slide 21: 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 1 Q F Y 2 0 2 2 G R O S S R E N TAL I N C O M E 12.7% 8.3% 8.0% 3.8% 3.3% 2.9% 2.8% 2.0% 2.0% 1.
Slide 22: Market Outlook & Strategy
Market Outlook & Strategy 29 W OODLANDS INDUSTRIAL PARK E1, SINGAPORE 22
Slide 23: Market Outlook
Market Outlook MACRO Overall, economic growth is recovering after the pandemic-related slowdown in 2020, though growth is likely to remain below the pre-pandemic growth trend. Global growth is projected at 6% in 2021, moderating to 4.4% in 2022. SINGAPORE'S ECONOMY Based on advance estimates for
Slide 24: Our Strategy
Our Strategy Active Asset Capital & Business Strategic Prudent Capital & & Leasing Partnerships for Investments Risk Management Management Growth Continued evaluation of Unlocking value of Staggering of debt Building new capital total return investment and selected assets within the maturities, main
Slide 25: 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 26: 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 95.7% versus account for 50.5% of AA backed by 188 tenants JTC's industry average REIT's portfolio by Gross across 28 properties in stands a
Slide 27: Environment, Social & Governance
Environment, Social & Governance We are committed to incorporating Our ESG Focus Area 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 • Underst
Slide 28: Contents
Contents Substantial Q&A Resolutions / Results 3 TUAS AVE 2, SINGAPORE 28
Slide 29: Substantial Q&A
Substantial Q&A 1A INTERNATIONAL BUSINESS PARK, SINGAPORE 29
Slide 30: Substantial Q&A – Business Strategy
Substantial Q&A – Business Strategy 1. Does AA REIT have any plans to enter into data centre sector, once the moratorium on data centres in Singapore is lifted, or in Australia? Is there potential to convert or re-develop existing properties in AA REIT’s current portfolio into a data centre asset?
Slide 31: Substantial Q&A – Business Strategy
Substantial Q&A – Business Strategy 2. What are management’s plans to grow DPU for the next 3 years? We do not provide guidance or forecast on our DPU. We have consistently distributed at least 90% of our taxable income since we listed in April 2007, as stipulated by the authorities, to qualify
Slide 32: Substantial Q&A – Capital Management
Substantial Q&A – Capital Management 4. Is it possible to limit fundraising to rights issues and borrowings without external placements? Bank borrowings are limited as REITs have an aggregate leverage limit of 50%. AA REIT has a conservative leverage of 34.3% as at 30 June 2021. Besides debt, RE
Slide 33: Resolutions
Resolutions 20 GUL W AY, SINGAPORE 33
Slide 34: Ordinary Resolution 1
Ordinary Resolution 1 To receive and adopt the Trustee’s Report, the Manager’s Statement, the Audited Financial Statements of AA REIT for the financial year ended 31 March 2021 and the Auditors’ Report thereon. 34
Slide 35: Ordinary Resolution 1 - Results
Ordinary Resolution 1 - Results To receive and adopt the Trustee’s Report, the Manager’s Statement, the Audited Financial Statements of AA REIT for the financial year ended 31 March 2021 and the Auditors’ Report thereon. No. of Votes Percentage For 267,357,825 100% Against 3,800 0% 35
Slide 36: Ordinary Resolution 2
Ordinary Resolution 2 To re-appoint KPMG LLP as Auditors and authorise the Manager to determine the Auditors’ remuneration. 36
Slide 37: Ordinary Resolution 2 - Results
Ordinary Resolution 2 - Results To re-appoint KPMG LLP as Auditors and authorise the Manager to determine the Auditors’ remuneration. No. of Votes Percentage For 266,107,925 99.40% Against 1,615,100 0.60% 37
Slide 38: Ordinary Resolution 3
Ordinary Resolution 3 To authorise the Manager to issue Units and to make or grant convertible instruments. 38
Slide 39: Ordinary Resolution 3 - Results
Ordinary Resolution 3 - Results To authorise the Manager to issue Units and to make or grant convertible instruments. No. of Votes Percentage For 260,579,660 97.33% Against 7,143,365 2.67% 39
Slide 40: Thank you!
1 KALLANG WAY 2A, SINGAPORE For enquiries, kindly contact: Thank you! Phone Number +65 6309 1063 / +65 6534 5122 More information can be found AA REIT’s corporate website Email Address as well as SGX Announcements page investorrelations@aimsapac.com / AAREIT@citigatedewerogerson.com