Capitaland Ascendas Reit · SGX:A17U

Capitaland Ascendas Reit — A-REIT (Ascendas Real Estate Investment Trust) — Shareholder Meeting (February 2016)

26 slides from Capitaland Ascendas Reit's shareholder meeting presentation, Feb 16, 2016

  1. Slide 1: Acquisition of One@Changi City

    Acquisition of One@Changi City Extraordinary General Meeting 16 February 2016 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group

  2. Slide 2: Disclaimer

    Disclaimer This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Represen

  3. Slide 3: Content

    Content  Introduction  The Acquisition - One@Changi City  Funding of Acquisition  Benefits of Proposed Consideration Units  Impact on A-REIT  Benefits to Unitholders  Corporate Actions in FY15/16 3 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group

  4. Slide 4: A-REIT's Strategies

    A-REIT's Strategies Total Predictable income Capital stability Returns Proactive & Outcome dedicated Stability Growth manager with track record Prudent Proactive Strategies Value-Adding Capital & Risk Portfolio Investments Management Management Property Performance Fund Manager: Manager: Fund Manage

  5. Slide 5: A-REIT: Strong market leadership position

    A-REIT: Strong market leadership position  Portfolio grew from 8 properties at IPO in Nov 2002 to 130 properties as at the end of Dec 2015. Total assets increased from $0.6b to $9.4b  NAV per unit : S$0.91 (2003) to S$2.06 (Dec 2015)  A-REIT is the largest and most diversified industrial S-REIT i

  6. Slide 6: Stable and Sustainable Distributions

    Stable and Sustainable Distributions  Achieved 5.4% DPU CAGR since IPO despite a ~340% growth in the unit base  Maintained aggregate leverage at healthy level 3 Qtr as at 31 Dec 15 GFC 6 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group

  7. Slide 7: Maintain Strong Corporate Governance Culture

    Maintain Strong Corporate Governance Culture  Some of the organisations which have bestowed awards and accolades on A-REIT include: Corporate Governance & Corporate Environment & Products Investor Relations • SIAS – Most transparent • Singapore Corporate Awards • Energy Efficiency National company

  8. Slide 8: Content

    Content  Introduction  The Acquisition - One@Changi City  Funding of Acquisition  Benefits of Proposed Consideration Units  Impact on A-REIT  Benefits to Unitholders  Corporate Actions in FY15/16 8 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbridge Group

  9. Slide 9: One@Changi City

    One@Changi City Purchase S$420.0 million Consideration Acquisition fee to S$4.2 million Manager Stamp Duty and Approximately S$14.7 million Other transaction (including stamp duty of about costs S$12.6 m) Total Acquisition S$438.9 million Cost Vendor Ascendas Frasers Pte Ltd Valuation S$437.8 millio

  10. Slide 10: Content

    Content  Track Record & Strategy  The Acquisition - One@Changi City  Funding of Acquisition  Benefits of Proposed Consideration Units  Impact on A-REIT  Benefits to Unitholders  Corporate Actions in FY15/16 10 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbr

  11. Slide 11: Funding of Acquisition

    Funding of Acquisition  The total acquisition cost of S$438.9m will be funded by: a) S$210.0m through the proposed issuance of Consideration Units at S$2.223 per Unit to the Vendor’s nominee, Ascendas Land (Singapore) Pte Ltd Consideration EFR Proceeds, b) S$224.7m from the proceeds of A-REIT’s Uni

  12. Slide 12: Content

    Content  Track Record & Strategy  The Acquisition - One@Changi City  Funding of Acquisition  Benefits of Proposed Consideration Units  Impact on A-REIT  Benefits to Unitholders  Corporate Actions in FY15/16 12 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbr

  13. Slide 13: Benefits of Proposed Consideration Units

    Benefits of Proposed Consideration Units  Issue Price was market determined based on EFR and at an 8% premium to NAV of S$2.06  Aggregate leverage improves to 36.5% • Headroom for future growth • Able to tap on debt funding to react quickly to investment opportunities • Maintain Moody’s A3 credit

  14. Slide 14: Benefits of Proposed Consideration Units

    Benefits of Proposed Consideration Units  Markets have been volatile in the last two months since announcement  Recent recovery was mainly due to BOJ’s introduction of negative interest rates to stimulate Japan economy 14 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas

  15. Slide 15: Proposed Consideration Units

    Proposed Consideration Units  If Consideration Units issuance is not approved, aggregate leverage will increase to 38.6% (S$mil) Aggregate Leverage 10,000 439 9,000 8,000 40% 7,000 6,000 38.6% 39% 5,000 9,351 4,000 225 435 38% 3,000 37% 2,000 36.5% 3,346 3,346 1,000 36% - Total Assets Total Debt To

  16. Slide 16: Content

    Content  Track Record & Strategy  The Acquisition - One@Changi City  Funding of Acquisition  Benefits of Proposed Consideration Units  Impact on A-REIT  Benefits to Unitholders  Corporate Actions in FY15/16 16 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbr

  17. Slide 17: Impact & Benefit to A-REIT

    Impact & Benefit to A-REIT  Enhance A-REIT’s market leadership position in the Business and Science Park segment • A-REIT’s 7th property within Changi Business Park (CBP) Subject • 50% market share in Property CBP (based on GFA) A-REIT properties 17 A-REIT is managed by Ascendas Funds Management (S

  18. Slide 18: Building on strength of business park portfolio

    Building on strength of business park portfolio Logistics & Logistics & Logistics & Logistics & Distribution Distribution Distribution Distribution Centres, 15% Centres Centres, 14% Centres AREIT Beijing, 1% AREIT Beijing, 1% Integrated Integrated Australia, 12% Development, Australia, 11% Developme

  19. Slide 19: Further diversifying tenant base

    Further diversifying tenant base Before Acquisition: 5.0% Top 10 tenants account for 18.8% of total gross revenue 2.2% 2.1% 1.8% 1.6% 1.3% 1.3% 1.2% 1.1% 1.1% Singapore DBS Bank Citibank, Wesfarmers Ceva Siemens Hydrochem Biomedical Cold Storage Equinix Telecomm- Ltd N.A Group Logistics Pte Ltd (S)

  20. Slide 20: Weighted Average Lease Expiry and Land Tenure

    Weighted Average Lease Expiry and Land Tenure As at 31 December 2015 Before Acquisition After Acquisition Weighted Average Lease Term to 3.67 years 3.70 years Expiry Weighted Average Land Lease 45.5 years 45.9 years Tenure* * Excludes freehold properties 25.0% Lease Expiry Profile 20.1% 20.0% 19.9%

  21. Slide 21: Lease Tenure Mix (by Asset Value)

    Lease Tenure Mix (by Asset Value) Single Single Tenant Tenant Buildings Buildings 29.3% 28.0% Before After Acquisition(1) Acquisition(2) Multi Multi Tenant Tenant Buildings Buildings 70.7% 72.0% Notes: (1) Based on 130 properties as at 31 December 2015. (2) Assuming One@Changi City was acquired on 3

  22. Slide 22: Pro Forma Financial Impact

    Pro Forma Financial Impact The Acquisition Financial Impact DPU Impact 0.067 cents* (pro forma annualised impact) Net Property Income Yield – 1st Year 5.9% (post acquisition cost) * Assuming A-REIT had purchased, held and operated the Acquisition for the whole of the financial year ended 31 March 20

  23. Slide 23: Content

    Content  Track Record & Strategy  The Acquisition - One@Changi City  Funding of Acquisition  Benefits of Proposed Consideration Units  Impact on A-REIT  Benefits to Unitholders  Corporate Actions in FY15/16 23 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbr

  24. Slide 24: Benefits to Unitholders

    Benefits to Unitholders  Steady returns • One@Changi City is expected to achieve net property income yield of 5.9% (post acquisition cost) in the first year • Good quality customers such as JP Morgan, Credit Suisse • Longer WALE of 4.58 years (vs 3.67 years currently)  Potential upside • About 92.

  25. Slide 25: Content

    Content  Track record & Strategy  The Acquisition - One@Changi City  Funding of Acquisition  Benefits of Proposed Consideration Units  Impact on A-REIT  Benefits to Unitholders  Corporate Actions in FY15/16 25 A-REIT is managed by Ascendas Funds Management (S) Ltd, a member of Ascendas-Singbr

  26. Slide 26: Corporate Actions in FY15/16

    Corporate Actions in FY15/16  Announced acquisitions worth about S$1.5b • 26 logistics properties in Australia for A$1.013b • 6 – 20 Clunies Ross Street in Sydney, Australia for A$76.6m(1) • One@Changi City for S$420.0m(2)  The above acquisitions were/will be funded via Perpetual securities (S$300

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