Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — Ascendas Reit — Shareholder Meeting (June 2018)
36 slides from Capitaland Ascendas Reit's shareholder meeting presentation, Jun 28, 2018
Slide 1: Annual General Meeting
Annual General Meeting 28 June 2018 20 Tuas Avenue 1 100 & 108 Wickham Street, Fortitude Valley, Singapore Queensland Australia
Slide 2: Disclaimers
Disclaimers This material shall be read in conjunction with Ascendas Reit’s financial statements for the financial year ended 31 March 2018. This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may
Slide 3: Agenda
Agenda Financial Performance & Key Highlights 4 Investment Management 8 Capital Management 17 Portfolio Management 22 Market Outlook 35 3
Slide 4: Financial Performance & Key Highlights
Financial Performance & Key Highlights 4
Slide 5: Financial Performance
Financial Performance % fav/ (S$’000) FY17/18 FY16/17 (unfav) Gross revenue 862,111 830,592 3.8 Net property income 629,400 610,954 3.0 Total amount available for distribution 468,045 446,304 4.9 DPU (cents) 15.988 15.743 1.6 Note: Please refer to Ascendas Reit’s financial announcement for the finan
Slide 6: Key Highlights of FY17/18
Key Highlights of FY17/18 Key contributors were new acquisitions: • Singapore: 12, 14 & 16 Science Distribution Park Drive (Singapore) per Unit • Australia: 197-201 Coward Street (Sydney) and 100 Wickham Street 15.988 cents (Brisbane) Portfolio operating performance +1.6% y-o-y • Occupancy impro
Slide 7: Key Highlights of FY17/18
Key Highlights of FY17/18 Portfolio AUM Aggregate cap rate S$10.35b Leverage 6.24% +1.8% y-o-y vs 6.29% 34.4% 31 Mar 2017 Acquisitions: S$225.8m Same-store valuation(1) Moody’s A3 credit rating in Australia stable at S$9.84b maintained Redevelopment/AEIs: 71.9% of borrowings are S$52.9m on
Slide 8: Investment Management
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Slide 9: Total Assets Exceeded S$10b
Total Assets Exceeded S$10b Redevelopment/ Acquired Divested AEIs S$225.8m S$60.8m S$52.9m 100 Wickham Street, 50 Kallang Ave 84 Genting Lane Brisbane The Gemini 13 International 108 Wickham Street, Business Park Brisbane 10 Woodlands Link 52 Fox Drive, Melbourne Financial Performanc
Slide 10: Singapore Portfolio
Singapore Portfolio GFA 3,040,253 sm 99 properties located across the island Segments include Business & Science Park, Integrated Development, High-Specifications, Light Industrial and Logistics & Distribution centres Financial Performance & Investment Capital Portfolio Market Key Highlights M
Slide 11: Australia Portfolio
Australia Portfolio 9 GFA 768,140 sm 1 32 properties located in key cities: Sydney, 11 Melbourne, Brisbane and Perth • 29 modern logistics 11 properties • 3 suburban office buildings Financial Performance & Investment Capital Portfolio Market Key Highlights Management Management Management Outlo
Slide 12: Post FY17/18: Investments/Divestments
Post FY17/18: Investments/Divestments Purchase Consideration (Estimated) Country Cost/ Sale Price (S$m) Completion Date FY18/19 Acquisitions 65.3 169-177 Australis Drive, Australia 34.5 (1) Jun 2018 Derrimut, Melbourne 1-7 Wayne Goss Drive, Australia 30.8 (2) 3Q FY18/19 Berrinba, Brisbane Redevelopm
Slide 13: Acquisition: 169-177 Australis Drive, Derrimut, Melbourne
Acquisition: 169-177 Australis Drive, Derrimut, Melbourne, Australia Purchase Consideration (1)(2) A$34.0 m (S$34.5 m) Total Acquisition Cost (incl. A$2.3m of Acquisition Fee, Stamp A$36.3 m (S$36.8 m) Duty and Other Costs) Vendor Abacus Funds Management Valuation (as at 17 Apr 2018)(1)(2)(3) A$34.0
Slide 14: Acquisition: 1-7 Wayne Goss Drive, Berrinba, Brisbane
Acquisition: 1-7 Wayne Goss Drive, Berrinba, Brisbane, Australia Land and Development Cost (1)(2) A$30.0 m (S$30.8 m) Total Investment Cost (incl A$1.0m of Acquisition Fee, A$31.0 m (S$31.8 m) Stamp Duty and Other Costs) Goodman Property Services Developer (Aust) Pty Ltd (“Goodman”) “As if Complete”
Slide 15: Redevelopment: Tuas Avenue 1, Singapore
Redevelopment: 20 Tuas Avenue 1, Singapore The property was redeveloped into a ramp-up 3-storey warehouse block with efficient and regular Description floor plate sizes. Features include a concrete rooftop carpark for 40 foot container and lorries. Plot ratio was maximized. Property Segment Logistic
Slide 16: Divestment: Old Toh Tuck Road, Singapore
Divestment: 30 Old Toh Tuck Road, Singapore 5-storey ramp-up logistics Description building located in the Western part of Singapore Remaining Land Tenure ~39 years (as at 31 Mar 2018) Gross Floor Area 16,353 sqm Acquisition Year/ Price 2006/ S$19.6 m Book Value S$20.3 m (as at 31 Mar 2018) Sales Pr
Slide 17: Capital Management
ascendas Reit Capital Management
Slide 18: Healthy Balance Sheet
Healthy Balance Sheet Aggregate leverage remained healthy at 34.4% Available debt headroom of ~S$1.0b to reach 40.0% aggregate leverage As at As at 31 Mar 2018 31 Mar 2017 Total Debt (S$m) (1) 3,563 3,442 Total Assets (S$m) 10,354 10,171 Aggregate Leverage 34.4% 33.8% Unitholders' Funds (S$m) 6,
Slide 19: Well-spread Debt Maturity Profile
Well-spread Debt Maturity Profile Well-spread debt maturity with the longest debt maturing in 2029 Average debt maturity is stable at 3.2 years: Issued S$200m 6-year Notes at 2.47% (SOR + 60bps) in Aug 2017 Issued S$200m 7-year Notes at 3.14% (SOR + 70bps) in Mar 2018 Extended S$200m commi
Slide 20: Key Funding Indicators
Key Funding Indicators Robust indicators enable Ascendas Reit to borrow at competitive costs As at As at 31 Mar 2018 31 Mar 2017 Aggregate Leverage 34.4% (1) 33.8% Unencumbered Properties as % of Total 89.7% 89.3% Investment Properties (2) Interest Cover Ratio 5.9 x 5.7 x Debt / EBITDA 6.2 x 6.3 x
Slide 21: Annual Property Revaluation
Annual Property Revaluation Total valuation of 130 properties was S$10.14b (1) Same-store valuation (2) of 126 properties @ 31 Mar 2018 was stable at S$9.84b (vs. S$9.75b @ 31 Mar 2017) Capitalisation rate of 6.24% for total portfolio (vs. 6.29% @ 31 Mar 2017) As at 31 Mar 2018 Valuation Weigh
Slide 22: Portfolio Management
ascendas Reit Portfolio Management
Slide 23: Well Diversified Portfolio
Well Diversified Portfolio By Asset Value Logistics & Distribution Logistics and Centres Distribution Integrated Singapore, 11% Australia Development, Centres Amenities & Australia, 11% 15% Retail, 7% Suburban Offices Light industrial Australia, 4% and Flatted Factories, 9% By By Property Country ty
Slide 24: Tenants' Industry Diversification
Tenants’ Industry Diversification By Monthly Gross Revenue 3rd Party Logistics, Freight Forwarding 11.4% Financial 9.6% Distributors, trading company 9.3% M&E and Machinery & Equipment 8.7% Life Science & Other Scientific Activities 7.8% Information Technology 7.4% Telecommunication & Datacentre 6.9
Slide 25: Quality and Diversified Customer Base
Quality and Diversified Customer Base Total customer base of around 1,320 tenants Top 10 customers (as at 31 Mar 2018) account for about 20.6% of portfolio gross rental income On a portfolio basis, weighted average security deposit is about 5.5 months of rental income 4.9% 3.1% 2.1% 2.1% 1.7%
Slide 26: Overview of Portfolio Occupancy
Overview of Portfolio Occupancy 98.5% 96.3% 100.0% 89.5% 88.6% 91.5% 90.2% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Singapore Australia Total Mar-18 Mar-17 Gross Floor Area 3,012,157 (2) 737,092 (3) 3,749,249 (sqm) (1) Note: (1) Gross Floor Area as at 31 Mar 2018. (2) Gross Floor A
Slide 27: Singapore: Occupancy
Singapore: Occupancy Occupancy improved by 0.9% to 89.5% mainly due to occupancy improvements in 2 Senoko South Road (Light industrial), Logistech (Logistics) and 71 Alps Avenue (Logistics) As at 31 Mar 18 31 Mar 17 Total Singapore Portfolio GFA (sqm) 3,012,157(1)(2)(3) 3,025,823(2)(4) Singapore P
Slide 28: Australia: Occupancy
Australia: Occupancy Occupancy improved by 2.2% to 98.5% as our logistics properties, 62 Stradbroke Street (Brisbane) and 494-500 Great Western Highway (Sydney), achieved full occupancies during the year As at 31 Mar 18 31 Mar 17 Total Australian Portfolio GFA (sqm) 737,092 692,153 Australian Port
Slide 29: Portfolio Rental Reversions
Portfolio Rental Reversions Portfolio reversions of 0.7% were recorded for leases renewed in FY17/18 Rental reversion is expected to see slight improvement in FY18/19 Percentage Change in Renewal Rates (1) Multi-tenant Buildings FY17/18 Singapore 0.5% Business & Science Parks 3.9% High-Specifica
Slide 30: Weighted Average Lease Expiry (By gross revenue)
Weighted Average Lease Expiry (By gross revenue) Portfolio Weighted Average Lease Expiry (WALE) at 4.2 years WALE (as at 31 Mar 18) Years Singapore 4.0 Australia 5.1 Portfolio 4.2 Financial Performance & Investment Capital Portfolio Market Key Highlights Management Management Management Outlook 30
Slide 31: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile (as at 31 Mar 18) Breakdown of expiring leases Portfolio weighted average lease to expiry (WALE) of 4.2 years for FY18/19 Lease expiry is well-spread, extending beyond 2032 6% 6% About 14.0% of gross revenue is due for renewal in FY18/19 24% 24% FY18/19 25% 25% 2
Slide 32: Ongoing Projects: Improve portfolio quality
Ongoing Projects: Improve portfolio quality Estimated Estimated Country Value (S$m) Completion Date Asset Enhancement Initiatives 34.5 Nordic European Centre Singapore 8.5 4Q FY18/19 Aperia Singapore 13.7 3Q FY18/19 21 Changi South Avenue 2 Singapore 4.5 Apr 2018 KA Centre, KA Place and 1 Jalan Kila
Slide 33: Asset Enhancement Initiative: Nordic European Centre
Asset Enhancement Initiative: Nordic European Centre, International Business Park, Singapore Activate the main lobby with shared collaborative spaces for tenants and visitors Refresh building façade Delight tenants with gym and End-of-trip facility, promoting Description Live-Work-Learn-Play
Slide 34: Asset Enhancement Initiative: Aperia
Asset Enhancement Initiative: Aperia, Kallang Ave, Singapore Improve tenant mix with more F&B options and active lifestyle venues such as rock climbing, gym & yoga studio Create a Food Street corridor with more F&B options such as Description restaurant, café and take-away kiosk Enhance drop-o
Slide 35: Market Outlook
Market Outlook 35
Slide 36: Market Outlook
Market Outlook A rebound in investment and trade has contributed to the cyclical recovery in the global economy. However, the global outlook is still subject to downside risks, including in particular the escalating trade tensions between the US and China. Singapore‘s economy is forecast to grow