CapitaLand Ascendas REIT · SGX:A17U
CapitaLand Ascendas REIT — FY2022 Earnings Presentation
63 slides from CapitaLand Ascendas REIT's earnings presentation, Feb 2, 2023
Slide 1: FY2022 Financial Results
CapitaLand Ascendas REIT FY2022 Financial Results 2 February 2023 Aperia, Singapore
Slide 2: Disclaimers
Disclaimers • This presentation may contain forward-looking statements. 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. Representative examples of these factors i
Slide 3: Agenda
Agenda 04 Key Highlights 06 Financial Performance 11 Investment Management 15 Capital Management 22 Asset Management 40 Market Outlook 47 Portfolio Resilience & Sustainability 59 Appendix: - Historical Financial Results FM Global Centre, Singapore - CapitaLand Ascendas REIT’s Singapore Occupancy vs
Slide 4: Key Highlights
FY2022 Financial Results 1-7 Wayne Goss Drive, Brisbane, Australia Key Highlights
Slide 5: Key Highlights
Key Highlights FY2022 Asset Improved Portfolio Occupancy Distributable Income 94.6% S$663.9 m Management 31 Dec 2021: 93.2% +5.4% y-o-y Positive Portfolio Rental Reversion# Financial Distribution per Unit +8.0% Performance 15.798 cents +3.5% y-o-y Capital Healthy Aggregate Leverage Investment Proper
Slide 6: Financial Performance
FY2022 Financial Results Financial Performance 540-570 Congress Circle South, Chicago, United States
Slide 7: Financial Performance FY2022 vs FY2021
Financial Performance FY2022 vs FY2021 (S$’m) FY2022 FY2021 Variance Mainly attributable to: • Full year contribution from the acquisition of 11 data centres in Europe, in Mar 2021, acquisition of the remaining 75% interest in AF5PL* that holds Galaxis, Singapore, in Jun 2021, completion of Grab Hea
Slide 8: Financial Performance 2H FY2022 vs 1H FY2022
Financial Performance 2H FY2022 vs 1H FY2022 2H 1H (S$’m) Variance FY2022 FY2022 • Increase in Gross Revenue is mainly due to the acquisition of seven Logistics properties in Chicago, US, Gross revenue 686.1 666.5 2.9% in Jun 2022. Net property Income 491.8 476.9 3.1% • Increase in NPI is contribute
Slide 9: Financial Performance 2H FY2022 vs 2H FY2021
Financial Performance 2H FY2022 vs 2H FY2021 2H 2H (S$’m) Variance FY2022 FY2021 Mainly attributable to: • Full six-months contribution from the completion of Grab Headquarters, Singapore, in Jul 2021, acquisition of 11 Logistics properties in Kansas City, US, in Nov 2021. • Contribution from the co
Slide 10: Distribution Details
Distribution Details Distribution Period DPU (Singapore cents) 1 1 Jul 2022 to 31 Dec 2022 7.925 (1) Distribution timetable Last day of trading on “cum” basis 8 February 2023 (Wednesday) Ex-distribution date 9 February 2023 (Thursday), 9.00 am Record date 10 February 2023 (Friday), 5.00 pm Distribut
Slide 11: Investment Management
FY 2022 Financial Results Investment Management 510 Townsend Street, San Francisco, United States
Slide 12: FY2022 Investment Highlights
FY2022 Investment Highlights o Completed S$261.6 m of acquisitions/redevelopments and S$16.3 m of asset enhancement initiatives. Purchase Consideration / FY2022 City/Country Sub-segment Completion Date Total Cost (S$’m) Completed Acquisitions 223.4 500 Green Road Brisbane, Australia Logistics 69.1(1
Slide 13: Investment Highlights (Cont'd)
Investment Highlights (Cont’d) o Completed acquisitions in first quarter of 2023. Purchase Consideration / 1Q 2023 City/Country Sub-segment Completion Date Total Cost (S$’m) Completed Acquisitions 622 Toa Payoh Lorong 1 Singapore Industrial 104.8 11 Jan 2023 1 Buroh Lane Singapore Logistics 191.9 2
Slide 14: Asset Enhancement Initiative (Completed in 4Q 2022)
Asset Enhancement Initiative (Completed in 4Q 2022) 17 Changi Business Park Central 1 AEI works included a major revamp to the main lobby with the drop-off points reconfigured to enhance overall user experience. To provide better connectivity and convenience, a Description new sheltered access to th
Slide 15: Capital Management
FY 2022 Financial Results Capital Management Reynolds House, Manchester, United Kingdom
Slide 16: Healthy Balance Sheet
Healthy Balance Sheet ▪ Aggregate leverage is healthy at 36.3%(1)(2) ▪ Available debt headroom of ~$4.7 b to reach MAS’ aggregate leverage limit of 50.0% As at As at As at 31 Dec 2022 30 Jun 2022 31 Dec 2021 Total Debt (S$’m) (1)(2)(3) 6,296 6,389 6,143 Total Assets (S$’m) (1)(2) 17,332 17,420 17,12
Slide 17: Well-spread Debt Maturity Profile
Well-spread Debt Maturity Profile ▪ Well-spread debt maturity with the longest debt maturing in FY2032 ▪ Average debt maturity healthy at 3.7 years ▪ To date, green financing totaling S$1.8 b(1) accounts for about 28% of total borrowings 3% 1400 6% 1200 36% Diversified 958 Financial 1000 919 S$ mill
Slide 18: Key Funding Indicators
Key Funding Indicators ▪ Robust financial metrics that exceed bank loan covenants by a healthy margin ▪ A3 credit rating facilitates good access to wider funding options at competitive rates As at As at As at 31 Dec 2022 30 Jun 2022 31 Dec 2021 Aggregate Leverage (1)(2) 36.3% 36.7% 35.9% Unencumbere
Slide 19: Prudent Interest Rate Risk Management
Prudent Interest Rate Risk Management ▪ ~79% of borrowings are on fixed rates with an average term of 3.3 years ▪ 50 bps increase in interest rate is expected to have a pro forma impact of S$6.5 m decline in distribution or 0.15 cents decline in DPU Decrease in Change as Pro Forma DPU Impact Change
Slide 20: High Natural Hedge
High Natural Hedge ▪ Maintained high level of natural hedge of ~74% for overseas investment to minimise the effects of any adverse exchange rate fluctuations. A$ Natural Hedge US$ Natural Hedge £ Natural Hedge € Natural Hedge 68% 74% 74% 100% 3.0 US$ 1.8 b A$ 2.6 b (S$ 2.5 b) 2.5 (S$ 2.3 b) US$ 1.3
Slide 21: Annual Property Revaluation
Annual Property Revaluation ▪ Total valuation of 227 investment properties(1) was S$16.43 b ▪ There is no significant change in the valuation of our property portfolio. Same-store valuation for 217 properties(2) was stable at S$16.11 b ▪ In local currency terms: Higher valuations were achieved in Si
Slide 22: Asset Management
FY2022 Financial Results Asset Management Nucleos, Singapore
Slide 23: Overview of Portfolio Occupancy
Overview of Portfolio Occupancy 99.4% 99.1% 99.2% 99.4% 99.4% 96.7% 92.1% 91.8% 90.2% 94.0% 94.8% 94.5% 94.6% 94.5% 93.2% Singapore Australia United States United Kingdom / Europe Total Gross Floor 3,090,280 840,107(2) 682,750(3) 588,986(4) 5,202,123 Area (sqm)(1) Dec-22 Sep-22 Dec-21 (1) Gross Floo
Slide 24: Singapore
Singapore Occupancy ▪ Occupancy improved to 92.1% due to new leases at logistics and industrial properties As at 31 Dec 2022 30 Sep 2022 31 Dec 2021 Total Singapore Portfolio GFA (sqm)(1) 3,090,280 3,079,386 3,066,797(2) Singapore Portfolio Occupancy (same store) (3) 92.3% 92.0% 90.2% Occupancy of I
Slide 25: Australia
Australia Occupancy ▪ Occupancy rose to 99.4% due to positive leasing momentum for business space properties in Sydney As at 31 Dec 2022 30 Sep 2022 31 Dec 2021 Total Australian Portfolio GFA (sqm) 840,107(1) 840,245(1) 788,396 Australian Portfolio Occupancy (same store)(2) 99.4% 99.0% 99.2% Occupan
Slide 26: United States
United States Occupancy ▪ Occupancy remained healthy at 94.0% As at 31 Dec 2022 30 Sep 2022 31 Dec 2021 Total United States Portfolio GFA (sqm) 682,750(1)(2)(3) 682,750(1)(2)(3) 551,856 United States Portfolio Occupancy 92.4% 93.4% 94.4% (same store)(4) Occupancy of Investments Completed in the last
Slide 27: United Kingdom/Europe
United Kingdom/Europe Occupancy ▪ Occupancy remained high at 99.4% As at 31 Dec 2022 30 Sep 2022 31 Dec 2021 Total UK/Europe Portfolio GFA (sqm) 588,985(1) 588,946 590,393 UK/Europe Portfolio Occupancy (same store)(2) 99.4% 99.4% 96.7% Occupancy of Investments Completed in the last N.A. N.A. 97.9%(3
Slide 28: Singapore: Sources of New Demand in 4Q 2022
Singapore Sources of New Demand in 4Q 2022 3.0% 3.3% 2.7% 2.8% 12.5% 0.2% 7.1% 0.4% 13.2% 4.4% 6.0% 14.0% 18.9% By Gross By NLA Rental 25.4% 17.3% Income 23.1% 24.9% 20.8% Biomedical and Agri/Aquaculture Engineering IT & Data Centers Lifestyle, Retail and Consumer Products Logistics & Supply Chain M
Slide 29: Singapore: Sources of New Demand in FY 2022
Singapore Sources of New Demand in FY 2022 5.0% 5.6% 1.0% 1.3% 0.4% 0.7% 7.7% 7.1% 8.5% 6.6% 8.5% 6.5% 10.1% 11.6% By Gross By NLA Rental 10.2% 20.1% 19.2% Income 11.9% 10.8% 13.7% 13.9% 19.6% Engineering Logistics & Supply Chain Management IT & Data Centers Lifestyle, Retail and Consumer Products E
Slide 30: International: Sources of New Demand in 4Q 2022
International Sources of New Demand in 4Q 2022 7.9% 6.1% 3.0% 20.6% 7.1% 3.0% 3.4% 1.1% By Gross By NLA Rental Income 86.8% 61.1% Engineering Logistics & Supply Chain Management IT & Data Centers Lifestyle, Retail and Consumer Products Electronics Biomedical and Agri/Aquaculture Education and Media
Slide 31: International: Sources of New Demand in FY 2022
International Sources of New Demand in FY 2022 1.4% 2.2% 1.2% 2.1% 4.9% 10.0% 8.9% 4.2% 0.9% 1.9% 4.1% 26.3% 0.7% 1.3% 0.1% 14.6% 0.2% By Gross By NLA Rental Income 31.2% 27.6% 56.3% Engineering Logistics & Supply Chain Management IT & Data Centers Lifestyle, Retail and Consumer Products Electronics
Slide 32: Portfolio Rental Reversions
Portfolio Rental Reversions ▪ Average portfolio rent reversion of 8.0% was recorded for leases renewed in FY2022. ▪ Rental reversion for FY2023 is expected to be in the positive mid single-digit range. % Change in Renewal Rates for FY2022 FY2021 4Q2022 3Q2022 Multi-tenant Buildings (1) Singapore 7.0
Slide 33: Weighted Average Lease Expiry
Weighted Average Lease Expiry By Gross Revenue ▪ Portfolio Weighted Average Lease Expiry (WALE) stood at 3.8 years WALE (as at 31 Dec 2022) Years Singapore 3.5 Australia 3.2 United States 4.6 United Kingdom/Europe 5.9 Portfolio 3.8 CapitaLand Ascendas REIT F Y2 0 2 2 F i n a n c i a l R e s u l t s
Slide 34: Portfolio Lease Expiry Profile
Breakdown of expiring leases for Portfolio Lease Expiry Profile FY2023 and FY2024 As at 31 Dec 2022 27.2% o Portfolio WALE of 3.8 years FY2023 o Lease expiry is well-spread, extending beyond FY2036 56.1% o 21.0% of gross rental income is due for renewal in FY2023 16.7% o Weighted average lease term
Slide 35: Singapore: Lease Expiry Profile for FY2023 and FY2024
Breakdown of expiring leases Singapore: Lease Expiry Profile for FY2023 and FY2024 As at 31 Dec 2022 o Singapore portfolio WALE of 3.5 years 33.2% o Lease expiry is well-spread, extending beyond FY2036 FY2023 54.7% o 25.6% of Singapore’s gross rental income is due for renewal in FY2023 30% 12.1% 25.
Slide 36: Australia: Lease Expiry Profile for FY2023 and FY2024
Breakdown of expiring leases Australia: Lease Expiry Profile for FY2023 and FY2024 As at 31 Dec 2022 Brisbane o Australia portfolio WALE of 3.2 years 67.4% o Lease expiry is well-spread, extending till FY2032 46.6% FY2023 53.4% o 16.4% of Australia’s gross rental income is due for renewal in FY2023
Slide 37: United States: Lease Expiry Profile for FY2023 and FY2024
Breakdown of expiring leases United States: Lease Expiry Profile for FY2023 and FY2024 As at 31 Dec 2022 27.1% o United States portfolio WALE of 4.6 years Kansas City , Portland , 25.1% 27.1% o Lease expiry is well-spread, extending till FY2033 FY2023 o 9.2% of United States’ gross rental income is
Slide 38: United Kingdom/Europe: Lease Expiry Profile for FY2023 and FY2024
Breakdown of expiring leases United Kingdom/Europe: Lease Expiry Profile for FY2023 and FY2024 As at 31 Dec 2022 o United Kingdom/Europe portfolio WALE of 5.9 years 33% United o Lease expiry is well-spread, extending beyond FY2036 Kingdom, The FY2023 39% o 9.4% of United Kingdom/Europe’s gross renta
Slide 39: Improving Portfolio Quality
Improving Portfolio Quality Ongoing Projects Estimated City/Country Estimated Total Cost (S$’m) Completion Date Acquisitions Under Development 161.0 MQX4, Macquarie Park Sydney, Australia 161.0(1) 2Q 2023(2) Redevelopments 384.5 1 Science Park Drive (34% stake) Singapore 300.2(3) 2Q 2025 iQuest@IBP
Slide 40: Market Outlook
FY2022 Financial Results Market Outlook Grab Headquarters, Singapore
Slide 41: Market Outlook: Macro Environment
Market Outlook Macro Environment ▪ In its January 2023 report, the International Monetary Fund (IMF) projected global growth to slow from 3.4% in 2022 to 2.9% in 2023, and then rise to 3.1% in 2024. ▪ According to the IMF, the forecast of low growth in 2023 reflects the rise in central bank rates to
Slide 42: Market Outlook: Singapore
Market Outlook Singapore ▪ Based on advance GDP estimates by the Ministry of Trade and Industry (MTI) for 4Q 2022, the Singapore economy expanded by 2.2% y-o-y, moderating from the 4.2% growth in 3Q 2022. For the whole of 2022, the economy grew by 3.8%, down from the 7.6% growth in 2021. The manufac
Slide 43: Market Outlook: Australia
Market Outlook Australia ▪ The Australian economy rose 0.6% q-o-q in 3Q 2022, the fourth consecutive quarter of growth. It reflected sustained economic growth largely driven by the strength in household spending since the contraction in the quarter ended September 2021 because of the COVID outbreak.
Slide 44: Market Outlook: United States
Market Outlook United States (US) ▪ Based on advance estimates for 4Q 2022, the US economy grew by an annualised rate of 2.9%, compared with 3.2% in 3Q 2022. The increase in GDP reflected increases in private inventory investment, consumer spending, federal government spending, state and local gover
Slide 45: Market Outlook: United Kingdom
Market Outlook United Kingdom (UK) ▪ UK’s GDP contracted 0.3% q-o-q in 3Q 2022, with falls in the production and construction sectors. The level of real GDP is now estimated to be 0.8% below where it was pre-COVID-19 at 4Q 2019. Based on IMF projections, UK GDP forecast for 2022 is 3.6%. ▪ The Consu
Slide 46: Market Outlook: Summary
Market Outlook Summary ▪ We continue to face challenges from rising interest rates, inflation and global economic uncertainties. These ongoing issues may have some impact on tenants’ businesses as well as on CLAR’s operating costs. The Manager will proactively manage these challenges in a prudent ma
Slide 47: Portfolio Resilience & Sustainability
FY2022 Financial Results Portfolio Resilience & Sustainability 254 Wellington Road, Melbourne, Australia
Slide 48: Diversified Portfolio Across Developed Markets
Diversified Portfolio Across Developed Markets Investment Properties stood at S$16.4 b(1) 62% Singapore as at 31 Dec 2022 o Singapore: S$10.1 b 15% United States o United States: S$2.5 b Asset Value o Australia: S$2.3 b S$16.4 b (1) 14% Australia o United Kingdom/Europe: S$1.5 b 9% United Kingdom/Eu
Slide 49: Multi-Asset Portfolio
Multi-Asset Portfolio Steering Towards Growth Sectors Steering our portfolio towards asset classes to cater to 48%, Business Space and Life Sciences the changing market and tenant requirements arising Business Space from structural trends and changing consumption 40% patterns such as digitalisation,
Slide 50: Tapping the Growing Technology, Logistics & Life Sciences Industries
Tapping the Growing Technology, Logistics & Life Sciences Industries Logistics & Supply Chain Management 11.8% 63.3% of our customer base is from the Engineering 11.2% growing technology, logistics and life Data centres 10.7% Information & Communications Technology 10.3% sciences industries Biomedic
Slide 51: Quality and Diversified Customer Base
Quality and Diversified Customer Base ▪ Total customer base of more than 1,720 tenants. ▪ Top 10 customers (as at 31 Dec 2022) account for about 16.6% of monthly portfolio gross revenue. ▪ On a portfolio basis, weighted average security deposit is about 5.0 months of rental income. Top 10 Customers
Slide 52: Diversified Portfolio
Galaxis,4.4% Aperia,3.2% 12, 14 & 16 Science Park Drive,2.6% ONE @ Changi City,2.5% Diversified Portfolio Nucleos,2.4% 510 Townsend Street,2.0% Pioneer Hub,2.0% 1, 3 & 5 Changi Business Park Crescent,2.0% Kim Chuan Telecommunication Complex,1.8% Neuros & Immunos,1.7% TelePark,1.7% Croydon,1.6% TechP
Slide 53: Sustainability Committees
Sustainability Committees Strategic Oversight & Implementation of Strategies The Manager’s Sustainability Committee CapitaLand Investment (Established in 2020) (CLI / Sponsor) Board of Directors Chairman: CEO CLI Strategy Committee Strategic oversight of ESG policies and integration Committee Member
Slide 54: CapitaLand Ascendas REIT's ESG Targets
CapitaLand Ascendas REIT’s ESG Targets Targets Timeline • Green Certification for new acquisitions/developments to meet a minimum green rating target set(1) o Singapore – Green Mark GoldPLUS award - o Overseas – certification by a green rating system administered by a national government ministry/ag
Slide 55: Achievements and Commitments - Environmental
Achievements and Commitments - Environmental Green Buildings Renewable Energy Total Properties Managed Properties ▪ One of the largest combined rooftop solar installations in Singapore amongst S-REITs 14.4% YoY 28.9% YoY (30% as at 31-Dec-21) >18,000 17 (46.6% as at 31-Dec-21) 44.5% 75.6% MWh (+10 i
Slide 56: Achievements and Commitments - Environmental (Cont'd)
Achievements and Commitments - Environmental (Cont’d) Green Financing GRESB Participation ▪ Established Green Finance Framework in FY2020 ▪ Public Disclosure - Retained “A” rating for ▪ Total of ~S$1.8 b comprising Green Bond, Green three continuous years Perpetual Securities, Green Loans (Additiona
Slide 57: Achievements and Commitments - Social
Achievements and Commitments - Social CLAR has been active in its engagement with various stakeholder groups Promoting Sustainability Awareness Developing Local Communities Promoting Tenant Wellbeing/Interaction Sustainability Corner Competition CLAR Study Awards Tenant Engagement Activities Univers
Slide 58: Achievements and Commitments - Governance
Achievements and Commitments - Governance GRESB Public Disclosure & Real Estate Assessment Singapore Governance and Transparency Index (SGTI) Benchmarking • Achieved “A” Rating for • Improved on our ranking, and GRESB Public Disclosure for achieved highest-ever ranking of three years running second
Slide 59: Appendix
FY2022 Financial Results Appendix Unit 5 Wellesbourne Distribution Park, West Midlands, United Kingdom
Slide 60: Historical Financial Results
Historical Financial Results Financial Highlights 1H 2021 2H 2021 FY2021 1H 2022 2H 2022 FY2022 (S$ m) Gross Revenue 586 641 1,227 667 686 1,353 Net Property Income 446 475 921 477 492 969 Total Amount Available for 311 319 630 331 333 664 Distribution No. of Units in Issue (m) 4,193 4,198 4,198 4,2
Slide 61: CLAR's Singapore Occupancy vs Industrial Average
CLAR’s Singapore Occupancy vs Industrial Average 98.9% 100.0% 91.9% 91.7% 89.1% 90.0% 85.9% 82.5% 80.0% Occupancy Rate 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% Business Space & Life Sciences Industrial & Data Centres Logistics CLAR JTC Statistics Source : CLAR's Singapore portfolio as at 31 Dec 2022. Mar
Slide 62: Average Market Rents (Singapore)
Average Market Rents (Singapore) By Segment Rental Index of All Singapore Industrial Property 120.00 Rental Index (Base Year: 4Q2012) 95.70 97.70 100.00 90.10 93.70 80.00 90.60 91.20 91.40 92.30 60.00 40.00 20.00 0.00 Source : JTC 4Q 2022 Market Report 6.5 Business Park (City Fringe) : $6.10 psfpm A
Slide 63: Thank you
Thank you Galaxis, Singapore
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