Capitaland Ascendas Reit · SGX:A17U
Capitaland Ascendas Reit — A-Reit — Shareholder Meeting (June 2014)
41 slides from Capitaland Ascendas Reit's shareholder meeting presentation, Jun 30, 2014
Slide 1: Review of FY13/14 Performance Annual General Meeting
A-REIT City @Jinqiao Nexus @one-north Neuros & Immunos Review of FY13/14 Performance Annual General Meeting 30 June 2014
Slide 2: Disclaimers
Disclaimers A-REIT’s results include consolidation of a 100% interest in Ascendas Zpark (S) Pte. Ltd. and its subsidiary, Ascendas Hi-Tech Development (Beijing) Co. Limited (“AHTDBC”), and a 100% interest in Shanghai (JQ) Investment Holdings Pte. Ltd. and its subsidiary, A-REIT Shanghai Realty Co. L
Slide 3: Agenda
Agenda Key Highlights for FY13/14 Financial Highlights Investment Management Capital Management Portfolio Management Market Outlook for FY14/15 3
Slide 4: Key Highlights for FY13/14
Key Highlights for FY13/14 Total Amount Available for Distribution rose by 11.9% y-o-y to S$342.0 million DPU grew 3.6% to 14.24 cents from 13.74 cents (after performance fee) in FY 12/13 Key drivers were: • Positive rental reversion of 14.8% achieved over preceding contracted rental rates • Full ye
Slide 5: Key Highlights for FY13/14
Key Highlights for FY13/14 Added more higher value properties Developed Acquired Divested Asset Enhancements Nexus @one-north A-REIT Block 5006 Ongoing S$113.5m (S$181.3m) City@Jinqiao Techplace 2 (S$38m) (S$124.6m) Four Acres Singapore 6 Pioneer Walk Completed S$87.6m (S$58.7m) (S$32m) Proactive ca
Slide 6: A-REIT's Steady Growth since Listing
Total Unitholders’ Amount Available Funds (S$m) for Distribution (S$m) A-REIT’s Steady Growth since Listing 6
Slide 7: Industrial Property Landscape – New Policy Measures
Industrial Property Landscape – New Policy Measures New policy measures were introduced in 2013 • More sites of smaller size and shorter tenure were released e.g. 19, 22 & 30 years Effective date Policy 1 Jan 2013 Payment Scheme for new assignment contracts involving third-party facility providers h
Slide 8: Industrial Property Landscape – New Policy Measures
Industrial Property Landscape – New Policy Measures Effective date Policy 12 Jan 2013 Imposed Seller’s Stamp Duty on industrial properties and land sold within 3 years of the date of purchase. (SSD at 15% if resold within 1 yr; 10% within 2 yrs; 5% within 3 yrs) 15 Nov 2013 Assignment Prohibition Pe
Slide 9: Industrial Property Landscape – New Policy Measures
Industrial Property Landscape – New Policy Measures Effective date Policy 1 Jan 2014 Property tax refunds for unoccupied residential and non-residential properties will cease with effect from 1 January 2014. In FY13/14, A-REIT received S$4.5m of property tax refund (DPU impact 0.19 cents) 1 May 2013
Slide 10: Agenda
Agenda Key Highlights for FY13/14 Financial Highlights Investment Management Capital Management Portfolio Management Market Outlook for FY14/15 10
Slide 11: Financial Highlights
Financial Highlights FY13/14 FY12/13 S$ S$ Gross Revenue 613.6m 575.8m 6.6% Net Property Income 436.0m 408.8m 6.6% Total Amount for Distribution 342.0m 305.6m 11.9% Distribution per Unit 14.24 ¢ 13.74 ¢ 3.6% (after performance fee) 14.05 ¢ 1.4% (before performance fee) Note: Please refer to A-REIT’s
Slide 12: Financial Highlights
Financial Highlights As at As at 31 Mar 2014 31 Mar 2013 (S$) (S$) Total Assets 7,357m 6,959m 5.7% Investment Properties 6,923m 6,447m 7.4% Net Asset Value 4,849m 4,661m 4.0% Net Asset Value per Unit 202 ¢ 194 ¢ 4.1% Note: Please refer to A-REIT’s financial announcement for the financial year ended
Slide 13: Agenda
Agenda Key Highlights for FY13/14 Financial Highlights Investment Management Capital Management Portfolio Management Market Outlook for FY14/15 13
Slide 14: Investment Highlights
Investment Highlights Investment Management Value (S$m) Completed Added more higher value Development 213.6 properties Nexus @one-north 181.3 Sep-13 Portfolio NLA increased Four Acres Singapore 32.3* Apr-13 5.1% (+114,480sqm), Acquisition 124.6 mainly boosted by the A-REIT City @Jinqiao, Shanghai 12
Slide 15: New Additions: Nexus@one-north
New Additions: Nexus@one-north Completion Sep 2013 Location Within the one-north masterplan area in the central part of Singapore. Easily accessible via major expressways and proximity to the one-north MRT station Description 2 blocks of 6-storey business park and office mixed-use development with V
Slide 16: New Additions: Four Acres Singapore
New Additions: Four Acres Singapore Completion Apr 2013 Location Buona Vista Area next to Insead Business School. Accessible to other parts of Singapore via Ayer Rajah Expressway (“AYE”) Description Built-to-suit facility for Unilever Asia Private Limited. Unilever’s first global Aerial view leaders
Slide 17: New Additions: A-REIT City@Jinqiao
New Additions: A-REIT City@Jinqiao Completion July 2013 Location North Jinqiao within the Jinqiao Economic and Technological Zone, 30 km from Pudong International Airport. In close proximity to subway stations of Line 12 and the future Line 9 & 14 Description 8 blocks of business park buildings Bloc
Slide 18: Divestments
Divestments Divested 2 properties at 6 Pioneer Walk Block 5006 Techplace II 17-30% above book value Raised S$70m and realised gains of S$23m over original cost NPI impact: S$3m Location 6 Pioneer Walk Block 5006 Techplace II Description 2-storey warehouse with a One of existing 6 blocks of flatted r
Slide 19: Divestment: Kallang Place
Divestment: 1 Kallang Place (divested on 21 May 2014) Location 1 Kallang Place Description A 7–storey light industrial cum warehouse facility Land Tenure 30 years from 1 Dec 1994 GFA 15,490 sqm Acquisition Year 2007 1 Kallang Place Book Value as at 31 Mar S$10.5 million 2014 Sales Price S$12.6 milli
Slide 20: Ongoing Projects: Improve portfolio quality
Ongoing Projects: Improve portfolio quality Estimated Optimise our assets – Ongoing Value (S$m) Completion embarked on 2 new Development 21.8 AEIs this quarter with DBS Hub Asia Phase 2 21.8 2Q2015 the objective of Asset Enhancement Initiatives (AEIs) 113.5 maximising plot ratio C&P Logistics Hub (N
Slide 21: Asset Enhancement (New): C&P Logistic Hub
Asset Enhancement (New): C&P Logistic Hub Completion Estimated 4Q 2015 Description Located in close proximity to Jurong Port, PSA ports and Jurong Island, and easily accessible via AYE AEI: Increase the plot ratio from existing 2.0x to 2.34x by building a new 4-storey warehouse block GFA 24,111 sqm
Slide 22: Asset Enhancement (New): Techlink & Techview
Asset Enhancement (New): Techlink & Techview Completion Estimated 4Q 2015 Description Located within the Kaki Bukit Industrial Estate. Techview is located next to the upcoming Kaki Bukit MRT station. AEI: To achieve the highest and best use, maximise plot ratio and also upgrade interior building fin
Slide 23: Agenda
Agenda Key Highlights for FY13/14 Financial Highlights Investment Management Capital Management Portfolio Management Market Outlook for FY14/15 23
Slide 24: Healthy Balance Sheet (as at 31 March 2014)
Healthy Balance Sheet (as at 31 March 2014) Aggregate leverage increased YoY to 30.0% from 28.3% after funding investments and asset enhancement works Current debt headroom of S$1.2 billion, before aggregate leverage reaches 40.0% Undrawn revolving credit facilities of about S$800 million provide A-
Slide 25: Well-Spread Debt Maturity Profile
Well-Spread Debt Maturity Profile (as at 15 June 2014) Well-spread debt maturity with not more than 20% of debt due for refinancing in any single year 21% 40% CMBS fully refinanced via medium term notes and bank Diversified Financial facilities maturing in 2019 and 2021 respectively, Resources 17% e
Slide 26: Key Debt Funding Indicators
Key Debt Funding Indicators (as at 31 March 2014) As at As at 31 Mar 14 31 Mar 13 Aggregate Leverage 30.0% 28.3% Unencumbered properties as % of total investment 62.2% 60.7% properties(1) Interest cover ratio 6.0 x 4.9 x Total debt / EBITDA 5.6 x 5.4 x Weighted average tenure of debt outstanding (ye
Slide 27: Further Alignment of Interest with Unitholders
Further Alignment of Interest with Unitholders Base Fee Current Structure Proposed Structure wef FY14/15 0.5% of Total Assets 0.5% of Deposited Properties (DP) i.e. AUM less Derivative Under Management Assets and Investment Properties Under Development (AUM) Performance Fee DPU Growth Current Struct
Slide 28: Agenda
Agenda Key Highlights for FY13/14 Financial Highlights Investment Management Capital Management Portfolio Management Market Outlook for FY14/15 28
Slide 29: Diversified Portfolio
Diversified Portfolio Mix of Single-tenanted vs. Multi-tenanted buildings Long term leases, typically with periodic rental escalation, of Sale & which 28.8% of these Leaseback leases are pegged to 30.1% CPI By value of Investment Properties Multi Tenanted Buildings Typically 3-year rolling 69.9% lea
Slide 30: Well Diversified Portfolio
Well Diversified Portfolio By value of Investment Properties 10.6% 11.5% Warehouse Retail Facilities Science Business Logistics & 2% Park Park Distribution AREIT Beijing Flatted Centres 1% 89.4% 88.5% Factories 19% 5% AREIT Shanghai Light Industrial 2% 10% 27.2% Business Park Hi-Specs Light 45.3% Da
Slide 31: Tenants' Industry Diversification
Tenants’ Industry Diversification By Monthly Gross Revenue 3rd Party Logistics, Freight Forwarding 12.6% Information Technology 10.0% M&E and Machinery & Equipment 9.6% Telecommunication & Datacentre 9.2% Electronics 8.4% Distributors, Trading Companies 7.8% Financial 6.7% Life Science 4.8% Food Pro
Slide 32: Low Exposure to Conventional Manufacturing
Low Exposure to Conventional Manufacturing 17.0% of NLA occupied by tenants engaged in conventional manufacturing activities. 17.0% Manufacturing activities include food & beverages, aeronautical auxiliary equipment, precision engineering etc. Tenants’ business activities by Non-manufacturing activi
Slide 33: Quality and Diversified Tenant Base
Quality and Diversified Tenant Base 6.2% Total tenant base of around 1,300 tenants Top 10 tenants account for 22.8% of portfolio rental income Part of C&P lease is expiring in Jul 2014 and part in Jan 2015 3.2% 2.7% 2.3% 1.6% 1.5% 1.4% 1.3% 1.3% 1.2% Singapore C&P Citibank, DBS Siemens Biomedical Se
Slide 34: Healthy & Stable Occupancy
Healthy & Stable Occupancy Overall Portfolio occupancy is holding steady at 89.6% MTB occupancy (same store) improved to 90.6% As at 31 Mar 14 31 Mar 13 Total Portfolio GFA (sqm) 2,881,879 2,780,984 Total Portfolio NLA (sqm) 2,376,561 2,262,081 Portfolio occupancy (same store) (2) 93.9%(3) 94.2% MTB
Slide 35: A-REIT vs Industrial Average Occupancy
A-REIT vs Industrial Average Occupancy 100% 96.9% 95% 92.5% 92.5% 92.5% 90.8% 90% 89.2% 84.6% 84.1% 85% Occupancy Rate 80% 75% 70% 65% 60% 55% 50% Business Park Hi-Specs Industrial Light Industrial Logistics A-REIT URA Source : A-REIT’s Singapore portfolio as at 31 March 2014. Market: URA (Urban Red
Slide 36: Achieved Positive Rental Reversion
Achieved Positive Rental Reversion Positive rental reversions registered across all segments Achieved +14.8% positive rental reversion for leases renewed in FY13/14 Multi-tenanted Net lettable Vacant space 4Q FY13/14 FY13/14 Increase / properties (1) area (sqm) (sqm) increase in increase in (decreas
Slide 37: Lease Expiry Profile
Lease Expiry Profile (as at 31 Mar 2014) Breakdown of expiring leases for FY14/15 and FY15/16 Weighted average lease to expiry of 3.9 years Lease expiry is well-spread, extending beyond 2025 3% 13% 6% About 21.3 % due for renewal in FY14/15 38% 6% 25% FY14/15 21.3% 19% 19.9% 20% 19.2% 15% % of A-REI
Slide 38: Average Market Rents by Segment
Average Market Rents by Segment 150 6.5 URA Industrial Rental Index 100 5.5 50 $5.40 Source :URA 4.5 0 $4.49 $3.85 3.5 $3.00 2.5 $1.90 1.5 $1.83 0.5 Source :URA and CBRE Business Park (City Fringe) Business & Science Parks (Median Rents) Business Park (Rest of Island) Hi-Specs Light Industrial Logis
Slide 39: In-place rent for space due for renewal in FY14/15 and FY15/16
In-place rent for space due for renewal in FY14/15 and FY15/16 Current market rental rate is above the weighted average passing rental for the multi-tenanted space due for renewal in FY14/15 Expect positive rental reversion of around mid-to-high single digit * * * Left Axis: Right Axis: * Rates for
Slide 40: Agenda
Agenda Key Highlights for FY13/14 Financial Highlights Investment Management Capital Management Portfolio Management Market Outlook for FY14/15 40
Slide 41: Market Outlook for FY14/15
Market Outlook for FY14/15 Singapore’s economy grew 5.1% y-o-y in 1Q 2014 compared to 5.5% in 4Q 2013. The manufacturing sector grew 8.0% y-o-y in 1Q 2014, followed by construction at 6.5% and services producing industries at 4.7%. The Singapore economy is projected to grow between 2% to 4% in 2014