1Q FY2013 Financial Results Presentation

Transcription

1 1Q FY2013 Financial Results Presentation 24 April 2013 Knowing. Believing. Delivering ARA-CWT Trust Management (Cache) Limited

2 Agenda Key Highlights Financial Performance Capital Management Asset Management Market Outlook & Strategy 2

3 Performance Highlights 1QFY13 Strong financial performance Distributable Income grew 18.3% to S$15.8 mil y-o-y DPU increased 7.1% to cents y-o-y Quality portfolio 100% occupied Zero renewal risk for the remainder of 2013 Acquisition of Precise Two, Gul Way, Singapore - increases portfolio value to approx S$1.03 bil from 1 April 2013 Prudent capital management Raised approx. S$84.8 mil of net proceeds by way of private placement in March 2013 Aggregate Leverage ratio lowered to 29.2% Market Capitalisation now exceeds S$1 billion 3

4 Yield Comparison 8.0% 7.0% 6.9% (1) 6.0% 5.0% 5.3% (3) 4.0% 3.0% 3.2% (4) 2.5% 2.0% 1.0% 1.5% (2) 0.5% (2) 0.3% (5) 0.0% Cache Yield 10-year Govt Bond Yield 5-Year Govt Bond Yield FSTREI Yield STI Yield CPF ordinary Account 12-month S$ Fixed Deposit Notes: (1) Based on an annualised FY13 DPU of 9.06 cents and a Unit price of $1.305 on 28 March 2013 (2) Singapore Government Bond Yield, March 2013, MAS website (3) FTSE Straits Times REIT Index Dividend Yield as at 31 March 2013 (est.) (4) FTSE Straits Times Index Dividend Yield as at 31 March 2013 (est.) (5) 12-month fixed deposit savings rate, March 2013, MAS website 4

5 Financial Performance 1QFY13 vs. 1QFY12 Amount distributable to Unitholders grew 18.3% Distribution per Unit ( DPU ) increased 7.1% to cents (S$ 000 unless otherwise noted) 1QFY13 1QFY12 Change Gross Revenue 19,115 16, % Less: Property Operating Expenses (1,027) (769) 33.6% Net Property Income (NPI) 18,088 16, % Distributable Income 15,795 13, % Distribution per unit (DPU) (Cents) (1) (2) 7.1% Annualised Distribution Yield (%) (3) 6.9% - - Notes: (1) Based on 703,353,638 issued units as at 26 March 2013 which are entitled to the Advanced Distribution per Unit of cents and 774,277,688 issued units which are entitled to the Distribution Per Unit of cents from 27 March to 31 March 2013 (2) Based on 638,867,066 issued units as at 29 March 2012 which are entitled to the Advanced Distribution per Unit of cents and 699,888,315 issued units which are entitled to the Distribution Per Unit of cents from 30 to 31 March (3) Based on an annualised DPU of 9.06 cents and a closing Unit price of $1.305 on 28 March

6 Strong Balance Sheet S$ 000 unless indicated as at 31 Mar Dec 2012 Investment Properties 972, ,876 Other Assets 98,540 15,136 Total Assets 1,070, ,012 Debt, at amortised cost (308,848) (308,432) Other Liabilities (5,955) (6,704) Total Liabilities (314,803) (315,136) Net assets attributable to Unitholders 755, ,876 Units in Issue (units) 774,277, ,353,638 NAV per Unit (S$) 0.98 (1) 0.96 (2) Adjusted NAV per Unit (3) Notes: (1) Based on 774,277,688 issued units which includes 773,353,638 issued units as at 31 March 2013 and 924,050 units to be issued to the Manager by 30 April 2013 (2) Based on 703,353,638 issued units which includes 702,418,479 issued units as at 31 December 2012 and 935,159 units issued to the Manager on 22 January 2013 (3) Excludes income available for distribution 6

7 Distribution Details Distribution Period Distributions Per Unit (S$) Payment Dates 1 January 2013 to 26 March cents 26 April March 2013 to 31 March cents 30 May 2013 Distribution Timetable Advanced Distribution cents Quarterly Distribution cents Last day of trading on cum basis 21 Mar Apr 2013 Ex-Dividend Date 22 Mar Apr 2013 Books Closure Date 26 Mar May 2013 Distribution payment date 26 Apr May

8 Prudent Capital Management 1Q FY13 4Q FY12 Debt Expiry Profile Aggregate Leverage Ratio (1) 29.2% 31.7% Present Term Loans In S$ million $187.5 $125.5 Total Debt S$313.0mil S$313.0mil Average all-in financing cost (2) 3.52% 3.52% Weighted Average Debt Duration 2.6 years 2.9 years Interest Cover (3) 6.0 times 5.8 times Interest Rate Management No debt re-financing till 2015 Moody s Credit Rating is Baa3, stable outlook 6 unencumbered assets 30% 70% Hedged Unhedged Notes: (1) Ratio of total debt over Deposited Properties as defined by the Property Fund Appendix (2) Inclusive of margin and amortisation of capitalized upfront fee (3) Ratio of EBITDA over interest expense 8

9 Financing Facility Secured Debt Facility S$375.0 mil secured term loan 4-year term loan of S$125.5 mil, maturing in June year term loan of S$187.5 mil, maturing in June 2015 Includes undrawn revolving credit facility ( RCF ) of S$62.0 mil providing Cache with future financial flexibility Pledged only against original 6 IPO assets 6 unencumbered assets Bank syndicate comprising 19 international banks increases the relationships and future potential sources of debt 9

10 Quality, Resilient Portfolio Portfolio Statistics Number of Properties As at 31 Mar Properties 11 Singapore 1 China, Shanghai Valuation (S$ mil) Gross Floor Area (mil sq ft) 4.83 Occupancy (%) 100 Number of Tenants 8 Master Lessees 2 Individual Tenants Building Age (years) 5.35 Weighted Average Lease to Expiry (WALE) (years) 3.7 Weighted Average Land Lease Expiry (years) 33.3 Property Features 8 - Ramp-up 2 - Cargo Lift 2 - Single Storey Rental Escalations built into Master Leases 1.25% to 2.50% 10

11 % of GFA Lease Expiry Profile 0% of GFA is due for lease renewal in FY13 > 20% of GFA has been committed beyond FY18 Weighted Average Lease Term to Expiry ( WALE ) : 3.7 years 40% 35% 30% 25% 36% 33% 20% 15% 0% renewal risk 15% 10% 5% 0% 0% 6% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 & beyond Portfolio Lease Expiry (%) as at 31 Mar % 0% 8% 11

12 Diversified Tenant Mix End-User Profile Strong and diverse demand by underlying end-users resulting in high underlying end-user occupancy Multinational Corporations, 84% Small and Medium Enterprises 11% Government entities 5% Courier Service 2% Aerospace 5% Food & Cold Storage 6% Hospitality 1% Healthcare 10% Commodity & Chemical 25% Industrial & Consumer goods 51% Over 89% of GFA taken up by MNCs and government agencies End-users from diverse trade sectors Note: Charts reflect breakdown by Occupied GFA. Source: ARA-CWT and master lessees 12

13 Quality, Resilient Portfolio Strategic Locations - Singapore Johor Causeway Link Sembawang Wharves Changi North Loyang Second Link (Tuas checkpoint) Pulau Ubin APC Distrihub 10 Pan Asia Logistics Centre 11 6 Changi North Way 21 Changi North Way Air Market Logistics Centre 22 Loyang Lane Jurong Port Changi International Airport Airport Logistics Park ( ALPS ) Changi South Jurong Island Pasir Panjang Terminal Sentosa Keppel Terminal 5 Schenker Megahub 6 51 ALPS Avenue Hi-Speed Logistics Centre 40 ALPS Avenue 7 C&P Changi Districentre 5 Changi South Lane Pandan/Penjuru Gul Way vv 8 C&P Changi Districentre 3 Changi South Street 3 1 CWT Commodity Hub 2 CWT Cold Hub 3 24 Penjuru Road 2 Fishery Port Road Kim Heng Warehouse 4 Penjuru Lane 4 Pandan Logistics Hub 49 Pandan Road 12 Precise Two 15 Gul Way * * Completed on 1 April

14 Quality, Resilient Portfolio Portfolio Details Singapore - West Zone CWT Commodity Hub CWT Cold Hub Kim Heng Warehouse Pandan Logistics Hub Precise Two Lessee CWT CWT Kim Heng CWT Precise Development Ramp-up feature Single Storey Location Penjuru Penjuru Penjuru Pandan Gul Way GFA 2,300,000 sf 342,000 sf 54,000 sf 329,000 sf 284,000 sf Valuation S$360.5mil S$139.6mil S$9.4mil S$66.5mil S$55.2mil 14

15 Quality, Resilient Portfolio Portfolio Details Singapore - East Zone Schenker Megahub Hi-Speed Logistics Centre C&P Changi Districentre C&P Changi Districentre 2 Lessee C&P or Subsidiaries C&P or Subsidiaries C&P or Subsidiaries C&P or Subsidiaries Ramp-up feature Cargo Lift Location ALPS ALPS Changi South Changi South GFA 440,000 sf 309,000 sf 364,000 sf 111,000 sf Valuation S$110.0mil S$77.4mil S$89.7mil S$21.5mil 15

16 Quality, Resilient Portfolio Portfolio Details Singapore - East Zone China APC Distrihub Pan Asia Logistics Centre Lessee APC and Agility Pan Asia Logistics Air Market Logistics Centre Air market Express Jinshan Chemical Warehouse CWT Ramp-up feature Cargo Lift Single Storey Location Changi North Changi North Loyang Shanghai GFA 177,000 sf 197,000 sf 63,000 sf 146,000 sf Valuation S$32.3mil S$36.0mil S$13.5mil 79.0mil (c.s$15.8mil) 16

17 Acquisition of Precise Two Completed on 01 Apr 2013 Strategic Location in the Jurong Industrial Precinct near major ports New building with modern and attractive technical specifications Precise Two Property Type GFA Purchase Consideration Lease Type Ramp-up logistics warehouse and office facility ~284,000 q ft S$55.2mil 6-year Master Lease NPI Yield 8.7% Completion Date 1 April 2013 Precise Two 15 Gul Way, Singapore 17

18 Market Outlook MTI estimates the Singapore economy to contract by 0.6% y-o-y in 1Q 2013, or 1.4% seasonally-adjusted q-o-q basis. Economy is expected to grow 1-3% in 2013 Singapore s March 2013 Purchasing Managers Index increased to 50.6, up from 49.4 points in February 2013, attributable to expansion in new export orders and production output According to Colliers International Research, average capital values for ground- and upper-floor industrial premises is up by just 0.8% and 0.7% q-o-q respectively (1.9% and 2.7% q-o-q increase previously). Average monthly gross rents for warehouses recorded marginal growth of 0.4% q-o-q and 0.5% q-o-q for ground-level and upper-level space respectively in 1Q

19 Industry Trends 800 Singapore Warehouse Annual Net Completion, Absorption and Vacancy Rate (%) * * * (E) 2014 (E) 2015 (E) 0.0 Annual Net Warehouse Completion ('000 sqm) NLA Annual Warehouse Net Absorption ('000 sqm) NLA Average Annual Net Absorption ( ) in '000 sqm NLA Singapore Warehouse Year End Vacancy Rate (%) RHS Source: URA for historical data, Colliers for forecast data, Cache * Committed and owner-occupied space, including non competing strata titled and Jurong Island industrial space from (E), is shown in grey columns Only 6% of Cache s properties are up for renewal in

20 Management Strategy Grow the Portfolio Broad Asia-Pacific mandate Pursue acquisitions conducive to the portfolio Right of first refusal from CWT and C&P Long-Term Growth in DPU and NAV per Unit Participate in Focused Development Work closely with the Master Lessees and end-users Grow organically Minimize re-leasing risk Secure longer-term tenure with strong credit-worthy endusers Leverage on the strengths of the Sponsor and relationships with end-users Prudently Manage the Portfolio 20

21 Management Strategy Key Markets for Cache include Singapore, China and Malaysia Chinese economy grew 7.8% in 2012 and is expected to grow 8.4% in 2013 (EIU estimates) Top picks in China include Greater Shanghai, Beijing, Guangzhou, Chengdu, Tianjin and Chongqing Top picks in Malaysia include Klang Valley, Iskandar and Penang 21

22 ROFR Properties Rights of First Refusal ( ROFR ) Granted by Sponsor (CWT) and C&P on properties in Asia Pacific Properties Covered by ROFR 12 properties with approximately 4.5 million sq ft GFA Located in Singapore, China and Malaysia Selected properties covered by the ROFR No. Name Description Year of Completion Location GFA (sq ft) 1 CWT Logistics Hub 3 5-storey ramp-up warehouse 2011 Singapore 834,430 2 CWT Cold Hub 2 Multi-Storey Warehouse 2013 Singapore 725,000 3 CWT Toh Guan Development 6-storey ramp-up warehouse 2014 Singapore 601,339 4 Tampines Distrihub 4-storey ramp-up warehouse 2013 Singapore 454,475 5 CWT Logistics Hub 1 2-storey ramp-up warehouse 2007 Singapore 375,233 6 PKFZ Warehouse Single storey warehouse 2012 Malaysia 112,000 7 CWT Tianjin Logistics Hub (Ph 1) Single storey warehouse 2010 Tianjin 84,668 22

23 Competitive Strengths Excellent Quality Portfolio Capable Management with Focused Strategy Long-term master lease and multiple lease structures Predominately triple-net income Annual rental escalations Prudent capital management Predictable cash flows Resilient earnings Sustainable distributions Growth in distributions Strong Sponsor Support - Acquisition Pipeline via ROFR properties 23

24 Further Information Investor Relations Contact: Judy Tan Investor Relations Manager ARA-CWT Trust Management (Cache) Limited 6 Temasek Boulevard #16-02 Suntec Tower 4 Singapore Tel: Website: 24

25 About Cache Logistics Trust Knowing. Believing. Delivering 25

26 Overview Sponsor REIT Manager Property Manager Issue Statistics CWT Limited ARA-CWT Trust Management (Cache) Limited Cache Property Management Pte Ltd Listing Date 12 Apr 2010 Market Cap Approx. S$1.01 billion (1) C&P / CWT Limited 9.1% Shareholding Structure Direct interests as at 31 Mar 2013 C&P 31.9% Substantial Unitholders Newton Investment Management / Bank of New York Mellon 6.5% Public CWT ARA Objectives Mandate Distribution Policy Credit Rating The Capital Group 5.3% Regular and stable distributions Long term growth in DPU and NAV Maintain appropriate capital structure Asia Pacific 100% of Distributable Income for FY12 Baa3 (Stable Outlook) 89.4% 9.1% 1.5% Note: (1) Based on closing price of S$1.305 and 773,353,638 issued units as at 28 March

27 Quality Sponsor and Manager Real estate fund manager focused on the management of publicly-listed and private real estate funds One of the largest REIT managers in Asia (ex-japan) with a total of S$22.1 billion assets under management as at 31 Dec 2012 Established track record of managing 6 REITs listed across Singapore, Hong Kong and Malaysia Diversified portfolio spanning the office, retail, industrial/office and logistics sectors. A leading solutions provider of integrated logistics and supply chain management Operate across multiple markets and geographies (in 50 countries), supporting a diverse customer base around the globe Global network connectivity to around 200 direct ports and 1,500 inland destinations Manage over 10 million square feet of global warehouse space Cache leverages on the complementary strengths of ARA and CWT ARA has established real estate and fund management expertise CWT has logistics operations as its core business 27

28 Disclaimer This presentation does not constitute an offer, invitation or solicitation of securities in Singapore or any other jurisdiction nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. 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. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses (including employee wages, benefits and training costs), property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the current views of management on future events. The value of units in Cache ( Units ) and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits in, or guaranteed by, ARA-CWT Trust Management (Cache) Limited (as the manager of Cache) (the Manager ) or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors should note that they will have no right to request the Manager to redeem or purchase their Units for so long as the Units are listed on Singapore Exchange Securities Trading Limited (the SGX-ST ). It is intended that holders of Units may only deal in their Units through trading on the SGX-ST. The listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. The past performance of Cache is not necessarily indicative of the future performance of Cache. 28