Cache Logistics Trust 2011 Annual General Meeting

Transcription

1 Cache Logistics Trust 2011 Annual General Meeting 18 April 2012 Knowing. Believing. Delivering ARA-CWT Trust Management (Cache) Limited

2 Agenda REIT Overview FY2011 Performance Portfolio Going Forward 2

3 REIT Overview Sponsor REIT Manager Property Manager Issue Statistics Substantial Institutional Unitholders 2 Objectives Mandate Distribution Policy CWT Limited ARA-CWT Trust Management (Cache) Limited Cache Property Management Pte Ltd Listing Date 12 Apr Market Cap approx S$700 mil (1) The Capital Group 5.9% Newton Investment Management JPMorgan Chase & Co and its affiliates 5.7% 5.0% Regular and stable distributions Long term growth in DPU and NAV Maintain appropriate capital structure Asia Pacific 100% of Distributable Income for FY % 2 C&P Public CWT ARA 86.5% 10.1% 1% 2 17% 1.7% 17% 1.7% (1) Based on closing price of S$1.00 as at 30 March 2012 and the no of units in issue as at 30 March 2012 (2) As at 30 March 2012 based on latest information provided by the respective Unitholder 3

4 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$ billion assets under management 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. One of the largest listed logistics providers in SE Asia Owned and/or managed about 10mil sq ft of warehouse space globally Provide complementary services to global logistics companies Global presence and operations in close to 50 countries 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 4

5 FY2011 Performance Knowing. Believing. Delivering 5

6 Performance Highlights g FULL YEAR PERFORMANCE FY2011 Actual 2010 Actual (12Apr10 31Dec10) Annualized Improvement of Net Property Income (S$ 000) 61,922 41, % Distributable ib t bl Income (S$ 000) 52,489 35, % DPU cents cents 6.59% Noted Improvement in Overall Distribution Y-o-Y 6

7 Healthy Balance Sheet S $ 000 unless indicated 31 Dec Dec 2010 Investment Properties 842, ,000 Other Assets 12,435 8,178 Total Assets 855, ,178 Debt, at amortised cost 248, ,658 Other Liabilities 12,256 4,402 Total Liabilities 261, ,060 Net assets attributable to Unitholders 594, ,118 Units in Issue (units) 638,867,066 (1) 634,744,066 NAV per Unit (S$) $0.93 $0.91 Adjusted NAV per Unit (S$) (2) $0.91 $0.88 Increased AUM by over S$103m y-o-y Conservative Gearing of 29.6% aggregate leverage Increased NAV per Unit (1) Comprises 637,827,371 units in issue as at 31 Dec 2011 and 1,039,695 units as Manager s fees incurred for 4Q11. (2) Excludes income available for distribution 7

8 Capital Management As at 31 Dec 2011 Borrowings S$248.9m Aggregate Leverage (1) 29.6% For the quarter ended 31 Dec 2011 Average all-in financing cost (2) 3.89% Interest Cover (3) 8.7 times 4-year secured facilities, maturing in 2014 S$178m term loan facility S$25m committed revolving credit facility (4) 3-year S$40m unsecured term loan, maturing in 2014 Plain vanilla interest rate swaps fixed rates for S$160m for first 2 years fixed rate for 100% of term loan for the remaining loan tenure Raised a 5-year unsecured S$35mil bond under the MTN Programme, maturing in 2016 (1) Ratio of total debt over Deposited Properties. Total debt is represented by total borrowings including unamortised capitalised upfront fees (2) Inclusive of margin and amortisation of upfront fee capitalised (3) Ratio of Net Property Income over interest expense (excl amortisation and other fees) (4) Undrawn as at 31 Dec

9 Attractive & Stable Yield yield per an nnum % Q'11 Actual Ann Yield (1) 1.6 Projection S'pore Govt 2011 Ann 10 yr Bond Yield (2) (3) CPF Ordinary Account(4) 0.3 Bank 12 mth FDs (5) (1) Based on closing price of $0.95 as at 30 Dec 2011 and Annualised DPU of 8.34 cents for 4Q 11 (2) Based on closing price of $0.95 as at 30 Dec 2011 and Forecast DPU of 7.76 cents for Projection Year 2011 as stated in the Prospectus (3) Source: MAS data as at 30 Dec 2011 (4) Prevailing CPF Ordinary Account interest rate (5) Source: MAS data as at 30 Dec

10 Benchmarking against Indices Significantly Outperformed the Market in

11 Portfolio Update Knowing. Believing. Delivering 11

12 Portfolio as at 31 December 2011 Quality Investment Portfolio Portfolio is 100% occupied on long-term, triple-net lease & multi-tenanted lease structures Weighted average lease expiry ( WALE ) was 4.65 years Master leases encompass locked-in rental escalation of between 1.5% - 2.0% per annum Ramp-up vehicular access at the majority of properties Young portfolio - an average weighted age of 4.6 years 12

13 Portfolio 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% Hospitality 1% Courier Service 2% Aerospace 5% Healthcare 11% Commodity & Chemical 26% Industrial & Consumer goods 48% Food & Cold Storage 7% 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 13

14 -0- leases expiring in Portfolio Lease Expiry Profile <2%ofGFA is due for lease renewal in 2013 > 20% of GFA has been committed beyond % 35% 30% 36% 35% % of GFA 25% 20% 15% 13% 10% 5% 0% 7% 8% 0 2% 0% 0% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 & beyond Portfolio Lease and Commitment Expiry (%) 14

15 Strategic Locations Singapore Johor Causeway Link Sembawang Wharves Changi North Loyang Second Link (Tuas checkpoint) Pulau Ubin APC Distrihub 6 Changi North Way 9 Pan Asia Logistics HQ* 21 Changi North Way 10 Air Market Logistics Centre 22 Loyang Lane 2 Jurong Port Changi International Airport Airport Logistics Park ( ALPS ) Jurong Island Pasir Panjang Terminal Sentosa Keppel Terminal 4 Schenker Megahub 5 Hi-Speed Logistics Centre 51 ALPS Avenue 40 ALPS Avenue Changi South Penjuru 1 CWT Commodity Hub 2 CWT Cold Hub 24 Penjuru Road 2 Fishery Port Road 3 Kim Heng Warehouse 4 Penjuru Lane 6 C&P Changi Districentre 7 C&P Changi Districentre 2 5 Changi South Lane 3 Changi South Street 3 * Due to complete by 30 April

16 Portfolio Singapore - West Zone Lessee CWT Commodity Hub CWT CWT Cold Hub Ramp-up feature Location Penjuru Penjuru GFA (approx) 2,300,000 sf 342,000 sf Valuation as at 31 Dec 2011 S$346.9 mil S$139.6 mil Kim Heng Warehouse Kim Heng Tubulars Single Storey Penjuru 54,000 sf S$9.4 mil 16

17 Portfolio Singapore - East Zone Schenker Megahub Hi-Speed Logistics Centre C&P Changi Districentre C&P Changi Districentre 2 Lessee C&P or Subsidiaries (Master Lessees) Ramp-up feature Cargo lift Location ALPS ALPS Changi South Changi South GFA (approx) 440,000 sf 308,000 sf 364,000 sf 111,000 sf Valuation as at 31 Dec 2011 S$104.5 mil S$73.3 mil S$87.3 mil S$20.7 mil 17

18 Portfolio Singapore - East Zone China APC Distrihub Pan Asia Logistics HQ* Air Market Logistics Centre Jinshan Chemical Warehouse Lessee APC Pan Asia Air Market CWT Flextronics Logistics Express Ramp-up feature Cargo lift Single Storey Location Changi Changi Loyang Shanghaih North North GFA (approx) 177,000 sf 197,000 sf 63,000 sf 146,000 sf Valuation as at S$ mil S$35.2 mil S$13.0 mil RMB 77.2 mil 31 Dec 2011 (approx. S$15.9 mil) * Due to complete by 30 April

19 Portfolio - Summary Assets under Management GFA (approx) Feature Total no. of Tenants Valuation as at 31 Dec Properties 9 Singapore 1 Shanghai 4.30 million sf (up from 3.8 million sf at IPO) 7 - Ramp-up 2 - Cargo Lift 1- Single Storey 9 Master Lessees (NNN rental) 2 Tenants in Multi-Tenanted Property S$842.8 million* up from S$729 million at IPO 2.89% lift in value of properties owned in 2010 *Valuation to increase to $878.0 million after the completion of Pan Asia Logistics, due by 30 April

20 21 Changi North Way, Changi North International LogisPark, Singapore PAN-ASIA ASIA LOGISTICS HEADQUARTERS Located in Changi North International LogisPark Newly developed 4-storey logistics warehouse - completed in 2011 Land Area: approx 123,000 sf, Land Tenure: 30yrs from June 2010 GFA: approx. 197,000 sf 10yr NNN master lease 2.5% step-up in rental every other year Property purchased for S$35.19 mil, Property valuation S$35.20 mil Approx 7.7% NPI yield on starting rent Completion: By end April 2012 Portfolio Latest Acquisition Pan Asia Logistics Headquarters 20

21 Going Forward Knowing. Believing. Delivering 21

22 Management Strategy Grow the Portfolio Broad Asia-Pacific mandate Pursuing acquisitions conducive to the portfolio Right of first refusal from CWT and C&P Long-Term Growth in DPU and NAV per Unit Prudently Manage the Portfolio Working closely with the Master Lessees and endusers Growing organically Minimizing re-leasing risk Securing longer-term tenure with strong credit-worthy end-users Participate in Focused Development Leverage on the strengths of the Sponsor and relationships with end-users 22

23 ROFR Properties Right of First Refusal ( ROFR ) Granted by Sponsor (CWT) and C&P on properties p in Asia Pacific Covers both sale of and offer of properties by both parties Existing properties covered by the ROFR 13 properties with approx mil sq ft GFA Located in Singapore and China Selected properties p covered by the ROFR No. Name Owner Description Year of Completion Location GFA (sq ft) 1 CWT Logistics Hub 3 CWT 5-storey ramp-up warehouse 2011 Singapore 834,430 2 CWT Cold Hub 2 CWT Multi-Storey Warehouse 2013 Singapore 725,000 3 CWT Logistics Hub 1 CWT 2-storey ramp-up warehouse 2007 Singapore 375,233 4 Pandan Logistics Hub CWT 5-storey ramp-up warehouse 2011 Singapore 323,066 5 CWT Tianjin Logistics Hub (Ph 1) CWT Single storey warehouse 2010 Tianjin 84,668 23

24 Singapore Economy Modest growth of 1.6% yoy in 1Q12 compared to 3.6% previously Market Outlook Growth of 9.9% qoq versus -2.5% previously Mainly due to sequential upturn in manufacturing sector, which grew 14.7% compared to -11.1% 1% previously Construction sector posted healthy growth of 6.2% yoy and 24.6% qoq, due to pick-up in residential construction activities Growth in services producing industries at 2.9% yoy and 6.9% qoq with increased stock market trading, real estate and tourism activities Singapore s Warehouse Market Warehouse rents increased slightly qoq from $2.45 to $2.47 psf for G/flr floor space and $2.03 to $2.04 psf for upper floor space in 1Q12 Supply of new warehouse space to increase in 2013/2014 Uncertainty of global manufacturing and trade flows may have an impact on demand Source: reports published by MTI, Business Times (SLP International), Colliers International 24

25 Potential New Supply Supply will continue to be tight in the short term 000 sqm Future developments are subjected to regulatory approval and may not materialise Majority of Cache s master lease renewals only commence from 2015 onwards Single-user warehouse Multi-user warehouse Source: Colliers 25

26 Supply/Demand Dynamics Source: URA, Colliers Vacancy rates has fallen to a 15-year low as at December 2011 Average net absorption in the past 18 years ( ) is 209,000 sqm per year 26

27 Summary Good Quality Property Portfolio Quality Management with Focused Strategy Long-term master lease and multiple lease structures Predominately triple-net income Annual rental escalations for majority of properties Majority of borrowings are hedged with fixed interest rates Predictable cash flows Resilient earnings Sustainable distributions Growth in distributions Clear pipeline of potential acquisitions iti via the ROFR properties 27

28 Important Notice 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,orberelieduponinconnection 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