Cache Logistics Trust 2013 Second Quarter and Half Year Unaudited Financial Statements & Distribution Announcement

Transcription

1 Cache Logistics Trust 2013 Second Quarter and Half Year Unaudited Financial Statements & Distribution Announcement INTRODUCTION Cache Logistics Trust ( Cache ) is a Singapore-based real estate investment trust constituted by the Trust Deed entered into on 11 February 2010 (as amended) between ARA-CWT Trust Management (Cache) Limited, in its capacity as the manager (the Manager ), and HSBC Institutional Trust Services (Singapore) Limited, in its capacity as the trustee (the Trustee ), to invest in income-producing real estate predominantly used for logistics purposes in Asia-Pacific 1, as well as real estate-related assets. Cache s portfolio as at 30 June 2013 comprises 13 high quality logistics warehouse properties located in Singapore and China including CWT Commodity Hub, CWT Cold Hub, Schenker Megahub, C&P Changi Districentre, Hi-Speed Logistics Centre, C&P Changi Districentre 2, APC Distrihub, Kim Heng Warehouse, Air Market Logistics Centre, Pan Asia Logistics Centre, Pandan Logistics Hub, Precise Two and Jinshan Chemical Warehouse (collectively Investment Properties ). Cache completed the acquisition of Precise Two on 1 April The acquisition was fully funded from the proceeds of the private placement exercise undertaken on 18 March 2013 of 70 million units ( Private Placement Units ) at a price of S$1.24 per unit. The financial information for the second quarter and half year ended 30 June 2013 set out in this announcement has been extracted from financial information for the period from 1 January 2013 to 30 June 2013 which has been reviewed by Cache s independent auditors in accordance with Singapore Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. For the purpose of this announcement, references to Trust are to Cache; and references to Group are to Cache and its subsidiaries. 1 For purposes of the investment mandate of Cache, Asia-Pacific is defined as Singapore, Malaysia, Indonesia, Philippines, Thailand, Vietnam, China, India, Hong Kong, Macau, Taiwan, Japan, Korea, Australia and New Zealand.

2 SUMMARY OF RESULTS FOR CACHE LOGISTICS TRUST Notes Group 1/4/13 to 1/4/12 to Change 1/1/13 to 1/1/12 to Change S$'000 S$'000 % S$'000 S$'000 % Gross revenue 20,439 17, ,555 34, Net property income 19,563 16, ,652 32, Income available for distribution 16,643 13, ,438 27, Distribution per unit ("DPU") ( cents ) (a) Annualised DPU ( cents ) (b) Notes: (a) Refer to Item 6 for DPU computation. (b) Extrapolated for information only. Not indicative of DPU for the respective full year ended 31 December. Page 2 of 18

3 1(a) Statements of Total Return and Distribution Statements for the second quarter and half year ended 30 June 2013 Notes Group 1/4/13 to 1/4/12 to Change 1/1/13 to 1/1/12 to Change Statement of Total Return S$'000 S$'000 % S$'000 S$'000 % Gross revenue (a) 20,439 17, ,555 34, Property expenses (b) (876) (831) 5.4 (1,903) (1,600) 18.9 Net property income 19,563 16, ,652 32, Other income - 1 (100.0) - 1 (100.0) Net financing costs (c) (2,705) (12,747) (78.8) (5,415) (15,229) (64.4) Manager's fees (d) (1,632) (1,361) 19.9 (3,223) (2,741) 17.6 Trustee fees (80) (68) 17.6 (155) (133) 16.5 Valuation fee (75) (50) 50.0 (138) (100) 38.0 Other trust expenses (704) (718) (1.9) (892) (1,032) (13.6) (5,196) (14,943) (65.2) (9,823) (19,234) (48.9) Total return for the period before taxation and distribution 14,367 1, ,829 13, Income tax expense (f) (60) (26) (115) (73) 57.5 Total return for the period after taxation before distribution 14,307 1, ,714 13, Group 1/4/13 to 1/4/12 to Distribution Statement Change 1/1/13 to 1/1/12 to Change S$'000 S$'000 % S$'000 S$'000 % Total return for the period after taxation before distribution 14,307 1, ,714 13, Distribution adjustment: Manager's fees paid/payable in units (d) 1,224 1, ,417 2, Trustee fees (39.8) Amortisation of transaction costs (e) Depreciation Foreign exchange difference (68) 9 (855.6) (41) 9 (555.6) Costs incurred on Notes redemption (c) (100.0) (100.0) Break fee for IRS (c) - 6,258 (100.0) - 6,258 (100.0) Transaction cost written-off (c) - 3,369 (100.0) - 3,369 (100.0) Costs incurred on refinancing (100.0) (100.0) Other items (g) , , ,158.1 Distribution adjustment 2,336 12,142 (80.8) 4,724 13,741 (65.6) Income available for distribution to Unitholders at the end of the period 16,643 13, ,438 27, Income to be distributed (h) 16,643 13, ,438 27, nm denotes "not meaningful" Page 3 of 18

4 Notes 1/4/13 to 1/4/12 to Change 1/1/13 to 1/1/12 to Change Statement of Total Return S$'000 S$'000 % S$'000 S$'000 % Gross revenue (a) 20,102 17, ,892 33, Property expenses (b) (871) (828) 5.2 (1,893) (1,593) 18.8 Net property income 19,231 16, ,999 32, Net financing costs (c) (2,893) (12,584) (77.0) (5,604) (15,056) (62.8) Manager's fees (d) (1,632) (1,361) 19.9 (3,223) (2,741) 17.6 Trustee fees (80) (68) 17.6 (155) (133) 16.5 Valuation fee (75) (50) 50.0 (138) (100) 38.0 Other trust expenses (809) (675) 19.9 (939) (962) (2.4) (5,489) (14,738) (62.8) (10,059) (18,992) (47.0) Total return for the period before taxation and distribution 13,742 1, ,940 13, Income tax expense - - nm - - nm Total return for the period after taxation before distribution 13,742 1, ,940 13, Trust 1/4/13 to 1/4/12 to Change 1/1/13 to 1/1/12 to Distribution Statement Change S$'000 S$'000 % S$'000 S$'000 % Trust Total return for the period after taxation before distribution 13,742 1, ,940 13, Distribution adjustment: Manager's fees paid/payable in units (d) 1,224 1, ,417 2, Trustee fees (39.8) Amortisation of transaction costs (e) Depreciation Costs incurred on Notes redemption (c) (100.0) (100.0) Break fee for IRS (c) - 6,258 (100.0) - 6,258 (100.0) Transaction cost written-off (c) - 3,210 (100.0) - 3,210 (100.0) Costs incurred on refinancing (100.0) (100.0) Overseas income not distributed to the Trust (18.5) (17.7) Other items (g) , , ,441.2 Distribution adjustment 2,901 12,230 (76.3) 5,498 14,060 (60.9) Income available for distribution to Unitholders at the end of the period 16,643 13, ,438 27, Income to be distributed (h) 16,643 13, ,438 27, nm denotes "not meaningful" Notes: (a) Comprises rental income from the investment properties. The increase is due to upward rental adjustments and rentals from investment properties acquired in (b) Comprises property management fee, reimbursable expenses payable to the Property Manager and other property related expenses where the increase is in line with the upward rental adjustments and additional rental income generated from investment properties acquired in (c) Included in the net financing costs are the following: Page 4 of 18

5 Note 1/4/13 to 1/4/12 to Change Group 1/1/13 to 1/1/12 to S$'000 S$'000 % S$'000 S$'000 % Finance income : Interest income Finance expenses : Interest expense : Bank loan and bonds (2,045) (1,609) 27.1 (4,144) (3,318) 24.9 Interest rate swaps (181) (613) (70.5) (307) (919) (66.6) Amortisation of transaction costs (e) (492) (337) 46.0 (984) (808) 21.8 Transaction cost written-off - (3,369) (100.0) - (3,369) (100.0) Costs incurred on Notes redemption - (572) (100.0) - (572) (100.0) Break fee for IRS - (6,258) (100.0) - (6,258) (100.0) Others (2) (3) (33.3) (3) (3) - Net financing costs (2,705) (12,747) (78.8) (5,415) (15,229) (64.4) Change Note 1/4/13 to 1/4/12 to Change 1/1/13 to 1/1/12 to S$'000 S$'000 % S$'000 S$'000 % Finance income : Interest income Finance expenses : Interest expense : Bank loan and bonds (2,232) (1,609) 38.7 (4,331) (3,318) 30.5 Interest rate swaps (181) (613) (70.5) (307) (919) (66.6) Amortisation of transaction costs (e) (492) (331) 48.6 (984) (793) 24.1 Transaction cost written-off - (3,210) (100.0) - (3,210) (100.0) Costs incurred on Notes redemption - (572) (100.0) - (572) (100.0) Break fee for IRS - (6,258) (100.0) - (6,258) (100.0) Others (2) (2) - (2) (1) Net financing costs (2,893) (12,584) (77.0) (5,604) (15,056) (62.8) Trust Change nm denotes not meaningful Cache embarked on a capital management exercise in 2012 where the entire borrowings were refinanced by new bank facilities. In conjunction with the above exercise, the following additional financing costs were incurred in 2012: unamortised transaction costs written-off; early redemption fees for the unsecured $35 million medium-term notes ( Notes ); and termination costs of a 2-year forward plain vanilla interest rate swap ( IRS ). The above-mentioned costs were non-tax deductible and did not impact income available for distribution. (d) Consist of: A base fee of 0.5% per annum of the value of the consolidated assets; and A performance fee of 1.5% per annum of the net property income ( NPI ). The Manager may elect to receive the base fee and performance fee in cash or Units or a combination of cash and Units (as it may in its sole discretion determine). Page 5 of 18

6 (e) (f) (g) (h) Represents amortisation of upfront fees on credit facilities which are non-tax deductible and have no impact on income available for distribution. Includes income tax provided in relation to a subsidiary. Relate to other expenses such as professional fees that were non- tax deductible. The current distribution policy is to distribute 100% of taxable income and tax-exempt income and thereafter, to distribute at least 90% of its taxable and tax-exempt income. The dividends are distributed on a quarterly basis, no later than 60 days after the end of each distribution period. 1(b) Statements of Financial Position as at 30 June 2013 Notes Group Trust 31/12/12 31/12/12 S$'000 S$'000 S$'000 S$'000 Non-current assets Investment properties (a) 1,028, ,876 1,012, ,400 Plant and equipment Derivative assets (d) Investments in subsidiaries (b) Total non-current assets 1,029, ,201 1,013, ,353 Current assets Trade and other receivables 747 1,534 1,421 2,185 Amounts due from subsidiaries ,857 13,211 Cash and cash equivalents 43,760 13,277 41,941 11,946 Total current assets 44,507 14,811 56,219 27,342 Total assets 1,073, ,012 1,070, ,695 Current liabilities Trade and other payables (6,456) (5,299) (6,265) (5,152) Total current liabilities (6,456) (5,299) (6,265) (5,152) Non-current liabilities Trade and other payables (370) (634) (370) (634) Interest bearing borrowings (c) (309,263) (308,432) (309,263) (308,432) Derivative liabilities (d) - (486) - (486) Deferred tax liabilities (e) (284) (285) - - Total non-current liabilities (309,917) (309,837) (309,633) (309,552) Total liabilities (316,373) (315,136) (315,898) (314,704) Net assets 757, , , ,991 Represented by: Unitholders' funds (f) 757, , , ,991 Page 6 of 18

7 Notes: (a) (b) (c) (d) Represents carrying values of the investment properties based on independent valuation carried out by Jones Lang LaSalle as at 31 December Increase is due to acquisition of Precise Two completed on 1 April Relates to Cache Singapore One Pte Ltd and Cache-MTN Pte Ltd, which are wholly-owned subsidiaries of Cache, which are stated at cost. Refer to Item 1(b)(i): Aggregate amount of Borrowings and Debt Securities for details. Relates to the fair value of the interest rate swaps entered to hedge against the interest rate risk: (i) 3-year plain vanilla interest rates swap to hedge the interest rate risk on 70% of the secured 3- year term loan of S$187.5 million maturing in 2015; and (ii) 4-year plain vanilla interest rates swap to hedge the interest rate risk on 70% of the secured 4- year term loan of S$125.5 million maturing in (e) (f) Relates to deferred tax liabilities on the change in fair value of Jinshan Chemical Warehouse, Shanghai, China. Refer to Item (1)(d), the Statement of Movements in Unitholders Funds, for details. 1(b)(i) Aggregate amount of Borrowings and Debt Securities Group Trust Secured borrowing 31/12/12 31/12/12 S$'000 S$'000 S$'000 S$'000 Amount repayable after one year 313, , , ,000 Less : Unamortised transaction costs (3,737) (4,568) (3,737) (4,568) 309, , , ,432 Total borrowings 309, , , ,432 Notes: Details of borrowings and collaterals Cache has in place the following facilities: a) a secured 3-year term loan of S$187.5 million maturing in 2015 ( Facility A ); b) a secured 4-year term loan of S$125.5 million maturing in 2016 ( Facility B ) and c) a secured committed revolving credit facility ( RCF ) of S$62 million which is undrawn at reporting date. The facilities are secured by way of: A first mortgage over CWT Commodity Hub, CWT Cold Hub, Schenker Megahub, C&P Changi Districentre, Hi-Speed Logistics Centre, C&P Changi Districentre 2 (collectively, the Charged Properties ); Page 7 of 18

8 A debenture creating fixed and floating charges over all assets in relation to the Charged Properties; An assignment of all leases, sale agreements and banker s guarantees and bank accounts in relation to the Charged Properties; An assignment of all insurance policies in relation to the Charged Properties; and An assignment of Cache s rights in the corporate guarantees given in respect of certain properties. 1 (c) Statement of Cash Flows Notes Group 1/4/13 to 1/4/12 to 1/1/13 to 1/1/12 to S$'000 S$'000 S$'000 S$'000 Operating activities Net income 14,367 1,777 27,829 13,582 Adjustments for: Manager's fees paid/payable in units 1,224 1,021 2,417 2,056 Depreciation of plant and equipment Exchange rate differences (41) - (41) - Net financing costs 2,705 12,747 5,415 15,229 Changes in working capital : Trade and other receivables (238) Trade and other payables 2,120 (1,736) 860 (37) Operating income before working capital changes 21,388 13,975 37,306 30,607 Tax paid (52) (26) (82) (73) Net cash from operating activities 21,336 13,949 37,224 30,534 Cash flows from investing activities Interest received Capital expenditure on investment properties (573) Purchase of plant and equipment (97) (31) (97) (44) Purchase of investment properties (55,906) (35,645) (55,906) (35,645) Net cash used in investing activities (55,988) (35,662) (55,980) (36,244) Cash flows from financing activities Proceeds from issue of new units (a) ,800 59,100 Proceeds from borrowings (b) - 245, ,000 Repayment of borrowings (b) - (252,986) - (252,986) Issue expenses paid (d) (12) (122) (2,081) (1,452) Interest paid (b) (2,330) (3,717) (4,632) (5,951) Financing costs paid (b) - (5,438) - (5,438) Costs incurred on Notes redemption (b) - (572) - (572) Break fee for IRS (c) - (6,258) - (6,258) Distribution to Unitholders (15,793) (13,352) (30,943) (26,781) Net cash from/(used in) financing activities (18,135) (37,445) 49,144 4,662 Net increase/(decrease) in cash and cash equivalents (52,787) (59,158) 30,388 (1,048) Cash and cash equivalents at the beginning of the period 96,493 70,144 13,277 12,059 Effect of exchange differences on cash and cash equivalents (20) Cash and cash equivalents at the end of the period 43,760 10,991 43,760 10,991 Page 8 of 18

9 Notes: (a) (b) (c) (d) Represents proceeds from the Private Placement Units issued on 27 March 2013 (2012: 30 March 2012). Relates to the capital management exercise embarked by Cache in 2012 where the entire borrowings were refinanced by new facilities. Refers to the termination of the IRS in 2012 as described. Relates to professional fees, underwriting and selling commission and other miscellaneous issue expenses. 1 (d) Statements of Movements in Unitholders Funds Notes Group Full Year 1/4/13 to 1/4/12 to 1/1/13 to 1/1/12 to S$'000 S$'000 S$'000 S$'000 Balance at the beginning of the period 755, , , ,085 Operations Total return after tax 14,307 1,751 27,714 13,509 Net increase in net assets resulting from operations 770, , , ,594 Effective portion of changes in fair value of cashflow hedges (a) 1,542 (102) 1,057 (484) Net change in fair value of cash flow hedges (b) - 5,768-5,768 reclassified to statements of total return Foreign currency translation reserve Translation differences from financial statements of foreign entities (271) Net gain/(loss) recognised directly in Unitholders' fund (271) Unitholders' transactions Issue of new units - Private placement (c) ,800 59,100 - Manager's fees paid in units - - 1,193 1,035 Units to be issued - Manager's fees payable in units (d) 1,224 1,021 1,224 1,021 Reversal of / (Issue expenses) (c) (12) 30 (2,081) (1,452) Distributions to unitholders (15,793) (13,352) (30,943) (26,781) Net (decrease)/increase in net assets resulting from (14,581) (12,301) 56,193 32,923 unitholders' transactions Unitholders' funds at the end of the period 757, , , ,530 Page 9 of 18

10 Notes Trust Full Year 1/4/13 to 1/4/12 to 1/1/13 to 1/1/12 to S$'000 S$'000 S$'000 S$'000 Balance at the beginning of the period 753, , , ,475 Operations Total return after tax 13,742 1,663 26,940 13,190 Net increase in net assets resulting from operations 767, , , ,665 Effective portion of changes in fair value of cashflow hedges (a) 1,542 (102) 1,057 (484) Net change in fair value of cash flow hedges reclassifed to statements of total return (b) - 5,768-5,768 Unitholders' transactions Issue of new units - Private placement (c) ,800 59,100 - Manager's fees paid in units - - 1,193 1,035 Units to be issued - Manager's fees payable in units (d) 1,224 1,021 1,224 1,021 Reversal of / (Issue expenses) (c) (12) 30 (2,081) (1,452) Distributions to unitholders (15,793) (13,352) (30,943) (26,781) Net (decrease)/increase in net assets resulting from (14,581) (12,301) 56,193 32,923 unitholders' transactions Unitholders' funds at the end of the period 754, , , ,872 Notes: (a) (b) (c) (d) Relates to the effective portion of changes in derivative liabilities designated as cashflow hedges. Refers to the termination of the IRS in 2012 as described. Represent the proceeds from Private Placement Units issued on 27 March 2013 (2012: 30 March 2012) and related issue expenses. Represent the value of units to be issued to the Manager as partial consideration of the Manager s fees incurred for the quarter. The units are to be issued within 30 days from quarter end. 1 (d)(i) Details of any changes in the units Notes Group and Trust 1/4/13 to 1/4/12 to 1/1/13 to 1/1/12 to Units Units Units Units Issued units at the beginning of the period 774,277, ,888, ,353, ,867,066 Creation of units: - Issue of new units (Private Placements) (a) ,000,000 60,000,000 - Manager's fees paid in units ,050 1,021,249 Issued units at the end of the period 774,277, ,888, ,277, ,888,315 Units to be issued: - Manager's fees payable in units (b) 995, , , ,260 Total issued and to be issued units 775,273, ,865, ,273, ,865,575 Page 10 of 18

11 Notes: (a) Relates to Private Placement Units issued on 27 March 2013 (2012: 30 March 2012). (b) Represent units to be issued to the Manager as partial consideration of Manager s fees incurred for the quarter. The units are to be issued within 30 days from the quarter end. 1(d)(ii) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on. Not applicable. 2 Whether the figures have been audited, or reviewed and in accordance with which auditing standard or practice The financial information set out in this announcement relating to the following: Statements of Financial Position of the Group and the Trust as at 30 June 2013; Statements of Total Return of the Group and the Trust for the quarter and half year ended 30 June 2013; Distribution Statements of the Group and the Trust for the quarter and half year ended 30 June 2013; Statements of Movements in Unitholders Fund of the Group and the Trust for the quarter and half year ended 30 June 2013; and Statement of Cash Flows of the Group for the quarter and half year ended 30 June 2013 has been extracted from financial information for the period from 1 January 2013 to 30 June 2013 which has been reviewed by Cache s independent auditors in accordance with Singapore Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. 3 Where the figures have been audited, or reviewed, the auditors' report (including any qualifications or emphasis of matter) Refer to the attachment for the extract of the independent auditors review report dated 24 July 2013 issued on the financial information of Cache for the quarter and half year ended 30 June 2013, which has been prepared in accordance with the recommendations of Statement of Recommended Accountant Practice 7 Reporting Framework for Unit Trusts, issued by Institute of Singapore Chartered Accountant. 4 Whether the same accounting policies and methods of computation as in the issuer's most recently audited financial statements have been applied On 1 January 2013, the Group adopted the revised version of the Statement of Recommended Accounting Practice 7 (2012) issued by the Institute of Singapore Chartered Accountants which has no significant impact to the financial statements of the Group. The Group has applied the same accounting policies and methods of computation in the preparation of the financial statements for the current period compared with the audited financial statements for the year ended 31 December Page 11 of 18

12 5 If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change There is no change in the accounting policies and methods of computation adopted. 6 Earnings per unit ( EPU ) and Distribution per unit ( DPU ) for the financial period Earnings per unit Notes Group 1/4/13 to 1/4/12 to 1/1/13 to 1/1/12 to Weighted average number of units 774,288, ,899, ,955, ,048,013 Earnings per unit for the period based on the weighted average number of units in issue (cents) (a) Notes: (a) EPU calculation uses the total return for the period after tax, and the weighted average number of units issued and to be issued. The diluted EPU is the same as basic EPU as no dilutive instruments were in issue during the period. Distribution per Unit In computing the DPU, the number of units as at the end of each period is used for the computation. Notes 1/4/13 to 1/1/13 to 1/1/12 to Number of units issued and to be issued at end of period entitled to distribution 775,273, ,865, ,273, ,865,575 Acquisition units issued on 4 July 2012 entitled to distribution - 629, ,410 (a) 775,273, ,494, ,273, ,494,985 Group 1/4/12 to Distribution per unit for the period based on the total number of units entitled to distribution (cents) (b) Notes: (a) Computation of DPU for the period from 1 April 2013 to 30 June 2013 is based on the number of units entitled to distribution: (i) Number of units in issue as at 31 March 2013 of 774,277,688; (ii) Units to be issued to the Manager by 31 July 2013 as partial consideration of Manager s fees incurred for the quarter ended 30 June 2013 of 995,428; Computation of DPU for the period from 1 April 2012 to 30 June 2012 is based on the number of units entitled to distribution: Page 12 of 18

13 (i) Number of units in issue as at 31 March 2012 of 699,888,315; (ii) Units to be issued to the Manager by 26 July 2012 as partial consideration of Manager s fees incurred for the quarter ended 30 June 2012 of 977,260; (iii) Units issued to the manager on 4 July 2012 as acquisition fees paid for the acquisition of Pandan Logistics Hub of 629,410. (b) Distribution of cents per unit for the period 1 April 2013 to 30 June 2013 will be paid on 28 August Net asset value ( NAV ) per unit at the end of current period Notes Group Trust 31/12/12 31/12/12 NAV per unit (S$) (a) Notes: (a) Number of units used to compute NAV per unit of 775,273,116 comprised: (i) Number of units in issue as at 31 March 2013 of 774,277,688; and (ii) Units to be issued to the Manager by 31 July 2013 as partial consideration of Manager s fees incurred for the quarter ended 30 June 2013 of 995, (i) Review of the performance for the quarter ended 30 June 2013 Gross revenue achieved for the quarter ended was S$20.4 million, an increase of S$2.9 million or 16.5% higher than 2Q2012. NPI for the quarter was S$19.6 million, an increase of S$2.8 million or 17.0% higher than 2Q2012. The higher gross revenue and NPI in 2Q2013 were mainly attributable to the additional rental income from upward rental adjustments and acquisitions of investment properties completed in 2012/3. Net financing costs for the quarter were S$2.7 million. The higher financing costs in 2Q12 were due to the capital management exercise where the entire borrowings of Cache were refinanced by new facilities. All-in-financing cost averaged 3.48% for the quarter and the gearing ratio for the group stood at 29.2% as at 30 June The increases in Manager s fee and Trustee s fee are in line with the higher deposited property value. The income available for distribution was S$16.6 million, an increase of S$2.7 million or 19.8% higher than the quarter ended 2Q2012. (ii) Review of the performance for the half year ended 30 June 2013 Gross revenue achieved for the half year ended 30 June 2013 was S$39.6 million, an increase of S$5.1 million or 14.9% higher than the same period in NPI was S$37.7 million, an increase of S$4.8 million or 14.7% higher than the same period in The higher gross revenue and NPI for the half year ended 30 June 2013 were mainly attributable to the additional rental income from upward rental adjustments and new acquisitions in 2012/3. Net financing costs for the half year ended 30 June 2013 was S$5.4 million. All-in-financing cost averaged 3.50% for the half year ended 30 June Page 13 of 18

14 9 Variance between the projection and actual results The current results are broadly in line with the Trust s commentary made in the first quarter 2013 financial results announcement under item 10. The Trust has not disclosed any financial forecast to the market. 10 Commentary on the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. Economic Outlook According to Singapore s Ministry of Trade & Industry s ( MTI ) advance estimates, Singapore s economy grew by 3.7% on a year-on-year ( y-o-y ) basis, compared to 0.2% in the preceding quarter. On a quarter-on-quarter ( q-o-q ) seasonally-adjusted annualised basis, the economy grew by 15.2%, faster than the 1.8% growth in the previous quarter. Singapore's Purchasing Managers' Index ( PMI ) expanded for the fourth straight month in June 2013 to 51.7, up from 51.1 in May The increase comes on the back of new orders and new export orders, which continue to expand, albeit at a slower pace. However, other regional PMI numbers were on the decline in June as a slowdown in China and the Eurozone crisis continue to weigh down on the manufacturing sector. Industry Outlook According to Colliers International Research 2, industrial rents are expected to stabilise for the second half of the year amid an uncertain economic outlook and increased industrial space supply. Industrial rents across all the industrial premises segments remained unchanged on a quarter-onquarter basis in June The average monthly gross rents of ground- and upper-floor warehouse premises in 2Q 2013 remained at the preceding quarter s level of S$2.62 per square foot and S$2.15 per square foot, respectively. Company Outlook As at 30 June 2013, Cache s portfolio comprised 13 quality logistics warehouse properties located in Singapore and China, valued at approximately S$1.03 billion and measuring over 5.1 million square feet. Cache s properties remained 100% occupied for 2013 and accordingly there is no renewal risk for the rest of This enables Cache to provide a high degree of predictability in its cash flow and earnings stability to Unitholders. Cache completed the acquisition of Precise Two, a newly completed three-storey fully ramp-up warehouse with a gross floor area of approximately 284,000 square feet, on 1 April The property is leased to Precise Development, a well-established home grown construction company, with an initial NPI yield of 8.7% on a six-year lease, with an option to renew for another six years. The rental revenue from Precise Two kicked in this quarter, a key contributor to the 6.5% increase in gross revenue q-o-q. In the area of capital management, Cache remained conservatively geared at 29.2%, one of the lowest among industrial REITs in Singapore. 70% of its debt is hedged, enabling greater certainty 2 Colliers International Research, The Industrial Property Market in Singapore Enjoys Stable Rents and Marginal Growth in Capital Values in 2Q 2013 quarterly research report released on 10 July Page 14 of 18

15 over financing costs. Financing facilities are in the form of term loans which mature in 2015 and 2016, and an unused revolving credit facility of S$62.0 million as at 30 June ARA-CWT Trust Management (Cache) Limited, as manager of Cache Logistics Trust, will continue its pursuit to grow the REIT via quality, accretive acquisitions in Asia Pacific, focusing on key markets such as Singapore, China and Malaysia. It will also actively seek to grow organically as well as improve the quality of the portfolio by way of asset enhancement and re-development initiatives. Barring any unforeseen market events, the Manager expects to continue to deliver sustainable growth for the financial year. 11 Distributions (a) Current financial period Any distribution declared for the current period? Yes Name of distribution: Distribution for the period from 1 April 2013 to 30 June 2013 Distribution Type: Par value of units: Tax rate: 1/4/13 to Distributable Income Period Distribution Type Cents Taxable income component Capital component Total Not meaningful Taxable income component The distributions are made out of Cache s taxable income. Unitholders receiving distributions will be assessable to Singapore income tax on the distributions received except for individuals where these distributions are exempt from tax. Distributions made to individuals, irrespective of their nationality or tax residence status, who hold the units as investment assets will be tax exempt. However, distributions made to individuals who hold units as trading assets or through a partnership will be taxed at their applicable income tax rates. All Unitholders who are not individuals are subject to Singapore income tax / withholding tax on distributions of Cache. Capital component The capital component of the distribution represents a return of capital to Unitholders for tax purposes and is therefore not subject to income tax. For Unitholders holding the units as trading assets, the amount of capital distribution will be applied to reduce the cost base of their units for the purpose of calculating the amount of taxable trading gains arising from the disposal of the units. Page 15 of 18

16 (b) Corresponding period of the immediately preceding financial year Any distribution declared for the previous corresponding financial period? Yes Name of distribution: Distribution Type: Par value of units: Tax rate: Distribution for the period from 1 April 2012 to 30 June /4/12 to Distributable Income Period Type Cents Taxable income component Capital component Total Not meaningful Taxable income component The distributions are made out of Cache s taxable income. Unitholders receiving distributions will be assessable to Singapore income tax on the distributions received except for individuals where these distributions are exempt from tax. Distributions made to individuals, irrespective of their nationality or tax residence status, who hold the units as investment assets will be tax exempt. However, distributions made to individuals who hold units as trading assets or through a partnership will be taxed at their applicable income tax rates. All Unitholders who are not individuals are subject to Singapore income tax / withholding tax on distributions of Cache. Capital component (c) Date Payable 28 August 2013 (d) Books Closure Date 1 August 2013 The capital component of the distribution represents a return of capital to Unitholders for tax purposes and is therefore not subject to income tax. For Unitholders holding the units as trading assets, the amount of capital distribution will be applied to reduce the cost base of their units for the purpose of calculating the amount of taxable trading gains arising from the disposal of the units. Page 16 of 18

17 12 If no distribution has been declared/(recommended), a statement to that effect Not applicable. 13 Interested Party Transaction Mandate Cache is not required to obtain a general mandate from Unitholders for Interested Party Transactions. 14 Confirmation pursuant to Rule 705(5) of the Listing Manual To the best of our knowledge, nothing has come to the attention of the Board of Directors of the Manager of Cache (the Manager ) which may render the unaudited interim financial statements of the Group and Trust (comprising the statements of financial position as at 30 June 2013, statements of total return & distribution statements, statement of cash flows and statements of movements in Unitholders funds for the quarter ended on that date), together with their accompanying notes, to be false or misleading, in any material aspect. On behalf of the Board of the Manager ARA-CWT TRUST MANAGEMENT (CACHE) LIMITED Lim How Teck Director Lim Hwee Chiang Director Page 17 of 18

18 This release 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. BY ORDER OF THE BOARD ARA-CWT TRUST MANAGEMENT (CACHE) LIMITED AS MANAGER OF CACHE LOGISTICS TRUST (Company registration no H) Lim Hwee Chiang Director 24 July 2013 For enquiries, please contact: ARA-CWT Trust Management (Cache) Limited Ms Judy Tan Investor Relations Manager (65) judytan@ara.com.hk Page 18 of 18

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