Cambridge Industrial Trust Full Year 2007 Results 29 Jan 2008
FY2007 Results Presentation Outline FY 2007 Milestones 4Q2007 Financial Results Capital Management Strategy Acquisition Highlights Portfolio Strengths Pipeline and Outlook 2
2007 Milestone Achievements FY 2007 Results S$ m 55 22.7% 28.3% 50 53.0 45 45.8 40 43.2 30.8% 31.7% 35 35.7 35.7 30 31.4 25 27.1 20 24.0 15 Gross Revenue Net Property Income Net Income Distributable Income Forecast Actual 3
2007 Milestone Achievements $0.78 NAV per unit 13.4% 1000 $m Portfolio Valuation 74.8% Annualised DPU 22.3% $0.76 $0.74 900 800 700 7.00 6.00 $0.72 $0.70 $0.68 $0.66 $0.64 0.67 0.76 600 500 400 300 200 100 531 928 5.00 4.00 3.00 2.00 1.00 5.120 6.262 $0.62 Dec 2006 Dec 2007 0 Dec 2006 Dec 2007 0 Forecast Actual 4
Continued strong acquisition performance $250 $m Value of Prop perties acquired (1) $200 $150 $100 $50 $0 194.4 125.6 100.4 7 2 44.8 21.7 3 6.4 1 2 1Q07 2Q07 3Q07 4Q07 1Q08 MOU (1) Value as at 31 December 2007 5
FY 2007 Milestones 4Q2007 Financial Results Capital Management Strategy Acquisition Highlights Portfolio Strengths Pipeline and Outlook 6
Continued Revenue Growth Driven By Acquisitions 18 S$m 16 14 12 10 8 6 9.5 10.8 9.4 11.0 11.0 12.5 11.6 13.5 13.9 16.1 Top line driven by: Acquisition of 7 properties after EFR Full quarter impact of Increased rent on YCH Distripark after asset enhancement 4 2 Full quarter impact of 3Q07 acquisition 0 4Q06 1Q07 2Q07 3Q07 4Q07 Net Property Income Gross Revenue 7
Continuing To Deliver Growth To Unit Holders 13 12 1.422 1.434 1.560 1.700 1.568 1.8 1.6 Bottom line driven by: Distribu utable income S$m 11 10 9 8 7 6 5 11.6 8.8 8.0 7.3 7.4 4Q06 1Q07 2Q07 3Q07 4Q07 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 DPU (cents) Yield-accretive acquisitions Lower cost of debt Debt-funded acquisitions going forward will be strongly accretive Accretion from 1Q08 Acquisitions is 0.03 cents per unit per quarter on a pro-forma basis Distributable Income (LHS) DPU (RHS) 8
FY 2007 Milestones 4Q2007 Financial Results Capital Management Strategy Acquisition Highlights Portfolio Strengths Pipeline and Outlook 9
Capital Management Milestones 2007/2008 Target 1Q 2008 Lock in low interest rates Target 2Q 2008: Long Term Refinance Feb 2007: Bridge Loan Refinanced Oct 2007 : Successful follow-on equity offering Jan 2008 : Additional Short Term Liquidity 10
Milestone Equity Fund Raising Completed Equity Fund Raising completed October 18, 2007 S$193.9m raised from 51 institutions First Rule 144A placement to US investors for a Singapore REIT CIT s investor base broadened in Europe, Asia, USA, Australia Substantial placement : 54% of market capitalisation Placement 1.6x subscribed despite difficult market conditions Critical Factor we have our equity Geographic split of equity placement Middle East 9% Australia 10% Other Asia 7% Singapore 17% EU 5% USA 27% Hong Kong 25% 11
Additional short term funding facility Revolving Credit Facility ( RCF ) closed 14 Jan, 2008 Debt facilities and utilisation as at 28 Jan 2008 S$100m provided by HSBC Bilateral term loan Priced at 1,2,3 or 6 month SOR plus a margin 2 year term Emphasizes CIT s debt strategy Diversity of sources Market-appropriate structures S$m 450 400 350 300 250 200 150 100 50 0 53 337 VFN Drawn Undrawn 78 22 RCF Extend maturity profile Plan ahead Always have a Plan B S$131 million in available liquidity at 28 Jan 2008 12
Interest Rate Risk Management SGD interest rates CIT cost of borrowing has declined as SGD base rates have declined 4.5% 4.4% 4.0% 3.5% 4.3% Continued decline in cost of CIT borrowing 4.0% 3.8% 3.5% CIT s debt margins are stable and locked in Window of opportunity to lock-in long term base rates % pe er annum 3.0% 2.5% 2.0% 1.5% 1.0% Dec 06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 1 month interbank (2) 5 year swap (1) (1)Source : Bloomberg Screen SDSW5 (2)Source : MAS Website 13
Clear Path To Long Term (Debt / Refinance) VFN 1 year RCF 2 years Refinance Option CMBS Club loan 14
De-gearing from EFR provides room for further growth Capital Structure Gearing Levels and Additional Acquisition Capacity S$ million 1000 900 800 700 600 500 400 300 200 100 0 337 193 282 322 330 604 345 344 344 346 4Q06 1Q07 2Q07 3Q07 4Q07 S$ million 1,000 750 500 250 0 44.7% 47.7% 48.4% 35.5% 35.1% 0 0 549 (1) (1) 60% 40% 20% 0% Gearing % Equity Debt Additional debt capacity Gearing Ratio (1) Based on acquiring additional properties at the maximum statutory gearing level for Singapore REITs of 60% 15
Attractive, Secure Yield 12.00% 10.00% 8.82% 8.00% 382bps 6.00% 656bps 5.00% 4.00% 2.50% 2.26% 2.94% 2.00% 0.29% 0.83% 0.00% Banks Saving Deposits (1) Bank fixed deposit (2) CPF Ordinary Account (3) 10 year government bond (4) STI Index dividend Yield (5) S-Reit Yield (6) CIT's Annualised Yield (7) (1) Bank savings deposits as at end of Dec 2007. Source: MAS website (2) Bank FD rate (12 months) as at end of Dec 2007. Source: MAS website (3) Interest paid on Central Provident Fund ordinary account from Jan Mar 2008. Source: CPF website (4) Singapore Government Securities 10-year bond yield as at 22 January 2008. Source: SGS website (5) 2007 All Market equity yield. Source Bloomberg Screen DYSGTOTL (6) Weighted average 2007 forecast yield by market capitalization. Source: J P Morgan Asia Real Estate Summary 24 Jan 2008 (7) Based on CIT s closing price of S$0.71 per unit as at 31 Dec 2007 and 2007 DPU of 6.262 cents 16