AIMS AMP CAPITAL INDUSTRIAL REIT 3 rd Quarter Ended 31 December 2011 Results Presentation 20 January 2012
Important Notice Disclaimer This Presentation is focused on comparing actual results for the financial period from 1 October 2011 to 31 December 2011 ( 3Q FY2012 ) versus actual results year-on-year ( y-o-y ) and quarter-on-quarter ( q-o-q ). This Presentation shall be read in conjunction with AIMS AMP Capital Industrial REIT s ( AIMSAMPIREIT or the Trust ) results for 3Q FY2012 as per the SGXNet Announcement. The information contained in this presentation is for information purposes only and does not constitute an offer to sell or any solicitation of an offer or invitation to purchase or subscribe for units in AIMS AMP Capital Industrial REIT ( Units ) in Singapore or any other jurisdiction, nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. The past performance of the Units and AIMSAMPIREIT is not indicative of the future performance of AIMSAMPIREIT. Predictions, projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future or likely performance of AIMSAMPIREIT. The value of the Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the AIMS AMP Capital Industrial REIT Management Limited (the Manager ). An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the Manager redeem their Units while the Units are listed. It is intended that holders of Units ( Unitholders ) may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the SGX-ST ). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. 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, 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. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager's current view of future events. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the Manager, or any of its respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. 2
Contents Highlights for the Quarter Results for 3Q FY2012 Portfolio Review Execution on Strategy Substantial Unitholders 3
Highlights for 3Q FY2012 Solid DPU performance: 2.60 cents per unit for the quarter Strong increase in amount available for distribution of 11.7% y-o-y to S$11.7 million Aggregate leverage 30.7% (29.4% on a pro forma basis post completion of the sale of 31 Admiralty Road) Redevelopment works at 20 Gul Way progressing according to schedule and within budget Sale of 31 Admiralty Road for S$16.438 million, 8.9% above book value and 22.7% above the REIT s initial purchase price of S$13.4 million Unit consolidation of every five (5) unit held into one (1) effected on 4 October 2011 4
3Q FY2012 Financial Results 5
Distribution Details Stock counter Distribution period DPU (cents) AIMSAMPIReit Code: O5RU 1 October 2011 to 31 December 2011 2.60 Distribution Timetable Ex-date 3 February 2012, 9.00am Books closure date 7 February 2012, 5.00pm Distribution payment date 20 March 2012 6
Results for 3Q FY2012 3Q FY2012 S$ 000 2Q FY2012 S$ 000 Q-o-Q % 3Q FY2011 S$ 000 Gross Revenue 21,217 21,475 (1.2) 19,590 8.3 Net Property Income 15,156 15,440 (1.8) 14,536 4.3 Y-o-Y % Amount available for distribution Amount available for distribution per unit ( DPU )(cents) 11,664 2.630 1,2 11,989 (2.7) 10,438 11.7 DPU (cents) 2.600 1,3 2.500 4.0 2.550 4 2.0 Annualised DPU yield (%) 10.3 5 1 On 4 October 2011, AIMSAMPIREIT announced the completion of the consolidation ( Unit Consolidation ) of every five existing units ( Units ) held as at 3 October 2011 into one consolidated unit ( Consolidated Unit ). The number of Units used to calculate the DPU is 443,851,849, the Units in issue after the Unit Consolidation. 2 The Trust achieved an amount available for distribution of S$11.7 million for 3Q FY2012. This translates to per Unit of 2.630 cents. 3 The Trust s distribution policy is to distribute at least 90% of the Trust s taxable income for the full financial year. For 3Q FY2012, the Manager has resolved to distribute 98.9% of the taxable income available for distribution to the Unitholders, amounting to S$11.5 million or DPU of 2.600 cents. 4 The number of Units used to calculate the DPU in 3QFY2011 has been adjusted for the effect of the Unit Consolidation to allow for comparison. 5 Based on closing price of S$1.00 on 19 January 2012 and annualised DPU of 10.33 cents for 3QFY2012. Annualised DPU is computed based on actual DPU payout for the first three quarters annualised to full year. 7
Balance Sheet 31 December 2011 30 September 2011 Total Assets (S$ M) 907.1 883.6 Comprising (S$ M): - Investment Properties - Investment Properties under development - Investment Properties held for sale - Plant and equipment - Cash and Cash Equivalents - Trade and Other Receivables 809.7 68.7 15.1 0.1 9.8 3.7 824.8 44.4-0.1 8.8 5.5 Total Liabilities (S$ M) 300.2 277.6 Net Assets (S$ M) 606.9 606.0 NAV per unit (post Unit Consolidation) (S$) 1.367 1.365 Total Debt 1 (S$ M) 278.3 265.3 Aggregate Leverage (%) 30.7 30.0 Pro forma Aggregate Leverage (%) (post completion of sale of 31 Admiralty Road) 29.4 28.7 1 Excluding unamortised loan transaction costs. 8
Key Financial Metrics 3Q FY2012 2Q FY2012 Appraised Value of Property Portfolio S$893.5 1 million S$869.2million Market Capitalisation 2 S$443.9 million S$421.7 million NAV per Unit (post Unit Consolidation) S$1.367 S$1.365 Discount to NAV 2 26.9% 30.4% Aggregate Leverage 3 30.7% 30.0% Pro forma Aggregate Leverage 3 (post completion of sale of 31 Admiralty Road) 29.4% 28.7% Interest Cover Ratio 4 5.6 times 6.2 times Weighted Average Debt Maturity 2.6 years 2.8 years 1 Includes 20 Gul Way which is under development ($41.8 million in land value and $26.9 million in development cost incurred to-date). 2 Based on the closing price per unit of S$1.00 on 19 January 2012 and S$0.95 on 5 October 2011 of 443,851,849 units in issue. 3 Total debt as a % of total assets. 4 Bank covenant: minimum of 2.5 times. 9
Debt Facilities Bank syndicate comprising UOB, SCB, CBA and ING Average debt maturity of 2.6 years All in pricing of 234bps (margin + upfront fee) $430.0 million debt facility Term loan of S$200.0 million, split equally between tenor of 3 years and 5 years maturing in October 2013 and October 2015 respectively Term loan of S$150.0 million to part finance the redevelopment of 20 Gul Way, maturing in October 2015 Three-year revolving credit facility of S$80.0 million maturing October 2013 S$31.8 million acquisition debt facility Three-year term loan of S$28.8 million maturing in February 2014 One-year revolving credit facility of S$3.0 million Debt Maturity outstanding date as at 30 September 2011 Trust/Group $ million Due in October 2013 138.0 Due in February 2014 28.8 Due in October 2015 111.5 10 278.3
Stable and Attractive Yield 12.0% 10.3% 10.0% 8.0% % yield per annum 6.0% 4.0% 2.50% 2.0% 1.62% 0.32% 0.0% 1 2 3 2 3QFY2012 Annualised Yield S'pore Govt 10-yr bond CPF Ordinary Account Bank 12mths FDs 11 1 Based on closing price of S$1.00 on 19 January 2012 and annualised DPU of 10.33 cents for 3QFY2012. Annualised DPU is computed based on actual DPU payout for the first three quarters annualised to full year 2 Source: Bloomberg data as at December 2011 3 Prevailing CPF Ordinary Account interest rate
Portfolio Review 12
Key Portfolio Statistics As at 31 December 2011 As at 30 September 2011 As at 19 April 2007 (Listing) Number of Properties 26 26 12 Appraised Value (S$ million) 893.5 1 869.2 316.5 Net Lettable Area (sq m) 456,607.1 456,607.1 194,980.7 Number of Tenants 70 71 12 Occupancy (%) 98.9 98.8 100.0 Weighted Average Lease Expiry (WALE) (years) Weighted Average Land Lease Expiry (years) 2.6 2.8 6.7 41.9 42.2 47.8 Location of Properties Singapore Singapore Singapore 1 Includes 20 Gul Way which is under development ($41.8 million in land value and $26.9 million in development cost incurred to-date). 13
Valuations 31 December 2011 Property / Address Appraised Value 1 Warehouse and Logistics (S$ million) 27 Penjuru Lane 1 165.0 8 & 10 Pandan Crescent 1 126.0 10 Changi South Lane 2 28.6 15 Tai Seng Drive 1 27.0 11 Changi South Street 3 2 24.3 61 Yishun Industrial Park A 2 24.2 1 Bukit Batok Street 22 2 23.2 3 Toh Tuck Link 1 19.5 23 Tai Seng Drive 1 18.6 30/32 Tuas West Rd 1 17.5 56 Serangoon North Ave 4 1 17.0 31 Admiralty Road 1 15.1 7 Clementi Loop 1 12.6 103 Defu Lane 10 2 12.8 Warehouse & Logistics Subtotal: S$531.4 million Percentage of Portfolio: 59.5% 14 Property / Address Appraised Value 1 Manufacturing (S$ million) 135 Joo Seng Road 2 23.8 3 Tuas Avenue 2 2 23.7 541 Yishun Industrial Park A 2 15.0 1 Kallang Way 2A 2 14.0 2 Ang Mo Kio Street 65 1 13.8 8 & 10 Tuas Avenue 20 2 12.8 8 Senoko South Road 2 12.4 26 Tuas Avenue 7 2 9.9 10 Soon Lee Road 2 9.7 Manufacturing Subtotal: S$135.1 million Percentage of Portfolio: 15.1% Business Park / Hi-Tech 1A International Business Park 2 83.8 29 Woodlands Industrial Park E1 2 74.5 Business Park / Hi Tech Subtotal: S$158.3 million Percentage of Portfolio: 17.7% Investment Properties under development 20 Gul Way 68.7 3 Investment Properties under development Subtotal: S$68.7 million Percentage of Portfolio: 7.7% 1 The properties were valued as at 31 March 2011 by Colliers International Consultancy & Valuation (Singapore) Pte Ltd 2 The properties were valued as at 30 September 2011 by Cushman & Wakefield VHS Pte Ltd 3 Includes $41.8 million in land value and $26.9 million in development cost incurred to-date Total Appraised Value: S$893.5 million Investment Properties S$809.7 million Investment Properties under development S$68.7 million Investment Properties held for sale S$15.1 million
Portfolio Breakdown Rental Contribution by Property Sector Master Leases vs Multi-tenanted Business Park / Hi-Tech Space 17.3% Multi-tenanted 18.5% Manufacturing 17.4% Master Leases 81.5% Warehousing and Logistics 65.3% Total Portfolio (26 properties) Master Leases (21 properties) Multi-Tenanted (5 properties) WALE Average Security Deposit 2.6 years 8.4 months 2.4 years 9.4 months 3.4 years 3.6 months 15
Diversification Reduces Risk Tenant Base by Industry (By 3Q FY2012 Rental Income) Pharmaceutical/ Healthcare/ Cosmetics Fashion and Apparels 3.7% 4.0% F&B 3.2% Telecommunications 6.5% Printing 4.3% Metal Recycling 2.7% Logistics & Warehousing 27.2% Plastic Products and Distribution 7.1% Construction and Engineering 23.7% Information Technology & Electronics 8.2% Energy 9.4% 16
Intensive Lease Management To Manage Lease Expiry Profile Risk Lease Expiry Profile as at 31 December 2011 (by 3Q FY2012 Net Lettable Area) 45% 40% 35% 30% 41.9% 33.9% YTD FY2012 Sqm Total new/renewal leases signed 44 55,028.7 % of total NLA 12.1% % of net lettable area 25% 20% 15% 11.8% 15.7% 12.2% 12.2% 14.8% 14.8% % of NLA (master leases and direct tenancies only) % of NLA ('look through' position including subleases) 10% 5% 0% 3.4% 1.9% 1.2% 0% 4.7% 6.9% Property FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 sold Note: The lease expiry profile takes into account (i) the 20 Gul Way redevelopment and master lease to CWT Limited upon target completion and (ii) the sale of 31 Admiralty Road 17 2.0% 2.0% 3.4% 4.6% 3.4% 4.6% 2.4% 1.2% 1.0% 0% 0% 0%
FY2013 Lease Expiry: 41.9% of portfolio Management of Lease Expiry Risk Expiry % of NLA Multi-Tenanted 2.7% Master Lease Expiry % of NLA 31 Admiralty Road (SOLD) Apr 2012 1.9% Risk mitigated by underlying subleases: 88.2% of Master Leases expiring in FY2013 are supported by underlying subleases. Management actively negotiating with underlying sub-tenants. Area occupied by master tenants 11.8% 8&10 Pandan Crescent Apr 2012 12.4% 27 Penjuru Lane Dec 2012 17.0% 56 Serangoon North Ave 4 Jan 2013 2.0% 61 Yishun Industrial Park A Jan 2013 2.5% 103 Defu Lane 10 Jan 2013 1.6% 135 Joo Seng Road Mar 2013 1.8% Area occupied by sub-tenants 88.2% 18
Quality Tenant Base Top 10 Tenants As at 31 December 2011 Top Ten Tenants by 3Q FY2012 Rental Income Tenant % C & P Holdings Pte Ltd 27 Penjuru Lane 20.0% United Tech Park Pte Ltd 8 & 10 Pandan Crescent 12.9% Eurochem Corporation Pte Ltd 9.4% Crescendas Group 7.6% Ban Teck Han Group 4.9% Ossia International Limited 4.0% Broadcom Singapore Pte Ltd 3.6% Builders Shop Pte Ltd 3.4% Powermatic Data Systems Ltd 3.0% Enviro-Hub Group 2.7% Top Ten Tenants 71.5% Listed Groups Private Groups 19
Strong and Stable Cashflows Average security deposit per property of approx. 8.4 months Occupancy of 98.9% Built-in rent escalation Weighted average lease expiry of 2.6 years 20
Long Land Lease to Expiry The weighted average unexpired land lease was 41.9 years as at 31 December 2011 % of Net Lettable Area 45.0% 40.0% 41.0% 35.0% 33.7% 30.0% % of Net Lettable Area 25.0% 20.0% 15.0% 10.0% 10.9% 14.4% 5.0% 0.0% 21-30 yrs 31-40 yrs 41-50 yrs 51-60 yrs 26 properties as at 31 Dec 2011 21
Comparisons to Singapore Industrial Average Occupancy Levels High Occupancy Levels The Trust vs the Singapore industrial average 98.9% 93.0% 93.6% 93.3% The Trust Factory Space Warehouse Space URA Industrial Average Source: Based on URA 3 rd quarter 2011 statistics. URA Industrial average is the average of the factory and warehouse space occupancy rates of 93.0% and 93.6%, respectively. 22
Execution on Strategy 23
Objectives Stable distributions, Increase Unitholders value and liquidity Prudent Capital and Risk Management Intensive Asset and Lease Management Repositioning of Trust s portfolio & recycling of capital 24
Execution on Strategy Continued Transformation. Creating Value Singapore investments Enhancement of selected asset(s). Redevelopment opportunities in Singapore. Continual evaluation of yield accretive investment opportunities in Singapore. Intensive asset and leasing management To ensure high occupancy is maintained and to achieve positive rental reversions. Capital and risk management Conservative capital management. Continued broadening and diversifying of the Trust s funding sources. Geographic focus Continued monitoring of economic and property market trends in readiness for potential future investment opportunities in markets such as China, Australia and Japan. 25
Substantial Unitholders 26
Substantial Unitholders 31 December 2011 Name of Substantial Unitholder No. of Units ( 000) % AMP Capital Investors Limited 63,643 14.34 Dragon Pacific Assets Limited 52,900 11.92 APG Asset Management 41,578 9.37 Universities Superannuation Scheme Limited 36,153 8.15 George Wang 31,023 6.99 27
Thank you 28 For enquiries, kindly contact: AIMS AMP Capital Industrial REIT Management Limited Nicholas McGrath Joanne Loh Chief Executive Officer Asst Fund Manager / Investor Relations Tel: + 65 6309 1050 Tel: + 65 6309 1057 Email:nmcgrath@aimsampcapital.com Email:jloh@aimsampcapital.com