Cambridge Industrial Trust Financial results for the first quarter ended 31 March April

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Transcription:

1 Cambridge Industrial Trust Financial results for the first quarter ended 31 March 2010 21 April 2010 www.cambridgeindustrialtrust.com

important notice 2 The value of units in CIT ( Units ) and the income derived from them may fall as well as rise. Units are not investments, liabilities or obligations of, or deposits in, Cambridge Industrial Trust Management Limited ("Manager"), RBC Dexia Trust Services Singapore Limited (in its capacity as trustee of CIT) ("Trustee"), or any of their respective related corporations and affiliates (including but not limited to National Australia Bank Limited, nabinvest Capital Partners Pty Ltd, or other members of the National Australia Bank group) and their affiliates (individually and collectively "Affiliates"). An investment in Units is subject to equity investment risk, including the possible delays in repayment and loss of income or the principal amount invested. Neither CIT, the Manager, the Trustee nor any of the Affiliates guarantees the repayment of any principal amount invested, the performance of CIT, any particular rate of return from investing in CIT, or any taxation consequences of an investment in CIT. Any indication of CIT performance returns is historical and cannot be relied on as an indicator of future performance. Investors have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is intended that investors 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 assumptions, 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 occupancy or property rental income, changes in operating expenses (including employee wages, benefits and training costs), governmental and public policy changes and the continued availability of financing in amounts and on terms necessary to support future CIT 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. This presentation is for informational purposes only and does not have regard to your specific investment objectives, financial situation or your particular needs. Any information contained in this presentation is not to be construed as investment or financial advice, and does not constitute an offer or an invitation to invest in CIT or any investment or product of or to subscribe to any services offered by the Manager, the Trustee or any of the Affiliates. 2

3 contents 1Q2010 Key Highlights 1Q2010 Financial Performance Portfolio Management Performance Questions 3 Pioneer Sector (Jurong DistriCentre)

FY2010 key highlights g 4 CIT achieved an increase in portfolio occupancy to 99.9%, well above the Singapore industrial average of 91.9%* The first DRP was offered to Unitholders at an issue price of S$0.445 (post a 2% discount). The take up rate was about 10% (~2.6 million new units) Completion of the divestments of 32 strata units at 48 Toh Guan East (Enterprise Hub) as at 31 March 2010. The totalt gross sale proceeds of S$21.5 million exceeded book value by S$1.6 million * Urban Redevelopment Authority, Release of 4Q2009 Real Estate Statistics, 22 Jan 2010. 4

5 financial performance YCH DistrPark, 30 Tuas Road

sustainable revenue performance since IPO 6 S $m 18.3 18.4 18.4 18.4 17.6 17.9 16.4 16.1 15.6 15.9 16.2 16.1 16.0 15.1 13.5 13.9 12.5 10.8 11.0 11.6 11.0 18.7 18.9 18.6 16.7 16.3 9.5 9.4 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Net Property Income Gross Revenue 6

1Q2010 financial summary 7 1Q2010 4Q2009 Q-o-Q % 1Q2009 Y-o-Y % Gross Revenue S$18.6m S$18.9m (1.6) S$18.4m 1.1 Net Property Income Distributable Income Distribution Per Unit (DPU) S$16.3m S$16.7m (2.4) S$16.1m1m 1.2 S$11.1m S$11.9m (6.7) S$10.3m 7.8 1.274 cents 1.377 cents (7.5) 1.291 cents (1.3) Annualised DPU 5.167 cents 5.463 cents (5.4) 5.236 cents (1.3) Note: 1Q2010 gross revenue decreased marginally due to rental reduction arising from asset disposals (divestments of 32 strata units at 48 Toh Road East). 7

1Q2010 vs 4Q2009 balance sheet 8 S$ 000 31 Mar 2010 31 Dec 2009 (S$millon) (S$millon) Investment Properties 854.5 874.2 Current Assets 60.4 41.2 Total Assets 914.9 915.4 Borrowings (376.9) (375.2) Other Liabilities (21.9) (23.8) Total Liabilities (398.8) (399.0) Net Assets Attributable to Unitholders 516.1 516.4 No. of units issued (in million) 870.1 867.5 NTA Per Unit 59.3 cents 59.55 cents 8

1Q2010 distribution timetable 9 Event Important Dates Distribution Period 1 January 2010 to 31 March 2010 Distribution Rate 1.274 Singapore cents per unit Last Day of Trading on Cum Basis Friday, 23 April 2010 Ex-date Monday, 26 April 2010 Books Closure Date Wednesday, 28 April 2010 Distribution Payment Date Monday, 14 June 2010 9

financial risk management 10 Debt maturity profile: the facility expires Feb 2012 (S$390.1 m syndicated d term loan facility) Interest rates have been swapped from variable to fixed, minimising effects of interest rate fluctuation Debt Profile 31 Mar 2010 Bank LTV secured properties (1) 44.4% Gearing ratio 42.6% All-in cost of debt (2) 5.97% Interest cover ratio (3) Interest cover ratio covenant (4) 3.5 times 2.2 times (1) Loan to value covenant is 55%. There is a covenant at 50% which will trigger the banks right to lock up the cash proceeds. (2) Cost of debt for the quarter includes amortisation of start-up costs. (3) The ratio is tabulated in accordance with the bank facility agreement. (4) There is a covenant at 2.5 times which will trigger the banks right to lockup the cash proceeds. 10

11 portfolio management 21 Ubi Road 1 25 Changi South Avenue 2 (Wan Tai)

competitive advantages 12 Strategic Located Quality Assets Built-in Rental Escalation Stable Income Flow Robust Occupancy Rates Strong Lease Expiry Profile Long Average Lease Term High Level Of Security Deposits Diversified Asset Class & Tenant Trade Low Arrears Ratio

portfolio highlights g 13 31 Mar 2010 31 Dec 2009 30 Sep 2009 Total Portfolio GFA (sq m) 642,956 651,508 656,281 Portfolio Occupancy (%) 99.9 99.8 99.7 Total no. of tenants 79 78 74 Weight Average Lease Expiry (years) Arrears Ratio (%) (against CIT s annualised rent) Average Security Deposits (months) 4.4 4.7 4.9 1.0 0.5 1.4 15.3 15.5 15.7 13

resilient portfolio performance 14 Secured Tenant Base All contracted portfolio leases expiring in 1Q2010 have been renewed or alternative tenants secured, resulting in an increased occupancy rate Diversified Asset Class Base Diversified asset class base, catering to a variety of tenant sector mix, mitigating income risk Rental Income Contribution by Asset Class Base as at 31 March 2010 Self Storage and Warehousing, 2.8% Industrial, 8.0% Industrial & Warehouse, 15.2% Car Showroom and Workshop, 5.3% Logistics & Warehousing, 35.7% Light Industrial, 33.0% 14

resilient portfolio performance 15 Near Full Occupancy Rate Reduction of vacant areas, increasing portfolio occupancy to 99.9% 9% in 1Q2010, (0.1% increase q-o-q from 99.8%), which is 8.0% above the industrial market s average of 91.9% (URA 4Q2009 real estate statistics) Industrial Occupancy Level Comparison 99.9% 9% 8.0% 91.9% Industrial Average CIT 15

resilient portfolio performance 16 Long Average Lease Term and Strong Lease Expiry Profile Aeragelease Average expiring weighted by income is approx. 4.44 years with approx. 6.9% of portfolio rental expiring before 2013 Stable portfolio approx. 1.0% of income due for renewal in FY2010 Lease Expiry Profile as at 31 March 2010 t f Gross Rent % of 16

resilient portfolio performance 17 Organic Portfolio Growth (based on GFA sq ft) 1.8% (1 property) of the portfolio have contracted rent reviews of 5.0% and 2,113 sq m of new and renewed lease transactions have been secured in 1Q2010 Low Current tarrears Ratio Low current arrears at ~ 1.0% of annualised gross rent High Levels of Bank-guaranteed Security Deposits Averaging 15.3 months of rental per tenant to provide buffer / confidence of cashflow 17

18 strategic platform 2 Ubi View (CSE Global Building)

strategic platform 19 Prudent Capital & Risk Management Pro-active Asset Management Divestments & Acquisitions 19

strategic platform 20 Prudent Capital & Risk Management Long term gearing ratio target of approximately 30% to 35%. Retiring debt through divestment proceeds and the implementation of a Distribution Reinvestment Plan. Pro-active Asset Progressing asset enhancement opportunities to Management increase rental income and capital values. Divestments & Acquisitions iti Sale of non-core assets to keep the portfolio contemporary and expand the platform for value accretive acquisitions. 20

21 appendix 45 Changi South Avenue 2 (Techplas Industrial Building)

appendix: resilient portfolio 22 Built-in Portfolio Rental Escalation of ~2.5% pa Contracted leases vary from 1 to 15 years with fixed rental escalations providing a low level of volatility in CIT s cashflow Organic Growth Rental Escalations 22

appendix: resilient portfolio 23 Quality and Diversified Rental Income Base 44.2% of property portfolio from public listed companies (SGX, HKEX, NYSE) or wholly/ majority owned subsidiaries 51.0% of total portfolio rent supported by subtenants rent which provides a second layer of income buffer Top 10 tenants account for 60.7% of total portfolio rent 23

appendix: resilient portfolio 24 Top 10 Tenants as at 31 March 2010 s Revenue % of Gross 24

appendix: diversified portfolio mitigates risk 25 Rental Income Contribution by Tenant Trade-Sector As at 31 March 2010 Manufacturing (37%) Household Products & Gifts, 8.4% Metal Fabrication, Machineries, Building Materials, 10.8% Food, Paper, Textile & Plastic, 7.1% Electronics, 10.6% Construction, Engineering & Services Car Distribution, 5.3% Developer & Construction, 12.6% Services & Others, 0.8% Logistics & Warehousing, 34.4% (29%) Self Storage, 2.8% Marine & Engineering Service, 3.6% Education & Printing, 3.6% Logistics & Warehousing (34%) 25

appendix: trading statistics for 1Q2010 26 26

27 questions? 21 Ubi Road 1 MI Building, 11 Serangoon North Avenue 5

further information 28 Please contact: Mr Chris Calvert Chief Executive Officer chris.calvert@cambridgeitm.com DID: (65) 6827 9330 Ms Bridget Phua Investor & Public Relations Manager bridget.phua@cambridgeitm.com Cambridge Industrial Trust Management Limited 61 Robinson Road, #12-01 Tel: (65) 6222 3339 Robinson Centre Fax: (65) 6827 9339 Singapore 068893 www.cambridgeindustrialtrust.com 28