Members of the Panel Mr David Wong, Chairman and Independent - PDF document

Unitholders’ Meeting 30 June 2008 Members of the Panel � Mr David Wong, Chairman and Independent Director � Ms Chong Siak Ching, Deputy Chairman � Mr Swee Kee Siong, Non-executive Director � Mr Chia Kim Huat, Independent Director � Mr Joseph Chen, Independent Director � Mr Tan Ser Ping, Executive Director and Chief Executive Officer � Mr Arjun Bambawale, Chief Executive Officer, HSBC Institutional Trust Services (Singapore) Limited (Representative of Trustee) � Mr Thomas Teo, Chief Executive, Ascendas Services Pte Ltd (Representative of Property Manager) A-REIT FY2007/08 Unitholders’ Meeting.. 2

Agenda • Overview of A-REIT • FY2007/08 Performance • Investment Update • Portfolio Update • A-REIT’s Strengths • Resolution A-REIT FY2007/08 Unitholders’ Meeting.. 3 Overview of Ascendas Real Estate Investment Trust • First and largest business space and industrial REIT listed on the Singapore Exchange • Has a diversified portfolio of 85 properties comprising: • A3 corporate rating by Moody’s (equivalent to A- by other rating agencies) • Total Assets of about S$4.2 bn (US$3.11 bn) • Tenant base of over 790 local and international companies A-REIT FY2007/08 Unitholders’ Meeting.. 4

A-REIT Structure • AFM & ASPL are 100% subsidiary of Ascendas A-REIT FY2007/08 Unitholders’ Meeting.. 5 Exit of Goodman Group • On 26 March 08, Ascendas acquired Goodman Group’s 40% stake in Ascendas Funds Mgt (S) Ltd, making it a 100% subsidiary. • Ascendas also acquired Goodman Group’s 6.3% stake in A-REIT, taking its total holding to 26.77%. A-REIT FY2007/08 Unitholders’ Meeting.. 6

Agenda • Overview of A-REIT • FY2007/08 Performance • Investment Update • Portfolio Update • A-REIT’s Strengths • Resolution A-REIT FY2007/08 Unitholders’ Meeting.. 7 FY 2007/08: Key Highlights • FY2007/08 net income available for distribution of $187.3 million, up 14% yoy • FY2007/08 DPU of 14.13 cents, up 10.8% yoy • Portfolio occupancy 98.4% at 31 March 2008 vs 96.6% at 31 Mar 2007. MTB occupancy was 96.4% vs 93.7% at 31 Mar 2007 • Completed investment in acquisitions and development of approx $299m in FY2007/08. Investments pending completion is about $334m • Completed third development project, HansaPoint@CBP with 100% occupancy and revaluation gain of 166% (S$43.2m) over total development cost • Asset values increased by $494m following recent revaluation exercise. Total assets increased from $3.3bn to $4.2bn as at 31 Mar 2008. NAV per unit increased to $1.84 • Aggregate Leverage at 38.2% as at 31 Mar 08 A-REIT FY2007/08 Unitholders’ Meeting.. 8

DPU – FY2007/08 vs FY2006/07 (S$’000) FY2007/08 (1) FY2006/07 (1) % Change Gross revenue 322,270 283,007 14 Less: Property operating (78,780) (72,660) 8 expenses 243,490 210,347 16 Net property income Borrowing costs (2) (42,394) (34,999) 21 FRS 39 F.V. Adjustments (3) 1,858 (3,778) nm (27,973) (23,188) 21 Non-property expenses Net income 174,981 148,382 18 187,269 163,824 14 Available for distribution Distribution per unit 14.13 12.75 11 Notes: (1) Based on 84 properties as at 31 Mar 2008 and 77 properties as at 31 Mar 2007 (2) Borrowing costs include margins and weighted swap rates for hedged debt, amortisation of CMBS’ establishment and annual maintenance costs and current floating rates on unhedged debt (3) Fair value adjustments for deferred payments and refundable security deposits. A-REIT FY2007/08 Unitholders’ Meeting.. 9 Continued Growth since IPO - Gross Revenue & NPI Net Property Income Gross Revenue $'m $'m 70 90 80 60 70 50 60 40 50 30 40 30 20 20 10 10 0 0 4Q FY03 1Q FY04 2Q FY04 3Q FY04 4Q FY04 1Q FY05 2Q FY05 3Q FY05 4Q FY05 1Q FY06 2Q FY06 3Q FY06 4Q FY06 1Q FY07 2Q FY07 3Q FY07 4Q FY07 1Q FY08 2Q FY08 3Q FY08 4Q FY08 4Q FY03 1Q FY04 2Q FY04 3Q FY04 4Q FY04 1Q FY05 2Q FY05 3Q FY05 4Q FY05 1Q FY06 2Q FY06 3Q FY06 4Q FY06 1Q FY07 2Q FY07 3Q FY07 4Q FY07 1Q FY08 2Q FY08 3Q FY08 4Q FY08 A-REIT FY2007/08 Unitholders’ Meeting.. 10

Continued DPU Growth since IPO 1,326 16 1,322 1400.0 1,280 1,163 14 1200.0 12 1000.0 Units in Issue (mil) 10 S$cents 800.0 709 8 545 14.13 600.0 12.75 6 11.68 9.56 400.0 8.16 4 7.63 200.0 2 0 0.0 FY 2002/03 FY 2003/04 FY 2004/05 FY 2005/06 FY 2006/07 FY 2007/08 DPU (Cents) Units in Issue('m) Notes: (1) FY2003 Actual DPU is annualised. The actual DPU was 2.78 cents for the 133 days ended 31 March 2003. A-REIT FY2007/08 Unitholders’ Meeting.. 11 S-REITs yield vs 10-year govt bond S-REITs yield range from low of 4.5*% to high of 9.8% 8.0% 8.0% Weighted Avg: 6.0% 6.0% 6.1% 630 bps spread 280 bps 9.8% spread 100 bps 4.0% 4.0% spread 6.3% 4.5% 2.0% 2.0% 3.5% 3.5% 3.5% 0.0% 0.0% S-REIT High A-REIT S-REIT Low Yield (LHS) 10-year bond yield (RHS) Weighted average S-REITs' yield Source: IBES Estimates, Bloomberg as of 27 June 08 A-REIT FY2007/08 Unitholders’ Meeting.. 12

Balance sheet (S$bn) As at 31 Mar 08 As at 31 Mar 07 Total Assets 4.2 3.3 Borrowings 1.6 1.2 2.4 2.0 Net assets attributable to unitholders 38.2% 37.3% Aggregate Leverage 184 cents 149 cents Net asset value per unit Available debt capacity of more than $500m to fund near term acquisition and development activities before optimal gearing of 45% is reached A-REIT FY2007/08 Unitholders’ Meeting.. 13 Capital Structure Debt Profile 31 Mar 2008 31 Mar 2007 Aggregate leverage (1) 38.2% 37.3% Total debt S$1.562m S$1,185m • Fixed rate debt S$1,131m S$990.7m 72.4% (2) Fixed as a % of total debt 83.6% Weighted average all-up funding cost (3) 3.10% 3.37% Weighted average term for fixed debt 3.8 yrs 3.6 yrs Interest cover ratio 5.12 times 6.58 times Notes: (1) Aggregate leverage includes deferred settlements of about $45m (2) 88% of interest rate has been fixed as at 31 May 08. (2) Including margins and weighted swap rates for hedged debt, amortisation of CMBS’ establishment and annual maintenance costs and current floating rates on unhedged debt A-REIT FY2007/08 Unitholders’ Meeting.. 14

Capital Structure Debt Maturity Profile as at 31 Mar 08 450 395.0 400 350.0 350 300.0 279.0 300 S$ Million 238.4 250 200 150 100 50 - ShortTerm 1H FY09/10 2H FY09/10 1H FY2012/13 1H FY2014/15 Maturity RCF CMBS1 TLF CMBS2 CMBS3 A-REIT FY2007/08 Unitholders’ Meeting.. 15 Agenda • Overview of A-REIT • FY2007/08 Performance • Investment Update • Portfolio Update • A-REIT’s Strengths • Resolution A-REIT FY2007/08 Unitholders’ Meeting.. 16

Portfolio Growth since IPO 4 ,500 90 84 77 4 ,000 80 3 ,500 64 70 Number of properties 3 ,000 60 Total asset ($m) 2 ,500 50 $4, 205. 1 36 2 ,000 40 $3, 307. 0 1 ,500 30 $2, 807.5 16 $2, 114. 4 1 ,000 20 8 $1, 020. 7 500 10 $636 .4 0 0 Ma r-03 Ma r-0 4 M ar-0 5 Ma r-06 Ma r-07 Ma r-0 8 For FY ending Total A sset (S $'m ) Nu mb er of P ro perties A-REIT FY2007/08 Unitholders’ Meeting.. 17 Investment highlights Acquisitions: Value (S$m) SENKEE Logistics Hub Phase II 62.9 1 Senoko Avenue 11.2 Goldin Logistics Hub 22.5 Acer Building 75.0 Sim Siang Choon Building 31.9 Rutherford/Science Hub 51.5 CGGVeritas Hub 18.3 8 Loyang Way 1 25.0 Total - Investment in Acquisitions 298.3 A-REIT FY2007/08 Unitholders’ Meeting.. 18

Investment highlights Development projects: Value Expected Expected (S$m) Commencement Completion Date Date HansaPoint@CBP (1) 26.1 Completed Plot 7 & 8 Changi LogisPark 32 Started 3Q FY2008/09 (Partial Built to Suit Facility for Zuellig Pharma) Pioneer Hub 86 Started 2/3Q FY2008/09 (Ramp-Up Industrial Facility at Pioneer Walk) Plaza8 61 Started 4Q FY2008/09 (Changi Business Park Build-to-Suit Phase 1) Plaza8 Amenity Centre 28 (2) 2Q FY 2008/09 3Q FY2009/10 Plaza8 MTB 63 (2) 1Q FY 2008/09 3Q FY2009/10 Plaza8 Build-to-Suit Phase 2 39 (2) 4Q FY 2008/09 3Q FY2010/11 Total - Investment in Developments 335.1 (1) Actual development cost of S$26.1m is lower than S$28.6m announced at start of project. This property was revalued at $69.3m on 31 March 2008 (2) Estimated development cost A-REIT FY2007/08 Unitholders’ Meeting.. 19 Development projects: Updates HansaPoint@CBP • Completed A-REIT’s third development project, HansaPoint@CBP, in January 2008 with 100% pre-committed occupancy and within budget • Recorded a 166% ($43.2 million) appreciation during revaluation exercise Dec 06 - Site cleared for construction Jan 08 – Completed with 100% pre- commitment Oct 07 – Construction on schedule Dec 07 - On target for completion A-REIT FY2007/08 Unitholders’ Meeting.. 20