Business & Light Industrial Warehouse Science Park Retail Facilities Logistics and Hi-Tech Industrial Distribution 3rd Unitholders’ Meeting 30 June 2009 Members of the Panel � Mr David Wong (Chairman, Independent Director) � Ms Chong Siak Ching (Vice Chairman, Non-executive Director) � Mr Benedict Kwek, (Independent Director, Chairman of Audit Committee) � Mr Chia Kim Huat (Independent Director) � Mr Joseph Chen (Independent Director) � Mr Tan Ser Ping (Executive Director, Chief Executive Officer) � Mr John Van Verre (Chief Executive Officer, HSBC Institutional Trust Services (Singapore) Ltd ) � Mr Tan Tuan Hong (Head, Corporate Services & Risk Mgt) � Ms Tan Shu Lin (Head, Capital Markets) � Mr Thomas Teo (Chief Executive Officer, Ascendas Services Pte Ltd) Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited …… ……2 2
Business & Light Industrial Warehouse Science Park Retail Facilities Logistics and Hi-Tech Industrial Distribution OVERVIEW OF A-REIT’s PERFORMANCE FY 2008/09 Agenda • Overview of A-REIT • FY 2008/09 Performance • Capital Management • • Investment Update Investment Update • Portfolio Update • A-REIT’s strengths Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited …… ……4 4
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 89 properties in Singapore comprising: • Baa1 corporate rating • Total Assets of about S$4.5 bn (US$3.20 bn) • Tenant base of about 900 local and international companies Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited ……5 …… 5 A-REIT Structure • Ascendas Funds Management (S) Ltd (AFM) is the Manager of A-REIT • AFM is 100% owned by Ascendas Group, a wholly owned subsidiary of JTC) • Ascendas Group owns approximately 23% in A-REIT Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited …… ……6 6
Organisation Chart Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited …… ……7 7 A-REIT’s Properties • Strategically located along major expressways • Business & Science Park properties and some Hi-tech Industrial properties are in close proximity to CBD • Light Industrial and Hi-tech Industrial properties are primarily centrally located near major housing areas • Logistics and Distribution Centres are located near airport and seaport • Business & Science Park Properties • Light Industrial Properties • Hi-Tech Industrial Properties • Logistics & Distribution Centres • Warehouse Retail Facilities Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited …… ……8 8
A-REIT's strategies Total Predictable income Predictable income Capital stability Capital stability returns Proactive and dedicated Outcome Stability Stability Growth Growth Manager with with proven track Prudent Prudent Proactive Proactive Value-Adding Value-Adding record Strategies Strategies Capital & Risk Capital & Risk Asset Asset Investments Investments Management Management Management Management Fund Manager: Fund Manager: Property Manager: Perfor- Ascendas Funds Ascendas Funds Ascendas mance Management Management Drivers Services Pte Ltd (S) Ltd (S) Ltd Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited …… ……9 Agenda • Overview of A-REIT • FY 2008/09 Performance • Capital Management • • Investment Update Investment Update • Portfolio Update • A-REIT’s strengths Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited …… ……10 10
Key Highlights for FY2008/09 • FY2008/09 net property income of S$296.6 m, increase of 21.8% y-o-y • DPU of 15.18 cents, increase of 7.4% y-o-y • Raised new equity of S$408 million in Jan/Feb 2009 to strengthen balance sheet and fund committed development projects • Secured new loans of S$200m and incorporated S$1 billion Medium Term Note (MTN) program to diversify sources of funding. Have since issued S$150m 2-year notes under the program • 90% of interest rate exposure hedged into fixed rate for next 3.4 years with weighted average all-in funding cost of 3.67% • Balance portfolio of long and short term leases with portfolio weighted lease to expiry of 5.1 years • 14.1% of portfolio gross revenue due for renewal over next 12 months • Completed 3 development projects (S$174.5m) and 2 acquisitions (S$271.8m) Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited ……11 …… 11 FY2008/09 vs FY2007/08 FY2008/09 (1) FY2007/08 (1) (S$’000) % Change Gross revenue 396,534 322,270 23.0% (99,916) (2) (78,780) 26.8% Less: Property operating expenses 296,618 243,490 21.8% Net property income (56,670) (41,222) 37.5% Interest Expense Other borrowing costs (3) (2,815) 685 510.9% Non-property expenses (4) (36,384) (27,973) 30.1% Net income 200,749 174,980 14.7% Available for distribution 210,923 187,269 12.6% Notes: (1) Based on 89 properties as at 31 Mar 2009 and 84 properties as at 31 Mar 2008 (2) Property expenses increased by 27% due to more properties in the portfolio; higher utilities costs and increase in property taxes due to upward revision in annual value of properties (3) Other borrowing costs include amortisation of CMBS establishment and annual maintenance costs, fair value adjustments on deferred payments and refundable security deposits, in accordance to FRS39. FY2007/08 shows a positive figure mainly due to gain on fair value adjustments on security deposits (4) Non-property expenses include manager fee, performance fee, and trust expenses, net of interest income Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited ……12 …… 12
DPU – FY2008/09 vs FY2007/08 (S$’000) FY2008/09 (1) FY2007/08 (1) % Change 200,749 174,980 14.7% Net income 10,174 12,289 17.2% Non tax deductible expenses (2) Available for distribution 210,923 187,269 12.6% 1,683.5 1,683.5 1,325.6 1,325.6 27.0% 27.0% No. of units in issue (mil) No. of units in issue (mil) 15.18 14.13 7.4% Distribution per Unit (cents) 12.53 (3) - n.a. Pro Forma DPU Notes: (1) Based on 89 properties as at 31 Mar 2009 and 84 properties as at 31 Mar 2008 (2) Higher non-deductible expenses in FY2007/08 mainly due to performance fees paid in units, offset with gain on fair value/accretion adjustments per FRS39 as compared to FY2008/09 which included a loss on fair value/accretion adjustment per FRS39 and a write down of fit-out cost which may not be recoverable. Manager fee paid in units and trustee fees are higher in FY2008/09 due to higher Total Assets. Performance fee in FY2008/09 is paid in cash instead of units. (3) Assuming 1,683,473,034 units were in issue for the entire financial year ended 31 March 2009 Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited …… ……13 13 Distribution since IPO - 74.24 cents per unit 15.18 250.0 16.00 le for Distribution (S$m) 14.13 14.00 12.75 200.0 11.68 n per Unit (cents) 12.00 9.56 10.00 150.0 8.16 7.63 * 8.00 Net Income Available Distribution 210.9 100.0 187.3 6.00 163.8 142.6 4.00 50.0 84.2 2.00 45.5 15.2 0.0 0.00 FY2002/03 FY2003/04 FY2004/05 FY2005/06 FY2006/07 FY2007/08 FY2008/09 Net Income available for distirbution ($m) Distribution per Unit ("DPU") (cents) * Based on annualised DPU of 2.78 cents for the 133 days ended 31 Mar 03 Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited …… ……14 14
Sources of NPI Growth Organic growth contributed to 39.3% of NPI growth of 21.8% Investments Organic Growth made in (rental & occupancy FY2008/09, rate growth, asset rate growth, asset 30.7% 30.7% enhancements, etc), 39.3% Investments made in FY2007/08*, 30.0% * Investments made in FY2007/08 contributing full year NPI impact in FY2008/09 Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited ……15 …… 15 Agenda • Overview of A-REIT • FY 2008/09 Performance • Capital Management • • Investment Update Investment Update • Portfolio Update • A-REIT’s strengths Managed by Ascendas Funds Management (S) Limited Managed by Ascendas Funds Management (S) Limited …… ……16 16
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