Results Presentation for Year Ended 31 March 2004 15 April 2004
This Presentation is focused on comparing actual results versus forecasts outlined in the A-REIT Prospectus of 5 November 2002. This shall be read in conjunction with A-REIT’s Full Year Financial Statement for period from 1 April 2003 to 31 March 2004 in the Masnet announcement. 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 current view of management on future events. 2
Agenda • Financial Highlights • FY 2003/2004 In Review • Portfolio Update • Capital Management • Strategy Going Forward
Key Highlights Financial Highlights FY03/04 As at 31 Mar 03 As at 31 Mar 04 In Review Portfolio Update Capital Management Total Assets S$636.4 m S$1.0 b Strategy Going Forward Closing Price S$0.815 S$1.27 Market Capitalisation S$444.2 m S$898.2 m Gearing 19.6% 25.8%
Distributable Income Per Unit – 13% above forecast Financial For year ended 31 March 2004 Highlights S$’000 FY03/04 In Review Forecast (1) Portfolio Actual % Change Update Capital 65,914 63,652 + 4 Gross revenue Management Strategy Going Property operating expenses (15,604) (18,896) (17) Forward Net property income 50,310 44,756 + 12 Non-property expenses (9,719) (7,446) + 31 Net profit 40,591 37,310 + 9 Available for distribution 45,536 39,520 + 15 Distribution per unit 8.16 7.24 + 13 Note: (1) The forecast for the period from 1 April 2003 to 31 March 2004 as stated in the prospectus dated 5 November 2002. Source: A-REIT unaudited Financial Statements for the year ended 31 March 2004 5
A-REIT’s distributable income per unit above forecast by 13% FY ended 31 Mar 04 Financial Actual Forecast Highlights Distributable Income FY03/04 13.0 % In Review (cents) Portfolio 9 Update 8.16 Capital 8 Management 7.24 Strategy 7 Going Forward 6 5 14.0% 14.0% 17.0% 6.0% 4 3 2.08 2.12 1.97 1.99 1.88 1.82 1.81 1.73 2 1 0 1 Apr to 30 Jun 03 1 Jul to 30 Sep 03 1 Oct to 31 Dec 03 1 Jan to 31 Mar 04 For year ended 31 Mar 04 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Full year Source: Ascendas-MGM Funds Management Limited for year ended 31 March 2004 6
Financial Highlights • Distributable income S$45,536k Financial Highlights FY03/04 Represents distribution per Unit (DPU) 8.16 cents In Review Portfolio (for year ending 31 March 2004) Update Capital Management Strategy Going • Annualised trading yield 9.3% Forward (based on IPO price of S$0.88 per unit) • Annualised trading yield 6.4% (based on closing price of S$1.27 per unit on 31 March 2004) 7
Balance Sheet Actual as at Actual as at Financial 31 March 2003 31 March 2004 % Change Highlights FY03/04 S$’000 S$’000 In Review Portfolio Update Current Assets 28,829 24,281 Capital Management Strategy Property Portfolio 607,540 996,431* Going Forward Total Assets 636,369 1,020,712 + 60.4 External Borrowings 125,000 263,800 Other Liabilities 13,209 65,262 Unitholders’ 498,160 691,650 + 38.8 Equity * Includes the valuations of the 11 properties as at 31 Dec 2003 valued by Jones Lang LaSalle at S$698.4m plus total acquisition costs of the 5 properties purchased in Feb/Mar 2004. Source: A-REIT unaudited Financial Statements for the year ended 31 March 2004 8
Balance Sheet Strength Actual Actual Financial Highlights As at 31 March 2003 As at 31 March 2004 FY03/04 S$’000 S$’000 In Review Portfolio Update Adjusted net asset Capital Management value per unit (NAV) 0.89 0.95 Strategy Going (cents) Forward Total Property (%) to 95.5 97.6 Total Assets Total Equity (%) 78.3 67.8 Gearing (%) 19.6 25.8 Source: A-REIT unaudited Financial Statements for the year ended 31 March 2004 9
Agenda • Financial Highlights • FY2003/2004 In Review • Portfolio Update • Capital Management • Strategy Going Forward 10
Equity Raising Outcome Equity Fund Raising Preferential Offering Financial Highlights • 82,006,076 New Units FY03/04 70.9 million In Review • Available to Singapore Portfolio 160.5 million Registered Unitholders New Units Update • Entitlement of 3 New Units for Capital accepted New Units Management every 20 existing Units held Strategy Going • Non-renounceable Forward in A-REIT Private Placement 10 times • 62,443,924 New Units subscribed • Available to Retail and • Underwritten by Institutional Unitholders Citigroup, DBS and JPMorgan ATM Offering • units listed on SGX on 4 8.5 times March 2004 • 16,050,000 New Units subscribed • Available to Singapore Retail Unitholders • Balloting basis
Market Capitalisation Financial Highlights + 42.8% S$m FY03/04 In Review 1,000 898.2 + 9.68% Portfolio Update 900 + 10.5% Capital 800 Management + 16.7% Strategy 700 628.7 Going Forward 573.2 600 518.6 500 444.2 400 300 200 1-Mar-03 1-Jun-03 1-Sep-03 1-Dec-03 1-Mar-04 30 Jun 2003 31 Dec 2003 31 Mar 2004 31 Mar 2003 30 Sep 2003 545.9 million units at 545.9 million units at 546.7 million units at 707.2 million units at 545.0 million units at S$1.15 S$1.27 S$0.82 S$0.95 S$1.05 Source: Ascendas-MGM Funds Management Limited as at 31 March 2004
DPU Growth • Increased earnings and distributions Financial Highlights FY03/04 In Review Cents 2003 Actual DPU (1) FY2004 Actual DPU FY2005 Forecast DPU Portfolio 10 Update + 6.9% + 8.6% 8.86 Capital Management 8.16 Strategy 7.63 Going 8 Forward 6 4 2 0 2002/03 2003/04 2004/05 Note: (1) 2003 Actual DPU is annualised. The actual DPU was 2.78 cents for the 133 days ended 31 March 2003 Souce: Ascendas-MGM Funds Management Limited
Capital Growth • A-REIT has demonstrated an ability to deliver DPU growth, which Financial has driven capital growth Highlights FY03/04 In Review Unit price performance FY2003/4 Portfolio S$ Update + 54.9% Capital S$1.27 1.30 Management Strategy S$1.15 Going Forward S$1.05 1.10 S$0.95 0.90 S$0.82 0.70 0.50 1-Mar-03 1-Jun-03 1-Sep-03 1-Dec-03 1-Mar-04 31 Mar 2003 30 Jun 2003 30 Sep 2003 31 Dec 2003 31 Mar 2004 Source: Ascendas-MGM Funds Management Limited as at 31 March 2004
Delivering Total Return of 64.8% Financial Highlights FY03/04 For the year ended 31 Mar 2004 In Review Portfolio Update Capital Management Strategy Yield 9.9% (1) Going Forward Capital Appreciation 54.9% Total Return 64.8% (1) Based on DPU of 8.16 cents and unit price of $0.82 on 1 Apr 2003
A-REIT Unit Price and Volume Financial Highlights 1.30 60 FY03/04 In Review 1.27 Portfolio 1.22 Update 1.21 1.20 50 Capital Management 1.15 Strategy Going Forward 1.10 40 1.05 Volume (million) 1.03 Unit Price $ 1.05 1.01 1.00 30 0.97 0.95 0.90 20 0.83 0.82 0.80 10 0.70 0 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04
External Factors Recent budget announcement 2004: Financial Highlights • Corporate tax reduction to 20% FY03/04 In Review • Tax exemption for individual unitholders Portfolio Update Capital • Further enhances A-REIT as an attractive investment vehicle Management Strategy Going Forward Inclusion in indices: • A-REIT was included in FTSE Global Small Cap Asia Pacific Ex Japan Index Series for meeting the FTSE hallmarks • A-REIT was included in EPRA/NAREIT Global Real Estate Index which is adopted by worldwide investment community Others: • Standard & Poor’s picked A-REIT as one of the four Singapore stocks for its “PowerPicks” 2004 Portfolio 17
Agenda • Financial Highlights • FY2003/2004 In Review • Portfolio Update • Capital Management • Strategy Going Forward
FY 2003/4 Acquisitions Purchase Acquisition Rental Escalation Price $m Yield % Financial Highlights 20.6% @ year 2 FY03/04 OSIM Building 35.0 9.28%* 3.60% @ year 3 In Review Portfolio 2.25% pa thereafter Update Capital Ultro Building 18.0 8.91% 2.5% pa Management Strategy Going Ghim Li Building 13.5 8.85% 9% every 3 years Forward 3 yearly market reviews with IDS Logistics 50.0 8.27% ratchet clause TT International 92.0 7.87%* 2.5% pa Trivec Building 32.0 8.35% Multi-tenanted CILC 45.6 8.54% Multi-tenanted Year 3-8 : 3% every 2 years Siemens Center 65.8 8.26%* Year 9-15 : 1.5% pa TOTAL 351.9 8.35% * Adjusted for deferred settlements
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