ARA LOGOS Logistics Trust...4 Singapore Australia 10 1 9 2 5 Adelaide Melbourne Sydney Brisbane ARA...
Transcript of ARA LOGOS Logistics Trust...4 Singapore Australia 10 1 9 2 5 Adelaide Melbourne Sydney Brisbane ARA...
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ARA LOGOS
Logistics Trust
12th Credit Suisse ASEAN
Conference Presentation
8 January 2021
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2
Agenda
2 Acquisition Update
1 ALOG Overview
5 Additional Information
4 Financials Snapshot & Portfolio Update
3 3Q FY20 Key Highlights
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41 – 51 Mills Road, Braeside, Victoria, AUS
ALOG Overview
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Singapore
Australia
10
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Adelaide
Melbourne
Sydney
Brisbane
ARA LOGOS Logistics TrustBacked by ARA and Strong Sponsor, LOGOS
Notes:
(1) Name change effective 28 April 2020.
(2) As at 30 September 2020.
ARA LOGOS Logistics Trust, “ALOG”,
(previously Cache Logistics Trust (1)) is
a leading Asian logistics REIT with a
S$1.26 billion(2) portfolio across
Singapore and Australia.
Listed on the SGX, ALOG invests in
quality income-producing real estate
used for logistics purposes and real
estate-related assets in APAC.
Supported by:
◼ ARA – One of Asia’s leading APAC real assets fund manager with a global reach; and
◼ LOGOS – ALOG’s Sponsor and a leading owner, developer and manager of logistics property across APAC
Portfolio Statistics
27 Properties across Singapore and Australia
9.0 mil sf GFA
S$1.26 bil in property value
WALE of 2.6 years by NLA
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Vision & StrategyProvide High Quality, Best-in-Class Logistics Real EstateSolutions to Our Customers
Asset
Management
Acquisitions
Focused
Development
Environmental,
Social, and
Governance
(ESG)
OUR MISSION:
Long-term sustainable growth in DPU and NAV per unit to Unitholders
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Strong SponsorshipCementing Position for a Transformative Growth Outlook
Alignment of Interest with Unitholders
Leverage on Collective Expertise,
Resources and Relationships
Access to LOGOS Integrated
Development Platform
Leverage on LOGOS Expansive
Network
Demonstrates Strong
Commitment from ARA and LOGOS
Access New Growth Markets, Expansion and Development Opportunities
Providing Asset, Investment and Development
Expertise
Access to LOGOS’ Strong APAC Network and
Pipeline Opportunities to
Drive Future Growth
Strong Global Partner and Investor Network
Leading APAC Real Assets Fund Manager
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50.0
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S$110bilS$bil
ARA OverviewLeading APAC Real Assets Fund Manager with Global Reach
Notes:
(1) Includes assets under management by ARA Asset Management Limited and the Group of companies (“ARA Group”) and its Associates as at 30 June 2020.
with robust track record
S$110 billion1Gross Assets Managed by ARA Group and its Associates
Strong track recordReal Estate Investment Trusts (REITs)
Private Real Estate Funds
Infrastructure
Country Desks
Real Estate Management Services
Experienced management >25 years of experience on average
Investor-operator modelVertically-integrated investment, asset and property management to
add value to every stage of the asset life cycle
2002Founded in 2002 with a strong APAC focus
Co-founded by Group CEO, John Lim with CK Asset Holdings
Global network, local expertiseHeadquartered in Singapore with 9 offices worldwide, present in
>100 cities in 28 countries
Real estate ecosystem enabled by
technologyMulti-platform, multi-product global fund management business
complemented by forward-looking real estate technology strategy
Robust ESG An integral part of the business, with strong CG practices to
meet fiduciary needs of institutional investors
Consistent, disciplined business expansion and
launch of new products….
John Lim and CK Asset Holdings founded ARA
First fund manager to be listed on SGX
Consortium comprising John Lim, CK Asset Holdings, The Straits Trading Company, Warburg Pincus and AVIC Trust privatised ARA at ~S$1.8 billion
2018-
20202017
2007
2002
Expanding global
reach with Japan,
Europe and US
desks and
establishing
logistics,
infrastructure, real
estate credit and
real estate fintech
platforms
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LOGOS OverviewLeading Logistics Developer and Real Estate Specialist in APAC
All data as of 30 September 2020.
Strong Regional Presence Vertically Integrated Platform with a Wide Offering
Sovereign Wealth Fund
Australian Pension Fund
Summary of Key Capital Partners
South East AsiaGLA: 1.9mil sqm
AUM: US$3.3bil
Assets: 24
ChinaGLA: 1.9mil sqm
AUM: US$2.5bil
Assets: 20
Australia and
New Zealand GLA: 2.3mil sqm
AUM: US$3.8bil
Assets: 58
IndiaGLA: 0.7mil sqm
AUM: US$0.6bil
Assets: 5
Transaction
sourcing
Development
Leasing
Asset
Management
Divestment
• 2.8mil sqm of space leased to clients including Toll, DHL, Linfox, Alibaba,
REC and Kerry Logistics
• Strong regional relationships with key logistic and warehouse occupiers
• US$10.2bil completed AUM in existing ventures
• Trusted manager with high quality institutional partners
• Value add delivered via strategic acquisitions and active asset
management
• 18%-35% p.a. delivered IRR on A$1.8bil+ divestments of portfolios in
Australia and China
• >US$2.7bil of development commencements in last 12 months
• 6.7mil sqm of logistics real estate owned and under development in
LOGOS ventures
• US$1.0bil transacted in industrial and commercial real estate across the
Group in last 12 months
• Proven track record with access to off market deal flow
Key Tenant Customers
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51 Musgrave Road, Coopers Plains, Queensland, AUS
Acquisition Update
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Oct 2020
Apr 2020
Mar 2020
Announcement of
maiden acquisition
Completion of
ARA’s acquisition
of a majority stake
in LOGOS
Cache Logistics
Trust rebranded as
ARA LOGOS
Logistics Trust
Disciplined execution of ALOG’s Portfolio Rebalancing
and Growth Strategy
Maiden acquisition approximately6 months after its rebranding as ARA LOGOS Logistics Trust in
Apr 2020
Demonstration of symbiotic and beneficial relationship with LOGOS
Increasing strategic presence in a key market
for ALOG
Clear growth trajectory with LOGOS as a strong integrated logistics real estate Sponsor
Ability to leverage on LOGOS’ network for pipeline opportunities
for a clear growth trajectory
ALOG can confidently grow its strategic presence in Australia by leveraging on LOGOS’ integrated
logistics real estate platform
Maiden Acquisition Since Rebranding as ARA LOGOS Logistics Trust
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Key Benefits to Unitholders
Allows ALOG to Ride on
E-commerce Growth and Robust
Demand for Cold Storage Space
Addition of High Quality Prime
Logistics Properties Underpinned
by Reputable Tenants
Deepens ALOG’s Footprints in a
Key Strategic Logistics Market
Complements and Strengthens the
Resilience of ALOG’s Existing
Portfolio
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Portfolio TransformationProposed Acquisitions and Fund Investments
Transaction
overview
▪ S$404.4m(1) proposed acquisition by ARA LOGOS Logistics Trust
(“ALOG”) consisting of:
i. S$225.9m(2) in respect of five logistics properties in Australia
including a development asset (“Heron”(3)) (“New Australia
Properties”); and
ii. S$178.5m(4) in respect of a 49.5% interest in New LAIVS Trust
(“New LAIVS Fund”) and 40.0% interest in Oxford Property
Fund (“OP Fund”);
collectively the “Proposed Acquisitions and Fund Investments”
▪ The New LAIVS Fund has a portfolio of four logistics properties in
Australia and the OP Fund holds one logistic property in Australia
(collectively, the “Australia Fund Properties”, and together with
the New Australia Properties, the “New Property and Fund
Portfolio”)
▪ Investments in the New LAIVS Fund and the OP Fund would be
classified as an investment in real estate-related assets under
Appendix 6 of the Code on Collective Investment Schemes issued
by the Monetary Authority of Singapore (“MAS”) (the “Property
Funds Appendix”)
Key
highlights(5)▪ 28.2% increase in deposited property value to S$1.7bn(6)
▪ The share of portfolio value attributable to assets based in Australia
increases from 32.5% to 47.6%
▪ Increase in WALE (by NLA) from 2.8 to 4.6(7) years
Proposed Acquisitions and Fund Investments
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Properties• 10 SG assets
• 17 AU assets
• Deposited
property value
of S$1.3bn
40.0%
investment in OP
Fund which holds 1
AU property
New Australia
Properties
5 AU properties(3)
49.5%
investment in New
LAIVS Fund, which
holds 4 AU
properties
Total deposited property value
of S$1.7bn(5)(6)Note: SGD/AUD of 1.0225 (as of 30 September 2020) used for illustrative purposes.
(1) Aggregate Consideration which includes 100% of the purchase consideration in respect of Heron, or S$345.8m if based on 5% down payment for Heron.
(2) The New Australia Properties Purchase Price will be net of outstanding tenant incentives reimbursed by LP Seller. In other words, the amount of tenant incentives will be deducted from the
consideration payable for the New Australia Properties.
(3) ALOG has made 5% down payment in respect of Heron, and will complete the acquisition of the Heron Property within three months after initial practical completion, which is currently expected to be in
November 2021.
(4) The Fund Investment Amount will be net of outstanding tenant incentives reimbursed by Fund Vendors. In other words, the amount of tenant incentives will be deducted from the consideration payable
for the Fund Investment Amount.
(5) Pro forma basis as at 30 June 2020.
(6) Pro forma deposited property value includes 49.5% interest in New LAIVS Fund, 40.0% interest in OP Fund and 100% interest in the New Australia Properties save in respect of Heron, for which
only 5% down payment has been included.
(7) Includes 100% interest in Heron, and excludes Australia Fund Properties.
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SingaporeDeposited property value:
S$873.7m
10Existing
Assets
Asset acquisition
Held by New LAIVS Fund
Held by OP Fund
5 New Brisbane (QLD) Assets
1-5 & 2-6 Bishop
Drive, Port of
Brisbane
53 Peregrine Drive,
Port of Brisbane
8 Curlew Street,
Port of Brisbane
47 Logistics Place,
Larapinta
3 New Melbourne (VIC) Assets
34-58 Marshall
Court, Altona
1 Hume Road,
Laverton North
27-43 Toll Drive,
Altona North
2 New Sydney (NSW) Assets
11-14 John
Morphett Place,
Erskine Park
69 Sargents Road,
MinchinburyQueensland
New South
Wales
Victoria
AustraliaDeposited property value:
S$785.3m
17Existing
Assets
5New
Australia
Properties
Brisbane5 Existing
5 New
Sydney2 Existing
2 New
Melbourne9 Existing
3 New
Adelaide1 Existing
5Australia
Fund
Properties
Corner Heron Drive and
Curlew Street,
Port of Brisbane(1)
Note:
(1) Development asset with initial practical completion currently expected to be in November 2021.
Enlarged PortfolioMore Balanced Exposure to SG and AU
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Note: Based on the exchange rate of S$1.00 = A$1.0225 (as of 30 September 2020) used for illustrative purposes only.
(1) Includes 100% interest in the New Australia Properties (save in respect of the Heron Property, for which only the deposit amounting to 5% of the purchase price was included), 49.5%
interest in New LAIVS Fund and 40.0% interest in OP Fund.
(2) Includes New Australia Properties (including 100% interest in the Heron Property), and excludes Australia Fund Properties. Pro forma WALE does not include rental top-up or guarantees.
(3) Rounded to nearest whole number.
(4) Includes New Australia Properties and excludes Australia Fund Properties.
2.8
4.6
As at 30 June 2020 Pro forma as at 30 June 2020
52.4%47.6%
67.5%32.5%
S$1.6bnPortfolioValue
S$1.3bnPortfolioValue
As at 30 June 2020
Pro forma as at 30 June 2020
Deposited property value (S$m)
Catalyst for ALOG’s re-rating to support ALOG’s long-term growth plans
Geographical diversification Increased weighted average ground lease tenor (by NLA)
Increased portfolio WALE (by NLA) (years)
As at 30 June 2020 Pre-acquisition(3) Post-acquisition(3)(4)
Total NLA 811,695 sqm 1,040,762 sqm
- Freehold 334,600 sqm 342,304 sqm
- Leasehold 477,095 sqm 698,458 sqm
Weighted average
ground lease tenor (by
NLA) attributable to
leasehold assets as at 30
June 2020
24 years 29 years
(2)
1,2951,659
Deposited property value(as at 30 June 2020)
Pro forma deposited property value(as at 30 June 2020)(1)
Enlarged PortfolioWell-Positioned for Next Stage of Growth
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Industrial & Consumer Goods
72%
Food & Cold Storage
15%
Healthcare3%
Aerospace2%
Automotive2%
Information Technology
1%
Materials, Engineering, Construction
1%
E-Commerce2%
Others2%
Industrial & Consumer Goods
62%
Food & Cold Storage
13%
Healthcare3%
Aerospace1%
Automotive2%
Information Technology
1%
Materials, Engineering, Construction
1%
E-Commerce2%
Others1%
Transport & Shipping
14%
# Tenant % of GRI Credit Standing
1DHL Supply
Chain12.1%
▪ Credit rating BBB+ / A3
▪ Blue-chip logistics company
2 CWT 6.7% ▪ Global logistics company
3 ACFS 6.2%▪ AU’s largest privately-owned
container logistics operator
4 IPS Logistics 6.1%▪ One of AU’s leading logistics
operators since 1997
5 Schenker 5.1%▪ Credit rating AA- / Aa1
▪ Blue-chip logistics company
6 Metcash 4.4%▪ AU’s leading wholesale
supermarket operator
7 FedEx 4.0%▪ Credit rating BBB / Baa2
▪ Blue-chip logistics company
8
McPhee
Distribution
Services
3.9%▪ Warehouse operator in AU with
94 year operating history
9 ST Synthesis 3.3%▪ Credit rating AAA / Aaa
▪ SG SOE engineering company
10 Penske 3.0%▪ End-to-end logistics provider,
part of Penske Corporation
Top 10 tenants as at 30 June 2020 on pro forma basisTenant industry sectors (by GRI) as at 30 June 2020
70 tenants
74 tenants
As at 30 June 2020
Pro forma as at 30 June 2020
Note: ACFS and IPS Logistics are new additions to ALOG’s top 10 tenants as at 30 June 2020 on pro forma basis. Credit ratings denoted in the following order: S&P / Moody’s.
Addition of “Transport & Shipping” tenant industry sector
Enlarged PortfolioWell-Diversified and Quality Tenant Base
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Key Takeaways
Maiden acquisition since rebranding as ARA LOGOS Logistics Trust
Deepens strategic presence in Australia’s attractive logistics market
New Property and Fund Portfolio comprises prime assets located in
critical economic hubs
Good quality portfolio underpinned by reputable tenants
Strong support from LOGOS through its participation in the Equity
Fund Raising
Transformational acquisition to propel ALOG into the next stage of
growth
Deepen presence in the defensive cold storage sector
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Ordinary
Resolutions Resolution 1: The LP Property Acquisition, as an interested person transaction;
Resolution 2: The Proposed Larapinta Property Acquisition and Fund Investments, as interested person
transactions;
Resolution 3: The Proposed Ivanhoé Issuance and Proposed LOGOS Issuance, pursuant to Rule 812 of
the Listing Manual;
Resolution 4: The potential transfer of a controlling interest to LOGOS Property Group Limited as a result of
the Proposed LOGOS Issuance and the Preferential Offering, pursuant to Rule 803 of the Listing Manual;
Resolution 5: The proposed issuance of New Units under the Equity Fund Raising;
Resolution 6: The proposed general mandate for the issuance of New Units and/or convertible securities.
Outcome of EGM Resolutions
Unitholders have voted in favour for ALL resolutions
✓
✓
✓
✓
✓
✓
Inte
r-conditio
nal
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ALOG Changi DistriCentre 1, Singapore
3Q FY20 Key Highlights
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3Q FY20 Key HighlightsResilient Portfolio Underpinned by Strong Fundamentals
Notes:
(1) Out of the S$2.5 mil distributable income retained in 1Q FY20, S$1.5 mil of the retained distributable income in total has been released to Unitholders YTD.
(2) Based on 1,092,786,817 Units issued and to be issued as at 30 Sep 20. NAV Per Unit is computed based on the net assets attributable to Unitholders.
(3) ICR is computed based on trailing 12-month period ending on 30 Sep 2020. Includes margin and amortisation of capitalised upfront fee, excluding non-recurring finance expenses and upfront fees written-off.
(4) Excludes unamortised transaction costs.
Portfolio Update
Strong Portfolio Occupancy
97.0% committed
WALE (by NLA)
2.6 years
Significant Leases Secured
~ 1.5 mil sf in YTD FY20
High Quality and Diversified Tenants
Well-Supported
Sectors Represented
Across the Portfolio
Prudent Capital Management
Aggregate Leverage
40.5%
YTD All-in Financing Cost
3.32%
NAV (2)
S$0.58 per unit
Interest Coverage Ratio (3)
3.7 times
Total Debt (4)
S$527.3 mil
Average Debt to Maturity
3.3 years
Financial Performance
Gross Revenue
S$29.5 mil
NPI
S$22.9 mil
Distributable Income Declared
S$16.0 mil
DPU to Unitholders
1.461 cents
Retained Distributable Income Released
to Unitholders
S$1.0 mil(1)
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DHL Supply Chain Advanced Regional Centre, Singapore
Financial Update
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27.7
21.1
29.5
22.9
3Q FY19 3Q FY20 3Q FY19 3Q FY20
Gross Revenue NPI
3Q FY20 vs 3Q FY19 Performance (Y-o-Y)Stronger Portfolio Performance
◼ Continued to deliver stronger Y-o-Y performance, with Gross Revenue and NPI increasing 6.5% and 8.3% respectively.
◼ Improved performance was mainly due to higher revenue contribution and commencement of new leases at several properties during the quarter.
◼ Distributable income was 12.3% higher as compared to 3Q FY19. On a like-for-like basis, 3Q FY20 would have been up 19.0%.(3)
(S$ mil) (S$ mil)
Gross Revenue and Net Property Income Distributable Income
Notes:
(1) One-off distribution of S$1.1 mil tax-exempt income from the divestment of Jinshan Chemical Warehouse and S$0.5 mil capital distribution.
(2) One-off distribution consists of S$1.0 mil of the S$2.0 mil remaining retained distributable income released as part of 3Q FY20 distributable income.
(3) Excluding above footnote (1) and (2).
12.6(3)15.0(3)
1.6(1)
1.0(2)
3Q FY19 3Q FY20
Adjusted Distributable Income Capital andOne-off Distribution
14.2
16.0
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22
1.313
1.461
3Q FY19 3Q FY20
3Q FY20 vs 3Q FY19 Distribution (Y-o-Y)Stronger Portfolio Performance
Notes:
(1) Excluding capital and one-off distribution for purpose of like-for-like comparisons.
(2) Excluding one-off distribution of S$1.1 mil tax-exempt income from the divestment of Jinshan Chemical Warehouse and S$0.5 mil capital distribution.
(3) Excluding S$1.0 mil of the S$2.0 mil remaining retained distributable income released as part of 3Q FY20 distributable income.
DPU Adjusted DPU(1)
1.161(2)
1.369(3)
3Q FY19 3Q FY20
(Cents) (Cents)
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29.0
21.9
29.5
22.9
2Q FY20 3Q FY20 2Q FY20 3Q FY20
Gross Revenue NPI
3Q FY20 vs 2Q FY20 Performance (Q-o-Q)Delivered Robust Performance in 3Q FY20
◼ Both Gross Revenue and NPI increased 1.8% and 4.6% respectively mainly due to higher revenue generated across the portfolio and commencement of new leases during the quarter.
◼ 3Q FY20 distributable income increased 10.4% to S$16.0 mil from S$14.5 mil in 2Q FY20. On a like-for-like basis, 3Q FY20 would have also increased 7.2%.(3)
(S$ mil) (S$ mil)
14.0 15.0
0.5(1)1.0(2)
2Q FY20 3Q FY20
Distributable Income One-off Distribution
14.5
16.0
Gross Revenue and Net Property Income Distributable Income
Notes:
(1) S$0.5 mil of the S$2.5 mil retained distributable income in 1Q FY20 released as part of 2Q FY20 distributable income.
(2) S$1.0 mil of the remaining S$2.0 mil retained distributable income distributed as part of 3Q FY20 distributable income.
(3) Excluding footnotes (1) and (2),
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1.280(2)
1.369(3)
2Q FY20 3Q FY20
1.326
1.461
2Q FY20 3Q FY20
3Q FY20 vs 2Q FY20 Distribution (Q-o-Q)Delivered Robust Performance in 3Q FY20
DPU Adjusted DPU(1)
(Cents) (Cents)
Notes:
(1) Excludes one-off distributions for the purpose of a like-for-like comparison.
(2) Excluding the S$0.5 mil of S$2.5 mil retained distributable income in 1Q FY20 distributed in 2Q FY20.
(3) Excluding the S$1.0 mil of the remaining S$2.0 mil retained distributable income released as part of 3Q FY20 distributable income.
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Prudent Capital ManagementWell-Balanced Debt Maturity Profile Extending Into Future Years
Debt Maturity Profile Interest Rate Hedging
53.0
110.0
227.3
137.0
0
50
100
150
200
250
300
2020 2021 2022 2023 2024 2025
SGD Loan AUD Loan
% of
debt due0% 10% 0% 21% 43% 26%
◼ Total Outstanding Debt of S$527.3 mil as at end-Sep 2020.
◼ Well-Managed Debt Maturity Profile. No further refinancing requirements until Dec 2021.
◼ Weighted Average Debt Maturity was 3.3 years as at 30 Sep 2020.
Floating Rate31.9%
Fixed Rate68.1%
◼ 68.1% of total debt hedged.
◼ 83.3% of SGD debt and 28.6% of onshore AUD borrowings are hedged with an average term of 2.6 years.
Forex Hedging
◼ 87.1% of distributable income is hedged or derived in SGD to reduce the impact of adverse exchange rate fluctuation.
SGD62.2%Hedged (AUD)
24.9%
Unhedged (AUD)12.9%
(S$ million)
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ALOG Commodity Hub, Singapore
Portfolio Update
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Portfolio PerformanceHigh Occupancy with Significant Leases Secured YTD
Notes:
(1) Excludes short-term leases.
(2) Based on the weighted average variance between the average signing rents for new and renewed leases and the average signing rents of preceding leases.
(3) Excludes leases with different lease structures (e.g. master lease to multi-tenant), short-term leases and when the leased areas differ significantly.
(4) Based on one applicable lease executed in 3Q FY20, in line with footnote 3 above.
Leases Secured in YTD FY20
High Occupancy As at 30 September 2020
High Committed Portfolio Occupancy Achieved 97.0%
Significant leases secured in YTD FY20(1) 1,521,200 sq ft
Rental Reversion YTD FY20 - 1.0%
3Q FY20(1) Area (sq ft)
Renewals 61,300
New Leases 6,300
Total 67,600
Rental Reversion(2) (3) - 9.4%(4)
1,026,600
494,600
Renewals New Leases
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Portfolio Expiry ProfileMinimal Upcoming Expiries For the Remainder of FY2020Well-Balanced Lease Expiry Profile
◼ Only 4.4% lease expiries remaining for FY2020 (by GRI).
◼ Commenced early negotiations with existing and potential new tenants to secure early commitments ahead of expiry i.e. at least 6 months in advance.
◼ Management will continue its proactive leasing efforts to maintain a high portfolio occupancy level.
3.8%
32.9%
19.8%
14.3%
3.9%
25.4%
4.4%
32.8%
20.0%
14.0%
3.6%
25.2%
FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 and beyond
By NLA By Gross Revenue
WALE by NLA 2.6 years
WALE by GRI 2.5 years
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Singapore59%
Australia41%
Singapore74%
Australia26%
Portfolio Rebalancing & GrowthPerformance Driven by Diversified and Balanced Portfolio
WALE (by NLA)
Portfolio NLA Gross Revenue
Portfolio Valuation
Singapore68%
Australia32%
2.6 years
2.8 years
2.4 years
Portfolio
Australia
Singapore
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Portfolio Diversification –Strong and Diversified Portfolio Supported by Quality Tenants
Greater Balance of
Multi-Tenanted and Single-User Lease StructuresGeographical Diversification21
Credit Quality:
Majority of Tenants are Multinational Companies (MNCs)
Well-Supported Industry Sectors Represented43
Single-User29%
Multi-Tenanted
71%
Singapore, 74%
Australia, 26%
Gross
Revenue
Multinational Companies
& Others62%
Small-Medium
Enterprises (SMEs)
38%
72%
15%
3%2%2%1%
1%2% 2%Industrial & Consumer Goods
Food & Cold Storage
Healthcare
Aerospace
Automotive
Information Technology
Materials, Engineering, Construction
E-Commerce
Others
Gross
Revenue
Gross
Rental
Income
Gross
Rental
Income
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Diversified Tenant BaseHigh Quality Tenants
◼ Top 10 tenants make up approximately 52.6% of ALOG’s GRI.
◼ Diversified tenant base comprise mainly high quality multinational businesses in the logistics / supply
chain and other diverse sectors including FMCG, transportation and construction.
Top 10 Tenants by % of GRI
14.0%
6.0%
7.9%
5.2%4.6% 4.5%
3.8% 3.5%2.7% 2.4%
14.0%
5.9% 5.8% 5.2%4.6% 4.6%
3.8% 3.5%2.7% 2.4%
30-Jun-20 30-Sep-20
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Contact Information
Cassandra Seet
Manager, Investor Relations
ARA LOGOS Logistics Trust
Management Limited
5 Temasek Boulevard #12-01
Suntec Tower Five
Singapore 038985
Tel: +65 6835 9232
Website: www.aralogos-reit.com
For enquiries:
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Disclaimer
This presentation has been prepared by ARA LOGOS Logistics Trust Management Limited, in its capacity as the manager of ALOG (the “Manager”) and
includes market and industry data and forecast that have been obtained from internal survey, reports and studies, where appropriate, as well as market
research, publicly available information and industry publications. Industry publications, surveys and forecasts generally state that the information they contain
has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of such included information. While
the Manager has taken reasonable steps to ensure that the information is extracted accurately and in its proper context, none of the Manager or any of its
officers, representatives, affiliates or advisers has independently verified any of the data from third party sources or ascertained the underlying economic
assumptions relied upon therein.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and
conclusions contained in this presentation. The information contained in this presentation, unless otherwise specified, is only current as at the date of this
presentation. To the maximum extent permitted by law, the Manager and its officers, directors, employees and agents disclaim any liability (including, without
limitation, any liability arising from fault or negligence) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this
presentation or its contents or otherwise arising in connection with it.
Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that unitholders of ALOG (“Unitholders”) may only
deal in their Units through trading on Singapore Exchange Securities Trading Limited (the “SGX-ST”). Listing of the units in ALOG (the “Units”) on the SGX-ST
does not guarantee a liquid market for the Units.
The value of the Units and the income from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its
affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested.
This presentation may contain forward-looking statements and financial information that involve assumptions, risks and uncertainties based on the Manager’s
current view of future events. Actual future performance, outcomes and results may differ materially from those expressed in the forward-looking statements
and financial information as a result of risks, uncertainties and assumptions – representative examples include, without limitation, general economic and
industry conditions, interest rate trends, cost of capital, capital availability, shifts in expected levels of property rental income, change in operating expenses,
property expenses and government and public policy changes and 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 and financial information, which are based on numerous
assumptions regarding the Manager’s present and future business strategies and the environment in which ALOG or the Manager will operate in the future. The
Manager expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement or financial information
contained in this presentation to reflect any change in the Manager’s expectations with regard thereto or any change in events, conditions or circumstances on
which any such statement or information is based, subject to compliance with all applicable laws and regulations and/or the rules of the SGX-ST and/or any
other regulatory or supervisory body or agency. The past performance of ALOG and the Manager is not necessarily indicative of the future performance of
ALOG and the Manager.
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223 Viking Drive, Wacol, Queensland ,AUS
Additional Information
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35
86.4
65.4
87.3
66.8
YTD FY19 YTD FY20 YTD FY19 YTD FY20
Gross Revenue NPI
YTD FY20 vs YTD FY19 PerformanceStrong Portfolio Operating Metrics
◼ Gross Revenue and NPI improved by 1.1% and 2.2% respectively, due to the commencement of new leases at certain properties and higher revenue contribution across the portfolio.
◼ YTD FY20 distributable income was 7.9% lower than YTD FY19. However, on a like-for-like basis, distributable income would have been 7.5% higher instead.(3)
(S$ mil) (S$ mil)
Gross Revenue and Net Property Income (as at 30 Sep 20) Distributable Income (as at 30 Sep 20)
Notes:
(1) One-off distribution of S$4.3 mil in relation to 51 Alps and the divestment of Jinshan Chemical Warehouse and capital distribution of S$1.2 mil in YTD FY19.
(2) Only S$1.0 mil of distributable income retained YTD FY20 to address potential mandatory rental deferment and/or waivers required to support some tenants. S$1.5 mil of the S$2.5 mil retained distributable
income has been released as part of 2Q FY20 and 3Q FY20 distributable income. Amount shown for purpose of like-for-like comparisons only.
(3) Excluding footnote (1) and including footnote (2).
39.3 41.3
1.0(2)5.5(1)
YTD FY19 YTD FY20
Distributable Income Retained Income
Capital andOne-off Distribution
44.8 42.3
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36
3.622(2)
3.875(3)
YTD FY19 YTD FY20
4.147
3.784
YTD FY19 YTD FY20
YTD FY20 vs YTD FY19 DistributionStrong Portfolio Operating Metrics
Notes:
(1) Excludes capital and one-off distributions for the purpose of a like-for-like comparison.
(2) Excluding one-off distribution of S$4.3 mil in relation to 51 Alps and the divestment of Jinshan Chemical Warehouse and capital distribution of S$1.2 mil in YTD FY19.
(3) Including the S$1.0 mil remaining retained distributable income in YTD FY20.
DPU (as at 30 Sep 20) Adjusted DPU(1) (as at 30 Sep 20)
(Cents) (Cents)
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37
Portfolio Statistics
Notes:
(1) Based on FX rate of S$1.00 = A$1.0588.
(2) For the purpose of presentation, freehold properties are computed using a 99-year leasehold tenure.
(as at 30 Sep 20)
27 Logistics Warehouse Properties Singapore - 10
Australia - 17
Total Valuation(1) S$1.26 bil
Gross Floor Area (GFA, approx.) 9.0 million sq ft
Committed Occupancy Portfolio – 97.0%
Singapore – 98.7%
Australia – 94.7%
Weighted Average Lease to Expiry (“WALE”) by NLA 2.6 years
WALE by Gross Rental Income (“GRI”) 2.5 years
Weighted Average Land Lease Expiry 53.8 years(2)
Rental Escalations within Single-Tenant / Master Leases ~1% to 4% p.a.
Number of Tenants 71
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38
COVID-19 Update
• High rental collection rate continues to be
seen across ALOG’s portfolio.
• ALOG’s tenants have been operating in SG
and AUS throughout the course of the
pandemic.
• Only a handful of tenants across the
portfolio have written in to seek assistance
and only a couple have made formal
representation seeking relief.
• Distributed S$1.5 million of the S$2.5 million
previously retained distributable income in
2Q FY20 and 3Q FY20.
Impact on ALOG Manager’s Strategy
• Continue to review the release of the
remaining S$1.0 million retained distribution
income while remaining mindful of the
current conditions.
• Prudently manage ALOG’s cash flow to
balance between distribution to Unitholders
and provisioning for future events.
• ALOG’s high-quality and defensive portfolio
continues to be well-positioned to leverage
on the continued growth of the logistics
sector.
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39
Market Outlook – SingaporeStable and Resilient Logistics Market Fundamentals
Moderated Supply Pipeline
Source: JTC J-Space / JTC Quarterly Market Report - Industrial Properties, 3Q 2020.
Grey bars refer to supply space
that has been committed. Figures
for 2020-2023 are based on total
new supply and projected take up
of the new supply on a GFA basis.
3Q 2020 Warehouse
Vacancy: 10.9%
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
-
100
200
300
400
500
600
700
800
900
1,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (E) 2021 (E) 2022 (E) 2023 (E)
Singapore Warehouse Annual Net Completion, Absorption and Vacancy Rate (%)
Annual Net Warehouse Completion Annual Net Warehouse Absorption
Average Annual Net Supply (Past 10 Years) '000 sqm LHS Singapore Warehouse Year-End Vacancy Rate (%) RHS
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40
Market Outlook - SingaporeStable and Resilient Logistics Market Fundamentals
Industrial Rental Index
Notes:
(1) CBRE Research, Singapore Real Estate Research Report, 2Q 2020.
(2) CBRE Research, Singapore MarketView, Trudging Along, 3Q 2020.
Historical and Future Factory &
Warehouse Net Supply (2015-2023)
▪ Leasing activity in 3Q 2020 comprise mainly of renewals and relocations. Even though government stockpiling has
tapered off, warehouse and prime logistics space leasing demand continues to remain stable.
▪ Appetite for warehouse and prime logistics spaces remains well-supported by e-commerce, food logistics and third-
party logistics players. Vacancy for prime logistics space has also experienced compression with most buildings
achieving almost full occupancy.
▪ Rents for logistics spaces continues to be driven by resilient leasing demand, with both ground and upper floor
warehouse rents rising by 0.5% q-o-q in 3Q 2020.
▪ For the remainder of 2020, there has also been a visible decline in supply pipeline, due to construction delays
experienced as a result of the pandemic.
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41
Market Outlook - AustraliaStable and Resilient Logistics Market Fundamentals
▪ Value of e-commerce has increased significantly due to COVID-19 and this structural and cultural shift is expected to be
permanent.
▪ Occupier demand in the industrial and logistics sector continues to remain robust as businesses are looking at future-proofing
their supply chain capabilities.
▪ Over the medium term, significant new supply is likely to see more market absorption due to buoyant demand fundamentals,
supported by the increasing relevance of e-commerce in Australia, the ongoing higher demand for Australian products including
food and medical supplies, and strong population growth.
▪ The role of infrastructure investment by governments is also expected to play a key role in the post-pandemic economic
recovery of Australia, which will positively impact the outlook for industrial demand.
▪ A significant amount of new completions is expected in 2020. In addition, pre-commitment rates have also been high for recently
completed buildings and developments in the pipeline, indicating tighter vacancy rates driven by robust demand.
Notes:
(1) Colliers Radar, Q2 2020 Industrial & Logistics Market Update, August 2020.
(2) JLL Research, The Road Ahead Logistics Report, September 2020
Demand and SupplyAnnual GDP Growth, Australia
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42
ALOG’s Portfolio OverviewSingapore
Pandan/ Penjuru/ Gul Way
Second link
(Tuas checkpoint)
Johor
Causeway Link
Sembawang
Wharves
Pulau Ubin
Keppel Terminal
Sentosa
Pasir Panjang
Terminal
Jurong
Island
Jurong Port
12
3
4
Changi
International
Airport6 7
8
910
Pan Asia Logistics Centre
21 Changi North Way
Air Market Logistics
Centre 22 Loyang Lane8 9
Schenker Megahub
51 Alps Avenue5
DHL Supply Chain ARC
1 Greenwich Drive10
ALOG Commodity Hub
24 Penjuru Road1
ALOG Cold Centre
2 Fishery Port Road2
Pandan Logistics Hub
49 Pandan Road3
ALOG Gul LogisCentre
15 Gul Way4
Changi North / Loyang Airport Logistics Park
Tampines LogisPark
ALOG Changi
DistriCentre 2
3 Changi South Street 3
7
ALOG Changi
DistriCentre 1
5 Changi South Lane
6
Changi South
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43
ALOG’s Portfolio OverviewAustralia
Sydney, New South Wales
127 Orchard Road,
Chester Hill16
3 Sanitarium Drive,
Berkeley Drive17
Adelaide, South AustraliaBrisbane
Sydney
Adelaide
Melbourne
Brisbane, Queensland
196 Viking Drive,
Wacol
11 – 19 Kellar Street,
Berrinba14 15
51 Musgrave Road,
Coopers Plains11
203 Viking Drive,
Wacol12
223 Viking Drive,
Wacol13
404 – 450 Findon
Road, Kidman Park26
182 – 198 Maidstone
Street, Altona27
217 – 225 Boundary
Road, Laverton North19 16 – 24 William
Angliss Drive,
Laverton North
20
41 – 51 Mills Road,
Braeside22 67 – 93 National
Boulevard,
Campbellfield
23
76 – 90 Link Drive,
Campbellfield25
16 – 28 Transport
Drive, Somerton18
151 – 155 Woodlands
Drive, Braeside21
41 – 45 Hydrive Close,
Dandenong South24
Melbourne, Victoria