Proposed Acquisition of Ness Buildingir.ascendas-reit.com/newsroom/AReitPresentation.pdf · Ness...
Transcript of Proposed Acquisition of Ness Buildingir.ascendas-reit.com/newsroom/AReitPresentation.pdf · Ness...
Proposed Acquisition of Ness Building
2 November 2004
Agenda
• Impact of acquisition on A-REIT– Portfolio Diversification
– Weighted Average Lease Expiry Profile
– Pro forma Financial Effect
– Property Yield
• The Property
• Timetable for Completion
• Acquisition Summary
Asset Class Diversification by Portfolio Value
3
After (2)
Light Industrial
Hi-Tech Industrial
Business ParkDistribution
& Logistics Centres 26%37%
26%11%
Distribution & Logistics
Centres
Business Park
Hi-Tech Industrial
Light Industrial
25%38%
26%11%
Before (1)
Notes:(1) Based on 19 properties(2) Based on 20 properties
Mix of Sale & lease-back vs Multi-Tenanted by Portfolio Value
Sale & lease-back
Multi-tenanted
38%62%
Sale & lease-back
Multi-tenanted
39%61%
After (2)Before (1)
Notes:(1) Based on 19 properties(2) Based on 20 properties
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Agenda
• Impact of acquisition on A-REIT– Portfolio Diversification
– Weighted Average Lease Expiry Profile
– Pro forma Financial Effect
– Property Yield
• The Property
• Timetable for Completion
• Acquisition Summary
A-REIT Weighted Average Lease Expiry Profile
5.78 yrs5.59 yrsWeighted Average Lease Term to Expiry
AfterAcquisition of the Property
ExistingProperties
The Property
Timetable for Completion
Acquisition Summary
Impact of acquisition on
A-REIT
Weighted Lease Expiry Profile By Income
4.3%
21.1
%
14.5
%
5.9%
2.7%
6.6%
4.7%
0.0%
0.0%
12.6
%
17.2
%
2.9%
0.8%
0.0%
6.8%
0.0%
4.2%
20.7
%
14.2
%
5.8%
2.6%
6.4%
4.6%
12.4
% 16.8
%
2.8%
0.8%
6.6%
0%
5%
10%
15%
20%
25%20
05
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
>201
9
Year Ending 31 Mar
% o
f A-R
EIT
Prop
erty
Inco
me Before Acquisition
After Acquisition
(1)
(1) Based on 19 properties
6
Agenda
• Impact of acquisition on A-REIT– Portfolio Diversification
– Weighted Average Lease Expiry Profile
– Pro forma Financial Effect
– Property Yield
• The Property
• Timetable for Completion
• Acquisition Summary
Distribution Per Unit (“DPU”) Positive
Note:*Impact on DPU assuming A-REIT’s 19 properties including C&P Logistics Hub Phase II which is expected to be
completed in December 2004 for S$82.9m and the Property had been acquired and held from 1 April 2003 through to 31 March 2004, and at its optimal gearing level of 30 per cent debt and 70 per cent equity
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0.11 centsDPU Impact*(proforma annualised impact)
The Property
The Property
Timetable for Completion
Acquisition Summary
Impact of acquisition on
A-REIT
Agenda
• Impact of acquisition on A-REIT– Portfolio Diversification
– Weighted Average Lease Expiry Profile
– Pro forma Financial Effect
– Property Yield
• The Property
• Timetable for Completion
• Acquisition Summary
Yield-Accretive
10.0Yield Before Acquisition Costs (for year one) (%)
2.11Net Income(S$ million)
0.03Property Expenses (S$ million)
2.14Income (S$ million)
Ness BuildingFor Year One
10
Source : Ascendas-MGM Funds Management Limited
The Property
Timetable for Completion
Acquisition Summary
Impact of acquisition on
A-REIT
Agenda
• Impact of acquisition on A-REIT– Portfolio Diversification
– Weighted Average Lease Expiry Profile
– Pro forma Financial Effect
– Property Yield
• The Property• Timetable for Completion
• Acquisition Summary
Well Located, Diversified Portfolio
12
19
1
Business Park
1. NESS Building
The Property
Timetable for Completion
Acquisition Summary
Impact of acquisition on
A-REIT
1
Ness Building
Purchase price : S$21.0 mProperty yield before acquisition costs : 10.0%
Land area : 15,119 sqm (subject to survey)Title : 60-year lease from 1 Jan 2004
Occupancy : 100% Tenant : Ness Display Singapore Pte LtdLease term : 15 years
GFA : 9,593 sqmNLA : Subject to survey
Currently under construction. TOP obtained on 20 Sep 2004. Sale and purchase completion in Sep 2005
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Tampines Industrial Avenue 2/3 Singapore
Outgoings
Utilities
Maintenance
Property Tax
Land Rent
Lease Mgt Fee
Property
Paid by Ness
Paid by A-REIT
Ness Building
14
The Property
Timetable for Completion
Acquisition Summary
Impact of acquisition on
A-REIT
Agenda
• Impact of acquisition on A-REIT– Portfolio Diversification
– Weighted Average Lease Expiry Profile
– Pro forma Financial Effect
– Property Yield
• The Property
• Timetable for Completion• Acquisition Summary
Timetable for Completion
Signed Put and Call Option AgreementsOctober 2004
The Property
• Exercise option • Execution of Sale and Purchase Agreement • Completion
By October 2005(expected)
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The Property
Timetable for Completion
Acquisition Summary
Impact of acquisition on
A-REIT
Agenda
• Impact of acquisition on A-REIT– Portfolio Diversification
– Weighted Average Lease Expiry Profile
– Pro forma Financial Effect
– Property Yield
• The Property
• Timetable for Completion
• Acquisition Summary
Acquisition Summary
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• Provides a good mix of long-term versus short-term leases
• Enhances income stability & lease expiry profile• Yield-accretive: 10% property yield• DPU positive of 0.11 cents* per unit
The Property
Timetable for Completion
Acquisition Summary
Impact of acquisition on
A-REIT
Note:*Impact on DPU assuming A-REIT’s 19 properties including C&P Logistics Hub Phase II which is expected to be
completed in December 2004 for S$82.9m and the Property had been acquired and held from 1 April 2003 through to 31 March 2004, and at its optimal gearing level of 30 per cent debt and 70 per cent equity
• The value of units in A-REIT (“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.
• Investors have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.
• The past performance of A-REIT is not necessarily indicative of the future performance of A-REIT.
This release 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. - End -