FY2012 Financial Results Presentationinvestor.aralogos-reit.com/newsroom/20130121_172153_K2LU...2013/01/21 · (as at 31 Dec 12) 31.7% Average all-in financing cost(2) 3.82% Interest

ARA-CWT Trust Management (Cache) Limited

Knowing. Believing. Delivering

FY2012

Financial Results Presentation

21 January 2013

Agenda

Overview & FY12 Key Highlights

4QFY12 & FY12 Full Year Financial Performance

Portfolio Update & Details

Capital Management

Market Outlook & Strategy

KNOWING. BELIEVING. DELIVERING 2

Overview

Sponsor CWT Limited

REIT Manager ARA-CWT Trust Management (Cache) Limited

Property Manager Cache Property Management Pte Ltd

Issue Statistics Listing Date 12 Apr 2010

Market Cap Approx. S$871 million (1)

Substantial

Institutional

Unitholders(2)

Newton Investment

Management / Bank of

New York Mellon

7.1% (2)

The Capital Group 5.8%

Objectives

Regular and stable distributions

Long term growth in DPU and NAV

Maintain appropriate capital structure

Mandate Asia Pacific

Distribution Policy 100% of Distributable Income for FY12

Notes:

(1) Based on closing price of S$1.24 and 702,418,479 issued units as at 31 Dec 2012

(2) As at 14 Jan 13 based on latest information provided by the Substantial Unitholder


88.3% 10.0% 1.7%

31.9%

C&P

Public CWT ARA

Shareholding Structure Direct interests as at 31 Dec 2012

4

10.8 12.3 12.3 12.4

13.3 13.4 13.4 13.4 13.9 15.1 15.2

1.71

1.94 1.94 1.95 2.09 2.10 2.10 2.09 1.98

2.14 2.15

0.0

0.5

1.0

1.5

2.0

2.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Q2FY10 Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12

DP

U (

ce

nts

)

Dis

trib

uta

ble

In

co

me

(S

$ m

illi

on

)

Performance since IPO(1)

Distributable Income (S$ million) DPU (cents)

Steady Performance since IPO

Notes:

(1) Cache Logistics Trust was listed on 12 April 2010

Key Highlights

Robust financial performance 4QFY12 Distributable Income increased 12.8% y-o-y to S$15.1 million

FY12 DPU rose 1.6% to 8.365 cents

Quality portfolio with proactive asset management Rental escalations of 1.25 to 2.5% for master leases

Only 2% of portfolio up for renewal in 2013

Portfolio occupancy at 100%

Prudent capital management All-in-financing cost lowered from 3.89% to 3.52% y-o-y

Aggregate leverage ratio at 31.7%

Lengthened debt expiry profile – no debt expiring till 2015


Financial Performance


6

Financial Performance 4QFY12 vs. 4QFY11

KNOWING. BELIEVING. DELIVERING

(S$’000 unless otherwise noted) 4Q FY12 4Q FY11 % Change

Gross Revenue 19,127 16,891 13.2

Less: Property Operating Expenses (849) (843) (0.7)

Net Property Income (NPI) 18,278 16,048 13.9

Distributable Income 15,151 13,430 12.8

Distribution per unit (DPU) (Cents) 2.154(1) 2.102(2) 2.5

• Gross Revenue and Net Property Income growth driven

by active acquisitions and rental escalations

• NPI rose 13.9% y-o-y

• Amount distributable to Unitholders grew 12.8% y-o-y

7

Notes:

(1) Based on 703,353,638 issued units which includes 702,418,479 issued units as at 31 Dec 2012 and 935,159 units to be issued to

the Manager by 21 Jan 2013

(2) Based on 638,867,066 issued units which includes 637,827,371 issued units as at 31 Dec 2011 and 1,039,695 units issued as

Manager’s fees for 4Q11.


Financial Performance FY12 vs. FY11

(S$’000 unless otherwise noted) FY12 FY11 % Change

Gross Revenue 72,638 64,607 12.4

Less: Property Operating Expenses (3,494) (2,685) (30.1)

Net Property Income (NPI) 69,144 61,922 11.7

Distributable Income 57,464 52,489 9.5

Distribution per unit (DPU) (Cents) 8.365(1) 8.235(2) 1.6

• Gross Revenue and Net Property Income growth driven

by active acquisitions and rental escalations

• NPI rose 11.7% in FY12

• Amount distributable to Unitholders grew 1.6% in FY12

Notes:

(1) Based on 703,353,638 issued units which includes 702,418,479 issued units as at 31 Dec 2012 and 935,159 units to be issued to

the Manager by 21 Jan 2013

(2) Based on 638,867,066 units which includes 637,827,371 issued units as at 31 Dec 2011 and 1,039,695 units issued as Manager’s

fees for 4Q11.

Strong Balance Sheet

S$’000 unless indicated as at 31 Dec 2012 31 Dec 2011

Investment Properties 971,876 842,788

Other Assets 15,136 12,436

Total Assets 987,012 855,224

Debt, at amortised cost (308,432) (248,883)

Other Liabilities (6,704) (12,256)

Total Liabilities (315,136) (261,139)

Net assets attributable to Unitholders 671,876 594,085

Units in Issue (units) 703,353,638(1) 638,867,066(2)

NAV per Unit (S$) 0.96 0.93

Adjusted NAV per Unit(3) 0.93 0.91


Notes:

(1) Based on 703,353,638 issued units which includes 702,418,479 issued units as at 31 Dec 2012 and 935,159 units to be issued to the

Manager by 21 Jan 2013

(2) Based on 638,867,066 units which includes 637,827,371 issued units as at 31 Dec 2011 and 1,039,695 units issued as Manager’s fees for

4Q11.

(3) Excludes income available for distribution

10

Distribution Details

Distribution Period Distribution

per unit (S$) Payment Date

1 October 2012 to

31 December 2012 2.154 cents 27 Feb 2013

Distribution Timetable

Last day of trading on “cum” basis 24 Jan 2013

Ex-Dividend Date 25 Jan 2013

Books Closure Date 29 Jan 2013

Distribution payment date 27 Feb 2013

Portfolio Update


11


Number of Investment

Properties

12 Properties

• 11 – Singapore

• 1 – China, Shanghai

GFA (approx.) 4.83 million sf

• Up from 4.30 million sq ft as at 31 Dec 2011

• Up from 3.86 million sq ft as at IPO(1)

Property Features • 8 - Ramp-up

• 2 - Cargo Lift

• 2 - Single Storey

Total no. of Tenants • 11 – Master Lessees (NNN rental)

• 2 – Tenants in Multi-Tenanted Property

Investment Properties S$971.9 million

• Up from S$842.8 million as at 31 Dec 2011

• Up from S$729.0 million as at IPO(1)

12

Note:

(1) As at 12 April 2010

Quality, Resilient Portfolio Portfolio Summary


100% occupation with both master & multi-tenanted leases

Weighted avg lease expiry (‘WALE’) of 3.9 years

Rental escalation of between 1.25% - 2.50% pa for master

leases

Approximately 23% market share of Singapore’s ramp-up

logistics warehouses

Young portfolio – average building age of 5.1 years

13

Quality, Resilient Portfolio Portfolio Summary

Quality, Resilient Portfolio End-User Profile

Strong and diverse demand by underlying end-users

resulting in high underlying end-user occupancy

Note: Charts reflect breakdown by Occupied GFA.

Source: ARA-CWT and master lessees

End-users from diverse

trade sectors

Over 89% of GFA taken up by

MNCs and government agencies


Multinational Corporations

, 84%

Small and Medium

Enterprises 11%

Government entities

5%

14

Industrial & Consumer

goods 51%

Hospitality 1%

Food & Cold Storage

6%

Healthcare 10%

Aerospace 5%

Courier Service

2%

Commodity & Chemical

25%

< 2% of GFA is due for lease renewal in FY13

> 20% of GFA has been committed beyond FY16

Majority of Cache’s master lease renewals commence from FY15 onwards


% o

f G

FA

15

Quality, Resilient Portfolio Lease Expiry Profile

2%

6%

36%

31%

2% 0%

8%

15%

0%

5%

10%

15%

20%

25%

30%

35%

40%

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 &beyond

Portfolio Lease Expiry (%) as at 31 December 2012

FY12 Acquisitions &

Portfolio Details


16

17

Property Details

Property

Type

Ramp-up logistics

warehouse and

office facility

GFA 197,000 sq ft

Purchase

Price S$35.2 million

Lease Type Master Lease

Completion

Date(1) 30 Apr 2012

Acquisition of

Pan Asia Logistics Centre

21 Changi North Way, Singapore Note:

(1) Acquisition Completion Date

18

Property Details

Property

Type

Ramp-up logistics

warehouse and

office facility

GFA 329,000 sq ft

Purchase

Price S$66.0 million

Lease Type Master Lease

Completion

Date(1) 3 July 2012

Acquisition of

Pandan Logistics Hub

49 Pandan Road, Singapore

Note:

(1) Acquisition Completion Date


vv

Pandan/Penjuru

1 CWT Cold Hub

2 Fishery Port Road

CWT Commodity Hub

24 Penjuru Road

7

Changi South

C&P Changi Districentre

3 Changi South Street 3

C&P Changi Districentre

5 Changi South Lane

APC Distrihub

6 Changi North Way

8 Kim Heng Warehouse

4 Penjuru Lane

Air Market Logistics

Centre

22 Loyang Lane

Jurong Port

Pasir Panjang Terminal Keppel

Terminal

Changi International

Airport

Sembawang Wharves

Second Link (Tuas checkpoint)

Johor Causeway

Link

Sentosa

Pulau Ubin

Jurong Island

Pan Asia Logistics Centre

21 Changi North Way

2 3 4

9 10 11

Schenker Megahub

51 ALPS Avenue

Airport Logistics Park (“ALPS”)

Hi-Speed Logistics Centre

40 ALPS Avenue 5 6

Pandan Logistics Hub

49 Pandan Road

2 3

1

4

11 9

10

7 8

5

6

7 8

19

Changi North Loyang

Changi South

Quality, Resilient Portfolio Strategic Locations - Singapore


Singapore - West Zone

As at 31 Dec 2012 CWT Commodity

Hub CWT Cold Hub

Kim Heng

Warehouse

Pandan

Logistics Hub

Lessee CWT CWT Kim Heng CWT

Ramp-up feature √ √ Single Storey √

Location Penjuru Penjuru Penjuru Pandan

GFA (approx) 2,300,000 sf 342,000 sf 54,000 sf 329,000 sf

Valuation (S$m) $360.5 $139.6 $9.4 $66.5

1 2 3

20

4 3

Quality, Resilient Portfolio Portfolio Details


Singapore - East Zone

As at 31 Dec 2012 Schenker

Megahub

Hi-Speed

Logistics

Centre

C&P Changi

Districentre

C&P Changi

Districentre 2

Lessee C&P or

Subsidiaries

C&P or

Subsidiaries

C&P or

Subsidiaries

C&P or

Subsidiaries

Ramp-up feature √ √ √ Cargo Lift

Location ALPS ALPS Changi South Changi South

GFA (approx) 440,000 sf 309,000 sf 364,000 sf 111,000 sf

Valuation (S$m) $110.0 $77.4 $89.7 $21.5

6 7 8 5

21



Singapore - East Zone

As at 31 Dec 2012 APC Distrihub

Pan Asia

Logistics

Centre

Air Market

Logistics

Centre

Jinshan

Chemical

Warehouse

Lessee APC and

Flextronics

Pan Asia

Logistics

Air market

Express CWT

Ramp-up feature √ √ Cargo Lift Single Storey

Location Changi North Changi North Loyang Shanghai

GFA (approx) 177,000 sf 197,000 sf 63,000 sf 144,000 sf

Valuation (S$m) $32.3 $36.0 $13.5 RMB 79.0

(c.$15.5)

China

10 11 9 12

22


12

Capital Management


23

Prudent Capital Management

FY2012

Borrowings (as at 31 Dec 12)

S$313.0m

Aggregate Leverage(1)

(as at 31 Dec 12) 31.7%

Average all-in financing cost(2) 3.82%

Interest Cover(3) 7.9 times

Notes:

(1) Ratio of total debt over Deposited Properties as defined by the Property Fund Appendix

(2) Inclusive of margin and amortisation of capitalized upfront fee

(3) Ratio of Net Property Income over interest expense (excl amortisation and other debt fees)


$187.5

$125.5

2012 2013 2014 2015 2016

Debt Expiry Profile

Present Term Loans

Capital Management Exercise in Jun 2012

New S$375m term loan and enlarged revolving credit facility

Increased LTV of previously over-collateralized secured assets

Lengthened debt expiry profile

Decreased all-in financing cost

Additional financial flexibility with increased committed line of credit

In S$ million

Market Outlook & Strategy


25

Long-Term

Growth in DPU

and

NAV per Unit

Work closely with the

Master Lessees and

end-users

Grow organically

Minimize re-leasing

risk

Secure longer-term

tenure with strong

credit-worthy end-

users

Broad Asia-Pacific

mandate

Pursue acquisitions

conducive to the

portfolio

Right of first refusal

from CWT and C&P

Leverage on the strengths of the Sponsor

and relationships with end-users

Grow the Portfolio Prudently Manage

the Portfolio

Participate in Focused Development

Management Strategy


• Granted by Sponsor (CWT) and C&P on properties in Asia Pacific

• 13 properties with approximately 4.5 million sq ft GFA

• Located in Singapore, China and Malaysia

No. Name Description Year of

Completion Location GFA (sq ft)

1 CWT Logistics Hub 3 5-storey ramp-up warehouse 2011 Singapore 834,430

2 CWT Cold Hub 2 Multi-Storey Warehouse 2013 Singapore 725,000

3 Tampines Distrihub 4-storey ramp-up warehouse 2013 Singapore 454,475

4 CWT Logistics Hub 1 2-storey ramp-up warehouse 2007 Singapore 375,233

5 PKFZ Warehouse Single storey warehouse 2012 Malaysia 112,000

6 CWT Tianjin Logistics Hub (Ph 1) Single storey warehouse 2010 Tianjin 84,668

Selected properties covered by the ROFR

ROFR Properties


Rights of First Refusal (‘ROFR’)

Properties Covered by ROFR

Market Outlook


Global economic outlooks remains uncertain with US fiscal cliff, Euro-zone crisis

Singapore’s economy grew 1.8% q-o-q (seasonally-adjusted annualised basis or

‘SAAB’) in 4Q 2012. On a y-o-y basis, the economy expanded 1.1%

Manufacturing sector declined 10.8% on a q-o-q SAAB due to weakness in the

electronics sector. It is expected to contract 1.5% on a y-o-y basis

Services sector grew 7.0% on a q-o-q SAAB due to rebound in the wholesale &

retail trade, finance & insurance sectors. It is expected to grow 1.5% on a y-o-y

basis

MTI forecasts growth of 1 to 3% for 2013

Sources:

(1) Based on Ministry of Trade & Industry (MTI) Advanced Estimates; (2) Colliers International Market Report

28

Higher than average industrial supply to become available in the medium term

Monthly 75th percentile warehouse rent increased15.7% in the first nine months of

2012 to S$2.43 per sq ft as of 3Q12. Increase in warehouse space is expected to

rise at a slower pace in 2013

Singapore’s Warehouse Market (2)

Singapore’s Economy (1)

Potential New Supply

29 KNOWING. BELIEVING. DELIVERING

• Aside from that under

construction, planned

development is

subject to regulatory

approval and may

not materialise

• Only 2% of Cache’s

GFA is up for

renewal in 2013

• Majority of renewals

for Cache commence

from 2015 onwards

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2013 2014

Availab

le S

pace in

GF

A (

sq

m)

Expected Year of Completion

Supply of Warehouse Space (By Sector, Development Status & Expected Year of Completion)

Planned (Public Sector)

Planned (Private Sector)

Under Construction (PublicSector)

Under Construction (PrivateSector)

Owner-

occupied

(46%)

Strata Title (7%)

Jurong Island (6%)

REIT-owned (20%)

CWT/C&P

(13%)

Big Box

Retailing

(7%)

Source: URA, Cache

Summary

Good Quality Portfolio

Capable Management with Focused

Strategy

Long-term master lease and

multiple lease structures

Predominately triple-net income

Annual rental escalations for

majority of properties

Majority of borrowings are hedged

with fixed interest rates

Clear pipeline of potential

acquisitions via the ROFR

properties

Predictable cash flows

Resilient earnings

Sustainable distributions

Growth in distributions


Further Information

Investor Relations Contact:

Judy Tan

Investor Relations Manager

[email protected]


ARA-CWT Trust Management (Cache) Limited

6 Temasek Boulevard #16-02

Suntec Tower 4

Singapore 038986

Tel: +65 6835 9232

Website: www.cache-reit.com

Disclaimer

This presentation does not constitute an offer, invitation or solicitation of securities in Singapore or any other jurisdiction

nor should it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment

whatsoever.

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 costs), 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. Investors are cautioned not to

place undue reliance on these forward-looking statements, which are based on the current views of management on

future events.

The value of units in Cache (“Units”) and the income derived from them, if any, may fall or rise. Units are not obligations

of, deposits in, or guaranteed by, ARA-CWT Trust Management (Cache) Limited (as the manager of Cache) (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 should note that they will have no right to request the Manager to redeem or purchase their Units for so long as

the Units are listed on Singapore Exchange Securities Trading Limited (the “SGX-ST”). It is intended that holders of Units

may only deal in their Units through trading on the SGX-ST. The listing of the Units on the SGX-ST does not guarantee a

liquid market for the Units.

The past performance of Cache is not necessarily indicative of the future performance of Cache.


Documents

FY2012 Financial Results Presentationinvestor.aralogos-reit.com/newsroom/20130121_172153_K2LU...2013/01/21 · (as at 31 Dec 12) 31.7% Average all-in financing cost(2) 3.82% Interest