FINANCIAL RESULTS For the 3 rd Quarter and Nine Months ended 30 September 2018 26 October 2018
Agenda 01 KEY HIGHLIGHTS FINANCIAL PERFORMANCE 02 03 PORTFOLIO UPDATE 04 MARKET OUTLOOK & STRATEGY 05 OVERVIEW ON CACHE
01 KEY HIGHLIGHTS Schenker Megahub is the largest freight and logistics property located at the ALPS, the free trade zone adjacent to Changi International Airport.
Key Highlights 01 Portfolio Update Capital Management Financial Performance Portfolio Occupancy Aggregate Leverage 3Q FY18 Income 96.9% committed 35.6% Available for Distribution to Unitholders Commodity Hub 94% All-in Financing Cost YTD S$15.9 million Post expiry of Master Lease 3.66% - 3.6% y-o-y WALE (by NLA) % of borrowings hedged 3Q FY18 DPU 3.3 years to fixed rates 1.475 cents 61.2% Lease Expiries (by NLA) - 4.3% y-o-y 2.5% remaining in FY18 Weighted Average Debt 51 Alps Ave Tax Matter Maturity Leases Secured S$2.6 million 2.2 years ~74,200 sf in 3Q FY18 4.1 years post refinancing Accumulated retention ~1 mil sf YTD FY18 sum pending IRAS % of unencumbered Rebalancing & Growth resolution (1) investment properties Proposed divestment of 37% Jinshan Chemical 88% post refinancing Warehouse in China (2) Notes: (1) For the period 1 September 2016 to 30 September 2018. (2) The proposed divestment of Jinshan Chemical Warehouse in Shanghai, China was announced on 12 October 2018. 4
01 Key Highlights ARA owns 100% of the Manager and the Property Manager of Cache (1) Currently holds ~9.2% of the issued units of Cache ARA is an established real estate fund manager with a strong Asia Pac presence ARA was a key contributor to the success of Cache’s diversification into Australia Consolidation of interest and decision-making within a single entity in ARA PORTFOLIO & PRESENCE (2) S$78.2 20 62 cities billion countries in Gross Assets managed by ARA Group and its Associates PRODUCTS & SERVICES (2) >70 Real Estate 21 Country Private real Management Infrastructure REITs Desks estate funds Services Notes: (1) Via its wholly-owned subsidiaries. (2) As reported by ARA Group and its Associates as at 30 June 2018. 5
02 FINANCIAL PERFORMANCE Build-to-Suit development for DHL Supply Chain completed in July 2015. The logistics facility houses significant storage and retrieval automation as well as DHL Supply Chain’s Asia Pacific Solutions & Innovation Centre.
3Q FY18 vs 2Q FY18 02 3Q FY18 Gross Revenue rose by 4.9% q-o-q; NPI was up 6.6% q-o-q Review of Performance: 3Q 2Q Change • Australia portfolio NPI was stable. S$’000 unless otherwise noted FY18 FY18 % • Singapore portfolio NPI increased by Gross Revenue 31,498 30,028 4.9 9.0% mainly due to (i) higher NPI Net Property Income (NPI) 23,063 21,633 6.6 from CWT Commodity Hub as its occupancy rose between the Income Available for Distribution 15,858 15,228 4.1 quarters; slightly higher NPI from 4.4 - from operations 15,472 14,820 several Singapore properties, offset - from capital (1) 386 408 (5.4) by loss of income from the Distribution per Unit (DPU) 1.475 1.419 3.9 divestment of Hi-Speed Logistics (cents) Centre (40 Alps Ave, SG) in May - from operations 1.439 1.381 4.2 2018. - from capital (1) (5.3) 0.036 0.038 • Income Available for Distribution would increase by 7.0% on a like-for- Issued Units Base (in million units) 1,074.7 1,072.9 0.2 like basis, excluding the capital Notes: distribution of S$0.408 million in 2Q (1) Capital distribution in 3Q FY18 relates to reimbursements received in relation to outstanding lease FY18. incentives from certain Australian properties. 2Q FY18 capital distribution relates to proceeds from the disposal of Kim Heng warehouse. 7
3Q FY18 vs 3Q FY17 02 3Q FY18 Gross Revenue rose by 14.8% y-o-y; NPI up 8.1% y-o-y Review of Performance: 3Q 3Q Change • Australia portfolio NPI increased by FY18 FY17 % S$’000 unless otherwise noted 61.5% due to the addition of nine- Gross Revenue 31,498 27,432 14.8 property portfolio acquired in February NPI 23,063 21,338 8.1 2018. • Singapore portfolio NPI fell by 3.5% Income Available for Distribution 15,858 16,448 (3.6) mainly due to (i) lower NPI from CWT - from operations 15,472 15,883 (2.6) Commodity Hub due to its conversion - from capital (1) 386 565 (31.7) from master lease to multi-tenancy in DPU (cents) 1.475 1.541 (4.3) April 2018; (ii) Divestment of Hi-Speed - from operations 1.439 1.488 (3.3) Logistics Centre (40 Alps Ave, SG) in - from capital (1) 0.036 0.053 (32.1) May 2018, offset by a higher NPI at 51 Alps Ave, with its new lease in place Issued Units Base (in million units) 1,074.7 1,067.2 0.7 including a rental top-up (2) . Notes: • 3Q FY18 Income distributable to (1) Capital distribution in 3Q FY18 relates to reimbursements received in relation to outstanding lease incentives from certain Australian properties. 3Q FY17 capital distribution relates to proceeds from the perpetual security owners amounted to disposal of Kim Heng warehouse. ~S$1.4 million. (2) A relevant sum of S$8.2 million, including costs and rental top-up, was paid to Cache in October 2017 in association with the amicable resolution of the 51 Alps Ave, SG lease dispute. Cache entered into a • Income Available for Distribution was 46-month lease with Schenker Singapore from 1 November 2017. down only 0.2% on a like-for-like basis, excluding the capital distribution of S$0.565 million in 3Q FY17. 8
YTD FY18 vs YTD FY17 02 YTD FY18 Gross Revenue and NPI rose by 9.9% and 5.9% y-o-y respectively YTD YTD Change Review of Performance: S$’000 unless otherwise noted FY18 FY17 % • Australia portfolio NPI increased by 57.4% due to the addition of nine- Gross Revenue 90,552 82,384 9.9 property portfolio acquired in February NPI 67,556 63,771 5.9 2018 Income Available for Distribution 47,231 48,936 (3.5) • Singapore portfolio NPI fell by 4.8% - from operations 46,437 47,324 (1.9) mainly due to (i) lower NPI from CWT - from capital (1) 794 1,612 (50.7) Commodity Hub due to its conversion from master lease to multi-tenancy in DPU (cents) (2) 4.401 4.986 (11.7) April 2018; (ii) Divestment of Hi-Speed - from operations 4.327 4.821 (10.2) Logistics Centre (40 Alps Ave, SG) in - from capital (1) 0.074 0.165 (55.2) May 2018, offset by a higher NPI at 51 Issued Units Base (in million units) 1,074.7 1,067.2 0.7 Alps Ave, with its new lease in place and rental top-up (3) . Annualised DPU 5.884 6.666 (11.7) • YTD FY18 Income distributable to Notes: (1) Capital distribution in YTD FY18 relates to reimbursements received in relation to outstanding lease perpetual security owners amounted to incentives from certain Australia properties and proceeds from the disposal of Kim Heng warehouse. ~S$3.6 million. YTD FY17 capital distribution relates solely to proceeds from the disposal of Kim Heng warehouse. (2) In September 2017, Cache undertook an underwritten and renounceable rights issue (the “Rights • Income Available for Distribution was Issue”) of 162,565,716 new units to raise gross proceeds of c.S$102.7 million. The YTD FY17 DPU is recomputed to reflect the effects of the Rights Issue. down only 1.1% on a like-for-like basis, (3) A relevant sum of S$8.2 million, including costs and rental top-up, was paid to Cache in October 2017 excluding the capital distributions of in association with the amicable resolution of the 51 Alps Ave, SG lease dispute. Cache entered into a 46-month lease with Schenker Singapore from 1 November 2017. S$1.612 million in YTD FY17 and S$0.408 million in 2Q FY18 (proceeds from Kim Heng). 9
Capital Management 3 02 Balance Sheet and Key Financial Indicators Key Financial Indicators as at Balance Sheet 30 September 2018 30 September 2018 Total Assets S$1,344.2 million S$478.5 mil Total Debt (2) Aggregate Leverage Ratio 35.6% Total Liabilities S$495.8 million All-in Financing Cost - Quarter 3.72% Net Assets Attributable S$748.3 million - YTD 3.66% to Unitholders Interest Coverage Ratio (3) NAV Per Unit (1) S$0.696 - Quarter 4.1 times - YTD 3.9 times Average Debt Maturity 2.2 years - Post Refinancing 4.1 years Proportion of investment properties 37% unencumbered - Post Refinancing 88% Proportion of total borrowings 42% unencumbered - Post Refinancing 84% Notes: (1) The NAV Per Unit is computed based on the net assets attributable to Unitholders. (2) Excludes unamortised transaction costs. (3) Includes margin and amortisation of capitalised upfront fee. 10
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