CapitaLand Ascendas REIT · SGX:A17U
CapitaLand Ascendas REIT — Ascendas Reit — Shareholder Meeting (January 2017)
16 slides from CapitaLand Ascendas REIT's shareholder meeting presentation, Jan 25, 2017
Slide 1: Acquisition of 12, 14 and 16 Science Park Drive
DSO National Laboratories DNV GL Technology Centre Acquisition of 12, 14 and 16 Science Park Drive Extraordinary General Meeting 25 January 2017
Slide 2: Disclaimer
Disclaimer 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. Represen
Slide 3: Agenda
Agenda The Property – 12, 14 & 16 Science Park Drive Benefits to Unitholders Funding the Acquisition Benefits of Proposed Consideration Units Impact on Ascendas Reit Portfolio 3
Slide 4: The Property: 12, 14 & 16 Science Park Drive
The Property: 12, 14 & 16 Science Park Drive Comprises: DSO National Laboratories Phase 1 & 2 - two 8-storey buildings (DSO) DNV GL Technology Centre - 7-storey building (DNV) DSO National Laboratories DNV GL Technology Centre 4
Slide 5: The Property: Well-Located Within Singapore Science Park 1
The Property: 12, 14 & 16 Science Park Drive Well-Located: Within Singapore Kent Ridge MRT Science Park 1, off South Buona Vista Road, accessible via Ayer Rajah Expressway and Kent Ridge MRT Singapore Science Park 1 5
Slide 6: The Property
The Property DSO National Laboratories DNV GL Technology Centre Building / Address 12 Science Park Drive 14 Science Park Drive 16 Science Park Drive Purchase Consideration S$420.0 million Acquisition fee (to Manager) S$4.2 million Stamp duty and other transaction Approximately S$13.3 million (includ
Slide 7: Agenda
Agenda The Property – 12, 14 & 16 Science Park Drive Benefits to Unitholders Funding the Acquisition Benefits of Proposed Consideration Units Impact on Ascendas Reit Portfolio 7
Slide 8: Benefits to Unitholders
Benefits to Unitholders Immediately DPU accretive Quality tenants – DSO National Laboratories and DNV GL Improves earnings stability from long leases; extends weighted average lease expiry from 3.7 to 4.2 years Triple-net leases with built-in rental escalation of 2.2% to 2.5% per annum Lon
Slide 9: Agenda
Agenda The Property – 12, 14 & 16 Science Park Drive Benefits to Unitholders Funding the Acquisition Benefits of Proposed Consideration Units Impact on Ascendas Reit Portfolio 9
Slide 10: Funding the Acquisition
Funding the Acquisition The total acquisition cost of S$437.5m will be funded by: Internal resources / Debt facilities a) S$333.3m from internal resources and/or 76% existing debt facilities; Consideration b) S$100.0m through the proposed issuance Units 23% of Consideration Units (subject to Unith
Slide 11: Agenda
Agenda The Property – 12, 14 & 16 Science Park Drive Benefits to Unitholders Funding the Acquisition Benefits of Proposed Consideration Units Impact on Ascendas Reit Portfolio 11
Slide 12: Benefits of Proposed Consideration Units
Benefits of Proposed Consideration Units Aggregate leverage would be a healthy 33.8% (as at December 2016) • vs 34.7% if 100% debt funded More headroom for future growth • Able to tap on debt funding to react quickly to investment opportunities Maintain Moody’s A3 credit rating Strengthen al
Slide 13: Agenda
Agenda The Property – 12, 14 & 16 Science Park Drive Benefits to Unitholders Funding the Acquisition Benefits of Proposed Consideration Units Impact on Ascendas Reit Portfolio 13
Slide 14: Accretive to Unitholders
Accretive to Unitholders The Acquisition Pro Forma Financial Impact DPU Impact 0.061 cents* (pro forma annualised impact) Net Property Income Yield – 1st Year Pre-transaction cost 6.3% Post-transaction cost 6.0% * Assuming Ascendas Reit had purchased, held and operated the Acquisition for the whole
Slide 15: Lengthens WALE and Land Lease to Expiry
Lengthens WALE and Land Lease to Expiry As at 31 December 2016 Before Acquisition1 After Acquisition2 Weighted Average Lease Term to Expiry (WALE) 3.7 years 4.2 years Weighted Average Land Lease to Expiry 45.7 years 46.6 years 25.0% % of Ascendas Reit's Property Income 19.1% 18.4% 17.8% Weighted Ave
Slide 16: Strengthens Market Leadership in Business & Science Parks
Strengthens Market Leadership in Business & Science Parks Portfolio Diversification (by Asset Value) Before After Acquisition(1) Acquisition(2) Logistics & Distribution Logistics & Centres Logistics and Distribution Logistics and Distribution Centres Integrated Business Park 14% Integrated Developme