Information on Da Vinci Building, MSL Building and BBR Building and the impact of the five new acquisitions (including AEM-Evertech Building and Hyflux Building) on the existing portfolio
4 April 2005
Agenda
• The Properties • Impact on A-REIT – Pro forma Financial Effect – Portfolio Diversification - Property yields
Managed by Ascendas-MGM Funds Management Limited Ascendas-
Da Vinci Building
Purchase price : S$19.5 million Property yield : 7.5% Valuation dated 1 Jan 2005 : S$19.5 million by Jones Lang LaSalle Consultants Land area : 6,047 sqm Title : 60-year lease from 1 Dec 1989, expiring on 30 Nov 2049 GFA : 14,929 sqm NLA : 13,789 sqm Occupancy : 100%
3 Tai Seng Drive Singapore 535216
A multi-tenanted six-storey light industrial warehouse cum office building, with a 77-lot basement car park, completed in 1992
Lease terms : 5 year lease to Da Vinci Collection Pte Ltd (DVC) Outgoings : DVC pays for land rent, property tax, maintenance, utilities and lease management fees
3
Managed by Ascendas-MGM Funds Management Limited Ascendas-
MSL Building
Purchase price : S$12.6 million Property yield : 7.9% Valuation dated 1 Feb 2005 : S$12.6 million by CB Richard Ellis (Pte) Ltd Land area : 4,544 sqm Title : 60-year lease expiring on 31 Oct 2055 GFA : 9,087 sqm NLA : 7,924 sqm Occupancy : 81%
27 Ubi Road 4 Singapore 408618
A multi-tenanted 6-storey light industrial building with 4 loading bays completed in 1997
Lease terms : Multi-tenanted Major tenants : Celestica (6,354 sqm) Outgoings : Celestica pays for maintenance and utilities expenses for occupied space, i.e. 80% of total NLA; A-REIT pays for land rent and property tax
Managed by Ascendas-MGM Funds Management Limited Ascendas-
4
BBR Building
Purchase price : S$6.8 million Property yield : 8.6% Valuation dated 1 Mar 2005 : S$6.8 million by DTZ Debenham Tie Leung Land area : 6,047 sqm Title : 60-year lease expiring on 15 Sep 2057 GFA : 6,546 sqm NLA : 5,421 sqm Occupancy : 100%
50 Changi South Street 1 Singapore 486126
Part 2-storey and part 3-storey light industrial building
Lease terms : 10 year lease to Singapore Piling with stepped rental increases Outgoings : Singapore Piling pays for maintenance and utilities, while A-REIT pays for land rent, property tax and lease management fees
Managed by Ascendas-MGM Funds Management Limited Ascendas-
5
Agenda
• The Properties • Impact on A-REIT – Pro forma Financial Effect – Portfolio Diversification - Property yields
Managed by Ascendas-MGM Funds Management Limited Ascendas-
Distributable Income Per Unit (“DPU”) Positive
The Properties (Da Vinci Building, MSL
Building, Hyflux Building, AEMEvertech Building and BBR Building) DPU Impact
(proforma annualised impact) DPU Impact*
0.30 cents
Note: *Assuming that the five acquisitions are fully funded by available bank debt facilities, and that A-REIT had purchased, held and operated the five properties as well as properties acquired in A-REIT’s financial year ended 31 March 2005, for the whole of the financial year ended 31 March 2004.
7
Managed by Ascendas-MGM Funds Management Limited Ascendas-
Agenda
• The Properties • Impact on A-REIT – Pro forma Financial Effect – Portfolio Diversification - Property yields
Managed by Ascendas-MGM Funds Management Limited Ascendas-
A-REIT Weighted Lease Expiry Profile
18%
% of A-REIT Property Income
16% 14% 12% 15.3% 14.7% 12.1% 12.7% 0.0% 0.0% 4.1% 4.0% 1.9% 1.9% >2020 2020 2018 After Acquisitions of the Properties* 7.5 yrs 2019 8% 6% 4% 2% 0% 2007 2008 2006 14.9% 14.3% 10%
10.6% 10.2%
6.4% 6.1%
6.8% 7.2%
2.8% 2.7%
3.8% 4.4%
1.4% 1.3%
1.5% 1.4%
7.7% 7.4%
2009
2010
2011
2012
2013
2014
2015
2016
1.7% 3.1%
Year Ending 31 Mar
Existing 36 Properties (based on 31 Mar 05) Weighted Average Lease Term to Expiry 7.4 yrs
* The Properties include : Da Vinci Building, MSL Building, AEM-Evertech Building, Hyflux Building and BBR Building
9 Managed by Ascendas-MGM Funds Management Limited Ascendas-
2017
9.0% 8.6%
Asset Class Diversification by Portfolio Value
Before acquisitions (1) After acquisitions (2)
Logistics& Distribution Centres
Business Business Park Park
25% 19% 31% 21%
Light Industrial
Logistics & Distribution Centres
Business Park
24% 22%
Hi-Tech Industrial
30% 23%
Hi-Tech Industrial Light Industrial
24%
Notes: (1) Based on 36 properties as at 31 Mar 2005 (2) Based on 41 properties including Da Vinci Building, MSL Building completed on 1 April 2005; AEM-Evertech Building, Hyflux Building completed today and BBR Building expected to complete in May/June 05.
10 Managed by Ascendas-MGM Funds Management Limited Ascendas-
Mix of Sale-&-Leaseback vs Multitenanted by Portfolio Value
Before acquisitions (1) After acquisitions (2)
Multitenanted
57%
43%
Singletenanted / Long term leases
Multitenanted
56%
44%
Singletenanted / Long term leases
Notes: (1) Based on 36 properties as at 31 Mar 2005 (2) Based on 41 properties including Da Vinci Building, MSL Building completed on 1 April 2005; AEM-Evertech Building, Hyflux Building completed today and BBR Building expected to complete in May/June 05.
11 Managed by Ascendas-MGM Funds Management Limited Ascendas-
Agenda
• The Properties • Impact on A-REIT – Pro forma Financial Effect – Portfolio Diversification - Property yields
Managed by Ascendas-MGM Funds Management Limited Ascendas-
Yield-Accretive
For Year One
Income Property Expenses Net Income
Da Vinci Building (S$ m) MSL Building (S$ m) BBR Building (S$ m)
1.48
1.42
0.81
0.00
0.42
0.23
1.48
1.00
0.58
Yield Before Acquisition Costs (for year one)
7.5%
7.9%
8.6%
Note: For information on AEM-Evertech Building and Hyflux Building, please refer to A-REIT’s press releases dated 7 Feb 05 and 14 Mar 05 respectively.
13
Managed by Ascendas-MGM Funds Management Limited Ascendas-
• 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 Managed by Ascendas-MGM Funds Management Limited Ascendas-