3Q2016 Financial Results Presentation 26 October 2016 25 Pioneer Crescent
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3Q2016 Financial Results Presentation26 October 2016
25 Pioneer Crescent
Content
Executive Summary
Real Estate Highlights
Financial & Capital Management Highlights
Appendix
2
3
3Q2016 Executive Summary
Active Portfolio Management
Proactive asset management Weighted Average Lease Expiry remains steady at 3.8 years (by rental income)
Tenant retention rate of 86.7 % achieved in a challenging operating environment
Healthy portfolio occupancy Portfolio occupancy has increased marginally by 0.2% to 93.6 %1
Stable Performance and Prudent Capital Management
DPU – achieved 3.177 cents for YTD3Q16 YTD3Q16 down 3.3 % as compared to adjusted DPU for YTD3Q15 Quality of earnings improving due to no capital distribution and 100% payment of management fees in cash 104% of net income paid out in YTD3Q16 compared to 116% for YTD 3Q15
Completed the refinancing of the S$100 million term loan facility
100% of CIT’s investment properties are now fully unencumbered following this refinancing
No major refinancing until 2H2018
88.4% of interest rates fixed for the next 3.2 years
3
1Excluding 2 Ubi View that is in process of divestment
4
3Q2016
(S$
million)
3Q2015
(S$
million)
YoY
(%)
Adjusted
3Q2015
(S$
million) (1)
Adjusted
YoY (%)
Gross Revenue (2) 27.6 28.5 2.9 28.5 2.9
Net Property Income (3) 19.9 21.7 8.3 21.7 8.3
Net Income 12.9 14.7 12.1 14.7 12.1
Net effect of non-taxable items(4) - 0.9
Amount available for distribution (5) 12.9 15.6 17.2 14.7 12.2
Distribution Per Unit (“DPU”) (cents) 0.987 1.204 18.0 1.136 13.1
Annualised DPU (cents) 3.948 4.777 17.4 4.507 12.4
(1) 3Q2015 results adjusted to reflect management fees wholly paid in cash and no capital distribution for a like-for-like comparison to 3Q2016
(2) Includes straight line rent adjustment of S$0.4 million (3Q2015: S$0.5 million)
(3) Lower net property income mainly due to higher operating expenses of properties converted from single-tenanted property to multi-tenancy offset by revenue contribution
from leasing up and rental escalations of several properties.
(4) Non-taxable items for 3Q2016 less than one million in value.
(5) 100% of management fees paid in cash in 3Q2016 compared to 50% cash/50% units in 3Q2015
3Q2016 Financial Summary
5
YTD
3Q2016
(S$
million)
YTD
3Q2015
(S$
million)
YoY
(%)
Adjusted
YTD
3Q2015
(S$
million) (1)
Adjusted
YoY (%)
Gross Revenue (2) 84.3 83.7 0.7 83.7 0.7
Net Property Income (3) 62.6 64.5 3.1 64.5 3.1
Net Income 39.3 40.0 2.0 40.0 2.0
Net effect of non-taxable items 2.2 4.9
Distribution from capital - 2.1
Amount available for distribution (4) 41.5 47.0 11.8 42.2 1.7
Distribution Per Unit (“DPU”) (cents) 3.177 3.654 13.1 3.286 3.3
Annualised DPU (cents) 4.236 4.885 13.3 4.393 3.6
(1) YTD3Q2015 results adjusted to reflect management fees wholly paid in cash and no capital distribution for a like-for-like comparison to YTD3Q2016
(2) Includes straight line rent adjustment of S$1.3 million (YTD3Q2015: S$1.7 million)
(3) Lower net property income due to higher operating expenses of properties converted from single-tenanted property to multi-tenancy offset by revenue contribution from
acquisitions in the prior year, leasing up and rental escalations of several properties.
(4) 100% of management fees paid in cash in YTD3Q2016 compared to 50% cash/50% units and capital distribution in YTD3Q2015
YTD3Q2016 Financial Summary
6
Real Estate Highlights
160A Gul Circle
6
2.1%
7.3% 7.7%
0.5%
8.1%
16.8%
1.2%
17.0%
12.5%
17.0%
7.0%
2.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2016 2017 2018 2019 2020 2021 +
Single-Tenanted Multi-Tenanted
Proactive Lease Management
As at 30 September 2016
7
By Rental Income
• Weighted Average Lease Expiry (WALE) at 3.8 years
• Renewed and secured approximately 1,194,507 sq ft of leases in YTD 3Q16
• Tenant retention rate of 86.7 %
• Portfolio occupancy at 93.6 %1
(6 properties)
• The property will be undergoing AEI
1Excluding 2 Ubi View that is expected to be divested in 4Q16
Divestment
8
Description
A 5-storey light industrial building
Gross Floor Area
43,654 sq ft
Sale Consideration
S$10.5 million
Completion Date
Target end October 2016
Proposed Divestment of
2 Ubi View
Land Tenure
~ 42 years balance
21B Senoko Loop
9
Financial and
Capital Management Highlights
Balance Sheet Summary
As at 30 September 2016
(S$ million)
Investment Properties 1,405.2
Total Assets 1,426.3
Total Borrowings (net of loan transaction costs) 522.9
Net assets attributable to Unitholders 872.1
No. of Units Issued (million) 1,304.4
NAV Per Unit (cents) 66.9
Gearing Ratio (%) 36.9
10
Key Capital Management Indicators
As at 30 September 2016
(S$ million)
Total Debt (S$ million) 526.0
Gearing Ratio (%) 36.9
All-in Cost (%) p.a. 3.65
Weighted Average Debt Expiry (years) 3.4
Interest Coverage Ratio 3.6
Interest Rate Exposure Fixed (%) 88.4
Proportion of Unencumbered Investment Properties (%) 100%
Available Committed Facilities (S$ million) 89.0
11
• 88.4% of interest rates fixed for the next 3.2 years
• Unencumbered investment properties valued in excess of S$1.4 billion
Diversified Debt Maturity Profile
• Well-staggered debt maturity profile, with no refinancing due till 2H2018
• Available RCF of S$89m provides CIT with financial flexibility
• Weighted Average Debt Expiry lengthened to 3.4 years
12
155 160
50
100
61
0
100
200
300
2016 2017 2018 2019 2020 2021 2022 2023
S$ M
il
MTNs Unsecured Term Loan
Distribution Timetable
Distribution Details
Distribution Period 1 July 2016 to 30 September 2016
Distribution Rate 0.987 cents per unit from taxable income
Distribution Timetable
Last Trading Day on a “Cum Distribution” Basis 31 October 2016
Distribution Ex-date 1 November 2016
Books Closure Date 3 November 2016
Distribution Payment Date 30 November 2016
13
14
3 Pioneer Sector 3
14
Appendix
3 Pioneer Sector 3
14
Logistics General Industrial
Warehouse Car Showroom & Workshop
Light Industrial Business Park
Overview of CIT
Jurong Port
Pasir Panjang Terminal
Keppel Terminal
Changi
International Airport
Data as at 30 September 2016
15
IPO in July 2006
Current Market Cap ~S$717 million
50 Properties
~8.4 million sq ft of GFA
~7.8 million Sq ft of NLA
S$1.4 billion Property Value
8.2 months of Security Deposits
~93.6%1 Occupancy Rate
205 Tenants
1Excluding 2 Ubi View that is in process of divestment
Diversified Portfolio
16
Logistics, 15.3%
Warehousing, 20.0%
Light Industrial, 26.9%
General Industrial,
32.7%
Car Showroom and Workshop, 2.9%
Business Park, 2.2%
Asset Class (By Valuation)
Logistics, 16.9%
Warehousing, 18.7%
Light Industrial, 29.0%
General Industrial,
30.4%
Car Showroom and Workshop,
3.3%
Business Park, 1.7%
Asset Class (By Rental Income)
Multi-Tenanted Properties, 56.2%
Single Tenanted Properties, 43.8%
Single Tenanted vs Multi-Tenanted Properties (By Valuation)
Multi-Tenanted Properties, 57.5%
Single Tenanted Properties, 42.5%
Single Tenanted vs Multi-Tenanted Properties (By Rental Income)
17
Diversified Tenant Base and Trade Sectors
No individual trade sector
accounts for more than 13.2%
of CIT’s total rental income
Quality and Diversified Tenant Base
• Top 10 Tenants Account for ~33.9% of Rental Income
18
7.1%
5.2%
3.9%3.4% 3.3%
2.4% 2.3% 2.2% 2.1% 2.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
As at 30 September 2016
Portfolio Rents
19
As at 30 September 2016
$1.10
$1.43
$1.27
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
STBs MTBs TOTAL
Portfolio Rents (Based on Leased Area Per Month Per Sq Ft)
1,194,507 sq ft renewed in 3Q YTDRental reversion of -4.5%*
*Due in large part to the expiry of the master lease and subsequent conversion to multi-tenanted building of the property at 4/6 Clementi Loop.
Portfolio Occupancy Levels by Asset Class
• Healthy portfolio occupancy compared to industry average As at 30 September 2016
CIT Portfolio Average: 93.6%1
20
*As at 2Q2016
JTC Industrial Average:
89.4%*
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%97.4%
85.0%89.7%
72.7%
88.2%
97.6%
91.9% 92.6% 92.5%
100.0% 100.0%
93.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Logistics Warehousing Light Industrial General Industrial Car Showroom andWorkshop
Business Park TOTAL
Portfolio Occupancy
STBs MTBs TOTAL1Excluding 2 Ubi View that is in process of divestment
Interest Rate Risk Management
21
• 88.4% of interest rate exposure fixed for next 3.2 years
• Borrowing costs significantly insulated against interest rate increases
(1) Based on number of units in issue as of 31 December 2015
Increase in
Interest Rate
Impact on All-in Cost
of Debt (%)
Decrease in
distributable
Income (S$m)
Change as % of
FY2015
Distribution
Impact on
FY2015 DPU
(Cents)(1)
0.50% 3.71% 0.31 0.49% 0.024
1.00% 3.77% 0.61 0.99% 0.047
1.50% 3.82% 0.92 1.48% 0.071
2.00% 3.88% 1.22 1.97% 0.094
Important NoticeThis material shall be read in conjunction with CIT’s results announcements for the financial period ended 30 September 2016.
The value of units in CIT (“Units”) and the income derived from them may fall as well as rise. Units are not investments or deposits in, or
liabilities or obligations of, Cambridge Industrial Trust Management Limited ("Manager"), RBC Investor Services Trust Singapore Limited
(in its capacity as trustee of CIT) ("Trustee"), or any of their respective related corporations and affiliates (including but not limited to
National Australia Bank Limited, nabInvest Capital Partners Pty Ltd, or other members of the National Australia Bank group) and their
affiliates (individually and collectively "Affiliates"). An investment in Units is subject to equity investment risk, including the possible
delays in repayment and loss of income or the principal amount invested. Neither CIT, the Manager, the Trustee nor any of the Affiliates
guarantees the repayment of any principal amount invested, the performance of CIT, any particular rate of return from investing in CIT, or
any taxation consequences of an investment in CIT. Any indication of CIT performance returns is historical and cannot be relied on as an
indicator of future performance.
Investors have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is intended that investors
may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the “SGX-ST”). Listing of the Units on
the SGX-ST does not guarantee a liquid market for the Units.
This presentation may contain forward-looking statements that involve assumptions, 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
occupancy or property rental income, changes in operating expenses (including employee wages, benefits and training costs),
governmental and public policy changes and the continued availability of financing in amounts and on terms necessary to support future
CIT business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager’s
current view of future events.
This presentation is for informational purposes only and does not have regard to your specific investment objectives, financial situation or
your particular needs. Any information contained in this presentation is not to be construed as investment or financial advice, and does
not constitute an offer or an invitation to invest in CIT or any investment or product of or to subscribe to any services offered by the
Manager, the Trustee or any of the Affiliates.
22
Further Information
Ms. Elena Arabadjieva
Cambridge Industrial Trust Management Limited
61 Robinson Road, #12-01 Tel: (65) 6222 3339
Robinson Centre Fax: (65) 6827 9339
Singapore 068893 [email protected]
23
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