25 Pioneer Crescent
Investors’ PresentationSeptember – October 2016
Content
Overview of CIT
1H2016 Financial Results Executive Summary
1H2016 Real Estate Highlights
1H2016 Financial & Capital Management Highlights
Appendix
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Overview of CIT
Singapore’s first independent industrial REIT
Listed on 25th July 2006
Well diversified industrial properties in Singapore
Portfolio ranging from logistics, warehouse, light industrial, general
industrial, business park, car showroom and workshop
Credit Rating of Baa3 by Moody’s
Senior unsecured MTNs share the same investment grade as the
parent
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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 June 2016
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51 Properties*
~8.5 million sq ft of GFA
~7.8 million Sq ft of NLA
S$1.42 billion Property Value
8.5 months of Security Deposits
~93.4% Occupancy Rate
201 Tenants
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1H2016 Executive Summary
Active Portfolio Management
Proactive asset management Weighted Average Lease Expiry remains steady at 3.6 years (by rental income)
Tenant retention rate of 71.4 % achieved in a challenging operating environment
Healthy portfolio occupancy Portfolio occupancy remains steady at 93.4 %
Targeted divestment strategy Completed divestment of 23 Tuas Avenue 10
Stable Performance and Prudent Capital Management Increase in Gross Revenue
2.5 % increase year-on-year
DPU – achieved 2.190 cents for 1H2016 Adjusted DPU for 1H2016 up 1.9 % as compared to 1H2015
Quality of earnings improving due to no capital distribution and 100 % payment of management fees in cash
103.3 % of net income paid out in 1H2016
86.6% of interest rates fixed for the next 3.4 years
Issued S$50m 7 year MTN at 3.95% The issuance was 1.25x oversubscribed with institutional investors taking 100% of the issuance
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1H2016
(S$
million)
1H2015
(S$
million)
YoY
(%)
Adjusted
1H2015
(S$
million) (1)
Adjusted
YoY (%)
Gross Revenue (2) 56.7 55.3 2.5 55.3 2.5
Net Property Income (3) 42.7 42.8 0.4 42.8 0.4
Net Income 26.3 25.4 3.8 25.4 3.8
Net effect of non-taxable items 2.3 4.0
Distribution from capital - 2.1
Amount available for distribution (4) 28.6 31.5 9.2 27.6 3.6
Distribution Per Unit (“DPU”) (cents) 2.190 2.450 10.6 2.150 1.9
Annualised DPU (cents) 4.380 4.941 11.3 4.335 1.0
(1) 1H2015 results adjusted to reflect management fees wholly paid in cash and no capital distribution for a like-for-like comparison to 1H2016
(2) Includes straight line rent adjustment of S$0.8 million (1H2015: S$1.2 million)
(3) Lower due to higher operating expenses of properties converted to multi-tenancy offset by revenue contribution from property acquisition in prior year, leasing up and
rental escalations of several properties since 1H2015
(4) 100% of management fees paid in cash in 1H2016 compared to 50% cash/50% units in 1H2015
1H2016 Financial Summary
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Real Estate Highlights
160A Gul Circle
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Proactive Lease Management
As at 30 June 2016
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By Rental Income
6.3% 7.2% 7.6%
0.8%
8.0%
14.1%
4.0%
16.4%
11.6%
14.8%
6.5%
2.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2016 2017 2018 2019 2020 2021 +
Single-Tenanted Multi-Tenanted
(5 properties)
• 2 properties are expected to be divested• 1 properties are expected to be renewed / new lease • 1 property is expected to be converted into a multi-tenanted building• 1 property is expected to go through some improvement works
• Weighted Average Lease Expiry (WALE) at 3.6 years
• Renewed and secured approximately 625,844 sq ft of leases in 1H2016
• Tenant retention rate of 71.4 %• Portfolio occupancy at 93.4 %
Completed Divestment of 23 Tuas Avenue 10
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Description
A 4-storey purpose-built industrial
building
Gross Floor Area
102,310 sq ft
Sale Consideration
S$16.5 million
Use of funds
Repay debt and reduce gearing
23 Tuas Avenue 10
Land Tenure
~ 40 years balance
120 Pioneer Road Description
Building façade upgrade, Addition of
Passenger and Cargo Lifts
Total GFA
~248,780 sq ft (additional 4,268 sq ft)
Estimated Contract Cost
S$5 million
Target Completion Date
3rd Quarter 2017
2H2016 Proposed AEIs
10
21B Senoko Loop
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Financial and
Capital Management Highlights
Balance Sheet Summary
As at 30 June 2016
(S$ million)
Investment Properties 1,420.4
Total Assets 1,436.0
Total Borrowings (net of loan transaction costs) 534.3
Net assets attributable to Unitholders 873.2
No. of Units Issued (million) 1,304.4
NAV Per Unit (cents) 66.9
Gearing Ratio (%) 37.4
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Key Capital Management Indicators
As at 19th Sep 2016
Total Debt (S$ million) 526.0
All-in Cost (%) p.a. 3.65
Weighted Average Debt Expiry (years) 3.4
Interest Rate Exposure Fixed (%) 88.4
Proportion of Unencumbered Investment Properties (%) 100.0
Available Committed Facilities (S$ million) 89.0
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• 88.4% of interest rates fixed for the next 3.2 years
• All of CIT’s investment properties are unencumbered
Diversified Debt Maturity Profile
• Well-staggered debt maturity profile, with no refinancing due till 2H2018
• Available RCF of S$89m provides CIT with financial flexibility
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155 160
50
100
61
0
100
200
300
2016 2017 2018 2019 2020 2021 2022 2023
S$ M
il
MTNs Unsecured Term Loans
As at 19th Sep 2016
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3 Pioneer Sector 3
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Appendix
3 Pioneer Sector 3
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Diversified Portfolio
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Logistics, 16.4%
Warehousing, 19.4%
Light Industrial, 28.7%
General Industrial, 30.5%
Car Showroom and Workshop,
3.3%
Business Park, 1.7%
Asset Class (By Rental Income)
Logistics, 15.1%
Warehousing, 20.9%
Light Industrial,
26.6%
General Industrial,
32.3%
Car Showroom and Workshop, 2.9%
Business Park, 2.2%
Asset Class (By Valuation)
Multi-Tenanted Properties, 54.6%
Single Tenanted Properties, 45.4%
Single Tenanted vs Multi-Tenanted Properties (By Valuation)
Multi-Tenanted Properties, 55.9%
Single Tenanted Properties, 44.1%
Single Tenanted vs Multi-Tenanted Properties (By Rental Income)
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Diversified Tenant Base and Trade Sectors
Transportation and Storage, 27.6%
Manufacturing, 25.8%
Wholesale, Retail Trade Services and Others,
24.4%
Professional, Scientific and
Technical Activities, 11.2%
Logistics, 11.7%
General Storage, 11.4%
Specialised Storage, 4.5%
Fabricated Metal Products, 9.5%
Computer, Electronic and Optical Products (Manufacturing), 6.2%
Paper and Paper Products, 3.5%Machinery and Equipment, 3.4%
Pharmaceutical, 1.7%
Rubber and Plastic Products, 1.5%
Wholesale of Household Goods, Textiles, Furniture &
Furnishing and Others, 13.3%
Wholesale of Industrial, Construction and IT Related Machinery and
Equipment, 4.3%
Car Distribution, 3.7%
Education, 1.5%
Others, 1.6%
Computer, Electronic and Optical Products, 5.9%
Architectural and Engineering Activities and Related Technical Consultancy, 4.0%
M&E Services and Gas Supply, 1.3%
Civil & Engineering Services, 4.5%
Other Services, 3.4%Precision Engineering, 3.1%
No individual trade sector
accounts for more than 13.3%
of CIT’s total rental income
Construction, 4.5 %
Other Services, 3.4 %
Precision Engineering, 3.1 %
Quality and Diversified Tenant Base
• Top 10 Tenants Account for ~33.0% of Rental Income 30 June 2016
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6.8%
5.2%
3.8%3.4% 3.3%
2.3%2.1% 2.1% 2.0% 2.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Portfolio Rents
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As at 30 June 2016
$1.10
$1.45
$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)
625,844 sq ft renewed in 1H2016Rental reversion of -15.8%*
*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 June 2016
CIT Portfolio Average: 93.4%
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*As at 1Q2016
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%97.5%
85.6% 87.1%
69.9%
87.4%
97.7%92.7% 90.7% 92.6%
100.0% 100.0%
93.4%
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 TOTAL
JTC Industrial Average:
90.1%*
Important NoticeThis material shall be read in conjunction with CIT’s results announcements for the financial period ended 30 June 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.
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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]
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