Proposed Acquisition of Exklusiv Building 24 August 2004
Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary 2
Exklusiv Building Property Details The Property Building type Address Net Lettable Area Site Area Valuation (as at 2 August 2004) Purchase Price Property Yield (before acquisition costs) for first year A 5-storey light industrial building with office cum motor vehicle showroom 247 Alexandra Road 10,513 sqm 7,523 sqm S$45.0m by Colliers International Consultancy & Valuation (Singapore) Pte Ltd S$44.8m (initial payment of S$43.9 million and deferred payment of $0.9 million at the end of the 3 rd yr) 7.9% (based on the initial payment of S$43.9m upon completion) Impact on A-REIT Timetable for Completion Acquisition Summary 3
Exklusiv Building Property Details The Property Title Occupier Occupancy Outgoings Land area of 7,150 sqm has a leasehold expiring in year 2051 Upfront land premium has been paid by Group Exklusiv Group Exklusiv 100% Lease management cost and subletting fees charged by HDB to be paid by lessor (A-REIT). Impact on A-REIT Timetable for Completion Acquisition Summary All property tax, maintenance and utility expenses to be paid by lessee (Group Exklusiv) 4
Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary 5
Distribution Per Unit ( DPU ) Positive The Property Exklusiv Building DPU Impact (proforma impact on financial year ended 31 March 2004) DPU Impact (Based on possible debt/equity funding of 30/70)* 0.08 cents Impact on A-REIT Timetable for Completion Acquisition Summary Note: *Calculated based on the assumption that A-REIT had acquired the Property on 1 April 2003 and held it through to 31 March 2004 as well as on the assumption that the acquisition is funded at an optimal gearing level of 30 per cent. debt / 70 per cent. equity. 6
Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary 7
Well Located, Diversified Portfolio 19 The Property Logistics Sector 13 20 16 1 2 3 41 22 21 9 14 10 15 7 11 6 8 17 18 12 5 Impact on A-REIT Timetable for Completion Acquisition Summary 1 Science & Business Park Hi-tech Industrial Light Industrial Logistics 1. The Alpha 2. The Aries 3. The Capricorn 4. The Gemini 5. Honeywell Building 6. Ultro Building 7. Techlink 8. Siemens Center 17. A-REIT has an option to acquire the Infineon Building 9. Techplace I 10. Techplace II 11. OSIM HQ Building 12. Ghim Li Building 19. Progen Building 22. Exklusiv Building 13. IDS Logistics Corporate HQ Building 14. Changi International Logistics Centre 15. Trivec Building 16. TT International Tradepark 18. Nan Wah Building 20. C&P Logistics Hub 21. A-REIT has an option to acquire the Building developed with a lease to HP 8
Asset Class Diversification by Portfolio Value Before acquisition of Exklusiv Bldg After acquisition of Exklusiv Bldg Business Park Business Park Distribution & Logistics Centres 38% 26% 25% 11% Hi-Tech Industrial Distribution & Logistics Centres 37% 29% 24% 11% Hi-Tech Industrial Light Industrial Light Industrial 9
A-REIT Weighted Lease Expiry Profile The Property A-REIT Weighted Average Lease Term to Expiry - By Income Impact on A-REIT % of A-REIT Gross Rental Income 30 25 20 15 10 5-27.4 28.2 19.2 19.8 16.4 15.9 7.3 7.5 6.5 4.3 4.2 3.9 3.8 4.1 4.2 4.5 4.3 - - 0.9 2.7 2.7 1.0 4.0 6.3 - - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 > 2019 For the Year Ending 31 Mar 19 Properties 20 properties Timetable for Completion Acquisition Summary Weighted Average Lease to Expiry Before (A-REIT - 19 Properties) 5.6 After (A-REIT + Exklusiv Bldg) 5.8
Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary 11
Yield-Accretive For Year One Income Property Expenses Exklusiv Building ($ million) 3.6 0.1 The Property Impact on A-REIT Timetable for Completion Acquisition Summary Net Income 3.5 Yield Before Acquisition Costs (for year one) 7.9% (1) (1) Based on the initial payment of S$43.9 million upon completion. The remaining S$0.9 million will be paid at the end of the 3 rd year. 12
Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary 13
Timetable for Completion The Property Impact on A-REIT August 2004 December 2004 Exklusiv Building Signed Put and Call Option Agreement Exercise option Execution of Sale and Purchase Agreement Completion Timetable for Completion Acquisition Summary 14
Agenda The Property Impact on A-REIT Pro forma Financial Effect Portfolio Diversification Property Yield Timetable for Completion Acquisition Summary 15
Acquisition Summary The Property Well located property Diversifies property portfolio Strengthens tenancy profile Diversifies tenant mix and industry type Extends lease expiry profile Yield-accretive DPU positive Impact on A-REIT Timetable for Completion Acquisition Summary 16
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 -