Overview of Portfolio

As at 31 March 2018, Cache’s portfolio comprised 28 high quality logistics warehouse properties strategically located in established logistics clusters in Singapore, Australia and China. The portfolio has a total gross floor area of approximately 9.1 million square feet valued at approximately S$1.4 billion.

Strategically-Located Portfolio in Singapore, Australia and China

Property Portfolio Statistics As at 31 March 2018
28 Logistics Warehouse Properties(1) 11 - Singapore(1)
16 - Australia
1 - China
Total Valuation(2) S$1.39 billion
Gross Floor Area (GFA) 9.1 million sf
Committed Occupancy 97.3% - Portfolio
96.9% - Singapore
97.7% - Australia
100% - China
Average Building Age 13.2 years
Weighted Average Lease to Expiry (“WALE”) by NLA 3.5 years
Weighted Average Land Lease Expiry 52.9 years(3)
Rental Escalations built into Master Leases ~1% to 4% p.a.
Number of Tenants 56

Notes:

  • Includes Hi-Speed Logistics Centre located at 40 Alps Ave, Singapore. The proposed divestment of 40 Alps Ave, Singapore was announced on 18 January 2018.
  • Based on FX rate of S$1.00 = A$0.9578 and S$1.00 = RMB 4.8733, and annual independent valuations of the properties as at 31 December 2017.
  • For the purpose of presentation, freehold properties are computed using a 99-year leasehold tenure.

Overview

Strong and Diverse Demand by Underlying End-Users

Cache's portfolio enjoys a high underlying occupancy by end-users, majority of which are multinational corporations. The end-users are also diversified by trade sectors such as industrial and commercial goods, food and cold storage, aerospace, healthcare, automotive and materials, engineering and construction.

Overview

High Occupancy in Underlying Portfolio

Cache enjoys a high committed portfolio occupancy of 97.3% as at 31 March 2018. This compares favorably with the Singapore industrial average occupancy rate of approximately 89.1% (1) for warehouses.

With some of the best-in-class warehouse properties and its proactive marketing strategy, Cache continues to draw robust demand for logistics space from 3PLs and other logistics operators.

Greater Balance Between Master Leases and Multi-Tenancies

Over time, Cache achieved a more balanced mix of master-leased and multi-tenanted properties. Master-leased properties provide portfolio stability with their typically longer lease periods while multi-tenanted properties enable Cache the ability to ride on potential rental upsides during a buoyant rental market due to typically shorter lease periods.

For the Australian assets, the master lease arrangements come with built-in annual rental escalations of between 2% and 4%, or tied to the local Consumer Price Index, whichever is higher.

As at 31 March 2018, multi-tenanted properties contributed 41% of Gross Revenue while single-tenanted properties contributed to the balance 59%.

Minimal Renewal Risk from Long WALE

The Weighted Average Lease to Expiry (WALE) by net lettable area of the portfolio was 3.5 years as at 31 March 2018. Cache's portfolio enjoys a high degree of predictability in its cashflow and earnings stability as about half of all leases are committed till 2020 and beyond.

Additional Confidence through Security Deposits

Security deposits underpinning the rental obligation average 3 to 12 months. This provides additional confidence in our cashflow.

Notes:

  • JTC Corporation, Quarterly Market Report- Industrial Properties, 4Q 2017