Overview of Portfolio

As at 31 March 2019, Cache's portfolio comprised 26 high quality logistics warehouse properties strategically located in established logistics clusters in Singapore and Australia(1). The portfolio has a total gross floor area of approximately 8.6 million square feet valued at approximately S$1.3 billion.

  • Excluding the proposed acquisition of 182-198 17 Maidstone Street, Altona, Victoria, Australia announced on 20 Mar 2019.

Strategically-Located Portfolio in Singapore and Australia

Property Portfolio Statistics As at 31 March 2019
26 Logistics Warehouse Properties(1) 10 - Singapore
16 - Australia
Total Valuation(2) S$1.3 billion
Gross Floor Area (GFA) 8.6 million sf
Committed Occupancy 94.8% - Portfolio
92.2% - Singapore
98.8% - Australia
Average Building Age 14.4 years
Weighted Average Lease to Expiry (“WALE”) by NLA 3.1 years
WALE by Gross Rental Income 3.0 years
Weighted Average Land Lease Expiry 52.7 years(3)
Rental Escalations within Single-Tenant/ Master Leases ~1% to 4% p.a.
Number of Tenants 67

Notes:

  • Excluding the recent proposed acquisition of 182-198 17 Maidstone St., Altona, Victoria, Australia announced on 20 Mar 2019.
  • Based on FX rate of S$1.00 = A$1.0418.
  • For the purpose of presentation, freehold properties are computed using a 99-year leasehold tenure.

Overview

  • Excluding the recent proposed acquisition of 182-198 17 Maidstone Street, Altona, Victoria, Australia announced on 20 Mar 2019.

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 94.8% as at 31 March 2019. This compares favorably with the Singapore industrial average occupancy rate of approximately 89.5% (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 2.5% and 4%, or tied to the local Consumer Price Index, whichever is higher.

As at 31 March 2019, multi-tenanted properties contributed 68% of Gross Revenue while single-tenanted properties contributed to the balance 32%.

Minimal Renewal Risk from Long WALE

The Weighted Average Lease to Expiry (WALE) by net lettable area of the portfolio was 3.1 years as at 31 March 2019. Cache's portfolio enjoys a high degree of predictability in its cashflow and earnings stability 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 2018