Ascendas Reit to acquire seven logistics properties in Chicago, United States

YTGIRL
2022-05-10

Singapore – Ascendas Funds Management (S) Limited $ASCENDAS REAL ESTATE INV TRUST(A17U.SI)$ (the “Manager”),
in its capacity as the manager of Ascendas Real Estate Investment Trust (“Ascendas
Reit”), is pleased to announce the proposed acquisition of a portfolio of seven logistics
properties located across six infill industrial submarkets across Chicago, Illinois, United
States (“USA”)from BREIT Industrial HS Property Owner LLC, BREIT Industrial Canyon IL1M03 LLC,
BCORE Jupiter NEMW 1 LLC and Icon Pac Owner Pool 4 Northeast/Midwest, LLC,
third-party vendors (collectively, the “Vendors”).

This portfolio comes with a long weighted average lease expiry of 5 years and is 100% occupied by 12 tenants from
a diverse range of industries including logistics service providers, engineering companies and a food distributor.”

Key Merits of the Proposed Acquisition

The O’Hare International Airport is one of the largest air cargo airports in USA,
processing almost 2 million metric tonnes of cargo per annum worth more than US$200
billion.

On average, the existing customers have occupied their current space for 10.6 years.
The long average tenant tenure attests to the attractive infill locations of the Target
Portfolio.

Resilient income stream

The Target Portfolio is 100% occupied by 12 customers with a weighted average lease
to expiry (“WALE”) of 5.0 years as at 31 March 2022. These customers come from a
diverse range of industries such as logistics and supply chain management, distributors,
engineering and food & beverage.

No single customer contributes to more than 20% of the total rental income of the Target
Portfolio (as at 31 March 2022), thus minimising tenant concentration risk.
The current leases have built-in annual rent escalations ranging between 2.0% and 3.0%
per annum.

Diversifies Ascendas Reit’s logistics exposure

The Proposed Acquisition is expected to increase and diversify Ascendas Reit’s
exposure to logistics properties in USA and across its portfolio.

On a pro forma basis11 , the proportion of Ascendas Reit’s logistics properties in USA
will increase to 14.6% (S$0.3 billion) from 9.4% (S$0.2 billion) and on a total portfolio
basis, the proportion of Ascendas Reit’s logistics properties will rise to 25% (S$4.2
billion) of total investment properties of S$16.5 billion (from S$4.0 billion or 24% of total
investment properties of S$16.4 billion).

Distribution per Unit (“DPU”) accretive acquisition

The estimated net property income (“NPI”) yield12 for the first year post acquisition is
approximately 5.3% and 5.1% pre-transaction costs and post-transaction costs
respectively. The Proposed Acquisition will be funded by Ascendas Reit through internal resources
and/or existing debt facilities.

CLI aims to scale its FUM and fee-related earnings through its full stack of investment management and
operating capabilities. As the listed investment management business arm of the CapitaLand Group, CLI has
access to the development capabilities of and pipeline investment opportunities from CapitaLand’s
development arm. Being a part of the well-established CapitaLand ecosystem differentiates CLI from other
REIMs.

As part of the CapitaLand Group, CLI places sustainability at the core of what it does. As a responsible real
estate company, CLI contributes to the environmental and social well-being of the communities where it
operates, as it delivers long-term economic value to its stakeholders.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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