AIMS AMP Capital Industrial REIT

Bloomberg: AAREIT SP Reuters: AART.SI Price: SGD0.21 Date: March 11, 2011

GICS: Financials/Industrial REIT’s Pr ice 30 Day Moving Aver age Pr ice ( SGD)
0.65
Business Summary: AIMS AMP Capital Industrial REIT 0.60

is a REIT with a portfolio of industrial properties, which 0.55

0.50
comprise mainly warehouses and logistics. 0.45
0.40
Country of Incorporation: Singapore 0.35
0.30

Head Office Location: 1 Raffles Place, #21-01 One 0.25

0.20
Raffles Place, Singapore 048616 0.15
0.10
Place of Operations: Singapore and Japan
Vol ume Vol ('000)
Website: www.aimsampcapital.com 80,000

60,000
IR Contact: Nicholas McGrath | 40,000

nmcgrath@aimsampcapital | +65-64260101 20,000

0
Analyst: Kah Ling Chan / Ching Wah Tam Mar 08 May 08 Jul 08 Sep 08 Dec 08 Feb 09 Apr 09 Jun 09 Aug 09 Nov 09 Jan 10 Mar 10 May 10 Jul 10 Oct 10 Dec 10 Feb 11

Investment Highlights Key Investment Risks

• Following completion of its major restructuring exercise in December
2009, Macarthur Cook Industrial REIT transformed into AIMS AMP
Capital Industrial REIT (the Trust) - with two new and stronger
sponsors, AMP Capital and AIMS Financial Group - with a well-
diversified industrial property portfolio. The Trust is also now on a
better financial footing. More importantly, the two new sponsors have a
strong track record in property management and an established
presence in a number of regional countries, which the Trust can tap on
for future growth.
• The Trust has successfully removed its financing risks by refinancing
its debts with a maturity of 3.7 years and also reducing its interest
margin to 2.16% from 3.5% previously. Moreover, it has lowered its
leverage level to 32.7% as at end-December 2010, from 44.7% as at
end-September 2009.
• The Trust presently has a portfolio of 27 properties as at end-
December 2010 and is well-diversified in terms of tenant base and
type of properties. More importantly, the Trust’s portfolio enjoys a high
occupancy of 98.5% vs. Singapore’s Urban Redevelopment Authority’s
(URA) industrial property average occupancy of 91.9%. Going forward,
the Trust should see earnings growth from acquisitions, positive rental
reversions and, possibly, from expanding the lettable area of its
existing portfolio since about two-thirds of its existing properties have
an underutilized plot ratio, with some as low as only one-third of its
maximum plot ratio.
• Global epidemic outbreaks such as SARS in 2003 or the 2008/2009
global financial market meltdown and the Asian crisis in 1998 will have
an adverse impact on global travel, the financial system and
businesses, and, in turn, on demand for warehouses and factories in
Singapore.
• Management has to continually search for new yield-accretive
properties to add to the Trust’s portfolio to ensure continuous earnings
growth. The Trust is likely to face competition from other industrial
REITS in acquiring good quality industrial/logistics properties in
Singapore, in terms of yields and market value.
• As all the properties in its portfolio are located in Singapore, and more
specifically, industrial properties, any downturn in the industrial
property market in Singapore will put the Trust’s existing leases under
pressure.
• About 45.7% of its leases will expire in FY13 (Mar) and as such, there
is a risk that some of the leases may not be renewed. Management
believes, however, that the risk is mitigated by the fact that 93.6% of
the leases expiring in FY13 are under Master Leases and the bulk
(96.7%) of these Master Leases’ lettable areas is occupied by sub-
tenants.

Key Stock Statistics Per Share Data

52-week Share Price Range (SGD) 0.19 - 0.24 FY Mar. 2009 2010 2011E 2012E
Avg Vol - 12 months ('000 shares) 2,976.0 Book Value (SG cents) 108.58 31.15 26.65 26.86
Price Performance (%) - 1 month -2.3 Cash Flow (SG cents) 2.0 1.6 2.7 2.1
- 3 month -4.5 Reported Earnings (SG cents) -6.9 -2.6 2.7 2.1
- 12 month 7.1 Dividend (SG cents) 8.9 5.1 1.8 1.9
No. of Outstanding Shares (mln) 2,207.1 Payout Ratio (%) 443.6 84.7 90.0 90.0
Free Float (%) 18.8 PER (x) NM NM 7.9 10.1
Market Cap (SGD mln) 463.5 P/Cash Flow (x) 10.2 13.4 7.9 10.1
Enterprise Value (SGD mln) 625.2 P/Book Value (x) 0.2 0.7 0.8 0.8
Major Shareholders (%) Dividend Yield (%) 42.5 24.4 8.7 8.9
AMP Capital Investors (Luxembourg No. 4) 15.4 ROE (%) 2.0 6.2 8.6 7.8
Dragon Pacific Assets Ltd 11.4 Net Gearing (%) 73.9 35.4 41.4 41.9
APG Algemene Pensioen Groep N.V. 9.4
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 AIMS AMP Capital Industrial REIT
Bloomberg: AAREIT SP Reuters: AART.SI Price: SGD0.21 Date: March 11, 2011

Background Board of Directors

AIMS AMP Industrial REIT was originally listed as Macarthur Cook Name Title Date of Appointment
Industrial REIT in 2007. However, due to the global financial crisis in 2008 George Wang Non-Executive Group Chairman August 2009
and 2009, the Trust ran into liquidity problems as it had debt of SGD202.3
Tan Kai Seng Independent Non-Executive December 2006
mln due April 17, 2009, as well as an unfunded SGD90.2-mln contractual
Director
obligation to acquire 1A International Business Park (1A IBP).
Norman Ip Ka Independent Non-Executive March 2010
Meanwhile, the Trust’s sponsor, Macarthur Cook Limited, was acquired by Cheung Director
AIMS Financial Group in July 2009, which resulted in the latter being the Eugene Paul Lai Independent Non-Executive February 2010
new sponsor of the Trust. Chin Look Director
Simon Vinson Non-Executive Director December 2009
In late 2009, the Trust underwent a major corporate restructuring,
whereby: (i) AMP Capital Investors (AMP Capital) acquired a 50% stake in Graham Sugden Non-Executive Director December 2009
the Trust’s manager and property manager, AIMS AMP Capital Industrial Giam Lay Hoon Non-Executive Director March 2010
REIT Management Limited (AACIRM); (ii) AMP Capital and AIMS Nicholas Paul Executive Director February 2010
Financial Group hold joint sponsorship of the Trust’s manager; (iii) it went McGrath
through a recapitalization exercise which included a 2-for-1 rights issue Source: Company data
and placement of shares; (iv) it refinanced and partially repaid an SGD
term loan of SGD202.3 mln; (v) it acquired four properties from AMP
Capital; and (vi) it bought 1A IBP. In total, the Trust raised SGD217.1 mln Board Independence
in equity and obtained SGD175.0 mln in loan facilities for its debt The Trust’s board composition is fair, with three of its eight members being
repayments, working capital and acquisitions. independent directors. We take comfort that the audit committee has a
In October 2010, the Trust also acquired 27 Penjuru Lane from sponsor majority of independent directors (two of three). However, only one out of
AMP Capital for SGD161.0 mln, which was funded by: (i) proceeds from three of the members of the nominating and remuneration committees are
its rights issue; and (ii) SGD97.0 mln from a new loan facility. independent directors.

The Trust recently acquired 29 Woodlands Industrial Park E1, Northtech, Key Management
for SGD72.0 mln, which was partially financed with funds from a
placement of 219.99 mln new shares and loans. Name Title Date of
Appointment
Nicholas Paul McGrath Chief Executive Officer January 2009
Sponsors Tang Buck Kiau Head of Finance/Secretary October 2007
The Trust’s two main sponsors are AMP Capital and AIMS Financial Wee Lih Koh Senior Investment Manager December 2008
Group. AMP Capital is also the major shareholder of the Trust with a Joanne Loh Asset Manager August 2007
15.35% stake, while George Wang, the major shareholder of AIMS Patrina Tan Fund Accountant and August 2008
Financial Group owns 7.19% of the Trust. Compliance Officer
Charlotte Khoo Fund Accountant December 2007
AMP Capital is a wholly owned subsidiary of AMP Limited (AMP AU,
AUD5.44, Not Ranked), which is one of Australia’s largest retail and Doris Lim Senior Assistant Manager October 2010
corporate pension providers. AMP Limited was established in 1849, and is Source: Company data
listed on the Australian and New Zealand stock exchanges. Meanwhile,
AMP Capital is a specialist investment manager with expertise in direct
and listed real estate, infrastructure, equities, fixed income and credit. It
has over 45 years of experience in real estate investment management,
and has over AUD20 bln in global direct and listed real estate funds under
its management.
AIMS Financial Group was established in 1991 by George Wang, and is
an Australian diversified non-bank financial services and investment
group. The group has expanded to become an international financial
group focusing on lending, securitization, real estate investment, private
equity, investment banking, funds management, securities exchange
ownership and e-commerce across the Asia-Pacific. The group has
originated over AUD5 bln of home loans since 1997, and raised, directly
and indirectly, close to AUD3 bln in funds from capital markets in 1999-
2007.

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 AIMS AMP Capital Industrial REIT
Bloomberg: AAREIT SP Reuters: AART.SI Price: SGD0.21 Date: March 11, 2011

Corporate Structure
Business Segment/Key Revenue Streams
Unitholders The Trust has a portfolio of 27 industrial properties as at December 2010.
It has one property in Saitama, Tokyo, Japan, which it is disposing for
JPY1.49 bln (SGD22.81 mln). The rest of its properties are located in
The Manager The Trustee
AIMS AMP Capital Industrial HSBC Institutional established industrial areas of Singapore.
REIT Management Limited Trust Services
(Singapore) Limited The Trust’s portfolio consists of diversified properties that are suitable to
Holding of Distributions
Shareholders Units key industrial subsectors such as: (i) warehouse & logistics; (ii)
AMP Capital Investors manufacturing; (iii) office park; and (iv) research & technology.
(50.0%)
AIMS Financial Group Warehouse & logistics is the Trust’s biggest rental earner, accounting for
(50.0%)
68% of its total rental income. This is followed by manufacturing, with 21%,
and the balance coming from office park and research & technology.
Acts on
Management The Trust Behalf of Rental Contribution by Sector
Fees AIMS AMP Unitholders
Capital Industrial Research &
REIT Technology
Management Trustee’s 2%
Services Fees
Manufacturing
21%

Ownership Net property

of Assets Income

Office Park
Properties 9%

Warehousing &
The Property Manager Logistics
AIMS AMP Capital 68%
Property Management Property Management
Pte.Ltd. and Other Services

Shareholders
AMP Capital Investors Property Management
and Other Fees Source: Company data
(50.0%)
AIMS Financial Group The Trust’s portfolio has a well-diversified tenant base that includes
(50.0%)
international and local companies engaging in a wide range of economic
activities such as: (i) construction and engineering; (ii) food and beverage;
(iii) consumer goods; (iv) pharmaceuticals; (v) oil and gas; (vi) information
Source: Company data technology; and (vii) logistics.

Key Subsidiaries & Associates Tenant Base by Industry (By 3QFY11 Rental Income)
The Trust has only one subsidiary, Japan Industrial Property Pte Ltd
(JIPPL), which holds an investment company in Japan. JIPPL’s
investment in Goudou Kaisha Bayside (GKB) is through a Tokumei-Kumiai Energy F&B
Printing 3%
Agreement or a silent partnership agreement. The Trust does not have 4%
9%
Fashion/Textiles
legal control over GKB but the agreement entitles the Trust to share
& Apparels
distributable income from GKB. GKB recently sold its only property, Asahi Construction 4%
Ohmiya Warehouse, for SGD22.81 mln, above its book value of and Engineering
SGD22.35 mln. 25% Information
Technology &
Electronics
6%
Plastic Products
and Distribution
7%
Logistics &
Pharmaceutical/ Warehousing
Heathcare/Cosm 27%
etics Metal Recycling
5% Telecom
8%
munications
2%

Source: Company data

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 AIMS AMP Capital Industrial REIT
Bloomberg: AAREIT SP Reuters: AART.SI Price: SGD0.21 Date: March 11, 2011

Moreover, no single sector contributes more than 27% of its total rental AACIRM’s Fee Structure
income, and no single tenant contributes more than 18%. The Trust’s top
In line with all trusts set up, there are certain fees and charges payable to
ten tenants contribute about 75.2% of its rental income.
the Trust’s manager, AIMS AMP Capital Industrial REIT Management
Limited, for the management of and operation of the assets. The primary
Top Ten Tenants by 3QFY11 Rental Income charges can be broadly categorized under:
Tenant %
Base Fee 0.5% p.a. of the property value
C&P Holdings Pte Ltd 17.6
Performance Fee 0.1% p.a. of the property value, provided growth
United Tech Park Pte Ltd 13.2 in distribution per unit (DPU) relative to DPU in
Eurochem Corporation Pte Ltd 9.4 previous year exceeds 2.5%, or
Enviro-Hub Group 8.4 0.2% p.a. of the property value, provided DPU
growth relative to DPU in previous year exceeds
Crescendas Group 8.2 5.0%
Ban Teck Han Group 4.8 Trustee Fee 0.02% of the trust property
Ossia International Limited 3.9 1.0% of the acquisition price of any authorized
Acquisition Fee
MM Corporation 3.4 investment
Builders Shop Pte Ltd 3.3 Divestment Fee 0.5% of the sale price of any authorized
investment sold or divest
Powermatic Data Systems Ltd 3.0
Property 2% of the annual gross rental income of each of
Total 75.2
Management Fee the relevant properties
Source: Company data
Lease Management 1.0% p.a. of the value of the rental income of
Fee each of the relevant properties
The Trust benefits from a well-balanced and diversified portfolio with a Development 5.0% of the total costs of development for any
weighted average lease expiry of 3.5 years, and enjoys a more favorable Management Fee development, re-development, refurbishment and
average occupancy of 98.5% (as at 3Q10) vs. the URA Industrial average retrofitting works
occupancy of 91.9%. Lease Management 1.0% of the monthly gross revenue
Fee
The Trust vs. Singapore’s Industrial Occupancy Average
In our opinion, the fees charged are in line with market practice and not
100.0% unusually high.
98.5%
98.0%

96.0%

94.0%
92.5%
91.9%
92.0% 91.3%

90.0%

88.0%

86.0%
The Trust Factory Space Warehouse Space URA Industrial
Average

Source: URA, Company data

The Trust’s portfolio has a strong expansionary opportunity, as about two-

thirds of its properties have an underutilized plot ratio, with some as low as
only one third of the maximum plot ratio.

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 AIMS AMP Capital Industrial REIT
Bloomberg: AAREIT SP Reuters: AART.SI Price: SGD0.21 Date: March 11, 2011

Singapore: Price Index for Factory and Warehouse Space

Industry Landscape
140
Singapore : Industrial Property
120
Demand for both factory space and warehouses has been growing
steadily over the past few years, with annual demand for factory space 100
and warehouses outstripping annual supply since 2004, except for 2009.
80

Singapore’s Factory Space: Supply and Demand 60

Factory space ('000 sq m) Supply Demand 40

2003 519 419
20
2004 349 536
0
2005 292 660

2Q 02

4Q 3
2Q 3

4Q 4
2Q 04
4Q 05

2Q 5
4Q 6
2Q 6

4Q 7
2Q 7
4Q 8

2Q 8
4Q 9
2Q 09
4Q 10
10
0

0
0

0
0

0
0
0

0
0
0
2006 429 710

20
20
20

20
20
20

20
20

20
20
20

20
20
20

20
20
20
4Q
2007 621 880 All Industrial Multiple-user Factory Multiple-user Warehouse
2008 641 1,056
2009 1,289 741 Source: URA
2010 669 891
Singapore: Rental Index for Factory and Warehouse Space
Source: URA

140.0
Singapore’s Warehouse Space: Supply and Demand
120.0
Warehouse space ('000 sq m) Supply Demand
2003 190 106 100.0

2004 54 115 80.0

2005 52 102
60.0
2006 178 257
40.0
2007 307 443
2008 344 402 20.0
2009 269 56
0.0
2010 85 180
2 Q 02
4 Q 03
2 Q 03
4 Q 04
2 Q 04
4 Q 05
2 Q 05
4 Q 06
2 Q 06
4 Q 07
2 Q 07
4 Q 08
2 Q 08
4 Q 09
2 Q 09
4 Q 10
10
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Source: URA
4Q

All Industrial Multiple-user Factory Multiple-user Warehouse

As a result, vacancy rates for factory space and warehouses have been
declining from 12.1% and 15.0% in 2003 to 8.6% and 8.8% in 2010
Source: URA
respectively.
According to URA, the total supply of factory and warehouse space in
Singapore’s Vacancy Rate of Factory and Warehouse Space Singapore totals 30.7 mln sq m and 7.0 mln sq m respectively. With limited
supply of warehouse space over the next three years, we believe both
Vacancy rate (%) Factory Warehouse rental and prices of warehouse space - of which the Trust has 61% rental
2002 12.4 13.8 income exposure - will continue to see growth in the next few years as
2003 12.1 15 demand continues to grow in line with the economy.
2004 11.5 13.9
Singapore: Future Supply of Factory and Warehouse Space
2005 10.1 12.9
2006 9.3 11.2 Future supply ('000 sq m) Factory Space Warehouse Space

2007 8.9 8.6 2011 1,363 349

2008 7.5 7.3 2012 1,062 144

2009 9.4 10.1 2013 533 192

2010 8.6 8.8 2014 168 -

2015 79 -
Source: Company data
> 2015 234 -
Both price and rental indices for factory space and warehouses declined
Source: URA
to a low in 1Q09 and 2Q09 following the global financial crisis.
Nevertheless, both prices and rental of factory space and warehouses
have recovered substantially, in line with Singapore’s strong economic
rebound in 2010.

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 AIMS AMP Capital Industrial REIT
Bloomberg: AAREIT SP Reuters: AART.SI
Growth Strategy
The Trust has spelled out a set of strategies to achieve growth and to
differentiate itself from other industrial REITs. The Trust is focused on
replacing underperforming assets with high-yielding assets to improve
yield.
In the near to medium term, the Trust will focus on building its portfolio in
Singapore. However, as spelled out in its original investment mandate, in
the longer term, the Trust will diversify its portfolio across Asia, where its
two major sponsors have already established a presence.
The Trust is in the midst of disposing of its single property in Japan, but it
may re-enter the Japanese property market at a later stage when it is
better prepared to expand there in a more meaningful manner.
Apart from re-balancing its portfolio, the Trust is also refinancing its debts
in order to achieve better financing terms as well as higher financing limits
and longer maturity. The Trust aims to maintain an aggregate leverage of
between 30% and 40%.
Overall, the Trust targets to increase the assets under management to
SGD1.4 bln from SGD657.7 mln as at end-FY10 within five years, which
implies a compounded growth rate of 16.3% p.a.
SWOT Analysis
Strengths
• The Trust’s sponsor, AMP Capital, has a long track record in
terms of asset and property management experience in
Australia and other countries.
Weaknesses
• Financial position is not large or strong enough to compete with
other GLC-related industrial REITs.
Opportunities
• About two-thirds of the Trust’s portfolio has underutilized plot
ratio. As such, the Trust could potentially expand the lettable
area of its portfolio of properties without new acquisitions.
• There are growth opportunities in regional countries such as
China, Japan and Australia, as the Trust’s two major sponsors
have strong presence and experience in these countries.
Threats
• An outbreak of a global epidemic such as SARS in 2003 or a
global financial market meltdown such as the 2008/2009
financial crisis and the 1998 Asian crisis will have an adverse
impact on global travel, the financial system and businesses,
and, in turn, on demand for warehouses and factories in
Singapore.
Recent Key Developments
Feb. 2011: Sale of Asahi Ohmiya Warehouse in Japan.
Feb. 2011: Acquisition of 29 Woodlands Industrial Park E1, Northtech.
Feb. 2011: Private placement of 219.99 mln new units at issue price of
SGD0.1976 per unit.
Nov. 2010: Sale of 23 Changi South Avenue 2.
Aug. 2010: Acquisition of 27 Penjuru Lane.
Aug. 2010: A 7-for-20 Rights Issue of 513.309 mln new units at SGD0.155
per unit.
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Price: SGD0.21 Date: March 11, 2011
Management Guidance
After the Trust’s major restructuring exercises over the past couple of
years, the Trust has a sounder financial position and a more diversified
portfolio. Before the corporate restructuring, the Trust’s rental income was,
by sector: (i) warehouse and logistics (60.9%); (ii) manufacturing (36.1%);
and research and technology (3.0%). However, after the restructuring and
repositioning exercise, the share of rental income from the manufacturing
sector declined to 20.0% while warehouse and logistics’ share rose to
68.1% from 60.9%. The Trust now has a new sector – office park, which
contributes 9.4% of its total rental income.
The Trust has successfully removed its financing risks by refinancing its
debts with a maturity of 3.7 years and also reducing its interest margin to
2.16% from 3.5% previously. Moreover, it reduced its leverage level to
32.7% as at end-December 2010, from 44.7% as at end-September 2009.
The Trust will continue to focus in investing in Singapore in the near to
medium term. However, in the long term, the Trust will allocate resources
to explore opportunities in China, Australia and Japan, where its two
sponsors have a presence and knowledge.
Separately, management believes that the book value of the Trust’s
original portfolio is conservative, as it has been written down by about
SGD70 mln over the last two years. Meanwhile, new industrial properties
are being acquired at present market value, which is lower than their peak
valuation in 2007. As such, the potential upside in the market value of its
portfolio will grow in line with the industrial property market.
Earnings Outlook
The Trust posted a 48.3% YoY rise in revenue for 9MFY11.The good
performance was due mainly to additional rental income from six
properties it acquired since November 2009, which contributed SGD13.9
mln, and the balance of the rental income was largely due to recovery of
property tax and land rent from tenants.
Going forward, we expect the Trust to see rental income growth through
new acquisitions, positive reversions in rental and also slight improvement
in occupancy of its portfolio.
The Trust’s recent acquisition of 29 Woodlands Industrial Park E1,
Northtech, should enhance its portfolio’s rental income. The building has
an initial net property income (NPI) yield of 7.6% and compares favorably
with the portfolio’s NPI yield of 7.2%.
Meanwhile, the Trust’s portfolio has a weighted average lease expiry of
3.5 years, with 45.7% of its leases to expire in FY13. Of the leases
expiring in FY13, 93.6% are under Master Leases and the bulk (96.7%) of
these Master Leases’ lettable areas is occupied by sub-tenants, which in
management’s view helps mitigate non-lease renewal risks.
We forecast the Trust to post a 46.6% YoY rise in rental income and
return to the black with a net total return of SGD44.7 mln in FY11. We
expect the better performance to be driven mainly by contributions from
the three new properties it acquired since August 2010.
Going forward, we expect further improvement in rental income and
earnings in FY12, due mainly to positive rental reversion of 2%-5% for
some of its properties, and also slight improvement in occupancy rates
from its current occupancy of 98.5%. However, we have not factored in
any acquisitions in our forecast. To ensure continuous earnings and DPU
growth, management has to search for yield-accretive properties to add to
the portfolio or higher yield properties.
Page 6 of 10
 AIMS AMP Capital Industrial REIT
Bloomberg: AAREIT SP Reuters: AART.SI Price: SGD0.21 Date: March 11, 2011

Peer Comparison Cash Flow

AA REIT Cambridge Cache FY Mar. / SGD mln 2009 2010 2011E 2012E
Bloomberg code AAREIT SP CREIT SP CACHE SP Operating Cash Flow 31.7 41.1 45.4 46.4
Share Price @ Mar. 10, 2011 SGD0.21 SGD0.505 SGD0.945 Investing Cash Flow -1.9 -161.6 -220.8 -22.8
Mkt. Cap (mln) SGD452.4 SGD533.8 SGD590.3 Financing Cash Flow -29.5 130.5 177.9 -24.7
PER Historical (x) NM 5.4 9.7 Net Cash Flow 0.3 10.0 2.0 -1.6
PER Current Year (x) 7.6 4.4 12.4 Ending Cash 9.2 19.3 21.3 19.7
P/NTA Historical (x) 0.65 0.83 1.04 Capex -1.9 -161.6 -220.8 -22.8
Source: Company data, S&P Equity Research

Latest FY
Revenue 50.9 74.2 42.4
Pre-Tax Profit, as reported -18.9 85.8 62.0 Material Disclosures Incl. Interested Party Transactions
Net Profit, as reported -18.9 85.8 62.0
FY10
Pre-Tax Profit Margin (%) NM 115.7 146.2
Name of Entity (SGD mln)
Net Profit Margin (%) NM 115.7 146.2
Source: Bloomberg, Company data
AIMS AMP Capital Industrial REIT
Among the listed industrial property REITS, we find that both Cambridge Management Limited
Industrial Trust (CREIT SP, SGD0.505, Not Ranked) and Cache Logistics - Management fees 2.903
Trust (CACHE SP, SGD0.945, Not Ranked) are REITS that are
comparable to the Trust, as both are involved mainly in warehouse and - Acquisition fees 1.588
logistics and rental industrial properties. Nevertheless, there are still some
differences between them in terms of sub-sectors that its tenants are in. Great World Capital Holdings Ltd
- Units issued pursuant to Placement 2.750

Profit & Loss MacarthurCook Ltd

FY Mar./SGD mln 2009 2010 2011E 2012E - Advisory and arrangement fees 0.565

Gross Revenue 50.8 50.9 74.6 79.2

AMP Capital Business Space REIT
Net Property Income 36.9 40.1 50.3 51.6
- Purchase of: 68.600
Depreciation 0.0 0.0 0.0 0.0
(i) 23 Tai Seng Drive
Net Interest Expense -5.7 -13.8 -16.7 -15.4
(ii) 30/32 Tuas West Road
Pre-Tax Total Return -27.0 -18.9 44.7 45.8
(iii) 56 Serangoon North Avenue
Net Total Return -27.0 -18.9 44.7 45.8
(iv) 4 and 3 Toh Tuck Link
Net Property Inc. Margin (%) 72.5 78.8 67.4 65.1
Pre-Tax Tot. Return Margin (%) NM NM 59.9 57.8 AIMS AMP Capital Property
Net Total Return Margin (%) NM NM 59.9 57.8 Management Pte Ltd
Source: Company data, S&P Equity Research - Property management fees 0.794
- Lease management fees 0.397
Balance Sheet
FY Mar. / SGD mln 2009 2010 HSBC Institutional Trust Services
Total Assets 544.0 657.7 (Singpore) Ltd
Fixed Assets 530.4 631.1 - Trustee fees 0.136
Current Assets 13.6 26.6 Source: Company data
Other LT Assets 0.0 0.0
Current Liabilities 249.7 13.6
LT Liabilities 5.0 187.2
Shareholders’ Fund 289.1 456.7

Source: Company data, S&P Equity Research

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 AIMS AMP Capital Industrial REIT
Bloomberg: AAREIT SP Reuters: AART.SI Price: SGD0.21 Date: March 11, 2011

New Issues & Placements

Major Units Issuance mln units
Rights issue (FY10) 513.31
Private placement (FY10) 221.43
Rights issue (FY10) 975.63
Private placement (Feb. 2011) 219.99
Source: Company data

During its corporate restructuring exercise in late 2009, the Trust raised a
total of SGD217.1 mln from a private placement and a 2-for-1 rights issue.
It also managed to obtain a SGD190.8 mln refinancing facility and a
bridging loan of SGD39.9 mln. The funds were raised for the acquisition of
assets, loan repayment, load refinancing and working capital
Subsequently, the Trust carried out another rights issue (7-for-20) of
513.31 mln shares to raise SGD79.6 mln. The proceeds were used to
partially finance the acquisition of 27 Penjuru Lane and to repay debt.
In February 2011, the Trust placed out 219.99 mln new shares to raise
SGD43.5 mln to repay debt related to the acquisition of Northtech.
In the addition to the above, the Trust has also issued units to the Trust’s
Manager for the payment of management and acquisition fees.

Dividend Policy
The Manager’s distribution policy is to distribute at least 90% of its taxable
income. The actual level of distribution will be determined at the
Manager’s discretion.

Auditors’ History
2010: KPMG LLP

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