Capitaland Integrated Commercial Trust · SGX:C38U
Capitaland Integrated Commercial Trust — H1 2022 Earnings Presentation
58 slides from Capitaland Integrated Commercial Trust's earnings presentation, Jul 28, 2022
Slide 1: 1H 2022 Financial Results
CapitaLand Integrated Commercial Trust 1H 2022 Financial Results 28 July 2022
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. 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 incl
Slide 3: Table of Content
Table of Content 04 25 Highlights Performance By Asset Type 12 42 Financial Focus & Performance Outlook 20 44 Portfolio Market Performance Information Funan, Singapore Capi t aLand I nt egr at ed Com m er c i al Tr us t 3
Slide 4: Highlights
Highlights Capital Tower (front left) and CapitaSky (front right), Singapore
Slide 5: Achieved 1H 2022 DPU of 5.22 cents
Achieved 1H 2022 DPU of 5.22 cents Distributable Income (S$ million) 1H 2022 674.7 Distributable Income (2) 2H 2021 338.8 (1) 347.3 S$347.3 (1) 1H 2021 335.9 (3) million FY 2021 1H 2022 DPU (cents) 1H 2022 10.40 Distribution Per Unit (DPU) 2H 2021 5.22 (4) 5.22 5.22 (4) 1H 2021 5.18 cents FY 2021 1H
Slide 6: Portfolio and Operational Highlights
Portfolio and Operational Highlights(1) Portfolio Committed Portfolio 11.9 Portfolio 3.8 Portfolio Property S$24.2 Occupancy 93.8% NLA(2) million sq ft WALE(3) years Value(4) billion Retail Portfolio Retail Portfolio ▲15.9% ▲12.5% 1H 2022 Suburban Mall Downtown Mall 1H 2022 Suburban Mall Downtown Ma
Slide 7: CQ @ Clarke Quay to be Transformed into a Day-and-Night Destination with Upcoming AEI
CQ @ Clarke Quay to be Transformed into a Day-and-Night Destination with Upcoming AEI ► Extending CQ @ Clarke Quay's appeal from a nightlife attraction to a day-and- night destination ► AEI at a total sum of S$62.0 million includes: ▪ The warehouses’ godown typology and façade will be restored to ho
Slide 8: Ushering Exciting New Retail and Lifestyle Offerings in our Downtown Malls
Ushering Exciting New Retail and Lifestyle Offerings in our Downtown Malls Bugis Junction/Bugis+ New offerings Refreshed 24/7 lifestyle destination for the • New dining zone on Level 3 of Bugis young and young-at-heart Junction featuring familiar favourites such as Malaysia Boleh!, Fu Lin Fried Yong
Slide 9: Raffles City Singapore: Strong Leasing Interest Amid Ongoing Rejuvenation
Raffles City Singapore: Strong Leasing Interest Amid Ongoing Rejuvenation A new line up of international brands to open their stores from 3Q 2022 to 1Q 2023 to cement Raffles City’s premium positioning with a trendy mix of offerings including curated merchandises especially for the busy executives a
Slide 10: Core and Flex Strategy for Office Portfolio to Address Tenants' Needs
Core and Flex Strategy for Office Portfolio to Address Tenants’ Needs Taking on both managed and leased models with growth in demand for flexible workspaces Flex space landscape Drivers: Increasing demand: • Mobile workforce and hybrid work arrangement as a result • According to CBRE, 86% of of the
Slide 11: CICT's Response to Climate Change and Commitment to Achieving Sustainability Targets
CICT’s Response to Climate Change and Commitment to Achieving Sustainability Targets Aligned with CapitaLand's commitment to net zero by 2050 Tapping onto sustainable financing opportunities and elevating carbon emissions reduction target to 1.5°C Secured a total of S$2.1 billion sustainability-link
Slide 12: Financial Performance
Financial Performance 101-103 Miller Street & Greenwood Plaza, North Sydney, Australia (acquisition completed on 21 June 2022)
Slide 13: 1H 2022 Financial Performance
1H 2022 Financial Performance Boosted by contribution from the new acquisitions, partially offset by higher operating expenses Gross 1H 2022 Y-o-Y 1H 2022 Y-o-Y Net Property Revenue S$687.6M ▲ 6.5% Income S$501.6M ▲ 6.2% Retail Asset Performance Office Asset Performance Integrated Development (S$ m)
Slide 14: Diversified Revenue Streams Provide Stability
Diversified Revenue Streams Provide Stability Australia Germany Office, Singapore Hotels & Office, 1.6% (3) 4.1% Convention Centre, 5.6% Singapore Singapore (2) Office, 6.1% Suburban Retail, 31.2% S$687.6 million(1) Singapore CBD Office, 25.7% Singapore Downtown Retail, 25.7% Notes: (1) Based on 1H
Slide 15: 1H 2022 Operating Expenses Increased 4.4% Y-o-Y to S$181.1 Million
1H 2022 Operating Expenses(1) Increased 4.4% Y-o-Y to S$181.1 Million Largely Attributable to the Rise in Energy Cost 1H 2022 S$22.9 million : Utilities Cost(1) ▲ S$7.2 million Increase in utilities cost due to: • Higher energy cost as a result of rising global energy cost (CICT’s energy rate is hed
Slide 16: Healthy Balance Sheet
Healthy Balance Sheet As at 30 June 2022 S$’000 Non-current Assets 24,381,459 Net Asset Value/Unit 2.12 Current Assets 304,826 Adjusted Net Asset Value/Unit 2.07 24,686,285 (excluding distributable income) Total Assets Current Liabilities 1,522,512 Non-current Liabilities 8,854,799 Total Liabilities
Slide 17: Well-diversified Funding Sources with Long Maturity Profile
Well-diversified Funding Sources with Long Maturity Profile Excluding debt under JV, S$75 million MTN due July 2022 has been refinanced Debt Maturity Profile(1) Exclude share of joint ventures’ S$ million borrowings 1,800 15% Funding sources as at 30 June 2022 14% 1,600 13% 1,476 12% MTN 53% 12% 1,3
Slide 18: Proactive Capital Management
Proactive Capital Management As at As at 30 June 2022 31 March 2022 Aggregate Leverage(1) 40.6% 39.1% Total Borrowings (S$ billion) 9.7 8.8 % of Borrowings on Fixed Interest Rate 81% 85% % of Total Assets that are Unencumbered 93.0% 93.5% Interest Coverage(2) 4.1x 4.2x Average Term to Maturity (year
Slide 19: Distribution Details
Distribution Details Distribution Period 1 January to 30 June 2022 Distribution Per Unit 5.22 cents(1) Notice of Record Date Thu, 28 July 2022 Last Day of Trading on ‘cum’ Basis Wed, 3 August 2022, 5.00 pm Ex-Date Thu, 4 August 2022, 9.00 am Record Date Fri, 5 August 2022 Distribution Payment Date F
Slide 20: Portfolio Performance
Portfolio Performance` Funan, Singapore
Slide 21: Portfolio Committed Occupancy at 93.8% as at 30 June 2022
Portfolio Committed Occupancy at 93.8% as at 30 June 2022 (1,2) 96.6% 96.5% (3) 97.6% 97.4%(2,4) (5) 91.4% 91.9% 93.6% 93.8% 31 Mar 2022 30 Jun 2022 31 Mar 2022 30 Jun 2022 31 Mar 2022 30 Jun 2022 31 Mar 2022 30 Jun 2022 (6) (6) Retail Office Integrated Development Portfolio Notes: (1) Retail occupa
Slide 22: Portfolio WALE Stable at 3.8 Years as at 30 June 2022
Portfolio WALE(1) Stable at 3.8 Years as at 30 June 2022 Retail Portfolio WALE(2) 2.1 years Office Portfolio WALE(3) 4.1 years Integrated Development Portfolio WALE 5.5 years 17.5% 13.5% 14.2% 10.8% 8.5% 5.6% 5.9% 5.4% 5.2% 4.8% 3.6% 3.0% 2.0% 2022 2023 2024(4) 2025 2026 2027 and beyond Retail Offic
Slide 23: No Single Tenant Contributes More Than 5% of CICT's Total Gross Rental Income
No Single Tenant Contributes More Than 5% of CICT’s Total Gross Rental Income(1) % of Total Ranking Top 10 Tenants for June 2022 Trade Sector Gross Rent 1 RC Hotel (Pte) Ltd 5.0 Hotel 2 WeWork Singapore Pte. Ltd.(2) 2.6 Real Estate and Property Services Supermarket / Beauty & Health / Services / Foo
Slide 24: Diversified Tenants' Business Trade Mix
Diversified Tenants’ Business Trade Mix Other Retail and Product Trades Gifts & Souvenirs / Toy & 2.7% Hobbies / Books & Stationery IT, Media and / Sporting goods Telecommunications Supermarket 2.6% Travel and Hospitality 4.1% Services 2.4% 5.1% Leisure & Entertainment / 1.9% Music & Video Fashion O
Slide 25: Performance by Asset Type
Performance by Asset Type Note: The retail and office asset information comprises the respective retail and office components of integrated developments unless stated otherwise, Junction 8, Singapore in order to show the operating metrics and trends.
Slide 26: Retail Performance Overview
Retail Performance Overview Compared Against 1H 2021 Monthly Average 2Q 2022 New Retail Offerings and Expansion by NLA Retail 1H 2022 Tenants’ Sales psf Occupancy(1) Others ▲15.9% Y-o-Y Education 6% 96.5% 6% as at 30 June 2022 Supermarket 1H 2022 Shopper Traffic 7% New to market or F&B ▲12.5% Y-o-Y
Slide 27: Driving Occupancy Through Active Asset Management and Proactive Leasing Strategy
Driving Occupancy Through Active Asset Management and Proactive Leasing Strategy Occupancies improving and above URA’s Singapore retail occupancy rate of 91.8% (1) Occupancy (%) (2) 100.0 100.0 99.9 99.9 99.9 99.9 97.5 98.6 98.0 98.4 99.9 99.9 98.1 97.5 98.7 97.8 98.3 99.7 97.6 95.4 96.8 97.3 93.2 9
Slide 28: Improving Overall Rent Environment; Suburban Malls Third Consecutive Quarter of Positive Rent Reversion
Improving Overall Rent Environment Albeit Negative as Suburban Malls Recorded Third Consecutive Quarter of Positive Rent Reversion Renewed and New Retail Leases(1) in 1H 2022 Rent Reversion(1,2) for 1H 2022 Net Lettable Area No. of Retention Percentage Incoming Year 1 Rents Average Incoming Rents Re
Slide 29: Proactive Leasing Strategy to Manage Tenant Mix and Mall Positioning
Proactive Leasing Strategy to Manage Tenant Mix and Mall Positioning Retail Portfolio WALE(1) : 2.1 years 25.9% 27.2% 20.8% 21.0% 9.8% 5.6% 10.7% 2022 2023 2024 2025 2026 2027 and beyond Gross Rental Income Completed Note: (1) Based on gross rental income of committed leases in retail properties and
Slide 30: 1H 2022 Shopper Traffic and Tenants' Sales Outperformed the Same Period Last Year
1H 2022 Shopper Traffic and Tenants’ Sales Outperformed the Same Period Last Year Retail Portfolio Tenants’ Sales and Shopper Traffic Performance Surge in Omicron Start of Stabilisation cases Phase Relaxation End of Phase 2 (HA) End of Stabilisation Phase and on majority relaxation of dining-in to 5
Slide 31: Y-o-Y Improvement Seen for Most Trade Categories in 1H 2022
Y-o-Y Improvement Seen for Most Trade Categories in 1H 2022 1H 2022 Tenants’ Sales(1) Y-o-Y Performance by Trade Categories 83.4% 56.3% 37.5% 25.4% 21.6% 19.8% 15.4% 9.7% 5.4% 3.1% 2.5% -0.5% -0.7% -2.7% -4.0% Services (2) Leisure & Entertainment Shoes & Bags Books & Stationery Education Fashion Dep
Slide 32: Office Performance Overview
Office Performance Overview Singapore, Germany and Australia Office Assets Office Occupancy(1) Total New and Renewed Leases (sq ft) 804,650 91.9% New leases: as at 30 June 2022 290,500 40.5%(2) 1Q 2022 2Q 2022 Singapore Office Occupancy(1) Average 1H 2022 1H 2022 Leasing Enquiries: Top 3 Business SG
Slide 33: Occupancy Rate of Office Portfolio at 91.9%
Occupancy Rate of Office Portfolio at 91.9% Singapore Occupancy: Germany Occupancy: Australia Occupancy: CICT’s Portfolio: 92.9% CICT’s Portfolio: 95.8% CICT’s Portfolio: 80.9% (2) CBRE SG Core CBD: 93.6% Frankfurt Market: 92.1% Sydney CBD: 89.2%(3) (3) North Sydney CBD: 79.8% Occupancy (%) (1) 98.5
Slide 34: Timing Gap between NPI and Distributable Income Contribution
Timing Gap between NPI and Distributable Income Contribution As at 30 June 2022 Actual Occupancy Committed Occupancy Asia Square Tower 2 84.4% 98.3% Six Battery Road 72.0% 87.4% (1) CapitaSpring 66.5% 99.5% • Actual occupancies are lower than the committed for the three properties shown above as the
Slide 35: Acquired the Three Australian Assets to Benefit from Sydney's Recovery Over Time
Acquired the Three Australian Assets to Benefit from Sydney’s Recovery Over Time Exploring flex solution for these properties in line with CICT’s office strategy on the back of growing demand ► Proactively fitting out and 66 refreshing select floors to Goulburn boost marketing efforts Street ► Carry
Slide 36: Proactively Manage Lease Expiry for Stability Through Market Cycles
Proactively Manage Lease Expiry for Stability Through Market Cycles Office Portfolio WALE(1): 4.1 years 40.6% 19.8% 0.3% 16.2% 12.6% 8.5% 13.8% 4.7% (2) 2022 2023 2024 2025 2026 2027 and beyond Gross Rental Income Completed Notes: (1) Based on gross rental income as at 30 June 2022. (2) The existing
Slide 37: Market Rent Rate Above CICT's Average Expiring Rent at Selected Grade A Offices
Market Rent Rate Above CICT's Average Expiring Rent at Selected Grade A Offices 2Q 2022 Grade A office market rent at S$11.30 psf per month(1) 2022 (2) 20% Average rent of leases expiring is S$11.19 psf $12.51 15% $11.27 $10.58 10% 5% Largely 1.9% 1.2% completed 0.6% 0% Asia Square Tower 2 Capital T
Slide 38: Proactively Managing Lease Renewals
Proactively Managing Lease Renewals 2023 2024 (1) (1) Average rent of leases expiring is S$11.13 psf Average rent of leases expiring is S$10.83 psf 20% 20% 12.03 11.33 11.64 11.62 15% 11.11 10.75 15% 10.81 8.75 8.62 10% 10% 5% 3.8% 5% 3.7% 4.2% 3.1% 1.9% 1.7% 1.2% 0.1% 0.1% 0% 0% Asia Square Capital
Slide 39: Occupancy Rate of Integrated Developments at 97.4%
Occupancy Rate of Integrated Developments at 97.4% Occupancy (%) 97.0 99.0 98.5 97.2 97.2 97.5 98.5 99.5 90.8 Retail: 98.0 Retail: 98.4 Retail: 97.6 Retail: 95.4 Retail: 96.1 Retail: 96.5 Office: 96.1 Office: 99.4 Office: 100 Office: 100 Office: 100 Office: 100 Raffles City Singapore Funan Plaza Sin
Slide 40: Stable WALE Q-o-Q
Stable WALE Q-o-Q Integrated Development Portfolio WALE(1) : 5.5 years 17.2% 15.7% 12.9% 10.9% 11.7% 7.0% 5.8% 5.1% 3.5% 3.9% 2.9% 2.7% 0.7% 2022 2023 2024 2025 2026 2027 and beyond Retail Office Hospitality Note: (1) Based on gross rental income as at 30 June 2022 including CapitaSpring and exclude
Slide 41: Riding on the Positive Momentum of Singapore's Reopening
Riding on the Positive Momentum of Singapore's Reopening Healthy occupancies ranging from 70% to 80% for RC Hotels and Citadines Raffles Place for June 2022 Fairmont Singapore Citadines Raffles Place at CapitaSpring Lobby of Swissôtel The Stamford Capi t aLand I nt egr at ed Com m er c i al Tr us t
Slide 42: Focus & Outlook
Focus & Outlook CapitaSpring, Singapore
Slide 43: Riding on the Positive Momentum of Singapore's Reopening and Staying Agile and Flexible
Riding on the Positive Momentum of Singapore’s Reopening and Staying Agile and Flexible while Driving Value Creation for Long Term Growth Positive economic outlook in Singapore CICT’s Focus in 2022 • GDP grew by 4.8% Y-o-Y in 2Q 2022 based on advance estimates by the Ministry Trade and Industry. • 2
Slide 44: Market Information
Market Information 100 Arthur Street, North Sydney, Australia
Slide 45: Limited Retail Supply Between 2022 and 2025
Limited Retail Supply Between 2022 and 2025 Total retail supply in Singapore averages approximately 0.3 million sq ft (2022 - 2025), lower than: ― Last 3-year historical annual average supply (2019 - 2021) of 0.5 million sq ft ― Last 5-year historical annual average supply (2017 - 2021) of 0.8 milli
Slide 46: Known Future Retail Supply in Singapore (2022 – 2025)
Known Future Retail Supply in Singapore (2022 – 2025) Expected Completion Proposed Retail Projects Location NLA (sq ft) 2022 8 Club Street Club Street 33,300 2022 Boulevard 88 Cuscaden Road/Orchard Boulevard 32,000 2022 Grange Road Carpark Grange Road 42,000 2022 Grantral Mall @ Macpherson Macpherso
Slide 47: Suburban Rent Grew 0.2% Q-o-Q While Orchard Rent Stabilised
Suburban Rent Grew 0.2% Q-o-Q While Orchard Rent Stabilised for the Fourth Consecutive Quarter in 2Q 2022 15.0% $40.00 $35.00 10.0% $30.00 5.0% $25.00 0.0% $20.00 Q1 2022 (2) (1) Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q
Slide 48: Singapore Retail Sales Performance
Singapore Retail Sales Performance Most industries recorded Y-o-Y sales growth in May 2022, particularly for discretionary industries such as Wearing Apparel & Footwear, Department Stores and Watches & Jewellery which recorded larger growths in sales (S$ billion) 4.5 30% 26.3% 4.0 3.9 25% 3.5 3.7 3.
Slide 49: Recovery in Tourism on the Back of Singapore's Reopening
Recovery in Tourism on the Back of Singapore's Reopening Singapore Tourism Board expects 4 to 6 million international visitor arrivals for 2022 as tourism recovery gains momentum Singapore Tourist Arrival and Hotel Occupancy (1) From 1 April, borders reopened to vaccinated travellers and from 26 Apr
Slide 50: Singapore Office Stock
Singapore Office Stock Islandwide office stock Singapore Stock % of Grade A office Decentralised, (sq ft) total Core CBD 23.3% stock Core CBD 32.0 mil 51.5% 14.8 mil sq ft (46.2% of Core Core CBD, CBD stock) 51.5% Fringe CBD 15.7 mil 25.3% Decentralised 14.5 mil 23.2% Fringe CBD, Total 62.2 mil (23.
Slide 51: Annual New Supply Averages 0.8 Mil sq ft Over 4 Years
Annual New Supply Averages 0.8 Mil sq ft Over 4 Years; CBD Core Occupancy at 93.6% as at end-2Q 2022 Singapore Private Office Space (Central Area)(1) – Net Demand & Supply 2.5 Forecast average annual gross 2.2 new supply 1.9 2.0 1.8 1.9 (2022 to 2025): 0.8 mil sq ft 1.6 1.6 1.7 1.5 1.4 1.3 sq ft mil
Slide 52: Known Future Office Supply in Central Area (2022 – 2025)
Known Future Office Supply in Central Area (2022 – 2025) Only a white site at Woodlands Ave 2 (Fringe Area) on Government Land Sales reserve list; Kampong Bugis removed from reserve list(1) Expected Completion Proposed Office Projects Location NLA (sq ft) 2022 Hub Synergy Point Redevelopment Tanjong
Slide 53: Grade A Office Rent Rose for Fourth Consecutive Quarter
Grade A Office Rent Rose for Fourth Consecutive Quarter 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 Mthly rent (S$ / sq ft ) 11.50 11.15 10.70 10.40 10.40 10.50 10.65 10.80 10.95 11.30 Q-o-Q Change -0.4% -3.0% -4.0% -2.8% 0% 1.0% 1.4% 0.5% 1.4% 3.2% S$18.80 20 18 Monthly gross rent b
Slide 54: Demand and Supply in Frankfurt Office and its Two Submarkets
Demand and Supply in Frankfurt Office and its Two Submarkets (%) (‘000 sq m) Frankfurt Office 800 15 600 10 400 7.9 5 200 0 0 2015 2016 2017 2018 2019 2020 2021 YTD Jun 2022 New Supply ('000 sqm) Demand ('000 sqm) Vacancy rate (%) (%) (%) (‘000 sq m) Banking District (‘000 sq m) Airport Office Distr
Slide 55: Rental Range in Frankfurt
Rental Range in Frankfurt Rental range by submarket (€ / square metre / month) Frankfurt West City CBD C B 45.50 45.50 Westend Gallileo D 34.98 Banking District 25.00 22.42 22.00 19.94 A5 (%) 18.00 B43 Niederrad South 7.00 MAC A3 Frankfurt Total Banking District Airport District Region D Region A A
Slide 56: Sydney CBD: Improving Market and Demand Sentiment
Sydney CBD: Improving Market and Demand Sentiment Net Supply/Net Absorption ('000 sq m) Net Effective Rent (A$/sq m/annum) Vacancy 120 10% 100 9.3% 9% 1,000 80 8% 900 60 7% 800 40 700 6% 20 600 5% 0 500 4% -20 400 3% -40 300 -60 2% 200 -80 1% 100 -100 0% 0 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q
Slide 57: North Sydney CBD: New Supply to Rejuvenate CBD and Demand to Pick Up
North Sydney CBD: New Supply to Rejuvenate CBD and Demand to Pick Up Net Supply/Net Absorption ('000 sq m) Net Effective Rent (A$/sq m/annum) Vacancy 120 18% 100 16.6% 16% 700 80 14% 600 60 12% 500 40 10% 400 20 8% 300 0 6% 200 -20 4% -40 2% 100 -60 0% 0 4Q 2021 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 20
Slide 58: The End
The End For enquiries, please contact: Ms Ho Mei Peng, Head, Investor Relations Direct: (65) 6713 3668 | Email: ho.meipeng@capitaland.com CapitaLand Integrated Commercial Trust Management Limited (http://www.cict.com.sg) 168 Robinson Road, #25-00 Capital Tower, Singapore 068912 Tel: (65) 6713 2888 |
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