CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaMall Trust — FY2005 Earnings Presentation
65 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Jan 26, 2006
Slide 1: Full Year 2005 Financial Results Presentation
FULL YEAR 2005 FINANCIAL RESULTS PRESENTATION 26 January 2006
Slide 2: Disclaimers
Disclaimers This presentation is focused on comparing actual results versus forecasts stated in the CMT Circular to Unitholders dated 18 October 2005 (adjusted to include actual for 31 October 2005). This shall be read in conjunction with paragraph 9 of CMT 2005 Full Year Unaudited Financial Stateme
Slide 3: Financial Highlights
Cap/taMall P Trust Financial Highlights
Slide 4: Financial Results: 31 Oct – 31 Dec 2005
Financial Results : 31 Oct – 31 Dec 2005 Distribution Per Unit of 11.02 cents Exceeds Forecast by 2.9% 31 Oct to 31 Dec 2005 Actual Actual Forecast1 Variance Change% Distributable income S$25.82 m S$25.24 m + S$0.58 m + 2.9 Distribution per unit 1.87¢ 1.82¢ + 0.05¢ + 2.9 Annualised distribution per
Slide 5: Financial Results: DPU Comparison
Financial Results : DPU Comparison 4Q 20051 Distribution Per Unit Increased by 10.8% over 4Q 20042 Actual 4Q 20051 4Q 20042 Variance Change% Annualised distribution per unit 11.02¢ 9.95¢ + 1.07¢ + 10.8 Annualised distribution yield 4.77% 4.31% + 0.46¢ + 10.8 (Based on unit price of S$2.31 on 25 Janu
Slide 6: Consistently Outperformed DPU Forecasts
Consistently Outperformed DPU Forecasts Original Revised Forecast Actual Paid Variance from Forecast (Annualised) (Annualised) Forecast (Annualised) 2002 6.78 ¢ 1 NA 7.35 ¢ © 8% 1H 2003 6.96 ¢ 2 NA 7.51 ¢ © 8% 2H 2003 6.96 ¢ 2 8.04 ¢ 5 8.53 ¢ © 6% 1H 2004 8.14 ¢ 3 8.59 ¢ 6 9.25 ¢ © 8% 2H 2004 8.14 ¢
Slide 7: Attractive Yield With Growth Potential
Attractive Yield With Growth Potential 5 4.77 146 4.21 bps 4 spread 3.31 3.11 Yield (%) 3 2.50 2 1 0.83 0.48 0 CMT 2005 10yr Govt STI Dividend 5yr Govt Bond CPF Ordinary S$ 12mth DBS S$ 2 2 2 3 2 Annualized Bond Yield Yield Yield Account Fixed Deposit Savings Plus 1 4 Yield Account Source: Bloomberg
Slide 8: Distribution Details
Distribution Details Distribution Period 31 October to 31 December 2005 Distribution Rate 1.87 cents per unit Distribution Timetable Notice of Book Closure Date 26 January 2006 Last Day of Trading on “cum” Basis 2 February 2006, 5.00 pm Ex-Date 3 February 2006, 9.00 am Book Closure Date 7 February 2
Slide 9: Financial Results
Cap/taMall P Trust Financial Results
Slide 10: Distribution Statement: Oct – Dec 2005
Distribution Statement : 31 Oct – 31 Dec 2005 Actual Forecast1 Variance 31 Oct to 31 Dec 2005 S$’000 S$’000 (%) Gross Revenue 51,796 49,344 5.0 Less property expenses (19,419) (17,044) 13.9 Net property income 32,377 32,300 0.2 Interest Income 963 808 19.2 Administrative expenses2 (4,748) (3,476) 36
Slide 11: Property Gross Revenue: Oct – Dec 2005
Property Gross Revenue : 31 Oct – 31 Dec 2005 Gross Revenue Exceeded Forecast1 Across The Portfolio 31 Oct – 31 Dec 2005 51.8 CMT Portfolio 49.3 5.0% 8.9 Tampines Mall 8.7 7.2 Junction 8 6.7 4.1 Funan DigitaLife Mall 4.0 9.1 IMM Building 8.3 10.9 Plaza Singapura 10.4 8.6 Bugis Junction 8.4 1 4Q Actu
Slide 12: Property Operating Expenses: Oct – Dec 2005
Property Operating Expenses : 31 Oct – 31 Dec 2005 31 Oct – 31 Dec 2005 19.4 CMT Portfolio 17.0 13.9% 2.8 Tampines Mall 2.7 Junction 8 2.5 2.4 3 2.3 Funan DigitaLife Mall 1.6 4 4.1 IMM Building 3.4 5 3.3 Plaza Singapura 2.9 5 Bugis Junction 3.1 2.9 4Q Actual 4Q Forecast 1 1.3 Other Assets2 1.1 0 5 1
Slide 13: Net Property Income: Oct – Dec 2005
Net Property Income : 31 Oct – 31 Dec 2005 Net Property Income Exceeded Forecast1 Across The Portfolio 31 Oct – 31 Dec 2005 CMT Portfolio 32.4 32.3 0.2% 6.1 Tampines Mall 6.0 4.7 Junction 8 4.3 1.8 Funan DigitaLife Mall 2.4 IMM Building 5.0 4.9 7.6 Plaza Singapura 7.5 5.5 Bugis Junction 5.5 1 4Q Act
Slide 14: Debt Capital Information as at Dec 2005
Debt Capital Information as at 31 Dec 2005 Debt Maturity Profile Key Statistics 450 433 42.4% Gearing Ratio 31.8% 400 39.6% 350 335 Interest Cover 6.0 times 300 30.6% 250 S$ million Average Cost 3.0% 200 172 of Debt S$125mn 150 15.7% 125 100 11.5% Debt Rating “ AAA ” 50 28 2.6% 0 Revolving 2007 2009
Slide 15: Valuation and Property Yield
Valuation and Property Yield As at 31 Dec 2005 Previous Valuation Variance Property S$ million Valuation1 20052 Yield3 Tampines Mall 618.0 633.0 15.0 5.8% Junction 8 473.0 473.0 0 5.9% Funan 244.0 247.5 3.5 5.9% DigitaLife Mall IMM Building 400.0 400.0 0 6.9% Plaza Singapura 795.0 803.0 8.0 5.4% Bug
Slide 16: Balance Sheet
Balance Sheet As at 31 Dec 2005 S$’000 Non Current Assets 3,423,547 Net Asset Value per unit S$1.65 Current Assets 53,089 (as at 31 Dec 2005) Total Assets 3,476,636 Adjusted Net Asset Value per unit S$1.63 2 (excluding distributable income) Current Liabilities 78,119 Unit Price as at 31 Dec 2005 S$2
Slide 17: Portfolio Update
Cap/taMall P Trust Portfolio Update
Slide 18: Summary of Renewals / New Leases
Summary of Renewals / New Leases Rental Improvements through Proactive Asset Planning & Leasing Strategy From 1 January to 31 December 2005 (Excluding Newly Created Units) Increase/(Decrease) in No. of Net Lettable Area Current Rental Rates VS. Property Renewals/ New Leases % Total Forecast Rental P
Slide 19: Gross Turnover Rent & Step-Up Leases
Gross Turnover Rent & Step-Up Leases % of Total Portfolio1 of Tenants No. of Tenants in Portfolio1 100% 1000 915 900 80% 77.6% 800 73.8% 71.5% 714 711 689 2 700 60.6% 60% 600 500 40% 400 300 20% 200 100 0% 0 Tenants with Step- Tenants Paying Tenats with Step-Up Tenants Paying GTO Up Rental GTO Rent
Slide 20: Portfolio Lease Expiry Profile By Year
Portfolio Lease Expiry Profile By Year As at 31 Dec 2005 Net Lettable Area Gross Rental Income No. of % of % of Leases Sq. ft. S$’000 total1 total2 2006 753 945,019 32.5% 7,850 34.4% 2007 517 978,849 33.7% 7,691 33.7% 2008 271 462,067 15.9% 5,021 22.0% 2009 54 175,096 6.0% 1,463 6.4% Weighted Averag
Slide 21: Portfolio Lease Expiry Profile for 2006 By Property
Portfolio Lease Expiry Profile for 2006 By Property Net Lettable Area Gross Rental Income No. of As at 31 Dec 2005 Leases % of % of Sq. ft. S$’000 total1 total2 Tampines Mall 29 42,815 13.3% 722 18.4% Junction 8 50 21,554 8.8% 498 16.6% Funan 61 63,070 23.3% 488 27.2% DigitaLife Mall IMM Building 36
Slide 22: High Committed Occupancy Rates at All Malls
High Committed Occupancy Rates at All Malls Occupancy Rates1 Close to 100% as at 31 Dec 2005 As at As at As at As at As at As at 30 Sept 04 31 Dec 04 31 Mar 05 30 Jun 05 30 Sept 05 31 Dec 05 Tampines Mall 99.9% 100.0% 100.0% 100.0% 100.0% 100.0% Junction 8 99.8% 99.8% 100.0% 100.0% 100.0% 100.0% Fun
Slide 23: Breakdown of DPU Growth Since IPO (Jul 2002)
Breakdown of DPU Growth Since IPO (Jul 2002) Acquisition, Active Leasing and Asset Enhancement form Core Components of Growth 11.02 ¢2 Asset CRS Investment Enhancement/ 3% Reconfiguration 21% Upfront Payment of IMM Land Premium 8% 3 Acquisitions 49% Active Leasing 19% 6.78 ¢1 1. Annualised forecast
Slide 24: Locked In Revenue & Revenue Growth Due to Step-Up Rental
Locked In Revenue & Revenue Growth Due to Step-Up Rental Approximately 82.6% of 2006 Budgeted Total Revenue Has Been Committed 295 Gross 300 'Mil 82.6% ($ 243 lIn 250 Lockednta Rent (S$’Mil) ss Re 200 /ro 49.0% d In G 144 Revenue 150 ocke 100 Total L 50 Budgeted T otal 1 Committed Rental Committed R
Slide 25: Gross Turnover and Gross Rent Comparison
Gross Turnover and Gross Rent Comparison Tenants’ GTO Growth Exceeds Increase in Gross Rent Tampines Mall (Sample Size: 74 ) GTO Gross Rent Increase Increase (in’000s) (in’000s) 2004 183,430 10.0% 24,419 4.3% 2005 201,711 25,479 Junction 8 (Sample Size : 26 ) GTO Gross Rent Increase Increase (in’000
Slide 26: Top 10 Tenants
Top 10 Tenants 1. Ten Largest Tenants by Total Gross Rental Contribute 22.9% of Total Gross Rental 2. No One Tenant Contribute more than 4.1% of Total Gross Rental % of Gross % of Net Trade Expiry Area Tenant Rental Lettable Sector Date 1 (sq ft) Income Area Seiyu (Singapore) Pte Ltd Department stor
Slide 27: Well Diversified Trade Mix Across Portfolio
Well Diversified Trade Mix Across Portfolio By Net Lettable Area By Gross Rental Income 1.6% 0.8% 2.30% 3.30 3.3 5.7 8.1 % 15 % .6 % % 22 % .8 % 6. 8% 8. 2% 11 7. .9 2% % 8. 6% 7. 3% 11 20 .2 9. .8 % 1% % 7. 6% 11 10 .2 .5 16 % % .1 % Food & Beverage/Food Court Leisure and Entertainment/Sports & Fit
Slide 28: Shopper's Traffic Analysis
Shopper’s Traffic Analysis Increase Shopper’s Traffic by 21% Since 2003 2,500 Shopper Traffic (By Month) Number of Shoppers Junction 8 2,000 Tampines Mall Tampines Mall Plaza Singapura 1,500 Plaza Singapura Junction 8 IMM Building 1,000 IMM Building 500 Funan DigitaLife Mall Funan DigitaLife Mall 0
Slide 29: CMT Performance
Cap/taMall P Trust CMT Performance
Slide 30: CMT Performance since IPO (Jul 2002) to Jan 2006
CMT Performance since IPO (Jul 2002) to 25 Jan 2006 9 141% Unit Price Appreciation 9 259% Growth in Total Asset Size 9 173% Total Return 9 350% Growth In Market Cap 9 63% Growth in Annualised DPU (4Q 20051 actual vs IPO 2002 forecast) 9 Outperformed STI & Property Stocks % change in unit price/index
Slide 31: CMT Performance from Jan 2005 to Dec 2005
CMT Performance from 1 Jan 2005 to 30 Dec 2005 9 27% Unit Price Appreciation 9 139% Growth In Market Cap 9 33% Total Return 9 Outperformed STI % change in unit price/index value 50 31 Dec 04 to 30 Dec 05 CMT + 27.3% STI + 13.6% SESPROP 40 SESPROP + 39.3% 30 CMT 20 10 STI 0 Nov-05 Jan-05 Jun-05 Jul-0
Slide 32: Asset Enhancements Update
Cap/taMall P Trust Asset Enhancements Update
Slide 33: Completed Works in 2005
Cap/taMall P Trust Completed Works in 2005
Slide 34: Tampines Mall – Completed AEI Works
Tampines Mall – Completed AEI Works Increased number of food kiosks at Basement 1 from 13 to 18 All 18 kiosks fully trading since October 2005 S$ Million Gross Revenue Per Annum (net of 0.44 rental loss from decanted space) Net Property Income Per Annum 0.35 Total Capital Expenditure 2.9 Return
Slide 35: Junction 8 – Completed AEI Works
Junction 8 – Completed AEI Works Opening of the Open Plaza at Junction 8 35
Slide 36: Funan DigitaLife Mall – Completed AEI Works
Funan DigitaLife Mall – Completed AEI Works Achieved Higher Revenue with the Opening of InBox 5 Committed leases increased rental revenue by $0.44 million p.a. 36
Slide 37: IMM Building – Completed AEI Works
IMM Building – Completed AEI Works Opening of the Glass Kiosks on Level 1 Rental revenue increased by $0.27 million p.a. 37
Slide 38: Plaza Singapura – Completed AEI Works
Plaza Singapura – Completed AEI Works Completed AEI Works Increased Rental Revenue by S$0.45 Million Per Annum Reconfiguration of E-Zone Space on L6 Relocation of Customer Service Counter to Increase Prime Retail Space Amalgamation of Food Kiosks to Create StarHub Showroom 38
Slide 39: JEC – Completed AEI Works
JEC – Completed AEI Works Amalgamation of 2 units to Create a Brand New Food Court After Before AEI After AEI Variance Average Rental S$3.05 S$8.20 +169% psf per month Rental S$333 K S$924 K +177% Revenue per annum Before 39
Slide 40: Proposed AEI Works
Cap/taMall P Trust Proposed AEl Works
Slide 41: IMM Building – Planned AEI Works
IMM Building – Planned AEI Works ¾ Key AEI works include: a. New 2-storey extension annex with an event area and garden on the roof b. Reconfiguration of existing retail areas c. Conversion of L5 warehouse area to covered car park and addition of coil ramp connecting from L1 to L5 d. Implementing ca
Slide 42: IMM Building – Planned AEI Works
IMM Building – Planned AEI Works ¾ A Differential Premium will be paid to regularise the commercial GFA by way of increasing the commercial quantum of the building from 26.8% to 40.0% ¾ The additional costs required will be recovered through the following sources of revenue: a. Additional Rental Rev
Slide 43: IMM Building – Planned AEI Works (Level 1)
IMM Building – Planned AEI Works (Level 1) Approximately additional 36,300 sq ft of prime retail NLA created from the decanted secondary corridor retail space on L2, L3 & L5 Current After AEI1 After AEI1 (decanted (Before (After space) Regularisation) Regularisation) Average Rental S$6.39 S$17.00 S$
Slide 44: IMM Building – Planned AEI Works (Level 2)
IMM Building – Planned AEI Works (Level 2) DECANTED AREA Approximately 28,500 sq ft of prime retail NLA created from decanting the secondary corridor retail space Current After AEI1 After AEI1 (decanted (Before (After space) Regularisation) Regularisation) Average Rental S$6.39 S$14.00 S$14.00 psf p
Slide 45: IMM Building – Planned AEI Works (Level 3)
IMM Building – Planned AEI Works (Level 3) NEW RETAIL NEW RETAIL NEW RETAIL NEW RETAIL NEW RETAIL NEW RETAIL NEW RETAIL FOOD COURT NEW RETAIL New Extension/Open Terrace (non GFA) New Retail Area Secondary Retail Area to be Decanted and Converted to Warehouse/Ancillary Area 45
Slide 46: IMM Building – Planned AEI Works (Level 5)
IMM Building – Planned AEI Works (Level 5) Secondary Retail Area to be Decanted and Converted to Warehouse/Ancillary Area 46
Slide 47: IMM Building – Value Creation
IMM Building – Value Creation Additional Gross Revenue from Decanted Area S$ 6.0 mil Additional Gross Rental Revenue from better utilisation of commercial GFA S$ 3.3 mil after regularising on level 1 and 2 Additional A&P Income S$ 2.8 mil Total Incremental Income S$12.1 mil Gross Floor Area Capital
Slide 48: IMM Building Planned AEI Plan
IMM Building Planned AEI Plan To Introduce “Seamless” Furniture Shopping Experience 48
Slide 49: Funan DigitaLife Mall – Planned AEI Works
Funan DigitaLife Mall – Planned AEI Works Creation of Extension Block at Funan DigitaLife Mall S$ Million Gross Revenue Per Annum (net of 0.7 rental loss from decanted space) Net Property Income Per Annum 0.5 Total Capital Expenditure 5.0 Return on Investment 10.1% Capital Value (at 6% capitalisatio
Slide 50: SSC – Planned AEI Works
SSC – Planned AEI Works ¾ The Manager has conducted evaluation studies of increasing retail space by decanting 45,267 sq ft of GFA from the four-storey residential apartment ¾ On 20 December 2005, URA granted the Provisional Permission on the proposed conversion. The site will be rezoned from “Comme
Slide 51: SSC – Planned AEI Works on Basement
SSC – Planned AEI Works on Basement Enhance Value by Decanting Residential Apartment and L4 to Increase Prime Retail Space on Basement, L1, L2 & L3 New Retail Space 51
Slide 52: SSC – Planned AEI Works on Level 1
SSC – Planned AEI Works on Level 1 Enhance Value by Decanting Residential Apartment and L4 to Increase Prime Retail Space on Basement, L1, L2 & L3 New Retail Space 52
Slide 53: SSC – Planned AEI Works on Level 2
SSC – Planned AEI Works on Level 2 Enhance Value by Decanting Residential Apartment and L4 to Increase Prime Retail Space on Basement, L1, L2 & L3 New Retail Space 53
Slide 54: SSC – Planned AEI Works on Level 3
SSC – Planned AEI Works on Level 3 Enhance Value by Decanting Residential Apartment and L4 to Increase Prime Retail Space on Basement, L1, L2 & L3 New Retail Space 54
Slide 55: SSC – Planned AEI Works on Rooftop
SSC – Planned AEI Works on Rooftop Enhance Ambience of the Mall and Generate Additional Income from Creation of Promotional Space on Rooftop Event Plaza & Children Playground New F&B Tenant 55
Slide 56: SSC – AEI Return Analysis
SSC – AEI Return Analysis After AEI Current % Variance (estimated) Net Lettable Area 97,123 sf 126,548 sf + 30% Rental Revenue Per Annum S$5.80 mil S$10.21 mil + 76% Average Rental psf Per Month S$4.98 S$6.73 + 35% S$ Million Gross Revenue Per Annum (net of rental loss from 4.6 decanted space) Net P
Slide 57: Other Initiatives to Create Value
Other Initiatives to Create Value Continuously Seeking New Initiatives to Enhance Value of Assets Increase in NLA Rental Increase Initiatives to Enhance Value sq ft S$’000 per annum Completed Initiatives: Tampines Mall: Extension of lease line for 11 units in 2004 444 119 Tampines Mall: Extension of
Slide 58: Other Strategic Initiatives
Other Strategic Initiatives Implementing Point of Sales System at CMT Malls ¾ Pilot launch of Point of Sales (“POS”) system started at Junction 8 and achieved over 90% subscription rate ¾ POS system will be progressively rolled out to all malls across the portfolio ¾ Implementation of POS system wil
Slide 59: CapitaRetail Singapore Update
CapitaRetail Singapore Update
Slide 60: Summary of Renewals / New Leases
Summary of Renewals / New Leases CRS is on Target to Deliver 8.2% Coupon Rate From Acquisition to 31 Dec 2005 (Excluding Newly Created Units) Increase/(Decrease) in No. of Net Lettable Area Current Rental Rates VS. Renewals/ Property New % Total Forecast Preceding Leases Area (sq ft) 1 NLA Rental Ra
Slide 61: Valuation and Property Yield
Valuation and Property Yield As at 31 Dec 2005 S$ million Valuation Valuation Variance Property 20041 20052 Yield Lot 1 275 280 5 6.1% Bukit Panjang Plaza 195 207 12 5.9% Rivervale Mall 70 71 1 6.6% 540 558 18 6.1% Less additions in 2005 16.9 Net Increase in Valuations 1.1 Add revaluation surplus as
Slide 62: Bukit Panjang Plaza – Completed AEI Works
Bukit Panjang Plaza – Completed AEI Works New Two-Storey Extension at BPP 62
Slide 63: Well-Positioned to Deliver 2006 Forecast DPU
Well-Positioned to Deliver 2006 Forecast DPU Objectives for 2006 Execute planned asset enhancement initiatives with minimal impact to existing revenue streams Explore opportunities for further value creation at our malls Strengthen tenancy mix and enhance retail experience for shoppers Conti
Slide 64: Thank You
Cap/taMall P Trust Thank You
Slide 65: Contact Information
Contact Information CapitaMall Trust Management Limited 39 Robinson Road, #18-01 Robinson Point Singapore 068911 Tel: (65)-6536 1188 Fax: (65)-6536 3884 http://www.capitamall.com 65