Oue Real Estate Investment Trust · SGX:TS0U
Oue Real Estate Investment Trust — OUE Commercial REIT — Citi Asia Pacific Property Conference 2014
33 slides from Oue Real Estate Investment Trust's conference presentation, Jun 26, 2014
Slide 1: Citi Asia Pacific Property Conference
Citi Asia Pacific Property Conference 26 June 2014
Slide 2: Important Notice
Important Notice Standard Chartered Securities (Singapore) Pte. Limited, CIMB Bank Berhad, Singapore Branch and Oversea-Chinese Banking Corporation Limited were the joint global coordinators and issue managers for the initial public offering of OUE Commercial REIT. This presentation shall be read in
Slide 3: Agenda
Agenda Overview Key Highlights Financial Performance and Capital Management Portfolio Performance Appendices 3
Slide 4: Overview of OUE C-REIT
Overview of OUE C-REIT OUE C-REIT is a Singapore real estate investment trust listed on the Mainboard of Singapore Exchange Securities Trading Limited with the principal investment strategy of investing, directly or indirectly, in a portfolio of income-producing About OUE C-REIT real estate which
Slide 5: Premium Portfolio of Assets: OUE Bayfront
Premium Portfolio of Assets OUE Bayfront OUE Bayfront GFA (sq m) 46,774.6 Office: 35,551.7 NLA (sq m) Retail: 1,830.1 Overall: 37,381.8 Office : 100.0% Committed Occupancy as at 31 Retail : 100.0% Mar 2014 Overall : 100.0% Number of Car Park Lots 245 Valuation at 30 September 2013 S$1,135m OUE Bayfr
Slide 6: Vantage Position in Singapore's CBD
Vantage Position in Singapore’s CBD Location within the Singapore CBD Landmark commercial property One of the latest premium office buildings located at Collyer Quay between the new Marina Bay downtown and Raffles Place Excellent connectivity and convenient access to major transportation network
Slide 7: Diversified and High Quality Tenant Base
Diversified and High Quality Tenant Base OUE Bayfront Gross Rental Income by Trade Sector1 1 For the month of March 2014 7
Slide 8: Premium Portfolio of Assets: Lippo Plaza
Premium Portfolio of Assets Lippo Plaza Lippo Plaza GFA (sq m) 58,521.5 Office: 33,538.6 NLA (sq m) Retail: 5,693.4 Overall: 39,232.0 Office : 95.9% Committed Occupancy as at 31 Mar Retail : 99.7% 2014 Overall : 96.5% Number of Car Park Lots 168 RMB2,337m / RMB39,934 psm Valuation at 30 September 20
Slide 9: Grade A Building in Prime Commercial District
Grade A Building in Prime Commercial District Map of Shanghai CBD Located Within Shanghai’s Established Core CBD Grade-A commercial building located in Huangpu, Central Shanghai, one of the main commercial districts in Puxi The Huaihai Road precinct, in which the Lippo Plaza Property is situated,
Slide 10: Diversified Tenant Base
Diversified Tenant Base Lippo Plaza Gross Rental Income by Trade Sector1 1 For the month of March 2014 10
Slide 11: Financial Performance & Capital Management
Financial Performance & Capital Management
Slide 12: Key Highlights for the Period Ended March 2014
Key Highlights for the Period Ended 31 March 2014 Financial Highlights Amount available for distribution of S$8.6 million1 and DPU of 1.00 cents are respectively 3.6% and 4.2% ahead of Forecast2 Driven primarily by higher revenue from Lippo Plaza and lower finance costs Capital Management Aggr
Slide 13: Actual vs Forecast
Actual vs Forecast 1 For the period 27 Jan 2014 to 31 Mar 2014 Actual Forecast2 Change Gross Revenue (S$m) 13.8 13.7 +1.0% Net Property Income (S$m) 10.3 10.2 +1.4% Amount Available for Distribution (S$m) 8.6 8.3 +3.6% DPU (cents) 1.00 0.96 +4.2% • Higher gross revenue due to higher income from Lipp
Slide 14: Actual vs Forecast
Actual vs Forecast 1 For the period 27 Jan 2014 to 31 Mar 2014 2 S$'000 Actual Forecast Change (%) Gross revenue 13,819 13,687 1.0 Less property operating expenses (3,502) (3,517) (0.4) Net property income 10,317 10,170 1.4 Other income 1,257 1,133 10.9 Amortisation of income support (1,189) (1,189)
Slide 15: Balance Sheet as at March 2014
Balance Sheet as at 31 March 2014 S$'000 Investment properties 1,580,618 Non-current assets 32,696 Current assets 54,549 Total Assets 1,667,863 Interest-bearing borrowings 665,572 Non-current liabilities 51,003 Current liabilities 33,354 Total Liabilities 749,929 Net Assets 917,934 Units in Issue ('
Slide 16: Capital Management
Capital Management As at 31 March 2014 Aggregate Leverage 40.8% Debt Maturity Profile S$680m comprising Total debt1 - S$618m - RMB305m Average cost of 2.47% debt2 Average term of 3.65 years debt % fixed rate debt 50.3% Average term of 3.78 years fixed rate debt Interest service ratio 3.9 x 1 Based o
Slide 17: Portfolio Performance
COMMERCIAL : REIT Portfolio Performance
Slide 18: Portfolio Composition
Portfolio Composition By Asset Value1 By Gross Rental Income2 By Segment Revenue2 1 Based on independent valuations as at 30 September 2013 and SGD:CNY exchange rate of 1:4.883 2 For the period from 27 January 2014 to 31 March 2014 and based on SGD:CNY exchange rate of 1:4.808 18
Slide 19: Improved Portfolio Occupancy
Improved Portfolio Occupancy 30 Sep 2013 31 Dec 2013 31 Mar 2014 Market OUE Bayfront 96.1% 100.0% 100.0% 95.7% 1 Lippo Plaza 88.2% 91.3% 96.5% 92.1% 2 Portfolio 92.0% 95.6% 98.2% - 1 For OUE Bayfront, Singapore core CBD office occupancy rate of 95.7% is used as market comparative. Source : CBRE, Pre
Slide 20: Positive Rental Reversions for Office Leases
Positive Rental Reversions for Office Leases Renewal rates vs Committed rents1 Passing rent for preceding rents property OUE Bayfront 13.9% S$10.50 – S$12.50 psf/mth S$10.61 psf/mth Lippo Plaza 9.2% RMB8.00 – RMB11.00 psm/day RMB9.10 psm/day 1 Committed rents for both renewal leases and new leases 2
Slide 21: Lease Expiry Profile: OUE Bayfront
Lease Expiry Profile as at 31 March 2014 OUE Bayfront WALE1 of 3.6 years by NLA2 and 3.5 years by Gross Rental Income 1 WALE: Weighted average lease term to expiry 2 NLA: Net lettable area 21
Slide 22: Lease Expiry Profile: Lippo Plaza
Lease Expiry Profile as at 31 March 2014 Lippo Plaza WALE of 1.6 years by both NLA and Gross Rental Income 22
Slide 23: Lease Expiry Profile: Portfolio
Lease Expiry Profile as at 31 March 2014 Portfolio WALE of 2.6 years by NLA and 2.8 years by Gross Rental Income 23
Slide 24: Diversified Tenant Base
Diversified Tenant Base Gross Rental Income by Trade Sector1 NLA by Trade Sector1 1 For the month of March 2014. “Others” include manufacturing, logistics, food processing, advertising/publishing and natural resources 24
Slide 25: Appendices
Appendices Singapore Office Market Overview Shanghai Office Market Overview
Slide 26: Overview of Office Sector in Singapore
Overview of Office Sector in Singapore Singapore’s CBD – Comprises traditional areas of Raffles Place, Shenton Way/Robinson Road/Cecil Street as well as the New Downtown at Marina Bay – Many established global financial institutions and headquarters of MNCs are located in Marina Bay and Raffles Pla
Slide 27: Core CBD Occupancy vs Rents
Core CBD Occupancy vs Rents Average core CBD occupancy increased to 95.7% as at 1Q 2014 Grade A office rental rose 5.1% quarter-on-quarter to S$10.25 psf/mth Source: CBRE Research 27
Slide 28: Demand and Supply vs Office Rental
Demand and Supply vs Office Rental Islandwide Office Demand, Supply vs Office Rental Source: URA statistics, CBRE Research 2Q11 was the last period where CBRE provided Prime office Rental data. Prime Grade A office rental data not available prior to 1Q02. 28
Slide 29: Known Office Supply Pipeline
Known Office Supply Pipeline Office Supply in Singapore’s CBD and Fringe CBD (NLA sq ft) Source: URA statistics, CBRE Research 29
Slide 30: Overview of Office Sector in Shanghai
Overview of Office Sector in Shanghai Puxi, the traditional business and commercial hub of Shanghai – West of the Huangpu River and one of two main engines (the other being Pudong) driving the continued growth of Shanghai – Key office and commercial districts within Puxi are concentrated in the Jin
Slide 31: Average Occupancy and Rental Rates
Average Occupancy and Rental Rates Average Occupancy in Huangpu Average Rental Rates in Shanghai and Huangpu (RMB psm/mth) Source: DTZ Independent Market Research Report 31
Slide 32: CBD Grade A Office Supply Pipeline
CBD Grade A Office Supply Pipeline Office Supply in Shanghai CBD (sq m) Source: Colliers International Research, as at 1Q14 32
Slide 33: Thank you
COMMERCIAL
OUE Commercial REIT — Citi Asia Pacific Property Conference 2014 on 6ix