Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Mapletree Greater China Commercial Trust — FY17/18 Earnings Presentation
39 slides from Singapore Exchange's earnings presentation, Apr 25, 2018
Slide 1: Mapletree Greater China Commercial Trust Financial Results
Mapletree Greater China Commercial Trust Financial Results for the Period from 1 April 2017 to 31 March 2018 25 April 2018
Slide 2: Disclaimer
Disclaimer This presentation shall be read in conjunction with Mapletree Greater China Commercial Trust’s (“MGCCT”) financial results for the period from 1 April 2017 to 31 March 2018 in the SGXNET announcement dated 25 April 2018. This presentation is for information only and does not constitute an
Slide 3: Key Highlights
Key Highlights 3 Festival Walk, Hong Kong SAR
Slide 4: Key Highlights: FY17/18 vs FY16/17
Key Highlights: FY17/18 vs FY16/17 Change FY17/18 • Stable Financial Performance − Increase in DI mainly due to higher average rental rates at Gross Revenue ▲ 1.3% S$355.0m FW and GW, partially offset by higher property tax2 incurred at GW and lower average rates of HKD and RMB against Net Property
Slide 5: Quarterly Distributable Income and Available DPU Since IPO
Quarterly Distributable Income and Available DPU Since IPO FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 • 4Q FY17/18 Available DPU of 1.904 cents is 2.8% lower than 4Q FY16/17, mainly due to the reversal in 4Q FY16/17 of VAT payable previously assumed at a higher rate for GW, weaker average rate of HKD,
Slide 6: Higher Yield versus Other Comparable Instruments
Higher Yield versus Other Comparable Instruments MGCCT 6.5% FY17/18 Available DPU 5.3% 7.481 cents 3.4% 3.1% 2.5% 2.3% 1.9% 0.3% 5 MGCCT Yield1 FTSE ST REIT 2 Hang Seng Index 2 FTSE STI 2 CPF Ordinary 3 10-yr SG Gov 4 10-yr HK Gov 12-mth SGD Fixed 4 Index Account Bond Yield Bond Yield Deposit 1. Ann
Slide 7: Financial & Capital Management Highlights
Financial & Capital Management Highlights 7 Gateway Plaza, Beijing
Slide 8: Gross Revenue & NPI by Assets: FY17/18 vs FY16/17
Gross Revenue & NPI by Assets: FY17/18 vs FY16/17 Gross Revenue by Asset Net Property Income (NPI) by Asset (S$ million) (S$ million) 0.4% 0.3 % 7.1% 3.5% 0.6% 0.4% 16/17 17/18 16/17 17/18 16/17 17/18 16/17 17/18 16/17 17/18 16/17 17/18 • Slightly lower NPI for FW mainly due to a lower a
Slide 9: Balance Sheet Update
Balance Sheet Update As at As at (S$’million) Variance % 31 Mar 2018 31 Mar 2017 Investment Properties 6,292.0 6,226.3 ▲ 1.1 Total Assets 6,522.7 6,528.9 ▼ 0.1 Borrowings 2,361.1 2,556.2 ▼ 7.6 Total Liabilities 2,634.0 2,892.6 ▼ 8.9 Net Assets 3,888.8 3,636.3 ▲ 6.9 Net Asset Value (“NAV”) per 1.376
Slide 10: Prudent Capital Management
Prudent Capital Management As of As of 31 Mar 2018 31 Mar 2017 Gearing Ratio1 (%) 36.2 39.2 Average Term to Maturity for Debt (years) 3.43 3.73 MGCCT Corporate Rating by Moody’s Baa1 Stable2 Baa1 Stable FY17/18 FY16/17 Interest Cover Ratio3 (times) 3.9 3.6 Effective Interest Rate (% p.a.) 2.72 2.72
Slide 11: Maintaining a Well-Staggered Debt Maturity Profile
Maintaining a Well-Staggered Debt Maturity Profile No more than 24% of debt due in any year Total Gross Debt: HK$13,998 mil 4,000 3,339 2,967 3,022 3,000 1,039 2,273 1,231 1,901 (HK$ million) 2,000 550 2,967 2,300 1,300 1,000 1,791 496 1,723 310 601 - 186 Bank Debt Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Slide 12: Interest Rate & Forex Risk Management
Interest Rate & Forex Risk Management As of As of 31 Mar 2018 31 Mar 2017 Total Debt Outstanding Every 50 bps HK$13,998 m HK$14,133 m (Denomination: ~98% HKD1, ~2% RMB2) in interest rate Percentage of Debt with Fixed Interest ~ 0.082 cents ~78% ~71% for FY17/18 DPU Cost 1. MGCCT Group has ente
Slide 13: MGCCT 2H FY17/18 Distribution Details
MGCCT 2H FY17/18 Distribution Details Distribution Details Distribution Period 1 October 2017 – 31 March 2018 Distribution Amount 3.7671 cents per unit Distribution Timetable Notice of Books Closure Date Wednesday, 25 April 2018 Ex-Date Wednesday, 2 May 2018 Books Closure Date Monday, 7 May 2018, 5:
Slide 14: Portfolio Update
Portfolio Update 14 Sandhill Plaza, Zhangjiang Hi-tech Park, Shanghai
Slide 15: Resilient Portfolio Performance
Resilient Portfolio Performance YTD Reversion by As at As at As at As at As at Quarter % 31 Mar 18 31 Dec 17 30 Sep 17 30 June 17 31 Mar 17 Festival Walk - Retail 11 10 11 9 12 Achieved - Office 11 - - - 7 moderate Gateway Plaza 8 9 10 10 10 reversions for all assets Sandhill Plaza 15 16 14 13 16 No
Slide 16: Well-Staggered Lease Expiry Profile
Well-Staggered Lease Expiry Profile (as of 31 Mar 2018) ~4.6% of FY18/19 leases by GRI already renewed or re-let ~4.6% already renewed or re- let • Based on all leases renewed or re-let as of 31 Mar 2018, Portfolio WALE is 2.6 years Weighted Average Lease Expiry Festival Walk: 2.4 years (WALE) by Gr
Slide 17: Diversified Portfolio Tenant Mix
Diversified Portfolio Tenant Mix (as of 31 Mar 2018) Trade Sector by Gross Rental Income Top 10 Tenants by Gross Rental Income No single trade sector comprises more Accounted for 30.1% of GRI than 20.0% of GRI 1. BMW GW 2. ARUP FW 3. CFLD GW 4. TASTE FW 5. Festival Grand FW 6. APPLE STORE FW 7. I.T
Slide 18: Active Asset Management
Active Asset Management 18 Festival Walk, Hong Kong SAR
Slide 19: Festival Walk: New Shops in 4Q FY17/18
Festival Walk: New Shops in 4Q FY17/18 Apparel Apparel Playlord Shoes Millie’s Relocation Apparel & Others Shoes Joy & Peace Bookstore Bookazine 19
Slide 20: Festival Walk: New Shops in 4Q FY17/18 (cont'd)
Festival Walk: New Shops in 4Q FY17/18 (cont’d) Pop-up Stores Accessories Rayban Cosmetics Estee Lauder Shoes SOLUDOS Jewellery apm Monaco Leisure Apparel Go Wild 20
Slide 21: Festival Walk: Exciting Events Drive Footfall & Sales
Festival Walk: Exciting Events Drive Footfall & Sales Chinese New Year 2018 Kick-off event with TVB stars as Guest-of- Honour, Flag-and-Drum performances, lion dance, ice- skating events, and many other exciting events and treats 21
Slide 22: Festival Walk: Exciting Events Drive Footfall & Sales (cont'd)
Festival Walk: Exciting Events Drive Footfall & Sales (cont’d) Dream Cruises - LEGO Model Exhibition Bookazine Festival Walk Grand Opening Car shows including Land Rover, Mercedes- Dyson Roadshow Benz, Audi, Maserati and Honda 22
Slide 23: Festival Walk: Retail Sales & Footfall FY17/18
Festival Walk: Retail Sales & Footfall FY17/18 FY17/18 retail sales and footfall increased 7.4% and 3.2% respectively year-on-year Tenant Sales (HK$ million) Footfall (million) FY16/17 FY17/18 FY16/17 FY17/18 • Retail sales and footfall were up 7.4% and 3.2% respectively year-on-year in FY17/18, mai
Slide 24: Unitholders Approved Acquisition of Japan Portfolio
Unitholders Approved Acquisition of Japan Portfolio at Extraordinary General Meeting on 24 Apr 2018 Expansion into the attractive Greater Tokyo office market Strategic addition of a high quality portfolio of freehold office assets ~JPY62,307.7m (~S$770.5m) Stable and quality cash flows Total A
Slide 25: MGCCT After the Acquisition of Japan Portfolio
MGCCT After the Acquisition of Japan Portfolio Enlarged Asset Size of S$7,075 million from S$6,292 million Festival Walk, Hong The Japan Portfolio Kong Enlarged Portfolio from 3 to 9 Assets Gateway Plaza, Beijing IXINAL Monzen-nakacho Higashi-nihonbashi 1-chome TS Ikebukuro Building, Building, Tokyo
Slide 26: MGCCT After the Proposed Acquisition
MGCCT After the Proposed Acquisition Existing Portfolio Japan Portfolio Enlarged Portfolio % Change GFA (sq ft) 3,256,667 1,645,917 4,902,584 50.5% NLA (sq ft) 2,625,438 1,597,962 4,223,400 60.9% Valuation (S$ million) 6,292 7831 7,075 12.4% (as at 31 Mar 2018) WALE (Years) 2.7 5.8 3.1 14.8% Number
Slide 27: Opportunities & Outlook
Opportunities & Outlook GDP Growth1 HK Retail Sales2 • Festival Walk: Gross revenue in HKD Hong Kong 2017: First 2 months 2018 yoy: is expected to grow moderately. Rental 15.7% reversion rate for leases expiring in 3.8% FY18/19 is expected to grow at a Increase in Hong Kong retail sales boosted by i
Slide 28: Appendix
Appendix 28 Gateway Plaza, Beijing
Slide 29: Overview of Mapletree Greater China Commercial Trust
Overview of Mapletree Greater China Commercial Trust (“MGCCT”) First commercial REIT with assets in China & Hong Kong (listed since 7 March 2013) Investment Mandate S$6.3 bil 3 Properties • To invest in a diversified portfolio of income-producing real Portfolio Value1 6.5% Hong Kong Beijing Shan
Slide 30: FY17/18 & 4Q FY17/18 Financials
FY17/18 & 4Q FY17/18 Financials (S$’000) FY17/18 FY16/17 Variance % 4Q 17/18 4Q 16/17 Variance % Gross Revenue1 355,030 350,629 ▲ 1.3 89,550 94,777 ▼ 5.5 Property Operating Expenses (67,880) (65,049) ▲ 4.4 (16,688) (17,297) ▼ 3.5 Net Property Income 287,150 285,580 ▲ 0.5 72,862 77,480 ▼ 6.0 NPI Marg
Slide 31: Portfolio Composition (FY17/18)
Portfolio Composition (FY17/18) Hong Kong & China contribute ~70% and ~30% to NPI respectively By Gross Revenue By Net Property Income FY17/18: S$355.0m FY17/18: S$287.2m Sandhill Plaza Sandhill Plaza 7% 8% Gateway Plaza Gateway Plaza 23% 24% Festival Walk Festival Walk 69% 69% 31
Slide 32: Festival Walk – Best-in-Class Territorial Mall
Festival Walk (又一城) – Best-in-Class Territorial Mall Premier Shopping, Dining Strategically Located in the Heart 100% Occupancy since and Lifestyle Destination of Kowloon Tong, Hong Kong Completion in 1998 Office Retail 32
Slide 33: Gateway Plaza – Premier Grade-A Office Building
Gateway Plaza (佳程广场) – Premier Grade-A Office Building Premier Grade A Office Space Excellent Connectivity Upgraded Podium Area with in Beijing’s Lufthansa Area between the CBD and Airport Retail Amenities Key Tenants 33
Slide 34: Sandhill Plaza – Premium Quality Business Park
Sandhill Plaza (展想广场) – Premium Quality Business Park Located in Shanghai’s Established tenants Premium Grade-A Zhangjiang Hi-tech Park, a including leading global Building Specifications Free Trade Zone companies Sandhill Plaza 1 7 8 6 5 4 2 3 Comprises one 20-storey tower, seven blocks of 3-storey
Slide 35: Appreciation in MGCCT's Portfolio Valuation
Appreciation in MGCCT’s Portfolio Valuation Local Currency SGD Currency Gross Cap Rate Valuation as Valuation as at Valuation as at Valuation as As at As at $ million at 31 Mar 18 31 Mar 17 31 Mar 181 at 31 Mar 172 31 Mar 18 31 Mar 17 HK$26,840 S$4,514 Festival Walk HK$24,870 S$4,549 4.25% 4.5% (+ 7
Slide 36: MGCCT Portfolio Summary
MGCCT Portfolio Summary Festival Walk Gateway Plaza Sandhill Plaza 80 Tat Chee Avenue, 2290 Zuchongzhi Road, Zhangjiang Hi- 18 Xiaguangli, East 3rd Ring North Address Kowloon Tong tech Park, Pudong New Area, Road, Chaoyang District, Beijing Kowloon, Hong Kong Shanghai Two 25 storey office towers; On
Slide 37: Overview – An Attractive Office Portfolio in Japan
Overview – An Attractive Office Portfolio in Japan The Japan Portfolio is Strategically Located Within Major Office Hubs in the Greater Tokyo Area JPY63,304m 1.60 m sq ft 6 Freehold 99.9% 5.8 years Property Assets (S$782.8m) Net Lettable Area Occupancy Rate1 WALE2 Agreed Portfolio Value (“NLA”) The
Slide 38: Overview of the Properties
Overview of the Properties IXINAL Higashi-nihonbashi TS Ikebukuro ABAS Shin- SII Makuhari Fujitsu Makuhari Monzen-nakacho 1-chome Building Name Building Yokohama Building Building Building Building Building (“MON”) (“HNB”) (“TSI”) (“ASY”) (“SMB”) (“FJM”) Location Kohoku-ku, Mihama-ku, Mihama-ku, Kot
Slide 39: Thank You
Thank You For enquiries, please contact: Ms Elizabeth Loo, Vice President, Investor Relations Tel: +65 6377 6705 Email: elizabeth.loo@mapletree.com.sg
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