Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaMall Trust — FY2008 Earnings Presentation
74 slides from Singapore Exchange's earnings presentation, Jan 22, 2009
Slide 1: CapitaMall Trust Full Year 2008 Financial Results
CAPITAMALL TRUST Full Year 2008 Financial Results 22 January 2009
Slide 2: Disclaimers
Disclaimers This presentation is focused on comparing actual results versus forecasts for the CMT malls as stated in the Forecast Consolidated Statement of Total Return and Distribution Income of CMT and its subsidiaries dated 22 January 2008 and for RCS Trust as stated in the forecast shown in the
Slide 3: Financial Highlights
Cap/taMall P Trust Financial Highlights
Slide 4: Financial Results 4Q 2008 (1 Oct – 31 Dec 2008)
Financial Results 4Q 2008 (1 Oct – 31 Dec 2008) Estimated Distribution Per Unit of 3.653 Cents Exceeds Forecast1 by 2.0% Actual Forecast1 Variance Change 2 Distributable income S$60.9 m S$59.7 m S$1.2m 2.0% 3 Estimated Distribution per unit (“DPU”) 3.65 ¢ 3.58 ¢ 0.07 ¢ 2.0% Comprise: Taxable Income
Slide 5: Financial Results FY 2008 vs FY 2007
Financial Results FY 2008 vs FY 2007 FY 2008 Distribution Per Unit Increased 7.1% over FY 2007 FY 2008 FY 2007 Variance Change% Actual NPI S$341.1mil S$287.8mil +S$53.3mil +18.5% 1 Annualised distribution per unit 14.29¢ 13.34¢ +0.95¢ +7.1% Annualised distribution yield 9.53% 8.89% +0.64% +7.1% (Bas
Slide 6: Financial Results 4Q 2008 vs 4Q 2007
Financial Results 4Q 2008 vs 4Q 2007 4Q 2008 NPI Increased 11.1% over 4Q 2007 4Q 2008 4Q 2007 Variance Change% Actual NPI S$85.9mil S$77.3mil +S$8.6mil +11.1% 1 Annualised distribution per unit 14.52¢ 15.16¢ - 0.64¢ - 4.2% Annualised distribution yield 9.68% 10.11% - 0.43% - 4.2% (Based on unit pric
Slide 7: Attractive Yields versus Other Investments
Attractive Yields versus Other Investments (as at 31 December 2008) Net Yield for: 10 9.0 Individual: 9.0% (0% tax) 8 7.5 Corporate Overseas: 8.1% (10% tax) 6.9% yield spread 5.6 6 Yield % over Local Corporate: 7.38% 10-Yr Bond (18% tax) 4 2.5 2.1 2 1.4 0.7 0 CMT 2008 10yr Govt 5yr Govt STI Yield4 F
Slide 8: Historical High Yield Spread versus 10-Year Government Bond
Historical High Yield Spread versus 10-Year Government Bond Spread of CMT’s Yield over 10‐Year Government Bond Yield (From IPO to 2009) Yield Spread (As at 31 Dec 2008) = 694 bps As at 31 Dec 2008, CMT is trading at historical high yield spread of 694 bps, which is 479 bps above long term average yi
Slide 9: Financial Results
Cap/taMall Financial Results
Slide 10: Distribution Statement 4Q 2008 (1 Oct – 31 Dec 2008)
Distribution Statement 4Q 2008 (1 Oct – 31 Dec 2008) Actual 1 Forecast2 Variance S$’000 S$’000 (%) Gross revenue 134,462 122,522 9.7 Less property operating expenses (48,548) (40,559) 19.7 Net property income 85,914 81,963 4.8 Interest income 245 20 N.M Administrative expenses (9,455) (7,999) 18.2 I
Slide 11: Distribution Statement FY 2008 (1 Jan – 31 Dec 2008)
Distribution Statement FY 2008 (1 Jan – 31 Dec 2008) Actual Forecast1 Variance S$’000 S$’000 (%) Gross revenue 510,901 481,775 6.0 Less property operating expenses (169,771) (159,198) 6.6 Net property income 341,130 322,577 5.8 Interest income 1,881 94 N.M Administrative expenses (35,457) (31,665) 1
Slide 12: Property Gross Revenue FY 2008 vs FY 2007
Property Gross Revenue FY 2008 vs FY 2007 Strong Gross Revenue Growth of 9.8% on Comparable Mall Basis 500.5 Adjusted CMT Portfolio1 455.7 9.8% 61.6 Tampines Mall 55.2 47.4 Junction 8 44.5 Funan 29.2 DigitaLife Mall 27.4 IMM Building 73.2 64.8 Plaza Singapura 72.0 68.5 Bugis Junction 65.5 58.7 Other
Slide 13: Property Operating Expenses FY 2008 vs FY 2007
Property Operating Expenses FY 2008 vs FY 2007 Increase2 in Portfolio Operating Expenses on Comparable Mall Basis Adjusted CMT Portfolio1 166.1 8.8% 152.6 18.3 Tampines Mall 16.7 15.5 Junction 8 14.9 Increase in Operating Expense due mainly to: Funan 10.6 DigitaLife Mall 9.7 • Provision for Property
Slide 14: Net Property Income FY 2008 vs FY 2007
Net Property Income FY 2008 vs FY 2007 Robust Net Property Income Growth of 10.3% on Comparable Mall Basis Adjusted CMT Portfolio1 334.4 10.3% 303.1 Tampines Mall 43.3 38.5 Junction 8 31.9 29.6 Funan 18.6 DigitaLife Mall 17.7 47.2 IMM Building 40.3 51.2 Plaza Singapura 48.9 Bugis Junction 43.2 38.1
Slide 15: Valuation and Valuation Cap Rate
Valuation and Valuation Cap Rate Previous Valuation Valuation Previous Valuation Cap rate Valuation1 20082 Variance 2008 2 Valuation 2008 Variance S$ million S$ per sq ft Valuation Cap Valuation Cap CMT Portfolio S$ million S$ million NLA Rate1,3 Rate 2,3 (bps) As at 31 Dec 2008 Tampines Mall 771.0
Slide 16: Average Capitalisation Rate
Valuation Increase Supported By NPI Growth 75.0% 8.0% 65.0% 7.0% % Increase in Valuation / NPI Average Capitalisation Rate 55.0% 6.0% 45.0% 5.0% 35.0% 4.0% 25.0% 3.0% 15.0% 2.0% 5.0% 1.0% 3 4 20031 2004 2 2005 2006 2007 5 2008 6 -5.0% 0.0% Increase in Valuation Increase in NPI Average Capitalisation
Slide 17: Debt Capital Information as at December 2008
Debt Capital Information as at 31 December 2008 (including 40% share in RCS Trust and 100% share in CRS) Debt Maturity Profile Key Statistics Fixed Rate Term Loan from Silver Maple Fixed Rate Term Loan from Silver Fixed Rate Notes issued under under CMBS1 Oak under CMBS1 – 40% interest in RCS Trust
Slide 18: Refinancing Due in 2009
Refinancing Due in 2009 • Debt due in Feb and Mar 2009 will be paid via internal resources • To roll over the May 2009 debt to Aug 2009 and working with various banks to finalise refinancing as a single package well in advance of the debt maturity 876.2 Fixed Rate Term Loan from Silver Maple under C
Slide 19: Balance Sheet
Balance Sheet As at 31 Dec 2008 S$’000 Non-Current Assets 7,321,858 Net Asset Value per unit S$2.44 Current Assets 187,133 (as at 31 Dec 2008) Total Assets 7,508,991 Adjusted Net Asset Value per unit S$2.41 (excluding distributable income) Current Liabilities 811,319 Non-Current Liabilities 2,618,06
Slide 20: Distribution Details
Distribution Details Distribution Period 1 October to 31 December 2008 1 Estimated Distribution Rate 3.65 cents per unit Distribution Timetable Notice of Book Closure Date 22 January 2009 Last Day of Trading on “cum” Basis 29 January 2009, 5.00 pm Ex-Date 30 January 2009, 9.00 am Book Closure Date 3
Slide 21: Portfolio Update
Cap/taMall Portfolio Update
Slide 22: Summary of Renewals / New Leases
Summary of Renewals / New Leases From 1 January to 31 December 2008 (Excluding Newly Created Units) Increase/(Decrease) in Current Net Lettable Area Rental Rates VS % No. of Renewals % % Preceding Average Property Retention % Forecast Rental Rates4 Growth /New Rate Area % Total Rental (typically Rat
Slide 23: Historical Rent Renewals
Historical Rent Renewals Net Lettable Area Increase in Current Rental Rates Vs No. of Average CMT Preceding Rental Growth Portfolio Renewals/ Area % of Forecast Rates11 Rate per (Year) New (Sq Ft) Total Rental (typically Year12 Leases NLA1 Rates committed 3 years ago) FY 2008 363 526,531 18.6 2.8%2
Slide 24: Portfolio Lease Expiry Profile by Year
Portfolio Lease Expiry Profile by Year Gross Rental Income As at 31 Dec 20081 No. of Leases S$’000 % of Total2 2009 593 9,300 27.3 2010 756 12,214 35.9 2011 559 8,858 26.0 2012 148 2,679 7.9 2013 and 16 1,000 2.9 Beyond Based on committed leases as at 31 Dec 2008, Gross Rental Revenue locked-in for
Slide 25: Portfolio Lease Expiry Profile for 2009 By Property
Portfolio Lease Expiry Profile for 2009 By Property Net Lettable Area Gross Rental Income No. of Leases % of Mall % of Mall As at 31 Dec 2008 Sq. ft. S$’000 NLA1 Income2 Tampines Mall 44 40,585 12.4% 981 21.7% Junction 8 56 71,508 29.0% 947 28.6% Funan DigitaLife Mall 81 102,867 34.5% 812 38.7% IMM
Slide 26: Portfolio Gross Turnover 2008 vs 2007
Portfolio Gross Turnover 2008 vs 2007 Portfolio Gross Turnover Increased by 5.8% in 2008 2.0% 8.5% 5.8% 5.0% 10.1% Source: CMT 26
Slide 27: Majority of Trades Performed Well in 2008
Majority of Trades Performed Well in 2008 Source : CMT *Services include convenience store, bridal shop, optical, film processing, florist, magazine/mamak store, pet shop / grooming, travel agency, cobbler / locksmith, laundry and clinics 27
Slide 28: Weakening of Discretionary Spending Towards End 2008
Weakening of Discretionary Spending Towards End 2008 Largely Discretionary Spending Source : CMT *Services include convenience store, bridal shop, optical, film processing, florist, magazine/mamak store, pet shop / grooming, travel agency, cobbler / locksmith, laundry and clinics 28
Slide 29: GTO Rent versus Total Gross Revenue since 2003
GTO Rent versus Total Gross Revenue since 2003 GTO Rent Comprises only 2% – 4% of Total Gross Revenue 8% 6% 4% 2% 0% 2003 2004 2005 2006 2007 2008 % of GTO Rent vs Total Gross Revenue 29
Slide 30: Healthy Occupancy Cost In Line with Regional Peers
Healthy Occupancy Cost In Line with Regional Peers Source: Companies reports and CMT 30
Slide 31: Consistently High Occupancy Rates
Consistently High Occupancy Rates Achieved Close to 100% Occupancy Rate Every Year since 2001 As at As at As at As at As at As at As at As at 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 01 02 03 04 05 06 07 08 Tampines Mall 100.0% 100.0% 99.3% 100.0% 100.0% 100.0% 100.0% 100.0% Junction
Slide 32: Shopper Traffic Grows Quarter-on-Quarter
Shopper Traffic Grows Quarter-on-Quarter Shopper Traffic for 4Q 08 is 10.3% higher than 4Q 07 on Comparable Mall Basis1 56,000 Shopper Count (‘000) 54,000 10.3% 52,000 50,000 48,000 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1 For comparable basis, chart includes the entire CMT portfolio of malls, except Jurong
Slide 33: Well Diversified Trade Mix Across the Portfolio
Well Diversified Trade Mix Across the Portfolio Portfolio1 By Net Lettable Area By Gross Rent as at 31 Dec 2008 as at 31 Dec 20082 1.8% 3.1% 3.8% 11.4% 15.5% 3.1% 5.0% 23.9% 4.4% 5.6% 12.1% 7.6% 6.2% 8.2% 6.4% 12.1% 20.6% 6.5% 8.4% 8.2% 9.0% 17.1% Food & Beverage/Food Court Warehouse Services/Educat
Slide 34: Top 10 Tenants
Top 10 Tenants 10 largest tenants1 by total gross rental contribute 24.2% of total gross rental No one tenant contributes more than 3.3% of total gross rental % of Gross Trade Tenant Rental Sector Income BHG (Singapore) Pte. Ltd 2 Department store 3.3% Cold Storage Singapore (1983) Pte Ltd Supermark
Slide 35: Asset Enhancements Updates
Cap/taMall P Trust Asset Enhancements Updates
Slide 36: Projected Incremental Net Property Income From AEI Initiatives
Projected Incremental Net Property Income From AEI Initiatives S$ mil 6.0 5.2 5.0 4.0 3.2 3.0 2.0 0.9 1.0 0.6 0.0 Plaza Singapura Bugis Junction Lot One Sembawang 1 (Completed in Sep 08) (Completed in Dec 08) (Completed in Sep 08) Shopping Centre (Completed in Dec 08) 1. Asset enhancement works for
Slide 37: Sembawang Shopping Centre
Cap/taMall Sembawang Shopping Centre
Slide 38: Sembawang Shopping Centre Redevelopment Work
Sembawang Shopping Centre Redevelopment Work New Facade Rooftop Landscaped Plaza Decanted 42,610 sq ft of residential gross floor area to Basement 1, Levels 1 and 2 Shifted less prime space 35,974 sq ft of gross floor area from Level 3 and 4 to Basement 1, Levels 1 and 2. Relocated car park sp
Slide 39: Sembawang Shopping Centre Basement 1 Plan
Sembawang Shopping Centre Basement 1 Plan Legend:- F&B Retail Anchor Tenant Before AEI After AEI* Variance Net Lettable Area 23,076sqft 54,018sqft + 134.1% Gross Rent per mth S$57,691 S$346,348 + 500.4% *Forecast value creation is based on Manager's estimates 39
Slide 40: Sembawang Shopping Centre Basement 1 Shops
Sembawang Shopping Centre Basement 1 Shops 40
Slide 41: Sembawang Shopping Centre Level 1 Plan
Sembawang Shopping Centre Level 1 Plan Legend:- F&B Retail Mini-Anchor Tenant Before AEI After AEI* Variance Net Lettable Area 23,378sqft 33,671sqft + 44.0% Gross Rent per mth S$118,898 S$311,441 + 161.9% *Forecast value creation is based on Manager's estimates 41
Slide 42: Sembawang Shopping Centre Level 1 Shops
Sembawang Shopping Centre Level 1 Shops 42
Slide 43: Sembawang Shopping Centre Level 2 Plan
Sembawang Shopping Centre Level 2 Plan Legend:- F&B Retail Before AEI After AEI* Variance Net Lettable Area 10,708sqft 30,416sqft + 184.0% Gross Rent per mth S$85,953 S$226,892 + 164.0% *Forecast value creation is based on Manager's estimates 43
Slide 44: Sembawang Shopping Centre Level 2 Shops
Sembawang Shopping Centre Level 2 Shops 44
Slide 45: Sembawang Shopping Centre Level 3 Plan
Sembawang Shopping Centre Level 3 Plan Legend:- F&B Retail Before AEI After AEI* Variance Net Lettable Area 17,584sqft 10,581sqft - 39.8% Gross Rent per mth S$115,067 S$82,923 - 27.9% *Forecast value creation is based on Manager's estimates 45
Slide 46: Sembawang Shopping Centre Level 3 Shops
Sembawang Shopping Centre Level 3 Shops 46
Slide 47: Sembawang Shopping Centre Leasing Update – Rental Revenue Achieved
Sembawang Shopping Centre Leasing Update – Rental Revenue Achieved Before AEI Projection After AEI* Variance Net Lettable Area (sq ft) 97,123 128,241 + 32.0% Average Rent psf per month S$4.98 S$7.41 + 48.8% Gross Rent per month S$483,220 S$949,919 + 96.6% S$930,763 (98%) out of the S$949,919 project
Slide 48: Sembawang Shopping Centre Leasing Update – Occupancy Achieved
Sembawang Shopping Centre Leasing Update – Occupancy Achieved Net Lettable Area Level Total (sqft) Leased (sqft) Occupancy B1 54,018 53,720 99.4% L1 33,671 32,599 96.8% L2 30,416 29,501 97.0% L3 10,581 10,225 96.6% Total/Average 128,685 126,045 98.0% 98% of total NLA has been committed. 48
Slide 49: Sembawang Shopping Centre Construction Timeline
Sembawang Shopping Centre Construction Timeline Completed Activity Commencement Date Start of Reconstruction 1st Quarter 2007 Activity Completion Date Phase I AEI Works December 2008 Phase 2 AEI Works – Carpark Travellators 1Q 2009* and Rooftop Garden Plaza *Based on Manager’s estimates 49
Slide 50: Lot One Shoppers' Mall
Cap/taMall P Trust Lot One Shoppers’ Mall
Slide 51: Lot One Shoppers' Mall Asset Enhancement Works
Lot One Shoppers’ Mall Asset Enhancement Works Facade View 51
Slide 52: Lot One Shoppers' Mall Asset Enhancement Work
Lot One Shoppers’ Mall Asset Enhancement Work Decanted space previously occupied by the National Library Board. It is currently occupying an area classified for use by Civic and Community Institution, which is deemed non commercial GFA. Created 4-storey retail extension block measuring over 16,5
Slide 53: Lot One Shoppers' Mall Proposed Basement 1 Plan
Lot One Shoppers’ Mall Proposed Basement 1 Plan Reconfiguration of existing Supermarket space to F&B units / kiosks and specialty units SUPERMARKET New escalator from Level 1 Open Plaza F&B Retail New food street through Before AEI After AEI* Variance reconfiguration of existing kiosks Gross Rent pe
Slide 54: Lot One Shoppers' Mall New Shops at Basement 1
Lot One Shoppers’ Mall New Shops at Basement 1 54
Slide 55: Lot One Shoppers' Mall Proposed Level 1 Plan - Completed
Lot One Shoppers’ Mall Proposed Level 1 Plan - Completed Extension of retail floor plate towards Choa Chu Kang MRT Station New escalator for direct connection to Basement 1 New escalator to ease circulation from Levels 1 to 5 Fully covered 4 storey high Open Plaza Slabbing of voids to create a F&B l
Slide 56: Lot One Shoppers' Mall Outdoor Covered Plaza at Level 1
Lot One Shoppers’ Mall Outdoor Covered Plaza at Level 1 56
Slide 57: Lot One Shoppers' Mall New Shops at Level 1
Lot One Shoppers’ Mall New Shops at Level 1 57
Slide 58: Lot One Shoppers' Mall Level 2 Plan - Completed
Lot One Shoppers’ Mall Level 2 Plan - Completed New units created through extension of floor plate over the Open Plaza New escalator to ease circulation from Levels 1 to 5 F&B Retail Slabbing of voids to create Before AEI After AEI* Variance 8 nos. of retail kiosks Gross Rent per mth S$354,612 S$525
Slide 59: Lot One Shoppers' Mall New Shops at Level 2
Lot One Shoppers’ Mall New Shops at Level 2 59
Slide 60: Lot One Shoppers' Mall Proposed Level 3 Plan - Completed
Lot One Shoppers’ Mall Proposed Level 3 Plan - Completed New units created through extension of floor plate over the Open Plaza New escalator to ease circulation from Levels 1 to 5 F&B Retail Slabbing of voids to create 4 nos. of retail kiosks Before AEI After AEI* Variance Gross Rent per mth S$318,
Slide 61: Lot One Shoppers' Mall New Shops at Level 3
Lot One Shoppers’ Mall New Shops at Level 3 61
Slide 62: Lot One Shoppers' Mall Proposed Level 4 Plan - Completed
Lot One Shoppers’ Mall Proposed Level 4 Plan - Completed Relocation of Food Court from Basement 1 to Level 4 Enlarged Community Library of over 25,000sf LIBRARY New escalator to ease circulation from Levels 1 to 5 FOOD COURT F&B New void to enhance visibility of the upper levels Retail Before AEI Af
Slide 63: Lot One Shoppers' Mall New Shops at Level 4
Lot One Shoppers’ Mall New Shops at Level 4 63
Slide 64: Lot One Shoppers' Mall Proposed Level 5 Plan
Lot One Shoppers’ Mall Proposed Level 5 Plan Stage TV Room Play Area Event Plaza Landscaped Roof Plaza, incorporating Wet & Splash Dry Playground and TV Room Zone F&B New escalator to ease circulation from Levels 1 to 5 Open Plaza with Amphitheatre for Retail Community Events Before AEI After AEI* V
Slide 65: Lot One Shoppers' Mall AEI Leasing Update – 96% Committed
Lot One Shoppers’ Mall AEI Leasing Update – 96% of The Projected Increase in Rents Committed Before AEI After AEI Variance Net Lettable Area 203,530 216,982 + 6.6% (sq ft) Average Rent psf S$ 10.04 S$ 12.10 + 20.5% per month Gross Rent per S$2,043,650 S$2,624,885 + 28.4% month S$6.6 million (96%) ou
Slide 66: Lot One Shoppers' Mall Indicative AEI Timeline
Lot One Shoppers’ Mall Indicative AEI Timeline Completed on Schedule Activity Commencement Date Start of AEI 3rd Quarter 2007 Activity Target Completion Date* Level 1 Extension January 2008 Level 2 Extension 1st Quarter 2008 Level 3 Extension 1st Quarter 2008 Levels 4 and 5 Extension 2nd Quarter 200
Slide 67: Outlook For 2009
Cap/taMall Outlook For 2009
Slide 68: Local Consumption Driven by Population Growth
Local Consumption Driven by Population Growth Singapore population registered a record growth of 5.5% in 2008 (mid-year estimates) Source: Singapore Department of Statistics 68
Slide 69: Singapore Households have Stronger Balance Sheets to Face Current Slowdown
Singapore Households have Stronger Balance Sheets to Face Current Slowdown Cash & deposits and CPF balances are greater than total liability; Conservative build-up of liability for average Singaporean 69
Slide 70: Resilient Suburban Malls Heartlanders Less Affected by Fall in Asset Prices
Resilient Suburban Malls Heartlanders Less Affected by Fall in Asset Prices 82% of total resident population who are living within HDB estates are less affected by the fall in asset prices Impact of economic slowdown on private home prices Source: URA & HDB 70
Slide 71: Approximately 80% of Malls in Portfolio Catering Towards Necessity Shopping
Approximately 80% of Malls in Portfolio1 Catering Towards Necessity Shopping Percentage of portfolio by Gross Revenue Percentage of portfolio by Valuation as at 31 Dec 2008 as at 31 Dec 2008 21.4% 22.4% 78.6% 77.6% 78.6% of Gross Revenue catering 77.6% of Asset Value catering towards Necessity Shopp
Slide 72: Fairly Resilient Retail Rentals
Fairly Resilient Retail Rentals Retail rentals (especially suburban) are resilient to economic slowdown Source: JLL, DTZ & CapitaLand Research 72
Slide 73: In Good Stead to Ride Through Challenging Times with Defensive Portfolio
In Good Stead to Ride Through Challenging Times with Defensive Portfolio 1) Resilient Portfolio Well-Located in Captive Markets - Based on committed leases as at 31 Dec 2008, gross rental revenue locked-in for 2009 already exceeds 87% of FY2008 total gross revenue 2) Focus on Pro-Active Asset Manage
Slide 74: Thank You
Thank You For enquiries, please contact: TONG Ka-Pin (Ms) Head, Investor Relations & Corporate Communications Tel : (65)-6536 1188 Fax : (65)-6536 3884 Email: tong.ka-pin@capitaland.com http://www.capitamall.com 74