Capitaland Integrated Commercial Trust · SGX:C38U
Capitaland Integrated Commercial Trust — H1 2024 Earnings Presentation
59 slides from Capitaland Integrated Commercial Trust's earnings presentation, Aug 13, 2024
Slide 1: 1H 2024 Financial Results
CapitaLand Integrated Commercial Trust 1H 2024 Financial Results 13 August 2024
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 32 Highlights Sustainability 11 37 Financial Performance Property Details 18 45 Portfolio and Market Asset Type Information Performance 30 Focus & Outlook Westgate, Singapore
Slide 4: Highlights
Highlights Bugis Junction and Bugis+, Singapore
Slide 5: Resilient Performance
Resilient Performance Steady Financials and Resilient Operating Financing Highlights Capital Management Performance ✓ Issued S$300 million 10-year fixed rate Net Property S$582.4 Portfolio green notes at 3.75% on 10 July 2024 Income Million Committed 96.8% Occupancy ✓ Post June 2024, about 80% of de
Slide 6: Steady Execution of Asset Enhancement Initiatives
Steady Execution of Asset Enhancement Initiatives IMM Building, Singapore CQ @ Clarke Quay, Singapore ✓ Phase 1 and 2 of level 1 AEI in progress and on track to meet target ROI of ~8% ✓ Achieved healthy leasing interest with committed occupancy of 98.7% for Phase 1 & 2 AEI (including leases under ad
Slide 7: Revitalising Workspaces in North Sydney
Revitalising Workspaces in North Sydney 101 Miller Street Revitalised lobby with new amenities at 101 Miller Street ✓ Completed asset enhancement works at ground lobby with grand opening held on 10 July 2024 ✓ Revitalised lobby activated with new amenities such as café and meeting rooms are well-rec
Slide 8: Proactive Portfolio and Capital Management Drives Growth Amidst Challenging Macroenvironment
Proactive Portfolio and Capital Management Drives Growth Amidst Challenging Macroenvironment Gross revenue growth driven by Operating expenses savings Distributable income rose as the healthy rent reversions despite largely driven by lower utilities higher revenue and savings in absence of income fr
Slide 9: Achieved 1H 2024 DPU of 5.43 cents, Up 2.5% YoY
Achieved 1H 2024 DPU of 5.43 cents, Up 2.5% YoY Based on enlarged unit base from the distribution reinvestment plan in 1Q 2024 Distributable Income (S$ million) 1H 2024 715.7 (2) Distributable Income 2H 2023 362.5 S$366.5 (1) 1H 2023 353.2 366.5 (1) million FY 2023 1H 2024 DPU (cents) 1H 2024 10.75
Slide 10: Distribution Details
Distribution Details Distribution Period 1 January to 30 June 2024 Distribution Per Unit 5.43 cents Notice of Record Date Tuesday, 13 August 2024 Last Day of Trading on ‘cum’ Basis Monday, 19 August 2024, 5.00 pm Ex-Date Tuesday, 20 August 2024, 9.00 am Record Date Wednesday, 21 August 2024 Distribu
Slide 11: Financial Performance
Financial Performance Raffles City Singapore
Slide 12: 2Q 2024 Financials: Net Property Income Up 4.6%
2Q 2024 Financials: Net Property Income Up 4.6% Supported by higher gross rental income and lower operating expenses, despite absence of income from Gallileo Gross 2Q 2024 YoY 2Q 2024 YoY Net Property Revenue S$393.3M ▲1.8% Income S$288.7M ▲ 4.6% Retail Asset Performance Office Asset Performance Int
Slide 13: 1H 2024 Financials: Net Property Income Rose 5.4%
1H 2024 Financials: Net Property Income Rose 5.4% Led by higher gross rental income from existing properties and lower operating expenses, despite absence of income from Gallileo since February 2024 Gross 1H 2024 YoY 1H 2024 YoY Net Property Revenue S$792.0M ▲ 2.2% Income S$582.4M ▲5.4% Retail Asset
Slide 14: Diversified Revenue Streams Provide Stability
Diversified Revenue Streams Provide Stability ffice ffice ffic e C o e Ce on te s ffic ntr en D e tio n CB 1H 2024 Gross Revenue: Singapore 94.3% S$792.0 Germany 2.3% million(1) Australia 3.4% n o nto D etai Su i eta ur Notes: an (1) Based on 1H 2024 gross revenue and excludes joint ventures. (2) Co
Slide 15: Balance Sheet
Balance Sheet As at 30 June 2024 S$’000 Non-current Assets 24,587,635 Net Asset Value/Unit S$2.13 Current Assets 224,350 Adjusted Net Asset Value/Unit S$2.07 (excluding distributable income) Total Assets 24,811,985 Current Liabilities 1,885,751 Non-current Liabilities 8,382,675 Total Liabilities 10,
Slide 16: Proactive Capital Management
Proactive Capital Management As at As at 30 June 2024 31 March 2024 Aggregate Leverage(1) 39.8% 40.0% Total Borrowings (S$ billion) 9.5 9.5 % of Borrowings on Fixed Interest Rate 76% 76% % of Total Assets that are Unencumbered 93.6% 93.6% Interest Coverage(2) 3.0x 3.1x Average Term to Maturity (year
Slide 17: Well Spread Debt Maturity Profile
Well Spread Debt Maturity Profile(1) Exc ude share of JVs’ orro ings S$ million Funding sources 1,800 MTN 46% 15% 15% 1,600 1,504 Unsecured Bank Loans 47% 13% 13% 1,465 13% 12% 1,400 1,328 Secured Bank Loans 7% 1,304 1,243 1,246 10% Interest rate sensitivity 1,200 100 277 750 assuming 1% p.a. increa
Slide 18: Portfolio and Asset Type Performance
Portfolio and Asset Type Performance Note: Bedok Mall, Singapore The retail and office asset information comprises the respective retail and office components of integrated developments unless stated otherwise, in order to show the operating metrics and trends.
Slide 19: Committed Occupancy Eased Slightly to 96.8% Mainly Due to Office Portfolio
Committed Occupancy Eased Slightly to 96.8% Mainly Due to Office Portfolio; WALE Remained Stable INTEGRATED RETAIL(1) OFFICE(1) PORTFOLIO DEVELOPMENT (2,3) 98.7% 99.0%(2) 95.8% 95.3% (3) 98.9% 98.8% 97.0% 96.8% Committed Occupancy 31 Mar 2024 30 Jun 2024 31 Mar 2024 30 Jun 2024 31 Mar 2024 30 Jun 20
Slide 20: Proactively Managing Leases to Ensure Well Spread Portfolio Lease Expiry
Proactively Managing Leases to Ensure Well Spread Portfolio Lease Expiry(1) Majority of leases 15.2% 15.4% are pending signing 12.2% 11.1% 9.9% 6.5% 6.5% 7.3% 5.0% 3.9% 2.8% 2.2% 2.0% 2024 2025 2026 2027 2028 2029 and beyond Retail Office Hospitality Note: (1) Based on gross rental income of committ
Slide 21: No Single Tenant Contributes More Than 5.2% of CICT's Total Gross Rental Income
No Single Tenant Contributes More Than 5.2% of CICT’s Total Gross Rental Income(1) % of Total Ranking Top 10 Tenants for June 2024 Trade Sector Gross Rental Income 1 RC Hotels (Pte) Ltd 5.2 Hotel 2 WeWork Singapore Pte. Ltd. 2.4(2) Real Estate and Property Services 3 GIC Private Limited 1.8 Financia
Slide 22: Diversified Tenants' Business Trade Mix
Diversified Tenants’ Business Trade Mix Fashion & IT & Other Retail and Product Trades Accessories Telecommunications Books, Stationery & Gifts/ Hobbies/ 5.7% 3.9% 3.2% Sports Hospitality & Leisure Other Retail & Digital & Appliance 3.1% 5.6% Product Trades Supermarket 2.4% 21.5% Leisure & Entertain
Slide 23: Healthy Leasing Activity Across CICT Portfolio
Healthy Leasing Activity Across CICT Portfolio RETAIL OFFICE 1H 2024 1H 2024 Total New and Renewed Leases Total New and Renewed Leases (1) For Singapore, Germany & Australia Portfolio 552,400 sq ft 558,900 sq ft sq ft 1Q 2Q 254,600 297,800 (2) 1Q 2Q sq ft (4) 209,900 349,000 (4) (3) (3) Retention Ra
Slide 24: Rent Reversion Expected to Stay Positive for 2H 2024
Rent Reversion Expected to Stay Positive for 2H 2024 Gross turno er rents ranged et een and 1 of respecti e ma ’s gross renta income Net Lettable Area Rent Reversion(1) for YTD Jun 2024 Retention Percentage of Average Incoming Rents No. of Renewals Area vs Rate Retail Portfolio YTD Jun 2024 / New Le
Slide 25: 1H 2024 Shopper Traffic and Tenant Sales Up YoY
1H 2024 Shopper Traffic and Tenant Sales Up YoY Tenant sales psf and shopper traffic continue to achieve stable growth 1H 2024 Tenant Sales psf (1) (YoY Performance) • Sales grew slightly YoY due to the initial boost from the inbound of Chinese Retail Portfolio Suburban Mall Downtown Mall tourists,
Slide 26: Resilient Performance for Top Five Trade Categories
Resilient Performance for Top Five Trade Categories YTD Jun 2024 Tenant Sales(1) YoY Performance by Trade Categories 8.3% 8.0% 4.6% 4.4% 2.8% 2.7% 1.3% 1.0% 0.5% -3.1% -3.6% -7.0% -8.9% -14.6% Digital & Appliance (2) Multi-Concepts (2) Food & Beverages Hobbies Fashion & Accessories Education Beauty
Slide 27: Curating Concepts that Elevate Retail Experience
Curating Concepts that Elevate Retail Experience SUSHISAMBA, Capital Tower Lola’s Café, Tampines Mall IL Clay Supper Club, (New-to-market) (New-to-portfolio) CQ @ Clarke Quay (New-to-market) • Experience a delectable blend of • Trendy neighbourhood café with new • Authentic Italian-Mediterranean cui
Slide 28: Unveiling Fresh Additions Across Our Portfolio
Unveiling Fresh Additions Across Our Portfolio Food & Beverages Fashion & Lifestyle-related PENDING Micun Bibimbap, Bukit Panjang Plaza Shanghai Tan Pan-Fried Bun, Bedok Mall M&G Life, Raffles City Singapore HUNTER, Plaza Singapura Anta Kids Outlet, IMM Building (New-to-market) (New-to-portfolio) (N
Slide 29: Prioritising Leasing Efforts to Attract Occupiers
Prioritising Leasing Efforts to Attract Occupiers CICT Office Portfolio SINGAPORE GERMANY AUSTRALIA PORTFOLIO Major New Leases / Expansion signed in 1H 2024: • Jain Global (Singapore) Pte. Ltd. at CapitaGreen (1) 97.5% 97.3% (2,3) 95.8% 95.3% (2) • Wintermute Asia Pte. Ltd. at CapitaGreen (4) 92.1%
Slide 30: Focus & Outlook
Focus & Outlook Six Battery Road, Singapore
Slide 31: CICT – A Proxy for Singapore's Commercial Real Estate
CICT – A Proxy for Singapore’s Commercial Real Estate Portfolio Capital Value Creation Sustainability Management Management ✓ Drive higher ✓ Execute phased AEIs at ✓ Remain agile in ✓ Aligned with CLI occupancy and rents IMM Building, Singapore managing Sustainability Master through active asset and
Slide 32: Sustainability
Sustainability Westgate, Singapore
Slide 33: Advancing Our ESG Ambitions
Advancing Our ESG Ambitions Awards and Recognition Green Ratings SGBC-BCA Building Project Leadership in Maintained green ratings at Sustainability Awards 2024 (Health & Well-being) ~99% of portfolio by GFA(1) Winner - CapitaSpring NABERS Energy 5.5% Non-rated BREEAM Good 0.6% BCA Green Mark Sustain
Slide 34: Greening Our Properties
Greening Our Properties Energy Efficiency Initiative Expanding Electric Vehicle (EV) Charging Stations Adopting Cooling-as-a-Service (CaaS) at Equipping all commercial properties in Raffles City Singapore, Plaza Singapura and Singapore with EV charging stations The Atrium@Orchard • Expansion of EV c
Slide 35: Innovating to Drive Operational Efficiency
Innovating to Drive Operational Efficiency Updates on Pilots & ESG Initiatives Water System Monitoring (by AccuPredict) at IMM Building 9 pilots initiated, of which 1 pilot has Installation of sensors for monitoring and detecting problems concluded and 2 pilots are pending for water systems using ar
Slide 36: Engaging the Community
Engaging the Community Highlights of Community Engagements in 2Q 2024 Community Fun Run 2024 (28 June) All CICT Malls: Pixar Puffy Happiness (20 May – 30 June) ShopBack x CapitaStar Campaign (1 June – 10 August) 4 CICT Malls: Ministry of Social and Family R&W Leadership Series (16 May) Development N
Slide 37: Property Details
Property Details Junction 8, Singapore
Slide 38: Maintain High Occupancy Rate for Retail Properties
Maintain High Occupancy Rate for Retail Properties Most properties reported higher occupancy than U A’s Singapore retai occupancy rate of 93.4%(1) Occupancy (%) (2) 100 100 99.9 98.8 99.7 99.7 100 99.8 100 100 100 100 99.0 98.9 97.3 97.6 99.8 99.9 98.9 99.3 98.1 99.6 99.6 99.8 90.0 92.7 Bedok Bugis
Slide 39: Proactive Leasing Strategy to Manage Tenant Mix and Mall Positioning
Proactive Leasing Strategy to Manage Tenant Mix and Mall Positioning Retail Portfolio WALE(1) : 2.0 years 29.5% 30.1% Majority of leases 23.9% are pending signing 7.4% 5.4% 3.7% 2024 2025 2026 2027 2028 2029 and beyond Note: (1) Based on gross rental income of committed leases in retail properties a
Slide 40: Most Office Properties at Occupancy Rate Above 95%
Most Office Properties at Occupancy Rate Above 95% Seeing longer decision-making time taken by prospects for leasing of overseas offices Singapore Occupancy Germany Australia Occupancy Occupancy(2) CICT: 88.0% CICT: 97.3% Frankfurt Sydney CBD: 84.4%(4) Singapore Core CBD: 93.9%(1) Market: 90.3%(3) N
Slide 41: Proactively Managing Lease Expiry for Stability Through Market Cycles
Proactively Managing Lease Expiry for Stability Through Market Cycles Office Portfolio WALE(1): 3.8 years Majority of leases 25.6% are pending signing 22.9% 16.7% 14.9% 14.9% 5.0% 2024 2025 2026 2027 2028 2029 and beyond Note: (1) Based on gross rental income of committed leases in office properties
Slide 42: Average Rents of Upcoming Expiries are Around Market Rent Level
Average Rents of Upcoming Expiries are Around Market Rent Level High positive rent reversion in 1H 2024 may be offset by narrowing rent reversion in 2H 2024 2024 2025 Average rent of leases expiring is S$12.15 psf (2) Average rent of leases expiring is S$11.91 psf (2) 20% 20% $13.93 $12.13 $12.01 $1
Slide 43: Occupancy of Integrated Developments at 98.8%
Occupancy of Integrated Developments at 98.8% Occupancy (%) 100 100 98.4 98.6 99.7 99.8 99.0 99.8 91.7 91.5 Retail: 97.3 Retail: 97.6 Retail: 99.6 Retail: 99.7 Retail: 98.1 Retail: 99.6 Office: 100 Office: 100 Office: 100 Office: 100 Office: 100 Office: 100 CapitaSpring (1) Funan Plaza Singapura & R
Slide 44: Long and Stable WALE for Integrated Development Portfolio
Long and Stable WALE for Integrated Development Portfolio Integrated Development Portfolio WALE(1) : 4.6 years 18.0% Majority of leases 16.2% 15.9% are pending signing 9.4% 8.8% 7.6% 5.1% 5.7% 5.3% 1.9% 1.8% 1.8% 2.5% 2024 2025 2026 2027 2028 2029 and beyond Retail Office Hospitality Note: (1) Based
Slide 45: Market Information
Market Information 21 Collyer Quay (left) and Six Battery Road (right), Singapore
Slide 46: Macroeconomic Outlook
Macroeconomic Outlook Singapore Economic Outlook(1) Australia Economic Outlook(2) Reported Forecast 2024 GDP 1Q 2024 1.1% GDP Growth 1.6% YoY 2Q 2024 GDP 2.0% to 3.0% YoY 2.9% YoY 2024 GDP Forecast Advance estimates YoY June 2024 June 2024 MAS 2024 MAS June 2024 2.9% YoY 2.5 to 3.5% YoY CPI 3.8% Une
Slide 47: Limited Retail Supply Between 2024 and 2027 at an Annual Average of 0.3 million sq ft
Limited Retail Supply Between 2024 and 2027 at an Annual Average of 0.3 million sq ft 2.0 Singapore Private Retail Space (Islandwide)(1) – Net Demand & Supply 1.8 1.6 Forecast average 1.5 1.3 annual gross new supply 1.0 1.0 1.0 0.9 (2024 to 2027): 0.3 mil sq ft 1.0 0.9 0.8 0.7 0.7 0.8 0.5 0.5 0.5 0.
Slide 48: Known Future Retail Supply in Singapore (2024 – 2027)
Known Future Retail Supply in Singapore (2024 – 2027) Future supply are mainly in the Outside Central Region and Fringe submarkets Expected Proposed Retail Projects Submarket Location NLA (sq ft) Completion 2024 Guoco Midtown II Downtown Core Beach Road 20,000 Marine Parade Underground Mall Fringe M
Slide 49: Orchard Road Retail Rents Continued to Rise While Suburban Retail Rents Remained Resilient
Orchard Road Retail Rents Continued to Rise While Suburban Retail Rents Remained Resilient 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 Orchard Road 34.20 34.20 34.45 34.55 34.85 35.20 35.75 36.30 36.70 37.15 (S$ psf/mth) QoQ Change 0.00% 0.00% 0.73% 0.29% 0.87% 1.01% 1.56% 1.54% 1.10
Slide 50: Singapore Retail Sales Performance
Singapore Retail Sales Performance Most industries within the retail trade sector largely declined YoY led by Optical Goods & Books and Wearing Apparel & Footwear; Food & Alcohol and Supermarkets & Hypermarkets recorded a YoY increase 2021 2022 2023 2024 Total Retail Sales 36.2 41.6 42.7 20.8 (excl
Slide 51: Singapore Tourism Activity Poised to Continue Recovery
Singapore Tourism Activity Poised to Continue Recovery Singapore’s internationa isitor arri a s (IVA) hit mi ion in Jan to Jun 0 ; IVA expected to reach around 15 to 16 million visitors in 2024(1) 2022 2023 1Q 2024 Tourism Receipts (S$ bn) 14.2 27.2 8.1 Singapore Tourist Arrival and Hotel Occupancy
Slide 52: Annual New Supply Averages 0.4 million sq ft Over 4 Years
Annual New Supply Averages 0.4 million sq ft Over 4 Years Forecast average Singapore Private Office Space (Central Area)(1) – Net Demand & Supply annual gross new supply 2.5 2.2 (2024 to 2027): 0.4 mil sq ft 1.9 2.0 1.8 1.9 1.6 1.6 1.7 1.5 1.4 1.0 0.9 1.0 1.0 0.7 0.7 0.8 0.8 0.7 0.6 sq ft million 0.
Slide 53: Known Future Office Supply in Central Area (2024 – 2027)
Known Future Office Supply in Central Area (2024 – 2027) Limited supply in CBD core(1) for the next few years (2025 – 2027); no commercial sites in CBD Core on the Government Land Sales reserve list and confirmed list(2) Expected Completion Proposed Office Projects Location NLA (sq ft) 2024 IOI Cent
Slide 54: Grade A Office Market Rent Held Steady Despite Influx Of New Supply
Grade A Office Market Rent Held Steady Despite Influx Of New Supply 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3Q 23 4Q 23 1Q 24 2Q 24 Mthly rent 10.95 11.30 11.60 11.70 11.75 11.80 11.85 11.90 11.95 11.95 (S$ / sq ft) QoQ Change 1.4% 3.2% 2.7% 0.9% 0.4% 0.4% 0.4% 0.4% 0.4% 0.0% S$18.80 20 18 Monthly gross
Slide 55: Office Demand and Supply in Frankfurt and Two Submarkets
Office Demand and Supply in Frankfurt and Two Submarkets Frankfurt office leasing market shows signs of stabilisation but trend not yet reversed; 1H 2024 take-up remained below 10-year average and vacancy rate continued to rise due to vacancies from speculative completions in the city fringe and sub
Slide 56: Rental Range in Frankfurt
Rental Range in Frankfurt Prime rents remained stable but an increase in rents expected due to project pipeline for the CBD submarkets showing higher asking rents Frankfurt Rental range by submarket City West C CBD (EUR / square metre / month) Westend B Gallileo D 48.00 48.00 Banking District 37.83
Slide 57: Sydney CBD 2Q 2024 Prime Net Effective Rent Dipped 0.6% YoY
Sydney CBD 2Q 2024 Prime Net Effective Rent Dipped 0.6% YoY Prime net effective rent was flat QoQ; Rent growth slowed down over the year as tenants are more cautious in a weaker economic environment; Vacancy rate expected to increase as supply jumps Sydney CBD Office Space - Net Supply, Net Absorpti
Slide 58: North Sydney CBD 2Q 2024 Prime Net Effective Rent Down 4.1% YoY
North Sydney CBD 2Q 2024 Prime Net Effective Rent Down 4.1% YoY Prime net effective rent declined 2.4% QoQ; Vacancy rates expected to remain elevated over the short-term due to new supply in 2025; Effective rent growth to moderate and pressure will remain on incentives as landlords look to secure te
Slide 59: 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) Tel: (65) 6713 2888 | Fax: (65) 6713 2999
CapitaLand Integrated Commercial Trust — H1 2024 Earnings Presentation on 6ix