Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Starhill Global REIT — H1 FY2020/21 Earnings Presentation
40 slides from Singapore Exchange's earnings presentation, Jan 28, 2021
Slide 1: First Half FY 2020/21 Financial Results
First Half FY 2020/21 Financial Results 28 January 2021 Singapore Australia Malaysia China Japan
Slide 2: Contents
Contents Overview and Key Highlights Financial Performance Portfolio Updates Market Outlook Appendix 2
Slide 3: Overview and Key Highlights
1 Overview and Key Highlights Wisma Atria Singapore
Slide 4: Overview of Starhill Global REIT
Overview of Starhill Global REIT Singapore-based REIT investing primarily in retail and office properties, in Singapore and overseas Quality Assets Strategic Locations Diversified Portfolio Portfolio of ~S$2.9 Landmark assets at Core markets: billion as at 31 prime locations Singapore, Austral
Slide 5: Key highlights for 1H FY20/21
Key highlights for 1H FY20/21 Financial Resilient Prudent Performance Operational Performance Capital Management Gross Revenue Retail Portfolio Improved Gearing occupancy S$88.4 million 35.8% 8.6% y-o-y 96.9%(2) as at 31 Dec 2020 as at 31 Dec 2020 Net Property Income Long WALE Maiden issuance of S$6
Slide 6: Key highlights for 1H FY20/21
Key highlights for 1H FY20/21 Portfolio Performance Capital Management Most tenants across our portfolio were open for Net proceeds of the perpetual securities issued business in 1H FY20/21 in December 2020 were largely used to repay: Encouraging sales in Singapore & Australia - A$55 million t
Slide 7: Financial Performance
2 Financial Performance Myer Centre Adelaide Adelaide, Australia 7
Slide 8: 1H FY20/21 financial highlights
1H FY20/21 financial highlights 6 months ended 6 months ended % Period: 1 Jul – 31 Dec 31 Dec 2020 31 Dec 2019 Change (1H FY20/21) (1H FY19/20) Gross Revenue (1) $88.4 mil $96.7 mil (8.6%) Net Property Income (1) $65.0 mil $74.1 mil (12.3%) Income Available for Distribution $43.2 mil $50.5 mil (14.4
Slide 9: DPU performance
DPU performance Cents FY14/15 (18 months) (2) 8.00 7.60 7.00 2.49 2H 6.00 1H 5.00 4.00 FY19/20 (3) 2.96 3.00 (3) 0.70 (3) 5.18 2.00 5.11 4.92 4.55 4.48 4.39 5.00 3.80 3.90 4.12 1.00 3.10 3.58 2.26 (4) 2.90 1.88 - FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 1H FY20/21 FY2013 FY14/15 FY15/16 FY16
Slide 10: 1H FY20/21 financial results
1H FY20/21 financial results Notes: $’000 1H FY20/21 1H FY19/20 % Change 1. Includes certain finance costs, sinking fund Gross Revenue 88,420 96,718 (8.6%) provisions, straight-line rent adjustment, Less: Property Expenses (23,434) (22,647) 3.5% accretion of security deposits, trustee fees, Net Prop
Slide 11: 1H FY20/21 financial results
1H FY20/21 financial results Revenue Net Property Income $’000 1H FY20/21 1H FY19/20 % Change $’000 1H FY20/21 1H FY19/20 % Change Wisma Atria Wisma Atria Retail (1) 20,692 26,223 (21.1%) Retail (1) 14,903 20,589 (27.6%) Office 4,867 4,904 (0.8%) Office 3,550 3,498 1.5% Ngee Ann City Ngee Ann City R
Slide 12: Unit price performance
Unit price performance Starhill Global REIT's Unit Price Movement and Daily Traded Volume Liquidity statistics (1 Jan 2020 to 31 Dec 2020) Average daily traded 2.3 mil $0.80 14,000,000 volume for 1H FY20/21 $0.70 12,000,000 (units)1 $0.60 Estimated free float2 ~55% 10,000,000 $0.50 8,000,000 Market
Slide 13: Distribution timetable
Distribution timetable Distribution Period 1 July 2020 to 31 December 2020 Distribution Amount 1.88 cents per unit Distribution Timetable Notice of Record Date 28 January 2021 Last Day of Trading on “Cum” Basis 3 February 2021, 5.00 pm Ex-Date 4 February 2021, 9.00 am Record Date 5 February 2021, 5.
Slide 14: Staggered debt maturity profile averaging 2.3 years
Staggered debt maturity profile averaging 2.3 years as at 31 December 2020 Financial Ratios 31 Dec 2020 $ million Debt maturity profile As at 31 December 2020 Total debt $1,115 million 400 Gearing 35.8% * Interest cover (2) 2.6x 350 * Peak maturity 35% Average interest rate p.a.(3) 3.28% of total de
Slide 15: Interest rate and foreign exchange exposures
Interest rate and foreign exchange exposures BORROWINGS AS AT 31 DECEMBER 2020 Interest rate exposure Unhedged Borrowings as at 31 December 2020 are 8.2% about 92% fixed/hedged The borrowings are hedged by a Borrowings combination of fixed rate debt and interest fixed/hedged rate swaps via inter
Slide 16: Total assets of approximately $3.1 billion
Total assets of approximately $3.1 billion NAV As at 31 December 2020 $’000 statistics Non Current Assets 2,989,852 NAV Per Unit (as at 31 December 2020) (3) $0.82 Current Assets (1) 131,346 Adjusted NAV Per Unit (net of distribution) $0.80 Total Assets 3,121,198 Non Current Liabilities 820,404 Clos
Slide 17: Portfolio Updates
3 Portfolio Updates
Slide 18: Balance of master / anchor leases and actively-managed leases
Balance of master / anchor leases and actively-managed leases Includes the following: - Master leases and anchor leases, incorporating periodic rental reviews, represent approximately 51.0% of gross rent as at 31 December 2020 Ngee Ann City Property Retail (Singapore) The Toshin master lease expir
Slide 19: Diversified portfolio across geography and sector
Diversified portfolio across geography and sector Office portfolio contributes 15.2% to revenue in 1H FY20/21 ASSET VALUE 1H FY20/21 GROSS REVENUE 1H FY20/21 GROSS REVENUE BY COUNTRY AS AT 31 DEC 2020 BY COUNTRY RETAIL/OFFICE Others* Others* 2.6% 3.0% Malaysia Malaysia Office 10.4% 13.9% 15.2% Austr
Slide 20: Prime assets in strategic locations with excellent connectivity
Prime assets in strategic locations with excellent connectivity Retail portfolio actual occupancy rate resilient at 96.9% 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 31 Dec As at 08 09 10 11 12 13 15 16 17 18 (1) 19 (1) 20 (1) 20 (1) 98.7% 99.4% 98.9% 96.0% SG
Slide 21: Top 10 tenants contribute 58.8% of portfolio gross rents
Top 10 tenants contribute 58.8% of portfolio gross rents Tenant Name Property % of Portfolio Gross Rent (1) (2) Toshin Development Singapore Pte Ltd Ngee Ann City, Singapore 22.2% Ngee Ann City & Wisma Atria, Singapore YTL Group (3) 15.4% The Starhill & Lot 10, Malaysia Myer Pty Ltd Myer Centre Adel
Slide 22: Staggered portfolio lease expiry profile
Staggered portfolio lease expiry profile Long WALE of 8.3 years by NLA (1) (1) Weighted average lease term of 8.3 and 5.4 years (by NLA and gross rent respectively) Portfolio lease expiry (as at 31 December 2020) (2)(3) 90% By NLA By Gross rent (4)(5) 80% 76.4% 70% (4)(5) 60% 55.3% 50% 40% 30% 20% 1
Slide 23: Staggered portfolio lease expiry profile by category
Staggered portfolio lease expiry profile by category Only 8.8% of retail leases expiring in FY20/21 Retail Lease Expiry Profile by Gross Rents Office Lease Expiry Profile By Gross Rents (as at 31 December 2020) (1)(2)(3) (as at 31 December 2020) (1)(3)(6) 70% 70% (4)(5) 61.0% 60% 60% 50% 50% 40% 40%
Slide 24: Singapore Retail
Singapore Retail Occupancy remains resilient despite the COVID-19 pandemic Lease expiry schedule (by gross rent) as at 31 December 2020 Revenue and NPI for 1H 100% (1) Wisma Atria Property 87.8% FY20/21 declined by 15.6% Ngee Ann City Property 80% Includes Toshin master lease at and 19.3% y-o-y re
Slide 25: Tenants' Sales and Shopper Traffic - Wisma Atria Property
Tenants’ Sales and Shopper Traffic - Wisma Atria Property Gradual recovery in 1H FY20/21 in Phase 2 & 3 of re-opening Tenants’ sales and shopper traffic for Wisma Atria Property continue to recover gradually to about two-thirds and about half of pre-COVID-19 levels y-o-y in 1H FY20/21, following P
Slide 26: Prime locations at retail precincts of city centres
Prime locations at retail precincts of city centres Attracts international brands New and upcoming tenants across the portfolio Wisma Atria Property Lifestyle and performance footwear Skechers opened at Wisma Atria in December 2020 Singapore Office Lot 10 Property Sugar Toast opened at Wisma Atria i
Slide 27: Singapore Offices
Singapore Offices Diversified tenant base Lease expiry schedule (by gross rent) as at 31 December 2020 50% 1H FY20/21 revenue and NPI Wisma Atria Property was lower marginally by 0.5% 40% 36.4% 36.7% Ngee Ann City Property and 2.5% y-o-y respectively 30% 27.4% 26.4% 20.3% Actual and committed 18
Slide 28: Australia Properties
Australia Properties Long-term leases with David Jones and Myer Lease expiry schedule (by gross rent) as at 31 December 2020(3) Revenue and NPI for 1H FY20/21 was lower by 90% 81.4% (4) 1.5% and 7.3% y-o-y respectively, largely due to Perth Properties Myer Centre Adelaide (5) lower contributions f
Slide 29: Asset Enhancement Works for The Starhill
Asset Enhancement Works for The Starhill Estimated completion by December 2021 Revenue and NPI in 1H FY20/21 rose by 1.2% and 1.1% y-o-y respectively Movement Control Order (MCO) has been re-introduced in most states including Kuala Lumpur from 13 January 2021 to 4 February 2021. Except for esse
Slide 30: Others: China Property and Japan Properties
Others China Property and Japan Properties Revenue and NPI for 1H FY20/21 were lower by 0.5% and 0.7% y-o-y to S$2.3 million and S$1.8 million respectively China Property has a sole tenant, Markor International Home Furnishings Co., Ltd. Chengdu Zongbei Store, which is one of the largest furnitu
Slide 31: Market Outlook
4 Market Outlook Artist impression of The Starhill Kuala Lumpur, Malaysia
Slide 32: Market Outlook - Singapore
Market Outlook - Singapore • Due to COVID-19, the Singapore economy contracted by 5.8% y-o-y in 2020 • Singapore moved into Phase 3 of re-opening in December 2020 Economy • Retail sales (excluding motor vehicles) fell 2.9% y-o-y in November 2020 • With the prolonged global pandemic situation and tra
Slide 33: Market Outlook – Australia & Malaysia
Market Outlook – Australia & Malaysia • Australia’s gross domestic product rose 3.3% in the three months through September, up from the record 7.0% decline in the June 2020 quarter, as COVID-19 related restrictions eased across most states and territories(1) Australia • Mandatory Code of Conduct by
Slide 34: Riding through COVID-19 pandemic
Riding through COVID-19 pandemic Limited visibility on the duration and severity of the COVID-19 pandemic Maiden issuance of S$100 million perpetual securities, largely used to repay A$ term loan and Proactive and existing debts drawn under its revolving credit facilities prudent capital Enter
Slide 35: Appendix
5 Appendix Lot 10 Kuala Lumpur, Malaysia
Slide 36: Singapore – Wisma Atria Property
Singapore – Wisma Atria Property Diversified tenant base WA retail trade mix – by % gross rent WA office trade mix – by % gross rent (as at 31 December 2020) (as at 31 December 2020) General Trade Aerospace Banking & IT Beauty/Health 6.6% 2.8% Financial 3.0% 1.4% Health & Beauty Services 8.9% 3.3% F
Slide 37: Singapore – Ngee Ann City Property
Singapore – Ngee Ann City Property Stable of quality tenants NAC retail trade mix – by % gross rent NAC office trade mix – by % gross rent (as at 31 December 2020) (as at 31 December 2020) Consultancy/ Services Information Services General Trade Trading Technology 2.5% 0.6% 4.0% 2.4% 1.8% Others 4.4
Slide 38: References used in this presentation, where applicable
References used in this presentation, where applicable 1Q, 2Q, 3Q, 4Q means where applicable, the periods from 1 July to 30 September; 1 October to 31 December; 1 January to 31 March and 1 April to 30 June 1H, 2H means where applicable, the periods from 1 July to 31 December; and 1 January to 30 Jun
Slide 39: Disclaimer
Disclaimer The information contained in this document has been compiled from sources believed to be reliable. Whilst every effort has been made to ensure the accuracy of this document, no warranty is given or implied. This document has been prepared without taking into account the personal objective
Slide 40: YTL Starhill Global REIT Management Limited
YTL Starhill Global REIT Management Limited CRN 200502123C Manager of Starhill Global REIT 391B Orchard Road, #21-08 Ngee Ann City Tower B Singapore 238874 Tel: +65 6835 8633 Fax: +65 6835 8644 www.starhillglobalreit.com 40
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