CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaMall Trust — Q1 2007 Earnings Presentation
59 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Apr 20, 2007
Slide 1: CapitaMall Trust 1st Quarter 2007 Financial Results
CAPITAMALL TRUST 1st Quarter 2007 FINANCIAL RESULTS 20 April 2007
Slide 2: Disclaimers
Disclaimers This presentation is focused on comparing actual results versus forecasts stated in the CMT OIS to Unitholders dated 29 August 2006. This shall be read in conjunction with paragraph 9 of CMT’s 2007 First Quarter Unaudited Financial Statement and Distribution Announcement. This presentati
Slide 3: Financial Highlights
Cap/taMall P Trust Financial Highlights
Slide 4: Financial Results 1Q 2007 (1 Jan – 31 Mar 2007)
Financial Results 1Q 2007 (1 Jan – 31 Mar 2007) Distribution Per Unit of 3.00 Cents Exceeds Forecast1 by 6.8% Actual Forecast1 Variance Change Taxable income S$51.5m S$44.0 m S$7.5 m 16.9 % Distributable income S$46.9 m2 S$44.0 m S$2.9 m 6.8 % Distribution per unit 3.00 ¢ 2.81 ¢ 0.19 ¢ 6.8 % Annuali
Slide 5: DPU Comparison 1Q2007 vs 1Q2006
Financial Results DPU Comparison 1Q2007 vs 1Q2006 1Q 20071 Distribution Per Unit Increased by 10.2% over 1Q 20062 Actual 1Q 20071 1Q 20063 Variance Change% Annualised distribution per unit 12.17¢ 11.04¢ +1.13¢ + 10.2 Annualised distribution yield 3.38% 3.07% + 0.31% + 10.2 (Based on unit price of S$
Slide 6: Breakdown of DPU Growth Since IPO (Jul 2002)
Breakdown of DPU Growth Since IPO (Jul 2002) Acquisitions, Asset Enhancements & Active Leasing form Core Components of Growth 12.17 ¢2 Asset CRS Investment Enhancement/ 2% Reconfiguration 27% Upfront Payment of IMM Land Premium 7% Acquisitions 46% Active Leasing 18% 6.78 ¢1 1. Annualised forecast ba
Slide 7: Potential for Growth in Singapore
Potential for Growth in Singapore Ownership of Private Retail Stock in Singapore (by NLA) Pramerica 5.9% CapitaMall Trust Others CapitaLand 11.50% 7.2% 4.2% CRS 2.0% Strata owned 7.3% Other REITS 9.9% Developers 32.2% Fragmented ownership 18.9% Source : UBS Research 7
Slide 8: Acquisition of Remaining Stake in CapitaRetail Singapore Grows Asset Size
Acquisition of Remaining Stake in CapitaRetail Singapore Grows Asset Size to S$5.4 billion1 On track to achieve S$7.0 billion asset size by 2009 in Singapore S$billion 8.0 7.0 6.0 5.4 1 6.0 4.8 4.0 2.0 0.0 Current 2 With 1 CapitaRetail 2008 Target 2009 Target Spore 3 1. The increase in gross assets
Slide 9: Distribution Details
Distribution Details Distribution Period 1 January to 31 March 2007 Distribution Rate 3.00 cents per unit Distribution Timetable Notice of Book Closure Date 20 April 2007 Last Day of Trading on “cum” Basis 25 April 2007, 5.00 pm Ex-Date 26 April 2007, 9.00 am Book Closure Date 30 April 2007, 5.00 pm
Slide 10: CMT Performance since IPO (Jul 2002) to Mar 2007
CMT Performance since IPO (Jul 2002) to 31 Mar 2007 9 292% Unit Price Appreciation 9 417% Growth in Total Asset Size 9 339% Total Return 9 729% Growth In Market Cap 9 79% Growth in Annualised DPU (1Q 20071 actual vs IPO 2002 forecast) 9 Outperformed STI & Property Stocks % change in unit price/index
Slide 11: CMT Performance January 2007 to March 2007
CMT Performance 1 January 2007 to 31 March 2007 9 29% Unit Price Appreciation 9 29% Growth In Market Cap 9 33% Total Return % change in unit price/index value 9 Outperformed STI & Property Stocks 65 1 Jan 07 to 31 Mar 07 CMT + 29.2% 55 STI + 8.2% SESPROP + 25.9% 45 35 CMT 25 SESPROP 15 STI 5 05-Jan-
Slide 12: Financial Results
Cap/taMall Financial Results
Slide 13: Distribution Statement 1Q 2007
Distribution Statement 1Q 2007 (1 Jan – 31 Mar 2007) Actual1 Forecast2 Variance S$’000 S$’000 (%) Gross Revenue 97,442 92,323 5.5 Less property operating expenses (30,883) (31,040) (0.5) Net property income 66,559 61,283 8.6 Interest Income 284 - N.M Administrative expenses (6,014) (6,182) (2.7) Int
Slide 14: Property Gross Revenue 1Q 2007
Property Gross Revenue 1Q 2007 (1 Jan – 31 Mar 2007) Portfolio Gross Revenue Exceeded Forecast1 by 5.5% CMT Portfolio 97.4 92.3 5.5% Tampines Mall 13.7 12.8 Junction 8 11.0 10.5 Funan 6.3 DigitaLife Mall 5.8 IMM Building 15.6 13.6 Plaza Singapura 16.9 15.7 Bugis Junction 14.0 13.8 Other Assets2 4.0
Slide 15: Property Operating Expense 1Q 2007
Property Operating Expense 1Q 2007 (1 Jan – 31 Mar 2007) Portfolio Operating Expenses Below Forecast1 by 0.6% 30.8 CMT Portfolio 31.0 0.6% 3.9 Tampines Mall 3.8 Junction 8 3.4 3.4 Funan 2.5 DigitaLife Mall 2.4 IMM Building 6.2 6.0 Plaza Singapura 4.4 4.7 Bugis Junction 4.6 4.5 Other Assets2 1.5 2.0
Slide 16: Net Property Income 1Q 2007
Net Property Income 1Q 2007 (1 Jan – 31 Mar 2007) Portfolio Net Property Income Exceeded Forecast1 by 8.6% 66.6 CMT Portfolio 61.3 8.6% Tampines Mall 9.8 9.0 Junction 8 7.6 7.1 Funan 3.8 DigitaLife Mall 3.4 9.4 IMM Building 7.6 Plaza Singapura 12.5 11.0 Bugis Junction 9.4 9.3 Other Assets2 2.5 2.9 1
Slide 17: Gross Revenue 1Q2007 vs 1Q2006
Gross Revenue 1Q2007 vs 1Q2006 Gross Revenue Registered Strong Growth of 6.3% 81.5 CMT Portfolio 1 6.3% 76.7 13.7 Tampines Mall 13.3 Junction 8 11.0 10.3 Funan 6.3 DigitaLife Mall 6.0 15.6 IMM Building 13.4 Plaza Singapura 16.9 16.1 Bugis Junction 14.0 13.1 Others2 4.0 YTD Mar 07 YTD Mar 06 4.5 0 20
Slide 18: Property Operating Expenses 1Q2007 vs 1Q2006
Property Operating Expenses 1Q2007 vs 1Q2006 Growth in NLA increases property operating expenses by 5.0% 1 CMT Portfolio 26.5 25.3 5.0% 3.9 Tampines Mall 3.7 Junction 8 3.4 3.2 Funan 2.5 DigitaLife Mall 2.2 6.2 IMM Building 5.6 4.4 Plaza Singapura 4.4 4.6 Bugis Junction 4.3 1.5 YTD Mar 07 YTD Mar 06
Slide 19: Net Property Income 1Q2007 vs 1Q2006
Net Property Income 1Q2007 vs 1Q2006 Robust Net Property Income Growth of 6.9% 1 CMT Portfolio 55.0 51.4 6.9% 3 Tampines Mall 9.8 9.6 Junction 8 7.6 7.1 Funan 3.8 3 DigitaLife Mall 3.8 9.4 IMM Building 7.8 12.5 Plaza Singapura 11.7 9.4 Bugis Junction 8.8 Others2 2.5 YTD Mar 07 YTD Mar 06 2.6 0 10 20
Slide 20: Debt Information as at March 2007
Debt Information as at 31 March 2007 - Includes 40% Share in RCS Trust Debt Maturity Profile Key Statistics of CMT (Excludes 40% share in RCS Trust) Commercial Mortgage Back Gearing Ratio 35.9% Security (“CMBS”) under Silver Maple 783.0 800.00 Bank loan facilities 45.7% Interest Cover 5.3 times 700.
Slide 21: Balance Sheet
Balance Sheet As at 31 Mar 2007 1 S$’000 Non Current Assets 4,752,835 Net Asset Value per unit S$1.91 Current Assets 67,687 (as at 31 Mar 2007) Total Assets 4,820,522 Adjusted Net Asset Value per unit S$1.87 (excluding distributable income) Current Liabilities 216,711 Non-Current Liabilities 1,631,6
Slide 22: Portfolio Update
Cap/taMall Portfolio Update
Slide 23: Summary of Renewals / New Leases
Summary of Renewals / New Leases Strong Rental Rates Achieved vs Forecast & Preceding Rentals From 1 January to 31 March 2007 (Excluding Newly Created Units) No. of Increase/(Decrease) in Net Lettable Area Renewals/ Current Rental Rates VS Property New % Total % Forecast % Preceding Area (sq ft) Lea
Slide 24: Gross Turnover Rent & Step-Up Leases
Gross Turnover Rent & Step-Up Leases % of Total Portfolio of Tenants1 No. of Tenants1 in the Portfolio 100% 3 1200 1149 3 81.6% 2 80% 72.0% 1000 3 2 908 922 3 64.4% 2 800 2 60% 55.6% 712 600 40% 400 20% 200 0% 0 Tenants with Step- Tenants Paying Tenants w ith Step- Tenants Paying GTO Up Rental GTO R
Slide 25: Portfolio Lease Expiry Profile by Year
Portfolio Lease Expiry Profile by Year Gross Rental Income As at 31 Mar 20071 No. of Leases S$’000 % of Total2 2007 454 6,240 26.0 2008 392 5,285 22.0 2009 547 8,903 37.1 2010 121 2,558 10.7 Weighted Average Lease Term to Expiry by Rental & NLA CMT Portfolio As at 31 Mar 20071 By Gross Rent 2.15 By
Slide 26: Portfolio Lease Expiry Profile for 2007 By Property
Portfolio Lease Expiry Profile for 2007 By Property Net Lettable Area Gross Rental Income No. of Leases % of % of As at 31 March 2007 Sq. ft. S$’000 total1 total2 Tampines Mall 38 123,004 38.0% 1,226 30.5% Junction 8 73 81,232 33.1% 1,249 40.1% Funan 30 37,298 12.7% 293 15.0% DigitaLife Mall IMM Bui
Slide 27: High Committed Occupancy Rates at All Malls
High Committed Occupancy Rates at All Malls Achieved Close to 100% Occupancy Rate as at 31 March 2007 As at As at As at As at As at As at 31 31 Dec 05 31 Mar 06 30 Jun 06 30 Sept Dec 06 31 Mar 07 06 Tampines Mall 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Junction 8 100.0% 100.0% 100.0% 100.0% 100.0%
Slide 28: Yield Accretive Acquisition of Remaining Stake in CapitaRetail Singapore
Yield Accretive Acquisition of Remaining Stake in CapitaRetail Singapore (CRS)
Slide 29: Further Strengthens CMT's Pipeline of Assets
Further Strengthens CMT’s Pipeline of Assets Yield accretive acquisition of remaining 72.8% Class E bonds and attached preference shares in CRS at a total asset price of S$710 million Current average property yield of 4.9% for the three assets Initially fully debt funded, whilst various longer
Slide 30: Potential Asset Enhancement Plans at Lot 1
Potential Asset Enhancement Plans at Lot 1 Strong value creation opportunities through the decantation of the space currently occupied by Chua Chu Kang branch of the National Library Board (NLB), measuring approx. 15,500 sq ft in Gross Floor Area (GFA), to create a 3-storey retail extension block
Slide 31: Asset Enhancements Update
Cap/taMall P Trust Asset Enhancements Update
Slide 32: IMM Building
Cap/taMall IMM Building
Slide 33: IMM Building Asset Enhancement Initiatives
IMM Building Asset Enhancement Initiatives Major works include: Construction of a two storey extension annex over the open-air car park space, plus an rooftop landscaped plaza Reconfiguration Level 1 to Level 3 of the existing building Before After New shops already trading at the 2-storey retai
Slide 34: IMM Building AEI Works Progressing on Schedule
IMM Building AEI Works Progressing on Schedule Completed on Schedule Activity Target Commencement Date Start of AEI Works 1st Quarter 2006 Activity Target Completion Date Relocation of Open-air Carpark to Level 5 1st Quarter 2006 Circular Carpark Ramp & Carpark 3rd Quarter 2006 Guidance System Level
Slide 35: IMM Building Strong Leasing Commitment of over 90%
IMM Building Strong Leasing Commitment of over 90% Forecast to achieve approximately 31% Higher Average Rental Average Rent S$ per sq ft per mth Leasing Before AEI After AEI1 Variance Commitment2 + 20.6% Level 1 S$ 10.16 S$ 12.25 100%1 (+ S$9.7 mn p.a) + 36.1% Level 2 S$ 6.60 S$ 8.98 91.2%1 (+ S$3.3
Slide 36: IMM Building Value Creation of Planned Initiatives
IMM Building Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$92.5 million 1st Quarter 2006 1st Quarter 2008 AEI Budget1 Gross Revenue S$12.1 million (net of rental loss from decanted retail space) Net Property Income S$9.3 million Capital Expenditure (includes
Slide 37: Tampines Mall
Cap/taMall Tampines Mall
Slide 38: Tampines Mall Phase 1 (Courts Cluster) AEI In Progress
Tampines Mall Phase 1 (Courts Cluster) AEI In Progress Level 1 - Reconfiguration and addition of prime retail space Phase 1 Before (Courts Cluster) After Planned Escalators 38
Slide 39: Tampines Mall Phase 1 (Courts Cluster) AEI In Progress
Tampines Mall Phase 1 (Courts Cluster) AEI In Progress Level 2 - Reconfiguration and subdivision to enhance the retail offerings Phase 1 Before (Courts Cluster) After Planned Escalators 39
Slide 40: Tampines Mall Escalators Drive Vertical Shopper Traffic
Tampines Mall Escalators Drive Vertical Shopper Traffic Phase 1 (Courts Cluster) Phase 2 ( Isetan Cluster) Fronting Tampines MRT Station Fronting Century Square Escalators will be installed to provide direct connectivity to Level 2 40
Slide 41: Tampines Mall Phase 1 (Courts Cluster) - 100% Committed
Tampines Mall Phase 1 (Courts Cluster) - 100% Committed Current After AEI1 Total Net Lettable Area 9,312 sq ft 8,905 sq ft of affected units Average Rent per sq ft S$10.53 S$19.74 ( 88%) Total Gross Rent p.a. S$1.2 million S$2.1 million ( 75%) Increase in Total Gross S$0.9 million (75%) Revenue p.a.
Slide 42: Tampines Mall Increase in Gross Rental Post-Full AEI
Tampines Mall Increase in Gross Rental Post-Full AEI Current After AEI1 Total Net Lettable Area 46,860 sq ft 47,284 sq ft of affected units Level 1 2,057 sq ft 3,070 sq ft Level 2 44,562 sq ft 42,468 sq ft Level 3 241 sq ft 1,746 sq ft Average Rent per sq ft S$8.43 S$10.85 ( 29%) Total Gross Rent p.
Slide 43: Tampines Mall Value Creation of Planned Initiatives
Tampines Mall Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$9.85million 1st Quarter 2007 1st Quarter 2008 AEI Budget1 Gross Revenue S$1.42 million (net of rental loss) Net Property Income S$1.14 million Capital Expenditure S$9.85 million Return on Investment
Slide 44: Sembawang Shopping Centre
Cap/taMall Sembawang Shopping Centre
Slide 45: Sembawang Shopping Centre Commencement of Redevelopment Work
Sembawang Shopping Centre Commencement of Redevelopment Work New Facade Rooftop Landscaped Plaza Decant 42,610 sq ft of residential gross floor area to Basement 1, Levels 1 and 2 Shift less prime space 35,974 sq ft of gross floor area from Level 3 and 4 to Basement 1, Levels 1 and 2. Relocate
Slide 46: Sembawang Shopping Centre Indicative AEI Timeline
Sembawang Shopping Centre Indicative AEI Timeline Commenced on Schedule Activity Commencement Date Start of asset enhancement works 1st Quarter 2007 Activity Target Completion Date1 Demolition of car park and residential 2nd Quarter 2007 block Extension of basement and 3rd Quarter 2007 strengthening
Slide 47: Sembawang Shopping Centre Increase in Gross Rental Post-AEI
Sembawang Shopping Centre Increase in Gross Rental Post-AEI Current After AEI1 Total Net Lettable Area 97,123 sq ft 129,426 sq ft (Retail) 23,076 sq ft 54,730 sq ft Basement 1 23,378 sq ft 34,896 sq ft Level 1 10,708 sq ft 30,696 sq ft Level 2 17,584 sq ft 9,104 sq ft Level 3 22,377 sq ft N/A Level
Slide 48: Sembawang Shopping Centre Value Creation of Planned Initiatives
Sembawang Shopping Centre Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$48.5 million 1st Quarter 2007 1st Quarter 2008 AEI Budget1 Gross Revenue S$5.5 million (net of rental loss from decanted retail space) Net Property Income S$4.4 million Capital Expenditur
Slide 49: Junction 8
Cap/taMall Junction 8
Slide 50: Junction 8 Revamped Market Place - 100% Committed
Junction 8 Revamped Market Place - 100% Committed Before AEI Works After AEI Works Before AEI After AEI Variance Net Lettable Area 1,623 2,121* 498 No. of Kiosks 11 13 2 Total Gross Rent S$830,004 S$954,190 15% Revamped market place provides seating area for diners and enhanced visibility for tenant
Slide 51: Junction 8 Value Creation of Planned Initiatives
Junction 8 Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$680,000 16 October 2006 6 May 2007 (over 2 phases) AEI Budget1 Gross Revenue S$124,190 Net Property Income S$99,350 Capital Expenditure S$680,000 Return on Investment 14.6% Capital Value of AEI S$1.8 mi
Slide 52: Plaza Singapura
Cap/taMall Plaza Singapura
Slide 53: Plaza Singapura Basement 2 Marketplace
Plaza Singapura Basement 2 Marketplace Before AEI Works After AEI Works Entrance to Dhoby Ghaut MRT Station 5 653 151 sf 151 sf 151 sf 115 sf 233 sf 187 sf 225 sf 140 sf 344 sf Aquarium 593 sf 221 sf 803 sf 165 sf 262 sf 276 sf 147 sf 603 sf 675 sf 237 sf 160 sf 174 sf 291 sf 198 sf 255 sf 194 sf 20
Slide 54: CapitaRetail China Trust
Cap/taMall CapitaRetail China Trust
Slide 55: CRCT Performance Since IPO (Dec 2006) to March 2007
CRCT Performance Since IPO (Dec 2006) to 31 March 2007 9 Strategic long term Investment 9 218% Unit Price Appreciation since subscription 3 9 95.1 million units held by CMT 9 SGD 201.9 million net gain since subscription 4 % change in unit price/index value 185 IPO1 to 31 Mar 07 CRCT 165 145 CRCT +
Slide 56: Paper Gain from Investment in CRCT
Paper Gain from Investment in CRCT As at 31 March 2007 Number of units 95.1million (or 20% share of CRCT) Subscription price S$0.981 per CRCT unit Closing price of CRCT S$2.99 per CRCT unit (as at 19 April 2007) Net paper gain on CMT’s S$189.4 million 20% share, after interest cost Net paper gain on
Slide 57: CRCT's Strong & Proprietary Pipeline
CRCT’s Strong & Proprietary Pipeline Access Access to to Full Full Spectrum Spectrum of of Retail Retail Opportunities Opportunities in in China China CapitaRetail CapitaRetail CapitaLand CapitaRetail China China Retail Limited China Development Fund Incubator Fund Trust Development Assets Warehouse
Slide 58: In China… Geographically Diversified in Multi-Tiered Cities
In China… Geographically Diversified in Multi-Tiered Cities Currently, 33 retail malls across China New Memorandums of Understandings1 signed to acquire over 35 retail malls in major provinces/cities which include Beijing, Guangdong, Sichuan, Shandong & Inner Mongolia Heilongjiang Jilin Anzhen Mall
Slide 59: Contact Information
Contact Information For enquiries, please contact: TONG Ka-Pin (Ms) Investor Relations & Corporate Communications Tel : (65)-6536 1188 Fax : (65)-6536 3884 Email: tong.ka-pin@capitaland.com.sg http://www.capitamall.com 59