CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaMall Trust — Shareholder Meeting (October 2005)
69 slides from CapitaLand Integrated Commercial Trust's shareholder meeting presentation, Oct 6, 2005
Slide 1: Extraordinary General Meeting
Extraordinary General Meeting 6 October 2005, 3pm
Slide 2: Important Notice
Important Notice THIS PRESENTATION IS AVAILABLE ONLY TO PERSONS WHO ARE NON-U.S. PERSONS AND PERSONS WITH ADDRESSES OUTSIDE THE U.S., CANADA AND JAPAN The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicit
Slide 3: Important Notice
Important Notice IF YOU HAVE ACCESSED THIS DOCUMENT ON THE WEBSITE OF SINGAPORE EXCHANGE SECURITIES TRADING LIMITED. This document is not intended to be distributed or passed on, directly or indirectly, to any person in the United Kingdom or any other jurisdiction in which such action could not be l
Slide 4: Summary Of Approvals Sought
Cap/taMall P Trust Summary Of Approvals Sought
Slide 5: Resolutions
Resolutions To seek unitholders’ approval for: 9 The Acquisition of Parco Bugis Junction as well as the plant and equipment located at the property and certain fixed assets (Resolution 1 – Ordinary Resolution); 9 The issue of New Units so as to raise (i) gross proceeds from up to 172,700,000 New Uni
Slide 6: Resolution 1 – Ordinary Resolution
Resolution 1 – Ordinary Resolution The Acquisition of Parco Bugis Junction
Slide 7: Acquisition of PBJ and the New Properties are DPU Accretive
Acquisition of PBJ and the New Properties are Distribution Per Unit (“DPU”) Accretive Forecast Period1 Projection Year (1 November- 31 December 2005) (Financial year ending 31 Dec 2006) Existing Properties, Existing Property, Existing Existing Target Property and Weighted Existing Target Property an
Slide 8: Higher Distribution Yield
Higher Distribution Yield Forecast Period Projection Year Max. No. of 1 Nov 05 – 31 Dec 05 (annualised) Financial year ending 31 Dec 06 Weighted New Units Average issued under Issue Price the Equity Existing DPU Existing DPU per New Unit Fund Raising1 Properties2 Entire Portfolio3 Accretion Properti
Slide 9: Higher DPU
Higher DPU 9 Attractive property acquisition yield contributes Higher DPU 9 Efficient capital structure to Cents i ve e lat owth R gr 11.0 U DP % 10.88 1 2.2 0.18 Sources of DPU improvement: 10.651 5.8%2 0.22 10.70 10.5 0.42 Including the New Properties 10.43 5.1%2 0.30 Including the Target Property
Slide 10: Benefiting from Yield Arbitrage Opportunity
Benefiting from Yield Arbitrage Opportunity 6.0% 5.0% 130 bps spread 4.0% 5.3% 4.4% 3.0% 4.0% 3.1% 2.0% Cost of equity¹ Cost of debt² Weighted Target Average Cost Property Yield³ of Capital Notes: 1 Based on an annualised FY06 DPU of 10.28 cents for the existing property and illustrative unit price
Slide 11: Greater Income Diversification
Greater Income Diversification 9 Total net property income from any single property decreases from 29.8%1 to no more than 23.5%2 Existing Properties, Existing Properties PBJ and New Properties TM TM IMM 23.8% 18.8% 15.5% Plaza Sing IMM 29.8% Plaza Sing J8 19.6% 13.6% 23.5% Funan 7.5% J8 Funan 17.2%
Slide 12: Further Geographical Diversification
Further Geographical Diversification 9 Acquisitions of HP and SSC extends CMT’s market presence to the north- eastern and northern regions of Singapore for the first time while PBJ and JEC will further expand CMT’s reach into the central and western shopping hubs Junction 8 1 Note: 1 Circle Line is
Slide 13: Increased Free Float and Liquidity
Increased Free Float and Liquidity 9 Access to a larger investor base because of its increased free float, liquidity and potentially higher index contribution CMT’s total assets increases from approx. S$2.6bn to approx. S$3.4bn, reinforcing its position as • Increased free float the largest Singapor
Slide 14: Parco Bugis Junction - Summary
Parco Bugis Junction - Summary Key Details Title Leasehold tenure of 99 yrs wef 10 Sept 1990 Gross Floor Area 578,312 sq ft Net Lettable Area1 430,323 sq ft Includes Seiyu’s master lease of 245,914 sq ft i.e. 57.1% of NLA Committed Occupancy1 100% Number of Leases1 185 No of Levels 5 (including 1 ba
Slide 15: Parco Bugis Junction - Summary
Parco Bugis Junction - Summary Tenancy Expiry Profile Expiry Area % of Monthly Rental % of Net Lettable (As at 31 July 2005) Tenant 1 Date 1 (sq ft) Income Area 2 Seiyu (Singapore) Pte Ltd Apr 07 245,914 30.3 57.1 90% Shaw Theatres Pte Ltd Jun 07 24,122 2.8 5.6 77.4% TKA Amusement (S) Pte Ltd Jul 06
Slide 16: Parco Bugis Junction - Financial Information
Parco Bugis Junction - Financial Information 9 Parco Bugis Junction’s financials are as follows : Forecast Period1 Projection Year 1 Nov 05 – 31 Dec 05 Full year 2006 S$ million S$ million Gross Revenue 7.7 46.6 Less Property Operating Expense (2.8)2 (15.5) Net Property Income 4.9 31.1 Property Yiel
Slide 17: Parco Bugis Junction - Well-positioned
Parco Bugis Junction - Well-positioned 9 Parco Bugis Junction is well-positioned to capitalise on favorable retail market trends Resident Population1 and Total Primary Trade Retail Sales Growth Outlook3 for Singapore Area Retail Spend2 Forecast 4.5% 340 2.0 4.1% 4.1% Total Retail Spend Growth p.a. =
Slide 18: Parco Bugis Junction - Potential for Growth
Parco Bugis Junction - Potential for Growth Proposed Improvements Opportunities for growth through optimising the 9 Improve the existing retail offering, tenant-mix and usage of retail space of marketing activities Parco Bugis Junction 9 Reconfigure certain retail units 9 Convert ancillary areas int
Slide 19: Potential to Unlock Value from Seiyu's Master Lease – B1
Potential to Unlock Value from Seiyu’s Master Lease – B1 Market Rental1 Food Court S$8-10 psf/mth Supermarket S$6-8 psf/mth Specialty Kiosks S$30-40 psf/mth Departmental Store S$4-5 psf/mth Note: 1 Based on Manager’s estimates 19
Slide 20: Potential to Unlock Value from Seiyu's Master Lease – L1
Potential to Unlock Value from Seiyu’s Master Lease – L1 Market Rental1 Prime Specialty Units S$20-30 psf/mth Note: 1 Based on Manager’s estimates 20
Slide 21: Potential Rental Upside for Parco Bugis Junction
Potential Rental Upside for Parco Bugis Junction Estimated Additional Rental Revenue per annum from Unlocking Seiyu’s Leases at B1 and Part L1 S$2.2 mil1 Estimated Additional Net Property Income per annum (assuming S$1.6 mil 75% margin) Adjusted FY2006 Projection FY2006 Projection (after adding the
Slide 22: Competitive Strengths of Parco Bugis Junction
Competitive Strengths of Parco Bugis Junction 9 Strategic Location Situated in the central part of Singapore and strategically located above the Bugis MRT station, which is directly linked to the basement of PBJ Well served by many major bus routes, major roads and highways 9 Large Trade Area
Slide 23: Resolution 2 – Extraordinary Resolution
Resolution 2 – Extraordinary Resolution The Issue of New Units in CMT
Slide 24: Proposed Equity Fund Raising
Proposed Equity Fund Raising Part finance the Parco Bugis Junction Acquisition (“PBJ”)1 Proposed Parco Acquisition Part finance the Jurong Part refinance the bridge loans taken to finance Entertainment Centre the Sembawang Shopping Centre (“SSC”) and (“JEC”)2 Acquisition Hougang Plaza Units3 (“HP”)
Slide 25: Proposed Financing Structure
Proposed Financing Structure Equity Fund Raising Debt Financing S$406.0 mil1 S$433.0 mil Part refinance SSC and Parco Acquisition JEC Acquisition HP bridging loans & S$588.1 mil S$69.0 mil2 refinance RCF3 S$151.0 mil Issuance Expenses Working Capital S$15.6 mil4 S$15.3 mil Notes: 1 The Manager propo
Slide 26: Proposed Equity Offer Structure
Proposed Equity Offer Structure “1-for-10” Non-Renounceable New Equity Preferential Offering1 • The Preferential Offering Issue Price will be at a • Issue of New Units so as to raise discount of up to 1% from the ATM and gross proceeds from up to Placement Issue Price 172.7 mil New Units or S$406 mi
Slide 27: Equity Fund Raising
Equity Fund Raising 9 The proposed Equity Fund Raising will only occur after the approval of Unitholders is obtained at the EGM scheduled on 6 October 2005 9 Cumulative distribution for income earned between 1 July 2005 to the day immediately prior to the New Units Issue Date in lieu of originally s
Slide 28: Financing Plan - Debt
Financing Plan - Debt 9 The Manager intends to borrow up to S$433.0 million from Silver Maple1 in the form of a seven-year term loan facility 9 Debt rating2 9 Optimise capital structure by increasing - AAA by Fitch and Standard & Poor’s gearing up to approximately 31.7% (well- - Aaa by Moody’s below
Slide 29: Potential Future Benefits for Unitholders
Potential Future Benefits for Unitholders 9 Manager has identified various opportunities for creating value with regards to PBJ and the New Properties 9 Implementation of innovative asset enhancement works, tenancy remix and proactive asset cum retail management on PBJ and the New Properties may pot
Slide 30: Breakdown of DPU Growth Since IPO (Jul 2002)
Breakdown of DPU Growth Since IPO (Jul 2002) 9 Acquisition and Asset Enhancement form Core Components of Growth CRS Investment 10.07 ¢2 4% Asset Enhancement/ Reconfiguration 4 24% 3 Acquisitions Upfront Payment 40% of IMM Land Premium 10% 6.78 ¢1 Active Leasing 22% Notes: 1 Annualised forecast based
Slide 31: Track Record of Strong Total Returns Since IPO
Track Record of Strong Total Returns Since IPO Unit Price Performance since IPO (July 2002) to 4 October 2005 % change in unit price/index value 165 CMT +149.0% 145 125 105 85 SESPROP +77.4% 65 45 25 STI +46.5% 5 -15 -35 IPO/16 Jul Oct-02 Nov-02 Dec-02 Jan-03 Feb-03 Mar-03 Jun-03 Jul-03 Oct-03 Nov-0
Slide 32: Strong Total Returns Since Plaza Singapura Acquisition
Strong Total Returns Since Plaza Singapura Acquisition Unit Price Performance since 2 Aug 2004 to 4 October 2005 % change in unit price/index value 70 CMT +41.4% 50 30 SESPROP +63.1% 10 STI +22.8% -10 5 05 05 05 04 4 4 05 05 05 4 5 04 05 05 l-0 -0 -0 -0 -0 p- p- - n- n- b- - g- g- r- ov ec ay ar ct
Slide 33: Strong Total Returns For Period 1 Jan – 4 Oct 2005
Strong Total Returns For Period 1 Jan – 4 Oct 2005 Unit Price Performance since 1 Jan 2005 to 4 Oct 2005 % change in unit price/index value 60 CMT +35.8% 40 20 SESPROP +42.2% STI +12.5% 0 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 ul ul an an an un
Slide 34: The New Properties
Cap/taMall P Trust The New Properties
Slide 35: Jurong Entertainment Centre
Jurong Entertainment Centre
Slide 36: Jurong Entertainment Centre - Summary
Jurong Entertainment Centre - Summary Key Details Title Leasehold tenure of 99 yrs wef 1 March 1991 Land Area 91,857 sq ft Gross Floor Area 169,668 sq ft 1 Net Lettable Area 110,128 sq ft Plot Ratio 1.85 Committed Occupancy1 99.7% • Strategically located in the heart Valuation (as at 30 June 2005) S
Slide 37: Jurong Entertainment Centre – Development Guide Plan
Jurong Entertainment Centre – Development Guide Plan 9 Relative Low Plot Ratio Compared to Surrounding Sites 4.2 JEC 3.6 1.85 8.4 5.6 37
Slide 38: JEC Proposed Decantation on L3 & L4
JEC Proposed Decantation on L3 & L4 Level 3 Level 4 Roof Propose to decant Propose to decant 10,280 sq ft from level 3 5,985 sq ft from level 4 Note: Proposed plans are subjected to approval from relevant authorities 38
Slide 39: JEC Proposed Retail Lease Line Extension on L1
JEC Proposed Retail Lease Line Extension on L1 Jurong Approx. 16,000 sq ft* East MRT and Bus of new retail space Station to be created New Extended Retail Area Current After AEI % Variance (decanted space)1 (estimated)2 Average Rental psf per mth S$2.73 S$9.00 230% Rental Revenue per annum S$0.53 mi
Slide 40: JEC Proposed Enhancement Works on Level 2
JEC Proposed Enhancement Works on Level 2 Reconfiguration Food Court Game Arcade Subdivision Note: Proposed plans are subjected to approval from relevant authorities 40
Slide 41: JEC Proposed Amalgamation Plans – Food Court
JEC Proposed Amalgamation Plans – Food Court Amalgamate 2 Retail Units to Create a New Food Court & Open Terrace Current Floor Plan Proposed New Floor Plan Outline of Existing Rental Units New Food Court Area Open terrace (non GFA) (tenanted by Endo Sushi & Novena) After Amalgamation Current1 % Vari
Slide 42: JEC Proposed Subdivision Plans
JEC Proposed Subdivision Plans Subdivide Game Arcade into Retail Specialty Units and Create Open Terrace Current Floor Plan Proposed New Floor Plan Outline of Game Arcade Unit New Specialty Units Open terrace (non GFA) After Subdivision Current1 % Variance (estimated)2 Average Rental psf per mth S$3
Slide 43: JEC Proposed Reconfiguration Plan – Level 2
JEC Proposed Reconfiguration Plan – Level 2 Reconfigure Existing Units & Relocate Existing AHU to Maximise Net Lettable Area Current Floor Plan Proposed New Floor Plan Outline of Existing Unit New Reconfigured Specialty Units After Reconfiguration Current1 % Variance (estimated)2 Average Rental psf
Slide 44: Sembawang Shopping Centre
Cap/taMall P Trust Sembawang Shopping Centre
Slide 45: Sembawang Shopping Centre - Summary
Sembawang Shopping Centre - Summary Key Details Title Leasehold tenure of 999 yrs wef 26 March 1885 Land Area 100,315 sq ft Gross Floor Area Retail: 152,721sq ft Residential: 45,267sq ft Total: 197,988 sq ft Net Lettable Area1 97,1232 sq ft Plot Ratio 1.97 Committed Occupancy1 100%2 • Approximately
Slide 46: Sembawang Shopping Centre – Proposed Basement
Sembawang Shopping Centre – Proposed Basement Enhance Value by Decanting L4 to Increase Prime Retail Space on Basement, L1, L2 & L3 New Retail Space Current1 After AEI (estimated)2 % Variance Net Lettable Area 23,076 sf 26,792 sf + 16% Average Rental psf per mth S$2.50 S$5.14 + 106% Rental Revenue p
Slide 47: Sembawang Shopping Centre – Proposed Level 1
Sembawang Shopping Centre – Proposed Level 1 Enhance Value by Decanting L4 to Increase Prime Retail Space on Basement, L1, L2 & L3 New Retail Space Current1 After AEI (estimated)2 % Variance Net Lettable Area 23,378 sf 24,693 sf + 6% Average Rental psf per mth S$5.09 S$6.96 + 37% Rental Revenue per
Slide 48: Sembawang Shopping Centre – Proposed Level 2
Sembawang Shopping Centre – Proposed Level 2 Enhance Value by Decanting L4 to Increase Prime Retail Space on Basement, L1, L2 & L3 New Retail Space Current1 After AEI (estimated)2 % Variance Net Lettable Area 10,708 sf 15,274 sf + 43% Average Rental psf per mth S$8.03 S$7.42 - 8% Rental Revenue per
Slide 49: Sembawang Shopping Centre – Proposed Level 3
Sembawang Shopping Centre – Proposed Level 3 Enhance Value by Decanting L4 to Increase Prime Retail Space on Basement, L1, L2 & L3 New Retail Space Current1 After AEI (estimated)2 % Variance Net Lettable Area 17,584 sf 19,318 sf + 10% Average Rental psf per mth S$6.54 S$6.61 + 1% Rental Revenue per
Slide 50: Sembawang Shopping Centre – Proposed Rooftop
Sembawang Shopping Centre – Proposed Rooftop Enhance Ambience of the Mall and Generates Additional Income from Creation of Promotional Space on Rooftop Event Plaza Children Playground New F&B Tenant Current1 After AEI (estimated)2 % Variance Net Lettable Area 22,377 sf 3,367 sf - 85% Rental Revenue
Slide 51: Hougang Plaza Units
Cap/taMall P Trust Hougang Plaza Units
Slide 52: Hougang Plaza Units - Summary
Hougang Plaza Units - Summary Key details Title Leasehold tenure of 99 yrs wef 1 March 1991 Land Area1 57,047 sq ft 1 Gross Floor Area 79,648 sq ft Net Lettable Area2 67,813 sq ft Plot Ratio 1.40 • Strategically located at the Committed Occupancy2 100% junction of Upper Strata Area Acquired 67,813 s
Slide 53: Hougang Plaza Units – Development Guide Plan
Hougang Plaza Units – Development Guide Plan 9 Relative Low Plot Ratio Compared to Surrounding Sites Subject Site Plot Ratio of 1.40 53
Slide 54: Hougang Plaza Units – Level 1
Hougang Plaza Units – Level 1 Before After Current1 After AEI (estimated)2 % Variance Net Lettable Area 15,985 sf 16,657 sf + 4% Average Rental psf per mth S$7.69 S$12.11 + 57% Rental Revenue per annum S$1.47 mil S$2.42 mil + 65% Notes: 1 As at 31 July 2005. Current scenario excludes the 3.3% of tot
Slide 55: Hougang Plaza Units – Level 2
Hougang Plaza Units – Level 2 Before After Current1 After AEI (estimated)2 % Variance Net Lettable Area 21,496 sf 19,424 sf - 10% Average Rental psf per mth S$2.42 S$6.96 + 188% Rental Revenue per annum S$0.62 mil S$1.62 mil + 161% Notes: 1 As at 31 July 2005. Current scenario excludes the 3.3% of t
Slide 56: Hougang Plaza Units – Level 3
Hougang Plaza Units – Level 3 Before After Current1 After AEI (estimated)2 % Variance Net Lettable Area 30,333 sf 21,363 sf - 30% Average Rental psf per mth S$2.34 S$3.32 + 42% Rental Revenue per annum S$0.85 mil S$0.85 mil nil Notes: 1 As at 31 July 2005. Current scenario excludes the 3.3% of total
Slide 57: Summary of Potential Value Creation
Summary of Potential Value Creation Rental Revenue per Annum Current After AEI Increase % (S$mil) (estimated)1 Variance Parco Bugis Junction -- 2.20 2.20 NM Jurong Entertainment Centre 1.43 3.55 2.12 +148% Sembawang Shopping Centre 5.80 6.74 0.94 +16% Hougang Plaza Units 2.94 4.89 1.95 +66% + 93% To
Slide 58: Enlarged Portfolio Overview
Enlarged Portfolio Overview
Slide 59: Entire Portfolio – Summary
Entire Portfolio – Summary 9 Well balanced trade mix Different Trade Sector breakdown Different Trade Sector breakdown by monthly Rental Income1 by Net Lettable Area1 Books/Gifts & Warehouse Books/Gifts & Speciality/ 1.5% Speciality/Hobbies/Toys Food & Hobbies/Toys Office Office 3.2% Beverage/ 3.3%
Slide 60: Lease Expiry Profile – The Entire Portfolio
Lease Expiry Profile – The Entire Portfolio1 9 Well balanced lease expiry profile 40.0% 37.7% 35.0% 33.7% 33.0% 33.5% 30.0% 25.0% 20.0% 16.3% 15.0% 12.2% 10.0% 8.7% 9.0% 5.0% 2.7% 2.7% 0.0% 2005 2006 2007 2008 2009 % of total Monthly Rental Income % of total Net Lettable Area Note: 1 Based on the le
Slide 61: Entire Portfolio – Profit Forecast
Entire Portfolio – Profit Forecast 9 Enhanced DPU with the inclusion of the Target Property and the New Properties Assume New Units issued at weighted average issue price Forecast Period Projection Year of S$2.35 (1 Nov 2005 – 31 Dec 2005) 1 (Financial year ending 31 Dec 2006) 2 3 2 3 (S$ millions)
Slide 62: Increase in Valuation for Existing Properties
Increase in Valuation for Existing Properties Valuation (as at 1 December Valuation 1 2 2004) (as at 21 July 2005) Increase Property yield (S$’000) (S$’000) (S$’000) (%) Tampines Mall 548,000 618,000 70,000 5.9% Junction 8 396,000 473,000 77,000 5.9% Funan 202,000 244,000 42,000 6.0% IMM Building 35
Slide 63: CMT Pro Forma Balance Sheet
CMT Pro Forma Balance Sheet (as at 30 June 2005) As at 30 June 2005 Entire Portfolio (S$ ‘000) (S$ ‘000) Net asset value 1,563,4001 2,235,0273 Represented by: Unitholder funds 1,563,400 2,235,027 Units in issue (‘000) 1,205,6302 1,378,3304 Net asset value per unit (S$) 1.30 1.62 Notes: 1 After adjus
Slide 64: Entire Portfolio – Top Tenants
Entire Portfolio – Top 10 tenants 9 No one tenant contributes more than 6% of Total Monthly Rental Income Area % of monthly % of net 1 Tenant Trade sector Expiry date (sq ft) rental income lettable area 2 Seiyu (Singapore) Pte Ltd Department Store Apr 07 & May 10 277,858 5.6 9.5 Cold Storage Singapo
Slide 65: Resolution 3 – Extraordinary Resolution
Resolution 3 – Extraordinary Resolution The Proposed SPV Supplement to the Trust Deed
Slide 66: Proposed SPV Supplement to the Trust Deed
Proposed SPV Supplement to the Trust Deed Rationale 9 CMT may in future wish to consider holding any of its then existing investments or new acquisitions through the use of special purpose vehicles, such as sub-trusts and corporate entities. 9 CMT may also consider holding only a partial interest, i
Slide 67: Timetable
Cap/taMall P Trust Timetable
Slide 68: Key Dates & Time
Key Dates & Time EGM 6 October 2005 at 3.00 p.m. If approvals sought at EGM are obtained: Last day and time of trading on “cum” basis 11 October 2005 at 5.00 p.m. in respect of Preferential Offering Commencement of the Equity Fund Raising To be determined (but is expected to be no later than end Oct
Slide 69: Thank You
Thank You Cap/taMall P Trust
CapitaMall Trust — Shareholder Meeting (October 2005) on 6ix