Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Croesus Retail Trust — 3Q FY2017 Earnings Presentation
32 slides from Singapore Exchange's earnings presentation, May 15, 2017
Slide 1: Financial Results
Financial Results For the period from 1 Jan 2017 to 31 Mar 2017 (“3Q FY2017”), and; 1 Jul 2016 to 31 Mar 2017 (“3Q YTD2017”) 15 May 2017
Slide 2: Important Notice
Important Notice Certain statements in this presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual res
Slide 3: About Croesus Retail Trust
About Croesus Retail Trust ✓ First Asia-Pacific retail business trust with an initial portfolio in Japan listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 10 May 2013 ✓ First Singapore trust with internalised Trustee-Manager structure since 31 Aug 2016 ✓ Proven track record o
Slide 4: 11 Retail Properties Located Across Japan
11 Retail Properties Located Across Japan Aeon Town Moriya Aeon Town Suzuka Croesus Shinsaibashi Mallage Shobu Suburban shopping centre in Suburban shopping centre in Prime retail property in Osaka Suburban shopping centre in Moriya city, Ibaraki Pref. Suzuka city, Mie Pref. city, Osaka Kuki city, S
Slide 5: Key Highlights
Key Highlights Financial Highlights Portfolio Performance Outlook
Slide 6: Key Highlights for 3Q & 3Q YTD2017
Key Highlights for 3Q & 3Q YTD2017 3Q FY2017 & 3Q YTD FY2017 Consistent Growth • 3Q FY2017 DPU of 2.05 Singapore cents (+ 15.2% y-o-y from a restated(1) 3Q FY2016 DPU) • 3Q YTD2017 DPU of 5.65 Singapore cents (+ 9.9% y-o-y from a restated(2) 3Q YTD2016 DPU) • Gross revenue and NPI registered y-o-y g
Slide 7: Key Drivers for FY2017 / FY2018
Key Drivers for FY2017 / FY2018 DPU growth drivers are: ➢ Acquisitions from FY2016 ➢ Asset enhancement initiatives (“AEIs”) – JPY 3 billion funding was completed on 24 March 2017(1) ➢ Cost savings from internalisation of the Trustee-Manager ➢ Refinancing of MTN(2) in January 2017 – lower recurring i
Slide 8: Financial Highlights
Key Highlights Financial Highlights Portfolio Performance Outlook
Slide 9: 3Q FY2017 Financial Highlights
3Q FY2017 Financial Highlights 1 Jan 2017 to 31 Mar 2017 3Q FY2017 3Q FY2016 (Actual) (Actual) (Restated) (5) Variance %(6) Income Available for Distribution 1,280,000 1,020,620 1,020,620 25.4% (JPY’000) Distribution Per Unit (‘DPU’) 2.05 1.86 1.78 15.2% (Singapore Cents)(1) Historical Annualised DP
Slide 10: 3Q YTD2017 Financial Highlights
3Q YTD2017 Financial Highlights 1 Jul 2016 to 31 Mar 2017 3Q YTD2017 3Q YTD2016 (Actual) (Actual) (Restated) (5) Variance %(6) Income Available for Distribution 3,613,342 2,912,475 2,912,475 24.1% (JPY’000) Distribution Per Unit (‘DPU’) 5.65 5.36 5.14 9.9% (Singapore Cents)(1) Historical Annualised
Slide 11: 3Q FY2017 DPU 15.2% Above Restated 3Q FY2016
3Q FY2017 DPU 15.2% Above Restated 3Q FY2016 (JPY’000) 3Q FY2017 3Q FY2016 Variance % Gross Revenue 3,019,120 2,465,596 22.4% Less: Property Operating Expenses (1,408,080) (1,056,976) 33.2% Net Property Income 1,611,040 1,408,620 14.4% Trustee-Manager’s Fees / Japan Asset Manager’s Fees (28,153) (17
Slide 12: 3Q YTD2017 DPU 9.9% Above Restated 3Q YTD2016
3Q YTD2017 DPU 9.9% Above Restated 3Q YTD2016 (JPY’000) 3Q YTD2017 3Q YTD2016 Variance % Gross Revenue 9,325,735 6,905,816 35.0% Less: Property Operating Expenses (4,433,352) (2,896,508) 53.1% Net Property Income 4,892,383 4,009,308 22.0% Trustee-Manager’s Fees / Japan Asset Manager’s Fees (207,212)
Slide 13: Balance Sheet
Balance Sheet As at As at (JPY’000) 31-Mar-17 30-Jun-16 Investment Properties 113,235,307 112,640,000 Other Non-current Assets 10,606,775 6,628,417 Current Assets 13,285,089 11,906,325 Total Assets 137,127,171 131,174,742 Loans and Borrowings (long-term) 63,188,873 51,057,438 Other Non-current Liabi
Slide 14: Debt Maturity Profile
Debt Maturity Profile Weighted debt maturity as at 31 Mar 2017 is 2.1 years Total Debt: JPY 63,379 million 144 CRT Term Loan 9 CRAM KK Finance Lease Japanese Local Debt EMTN 144 29,525 2,444 5,449 144 8,216 8,791 8,502 3 9 Unit: JPY million FY2017 FY2018 FY2019 FY2020 FY2021 % of Total Debt Matu
Slide 15: Key Financial Indicators
Key Financial Indicators As at As at 31-Mar-17 30-Jun-16 Gearing Ratio 46.1% 45.3% Interest Coverage Ratio(1) 4.8 times 3.7 times % of Debt Hedged / Fixed Interest 100% 100% Average All-In Cost of Debt(2) 1.68% 1.90% Debt Maturity 2.1 years 2.5 years Additional Debt Headroom(3) JPY 47.7 billion JPY
Slide 16: Portfolio Performance
Key Highlights Financial Highlights Portfolio Performance Outlook
Slide 17: Well Located Retail Properties
Well Located Retail Properties Connectivity 11 11 NLA (sq m)(1) By By Major Denotes order of acquisition 11 Train Road 1 Aeon Town Moriya 68,046.8 ✓ ✓ 2 Aeon Town Suzuka 43,500.7 ✓ ✓ Croesus 3 2,342.4 ✓ ✓ Shinsaibashi 4 Mallage Shobu 68,074.6 ✓ ✓ 5 Luz Omori 9,285.2 ✓ ✓ 6 Croesus Tachikawa 7,140.8 ✓
Slide 18: Key Information on the Properties
Key Information on the Properties Age of (2) 3Q YTD2017 Purchase Number of Leasehold / Valuation Annualised Prefecture (1) Building Actual NPI Price (3) Tenants (1) Freehold (JPY m) NPI Yield (yrs) (JPY m) (JPY m) 1 master lessee, Aeon Town Moriya Ibaraki 9.8 Freehold 15,200 617.0 12,154 6.8% 110 su
Slide 19: Breakdown by Valuation & NLA
Breakdown by Valuation & NLA Total Valuation: JPY 112,640 million(1) Total NLA: 426,238.6 sq m (2) Breakdown by Valuation Breakdown by NLA Fuji Grand Feeeal Mallage Aeon Town Natalie Mallage Feeeal Asahikawa Aeon Town Saga Moriya Saga Asahikawa 4.8% Torius 3.1% 3.7% 2.2% Moriya 10.9% 16.0% Aeon Town
Slide 20: Balanced Portfolio Contributing to Stable Income and Sustainable Growth
Balanced Portfolio Contributing to Stable Income and Sustainable Growth Each of the properties is strategically located within its submarket, being directly connected via major transportation nodes. Lease Expiry Profile Connectivity 3Q FY2017 WALE by NLA (1) By Major NPI % Occupancy (1) (yrs) FY2017
Slide 21: Favourable Lease Profile
Favourable Lease Profile A substantial portion of CRT’s Gross Rental Income is derived from leases structured as fixed term leases, giving it greater flexibility to adjust rentals / tenant composition, or variable rent, allowing it to share any income upside with its tenants. % of Gross Rental Incom
Slide 22: Top Ten Tenants of CRT
Top Ten Tenants of CRT Diversification of CRT’s tenant base achieved after recent acquisitions, which added new anchor tenants. Top 10 Tenants by NLA (As at 31 Mar 2017) 26.2% 7.3% 6.2% 4.8% 3.3% 2.3% 1.9% 1.4% 1.4% 1.3% Aeon Town Fuji Aeon Retail Nafco Costco 109 Mr. Max United Central Sanki Cinema
Slide 23: New Openings & Promotional Events During 3Q FY2017
New Openings & Promotional Events During 3Q FY2017 New Shop Openings Mallage Shobu: Awesome Store Mallage Shobu: Tops Mallage Shobu: Total Therapy Promotional Events Mallage Shobu: Monthly Comedy Torius: Children Caring/Education Torius: Dance recital 23 Talk Show Fair
Slide 24: New Openings & Promotional Events During 3Q FY2017
New Openings & Promotional Events During 3Q FY2017 New Shop Openings Promotional Events Mallage Saga: The Green Tara Mallage Saga: Ray Cassin Mallage Saga: SKY-HI concert Feeeal Asahikawa: EPOS card Mallage Saga: Cartoon Character Mallage Saga: UQ mobile centre show 24
Slide 25: Outlook
Key Highlights Financial Highlights Portfolio Performance Outlook
Slide 26: Outlook: Japan Economy Resilient Amid Challenging Landscape
Outlook: Japan Economy Resilient Amid Challenging Landscape • Resilient GDP and Tankan data • On 27 April 2017, Bank Of Japan raised its 2017 economic growth forecast to 1.6% from 1.5%. BOJ lowered slightly its 2017 CPI (all items less fresh food) forecast to 1.4% from 1.5%(1) • Japan’s economy rema
Slide 27: Retail Cap Rate Trends
Retail Cap Rate Trends Suburban Retail Cap Rate Trends Prime Retail Cap Rate Trends 8.5% 7.5% 8.0% 7.0% 6.5% 7.5% 6.0% 7.0% 5.5% 6.5% 5.0% 4.5% 6.0% 4.0% 5.5% 3.5% 5.0% 3.0% Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Apr-11
Slide 28: Significant Retail Deals Across Japan (1)
Significant Retail Deals Across Japan (1) Property Name Town/ City Purchaser Vendor Price NOI Cap Closing (JPY Rate (%) Date Billion) Fururu Garden Yachiyo Yachiyo-shi, Kenedix Retail REIT JFW Godo 14.9 5.0 Feb 2015 Chiba Corporation Kaisha Roseo Mito Mito-shi, Ibaraki Kenedix Retail REIT Roseo Godo
Slide 29: Significant Retail Deals Across Japan (2)
Significant Retail Deals Across Japan (2) Property Name Town/ City Purchaser Vendor Price NOI Cap Closing (JPY Rate (%) Date Billion) Aeon Yachiyo- Chiba, others Double O Five Japan Retail 69.0 4.2 Oct 2015 Midorigaoka Fund Musashi Fujisawa Tosei Iruma, Saitama Tosei REIT Tosei K.K. 2.0 6.3 Oct 2015
Slide 30: Significant Retail Deals Across Japan (3)
Significant Retail Deals Across Japan (3) Property Name Town/ City Purchaser Vendor Price NOI Cap Closing (JPY Rate (%) Date Billion) Ginza Gates Ginza, Tokyo Japan Prime Realty Tokyo Tatemono 10.1 3.2 Dec 2016 Co., Ltd G Building Kichijoji 02 Kichijoji, Tokyo Japan Retail Fund DREAM Private 15.3 4.
Slide 31: Significant News
Significant News Note: Each of The Business Times, Nikkei Asian Review, The Edge Markets, and Seeking Alpha, has not provided its consent to the inclusion of the information extracted from the relevant report published by it and therefore is not liable for such information. While the Trustee-Manager
Slide 32: Thank You
Thank You Key Contact: Ms Amanda Chuah Tel: +65 6713 9550 Email: ir@croesusretailtrust.com
Croesus Retail Trust — 3Q FY2017 Earnings Presentation on 6ix