Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaCommercial Trust — FY2008 Earnings Presentation
40 slides from Singapore Exchange's earnings presentation, Jan 20, 2009
Slide 1: CapitaCommercial Trust Financial Year 2008 Results
CapitaCommercial p Trust Financial Year 2008 Results 20 January 2009
Slide 2: Important Notice
Important Notice This presentation shall be read in conjunction with CCT’s 2008 Fourth Quarter Unaudited Financial Statement and Distribution Announcement. The past performance of CCT is not indicative of the future performance of CCT. Similarly, the past performance of CapitaCommercial Trust Manage
Slide 3: Content
Content Highlights for the Year Robust DPU Growth Proactive Capital Management Stable Portfolio Growth 2009 Office Market Summary 3
Slide 4: Highlights for the Year
Highlights g g ts for o the t e Year ea
Slide 5: Acquired One George Street
Acquired One George Street Acquisition completed on 11 July 2008 Purchase consideration of S$1.165 billion Yield-protection at 4.25% for five years till July 2013 Winner of SIA-NParks Skyrise Greenery Awards 2008 by National Parks Board and Singapore Institute of Architects Green Mark Gold
Slide 6: Up and Operational - Wilkie Edge
Up and Operational - Wilkie Edge • Committed occupancy : close to 70% as at 20 Januaryy 2009 • Type of Tenants: Supporting business services educational services services, services, food and beverage Address 8 Wilkie Road, Singapore Property 12-storey mixed development comprising office, retail, ser
Slide 7: Proactive Funding
Proactive Funding Secured committed funding of S$1.4 billion in advance for the acquisition of One George Street and Wilkie Edge Successfully refinanced S$580 million commercial mortgage-backed securities (“CMBS”) through a secured d term lloan ffrom ffour banks b k Only Capital Tower will be
Slide 8: Robust DPU Growth
Robust DPU Growth Cap/taCommercial i Trust
Slide 9: FY 2008 DPU – Up 26% Year-On-Year and 4% above Forecast
FY 2008 DPU – Up 26% Year-On-Year and 4% above Forecast Actual Forecast(1) Change FY 2008 FY 2007 FY 2008 S$'000 S$'000 S$'000 % Gross Revenue 335,285 240,078 39.7 328,511 Net Property Income 233,471 173,996 34.2 230,499 Distributable Income 153,047 120,422 27.1 147,315 Distribution Per Unit 11.00¢
Slide 10: 2H 2008 DPU – Up 30% Year-On-Year and 4% above Forecast
2H 2008 DPU – Up 30% Year-On-Year and 4% above Forecast Actual Forecast(1) Change 2H 2008 2H 2007 2H 2008 S$'000 S$'000 S$'000 % Gross Revenue 189,700 121,756 55.8 184,388 Net Property Income 132,321 86,903 52.3 130,793 Distributable Income 81,129 61,896 31.1 78,343 Distribution Per Unit 5.81¢ 4.47¢
Slide 11: 4Q 2008 DPU – Up 16% Year-On-Year and 3% above Forecast
4Q 2008 DPU – Up 16% Year-On-Year and 3% above Forecast Actual Forecast(1) Change 4Q 08 4Q 07 4Q 08 S$'000 S$'000 S$'000 % Gross Revenue 97,164 62,028 56.6 93,534 Net Property Income 65,609 44,401 47.8 65,040 Distributable Income 37,964 32,342 17.4 36,771 Distribution Per Unit 2.71¢ 2.33¢ 16.3 2.63¢
Slide 12: Total Assets at S$6.9B, Adj. NAV at S$2.92
Total Assets at S$6.9B, Adj. NAV at S$2.92 31 Dec D 08 30 S Sep 08 31 D Dec 07 S$'000 S$'000 S$'000 Non-current assets(1) 6,785,965 6,928,088 5,238,359 Current assets(2) 85,426 84,673 40,374 Total assets 6,871,391 7,012,761 5,278,733 Current liabilities(3) 819,695 752,910 220,725 Non-current liabili
Slide 13: Distribution Detail
Distribution Detail Distribution Period From 1 Jul to 31 Dec 2008 5.81 cents Distribution Per Unit Taxable – 5.75 cents Tax-exempt – 0.06 cents Distribution Timetable Trading on “Ex” basis 29 January 2009 Books Closure Clos re Date 2 February 2009 Distribution Payment Date 27 February 2009 13
Slide 14: Market Valuation as at 1 Dec 2008
Market Valuation as at 1 Dec 2008 Valuation Valuation Valuation as at 1 Jun 08 / Change as at S$ Million as at Purchase % 1 Dec 08 1D Dec 08 Consideration (psf) Capital Tower 1,283.2 1,246.5 (2.9) 1,683 6 Battery Road 1,438.6 1,370.5 (4.7) 2,758 HSBC Building 363.0 355.0 (2.2) 1,771 Starhub Centre 3
Slide 15: Proactive Capital Management
Proactive Capital M Management t
Slide 16: Successfully Refinanced S$580m CMBS Ahead of Maturity
Successfully Refinanced S$580m CMBS Ahead of Maturity Refinanced S$580 million CMBS through a secured term loan from four banks Æ Strong relationship with banks Æ Banks’ affirmation of CCT’s quality and value Secured with only one property, Capital Tower, leaving S$2.7 billion worth of assets un
Slide 17: Raised S$1.4 billion of Debt in 2008 Under Tough Market Conditions
Raised S$1.4 billion of Debt in 2008 Under Tough Market Conditions Date Amount Type of Borrowings Remarks Raised Jan 2008 S$100 mil Medium Term Notes For Wilkie Edge acquisition M 2008 Mar S$1 0 milil S$150 M di Medium T Term N Notes F One For O George G St S acquisition i ii May 2008 S$370 mil Conv
Slide 18: Financial Highlights – FY2008
Financial Highlights – FY2008 As at As at As at 31 Dec 08 30 Sep 08 31 Dec 07 T l debt Total d b (S$'mil) (S$' il) 2 86 8 2,586.8 2 43 8 2,543.8 1 261 1,261.7 Gearing ratio(1) 37.6% 36.3% 23.9% I t Interest t service ti (2) i coverage ratio 2 8 ti 2.8 times 3 1 titimes 3.1 3 3 titimes 3.3 Average co
Slide 19: Debt Maturity Profile
Successfully Refinanced S$580m CMBS Ahead of Maturity Refinancing of S$116m $ will be finalised ahead of 34% maturity S$16 m RCS - short term loan ((0.6%)) 27% 25% $650m 22% CCT - CCT - 2-year $580m C Convertible tibl secured Bonds $580m term loan1 CCT - 3-year (14%) CCT - CMBS (25%) $520m secured (
Slide 20: Low Interest Rate Risk
Low Interest Rate Risk If S$650m Term Loan Interest is fixed for rest of the year, percentage of fixed interest rate will increase to 100% 91% 91% 19% Target 80% 57% 43% 72% 29% 2008 2009 2010 2011 2012 20
Slide 21: Stable Portfolio Growth
Stable Stab e Portfolio o t o o Growth Go t
Slide 22: Gross Income Predominantly Contributed by Grade A Office Assets
Gross Income Predominantly Contributed by Grade A Office Assets CCT’s focus is owning and investing in real estate and real estate-related estate related assets, which are income-producing income producing and used, or predominantly used, for commercial purposes Major usage mix for CCT properties B
Slide 23: Portfolio Diversification with Focus on Quality
Portfolio Diversification with Focus on Quality More than 80% of FY 2008 Net Property Income(1) from Grade A assets and Raffles City Golden Shoe Car Market Street Car Park, 3.4% Park, 1.2% Bugis Village, 3.3% Wilkie Edge, -0.7% Robinson Point, 3.1% Starhub Centre, (2) Raffles City, 34.7% 4.6% HSBC B
Slide 24: Diverse Business Constituents in CCT's Portfolio
Diverse Business Constituents(1) in CCT’s CCT s Portfolio Car Park Income, 2.4% Department Store, 1.9% Education, 1.1% Legal, 2.9% Real Estate & Property Services, 3.8% Government & Government Linked Office, 6.5% Banking, Insurance Banking Ins rance & Financial Services, 35.6% Fashion, 6.7% Food & B
Slide 25: More Than 50% Gross Rental Income Contributed by Top Ten Blue-Chip Tenants
More Than 50% Gross Rental Income Contributed by Top Ten Blue-Chip Blue Chip Tenants (1) Weighted Average Lease Term to Expiry (by Floor Area) 15 3% 15.3% f T for Top 10 T Tenants t as att 31 D Dec 2008 = 6 6.5 5 years 12.8% 5.5% 3.4% 3.1% 3.0% 2.4% 2.3% 1 6% 1.6% 1 4% 1.4% RC Hotels (Pte) Standard
Slide 26: Committed Occupancy Consistently Above Market
Committed Occupancy Consistently Above Market Committed occupancy rate excluding Wilkie Edge is 98.4%. Wilkie CCT'ss Committed Occupancy Since Inception CCT Edge was handed over on 2 Dec 2008 (Date of 120% Legal Completion) 100% 96.2% 91.8% 80% 60% CCT Occupancy Rate(1) 40% (2) URA Occupancy Index 2
Slide 27: Balanced Portfolio Lease Expiries
Balanced Portfolio Lease Expiries Leases up for Renewal (by Gross Rental Income) as at 31 Dec 2008 0.3% 19.0% 18.3% 19 9% 19.9% 3.5% 9.5% 9.9% 7.8% 1.1% 2.7% 5 8% 5.8% 3 8% 3.8% 4.5% 1.3% 0.3% 2009 2010 2011 2012 2013 and dBBeyond d (1) (2) Office Retail Hotels and Convention Centre (3) Forward Leas
Slide 28: Forward Lease Renewals Achieved Due to Proactive Leasing
Forward Lease Renewals Achieved Due to Proactive Leasing 0.4% 26.6% 25.5% 27.7% 4.8% 3.7% 13.8% 6 4% 6.4% 2009 2010 2011 2012 2013 and y Beyond Forward Lease Renewals committed in FY 2008 Leases expiring (1) as a percentage of office portfolio gross rental income as at 31 Dec 2008 Note: (1) Inclusiv
Slide 29: Further Rental Upside From Lease Renewals
Further Rental Upside From Lease Renewals 2009 60% $20.00 Grade A Office Average Rent in Q4 2008: S$15.00 psf /month(1) $16.00 40% Prime Office Average Rent in Q4 2008: S$12 90 psf/month ((1)) S$12.90 $12.00 $7.83 $8.00 20% $6.09 $6.80 $5.69 4.4% $4.00 2 8% 2.8% 3 8% 3.8% 0.7% 0% $- Capital Tower 6
Slide 30: Low Lease Expiry Profile in Each Building Limits Leasing Risk
Low Lease Expiry Profile in Each Building Limits Leasing Risk 2010 2011 60% $20.00 60% $20.00 $16.00 $16.49 $16.00 $15.28 40% 40% $11.93 $12.00 $11.80 $12.00 $10.40 $6.62 $8.00 $8.00 20% $6.05 20% 12.7% 10.8% $4 00 $4.00 $4.46 $ 5 3% 5.3% $4 00 $4.00 4 8% 4.8% 4 8% 4.8% 4 0% 4.0% 2.2% 0.7% 0% $- 0%
Slide 31: CCT's Office Properties Are Still Under-Rented Compared to Market Rents
CCT’s Office Properties Are Still Under-Rented Compared to Market Rents 3 S$ $ psf p pm 20.00 18.65 18.80 18.80 3 15.00 15.00 16.00 16.10 16.10 12.90 10 00 10.00 7.44 5.00 6.75 7.20 5.98 0.00 1Q 2008 2Q 2008 3Q 2008 4Q 2008 CCT Office Portfolio (1) Prime Office Average Rent(2) Grade A Office Average
Slide 32: 2009 Office Market
2009 Office Market Cap/taCommercial
Slide 33: Uncertain Office Supply from 2011 onwards
Uncertain Office Supply from 2011 onwards - Delay in completions is evident • Some future supply has already been pre-committed, e.g. 1.9 mil sq ft in 2010 and 2011 ( (MBFC) ) Forecast supply as at Jun ‘08 Forecast supply as at Dec‘08 Note: Central Area comprises ‘The Downtown Core’, ‘Orchard’ and ‘
Slide 34: Summary
Summary Cap/taCommercial ie Trust
Slide 35: 79% of 2009's Forecast Gross Rental Have Been Locked-In
79% of 2009’s Forecast Gross Rental(1) Have Been Locked-In Locked In With Committed Leases 79% Note: (1) Based on the Forecast Gross Rental Income for the “enlarged portfolio”, published in CCT’s circular to unitholders dated 9 June 2008 35
Slide 36: DPU Increases 26% Year-on-Year
DPU Increases 26% Year-on-Year 12.2% Distribution yield based on Projection Year 2009 Distribution Per Unit and closing price per unit on 19 January 2009 of S$0.86 = 26.4% 14 3% 14.3% 34¢(6) 12.34¢ 12 18.7% 11.00¢ (5) 10.59¢ 7.6% 7.8% (4) 8.55¢ 8.70¢ 7.02¢ 7.33¢ (3) (2)6.81¢ 6.32¢ (1) ¢ 6.31¢ ¢ 5.68
Slide 37: CapitaCommercial Trust Management Limited
CapitaCommercial C it C i lT Trustt M Managementt Li Limited it d 39 Robinson Road #18-01 Robinson Point Singapore 068911 Tel: (65) 6536 1188 Fax: (65) 6533 6133 http://www cct com sg http://www.cct.com.sg For enquiries, please contact: Ms Ho Mei Peng Head, Investor Relations & Communications Direct
Slide 38: Supplementary Slides
38 Supplementary Slides Cap/taCommercial P Trust
Slide 39: 4Q 08 Gross Revenue – By Asset
4Q 08 Gross Revenue – By Asset Actual Forecast (1) 4Q 08 4Q 07 Change 4Q 08 S$'000 S$'000 % S$'000 Capital Tower 12,254 11,332 8.1 12,239 6 Battery Road 20,401 10,372 96.7 19,787 HSBC Building 2,254 2,184 3.2 2,254 Starhub Centre 4,935 3,380 46.0 4,993 Robinson Point 3,380 1,988 70.0 3,479 Bugis Vil
Slide 40: 4Q 08 Net Property Income – By Asset
4Q 08 Net Property Income – By Asset Actual Forecast(1) 4Q 08 4Q 07 Change 4Q 08 S$'000 S$ 000 S$'000 S$ 000 % S$'000 S$ 000 Capital Tower 6,748 7,640 (11.7) 6,548 6 Battery Road 15,815 7,572 108.9 15,446 HSBC Building 2 232 2,232 2 161 2,161 33 3.3 2 232 2,232 Starhub Centre 3,508 2,389 46.8 3,542
CapitaCommercial Trust — FY2008 Earnings Presentation on 6ix