Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaLand Retail China Trust — Q3 2020 Earnings Presentation
36 slides from Singapore Exchange's earnings presentation, Oct 30, 2020
Slide 1: 3Q 2020 Business Updates
CapitaLand Retail China Trust CAPITALAND RETAIL Financial ResultsCHINA for 1H 2019TRUST 3Q 2020 Business Updates 30 October 2020 31 July 2019 3Q 2020 Business Updates * 30 October 2020*
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors incl
Slide 3: Contents
Contents 1 3Q 2020 Developments 2 Capital Management CapitaMall Saihan, Hohhot 3 Looking Forward CapitaMall Xuefu, Harbin 2 3Q 2020 Business Updates * 30 October 2020*
Slide 4: First and Largest China Focused S-REIT
First and Largest China Focused S-REIT With Expanded Mandate to Capture Opportunities in China’s Multi Asset Sectors ✓ Listed in Dec 2006 ✓ Geographically Diversified in 8 Cities ✓ Assets Predominantly at Tier 1 and 2 Cities 13 Properties Business Park Commercial 8 Cities Logistics New Retail Expand
Slide 5: 3Q 2020 Developments
3Q 2020 Developments 3Q 2020 Business Updates * 30 October 2020* CapitaMall Yuhuating, Changsha
Slide 6: Overview of 3Q 2020 and 9M 2020
Overview of 3Q 2020 and 9M 2020 Operational Financials All malls and trade sectors are Healthy financial capacity with ✓ operational ✓ all refinancings completed Shopper traffic and tenant sales have Gearing of 34.7% ✓ showed sustained improvements ✓ Occupancies and leasing activities ✓ upheld balan
Slide 7: Continuous Improvement in Total Mall Shopper Traffic and Sales
Continuous Improvement In Total Mall Shopper Traffic and Sales As We Continue to Focus on Mall Operations Shopper Traffic Tenant Sales 3Q 2020 YoY Recovery 3Q 2020 YoY Recovery 89.0%1 91.9%1,2 25.8% 34.7% QoQ QoQ 9.3% QoQ 25.9% QoQ 1Q 2020 2Q 2020 3Q 2020 3Q 2019 1Q 2020 2Q 2020 3Q 2020 3Q 2019 Not
Slide 8: Portfolio Occupancy Rate of 93.7%
Portfolio Occupancy Rate of 93.7% 1 Investment Property 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20 30-Sep-20 Beijing Malls CapitaMall Xizhimen 99.8% 99.0% 98.4% 92.6% 95.2% CapitaMall Wangjing 99.4% 98.9% 97.9% 93.4% 93.3% CapitaMall Grand Canyon 99.0% 97.7% 97.0% 90.1% 91.4% CapitaMall Shuangjing 100.
Slide 9: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile Lease Expiry Profile for 20201 % of total % of total Investment Property No. of Leases Gross Rental Income2,3 Net Lettable Area4 CapitaMall Xizhimen 48 12.0% 6.6% CapitaMall Wangjing 36 13.8% 5.3% CapitaMall Grand Canyon 18 6.8% 2.6% CapitaMall Xuefu 53 11.2% 7.2% Rock
Slide 10: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile Lease Expiry Profile By Year1 Year No. of Leases % of total Gross Rental Income2,3,4 Weighted Average Lease Expiry (years) 2020 331 10.4% 2021 900 31.8% 2.4 By Gross Rental Income 2 2022 318 18.5% 2023 168 13.3% 3.5 By Net Lettable Area 2024 96 11.2% Beyond 2024 115 14
Slide 11: Strength in Portfolio Diversification and Quality
Strength in Portfolio Diversification and Quality Well-diversified in >14 Trade Categories Fashion & Accessories By Gross Rental Income1 By Net Lettable Area2 Food & Beverage 2% 1% Supermarket 2% 1% 3% 3% Beauty & Healthcare 3% 5% 2% 1% 17% Leisure & Entertainment 3% 24% 3% Education 3% 4% 2% Sundry
Slide 12: Rejuvenating Offerings to Capture New Shopper Demands
Rejuvenating Offerings to Capture New Shopper Demands Staying Ahead by Collaborating with Evolving Concepts Improving Quality of Social Dining Shift towards Sustainability and Green Products China Electric Vehicle Company, NIO Space Offline Merchandise Store and Showroom at Rock Square Japanese Them
Slide 13: Future-Proofing with Omnichannel Offerings
Future-Proofing with Omnichannel Offerings Leverage on Online Platform to Complement Offerings Our Focus on Online-Offline Integration Ecosystem Provides a Strong Competitive Advantage Accelerated Digitalisation Efforts Supporting Retailers to Boost Sales to Capture Sales and Mindshare Via Alternati
Slide 14: Engaging Shoppers Through Multiple Touchpoints
Engaging Shoppers Through Multiple Touchpoints Livestreaming Tapping on Seasonal Marketing Campaigns Flying Sneakers E-Auction Livestreaming Carnival Event at Rock Square Internet Celebrity at F&B Chef Recommendation Livestream at CapitaMall Wangjing CapitaMall Wangjing 3Q 2020 Business Updates * 30
Slide 15: Connecting with Communities and Enhancing Shopping Experience
Connecting with Communities and Enhancing Shopping Experience Family Focused Fun Kids Experiential Activity at CapitaMall Yuhuating Children’s Performances at CapitaMall Qibao Children’s Talent Show at CapitaMall Wangjing Sports/ eSports and Wellness Destination Mobile Gaming Competition at CapitaMa
Slide 16: Capital Management
Capital Management 15 3Q 2020 Business Updates * 30 October 2020* CapitaMall Xuefu, Harbin
Slide 17: Prudent Capital Management
Prudent Capital Management1 Strong Balance Sheet with Financial Flexibility Floating Rate7 Offshore MTN 34.7% 3.7x Fixed Rate7 Loan SGD 10% 20% 80% 84% Onshore Loan RMB Gearing2 Interest Coverage4 6% Interest Total Debt Rates S$1,292.7 30 Jun 2020: 33.6% 30 Jun 2020: 4.0x million 2.77% 89.7% Unencum
Slide 18: Well-Distributed Debt Maturity Profile
Well-Distributed Debt Maturity Profile Completed 2020/2021 Refinancing 350 300 7.9 19.6 250 9.9 30.6 130.0 200 S$ million 3.8 150 270.0 250.0 100 200.0 150.0 150.0 - 1.5 50 63.5 5.9 0 - 2020 2021 2022 2023 2024 2025 2026 Total Debt 65.0 5.9 287.9 259.9 289.6 230.6 153.8 1,292.7 (in SGD million) % of
Slide 19: Looking Forward
Looking Forward 3Q 2020 Business Updates * 30 October 2020* CapitaMall Xizhimen, Beijing
Slide 20: Key Objectives
CRCT Strategy 1 Disciplined Portfolio Reconstitution - Create Value Increase diversification of revenue stream Expand footprint into targeted growth cities Engage Sponsor’s pipeline and third-party vendors Key Objectives 2 Disciplined Portfolio Reconstitution - Unlock Value Monetise older assets and
Slide 21: Extract Value from Rock Square
Extract Value from Rock Square Executing Planned Asset Enhancement Initiatives Achieved Strong Rental Reversion Every Quarter Since Acquisition in 2018 2020 Onwards Phase 3 2018 2019 Phase 1 Phase 2 Seize opportunity to reposition and strengthen future business model during COVID-19 period Major Ten
Slide 22: Unlock and Create Value from Bundle Deal
Unlock and Create Value from Bundle Deal Rejuvenate Portfolio with Higher Quality And More Strategically Located Asset • Bundle deal to acquire Yuquan Mall and divest CapitaMall Saihan • Swap aged asset with newer and more modern development • Leverage on new building specifications to capture marke
Slide 23: A Destination Lifestyle Mall of Tomorrow
A Destination Lifestyle Mall of Tomorrow Strong Positioning Draws Reputable and High Quality Tenants • Committed Occupancy1 Despite Soft 94.0% Leasing Environment due to COVID-19 Impact December 2020 • Expected Mall Opening Cooler Children’s Edutainment Uniqlo Wanda’s Visual Theatre Sispyhe Book Sto
Slide 24: Portfolio Reconstitution Efforts have Strengthened CRCT
Portfolio Reconstitution Efforts have Strengthened CRCT Long-Term Focus of Creating Growth and Resilience Future Growth Phase Multi-asset China-focused REIT platform 2020 Divestment of CapitaMall Erqi Non-core master-leased mall 2020 Capture opportunities in the 2018 “New Economy” sectors – Acquisit
Slide 25: Capture China's "New Economy" Sectors
Capture China’s “New Economy” Sectors Opportunity to Build more Diversified and Resilient Income Streams China’s Economic Focus Key Beneficial Sectors Key Beneficial Asset Classes • Focus on domestic consumption • Information and Communications • Business Parks • Pursue high-value added production T
Slide 26: Leveraging On Sponsor's Strong Support And Network
Leveraging On Sponsor’s Strong Support And Network To Drive Future Growth ✓ In-depth local market knowledge across China ✓ Full spectrum of real estate capabilities and resources ✓ CRCT to tap on the strength and depth of CapitaLand’s expertise and network to enter into new asset classes CRCT will b
Slide 27: Proven Track Record of Value Creation
Proven Track Record of Value Creation Total Assets Increased more than Fivefold since IPO Total Assets (S$ billion) 3.8 3.0 2.8 2.7 2.6 2.4 2.2 1.5 1.6 1.3 1.2 1.3 0.8 0.7 IPO Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Steady Growth in NPI, DI and DPU
Slide 28: Forging Ahead with on Strong Foundation
Forging Ahead with on Strong Foundation • Resilient and Quality Portfolio that focus on offering lifestyle essentials and necessities to densely populated vicinity Resilient Operational Portfolio Excellence • Experienced Ground Team with strong domain knowledge to capture new business trends • Prude
Slide 29: Thank you
Thank Thank you You For enquiries, please contact: For enquiries, please contact: Ms Nicole Chen, Investor Relations Direct: (65) 6713 1648, Email: (Ms) Nicole Chen,nicole.chen@capitaland.com Investor Relations CapitaLand Retail China Trust Management Limited (https://www.crct.com.sg) Direct: (65) 6
Slide 30: Appendix
Appendix 3Q 2020 Business Updates * 30 October 2020* CapitaMall Aidemengdun, Harbin
Slide 31: Breakdown of Portfolio Contribution
Breakdown of Portfolio Contribution Portfolio Income and Valuation Derived Predominantly from Malls in Tier 1 and Tier 2 Cities1 3% 8% 27% By Beijing 29% By Beijing 9M 2020 NPI2,3 57% Asset Value4 51% Shanghai 3% Guangzhou 10% Guangzhou Shanghai 10% 2% Notes: Tier 1 Cities Tier 2 Cities Other Provin
Slide 32: Trade Mix By Gross Rental Income
Trade Mix By Gross Rental Income1 (%) 30.2 28.1 27.4 24.1 8.0 7.2 6.5 7.0 4.3 3.8 4.1 3.7 3.9 3.8 4.1 3.6 3.4 3.2 3.1 3.0 2.6 3.0 2.3 2.3 3.0 1.6 1.5 1.2 Sundry & Services Department Stores Sporting Goods & Apparel Beauty & Healthcare Information & Technology Leisure & Entertainment Fashion & Access
Slide 33: Trade Mix By Net Lettable Area
Trade Mix By Net Lettable Area1 (%) 28.5 25.1 18.4 17.2 15.8 16.2 15.4 10.0 8.0 4.6 4.3 3.6 4.1 3.5 3.7 2.9 2.6 2.1 2.3 2.0 2.5 2.2 1.3 1.4 0.8 0.6 0.7 0.5 Food & Beverage Fashion & Accessories Sporting Goods & Apparel Supermarket Houseware & Furnishings Jewellery/Watches/Pens Leisure & Entertainmen
Slide 34: Portfolio at a Glance
Portfolio at a Glance1 CapitaMall CapitaMall CapitaMall CapitaMall Xuefu Rock Square2 Xizhimen Wangjing Grand Canyon 凯德广场•学府 乐峰广场 凯德MALL•西直门 凯德MALL•望京 凯德MALL• 大峡谷 Location Beijing Beijing Beijing Harbin Guangzhou GFA (sq m) 83,075 83,768 92,918 123,811 88,279 GRA (sq m) 83,075 68,010 69,967 104,294
Slide 35: Portfolio at a Glance
Portfolio at a Glance1 CapitaMall CapitaMall CapitaMall Xinnan CapitaMall Qibao Yuhuating Aidemengdun 凯德广场• 新南 凯德七宝购物广场 凯德广场•雨花亭 凯德广场•埃德蒙顿 Location Chengdu Changsha Harbin Shanghai GFA (sq m) 91,816 75,431 49,040 83,986 GRA (sq m) 53,619 58,575 43,394 72,729 NLA (sq m) 36,736 48,315 28,377 50,642 La
Slide 36: Portfolio at a Glance
Portfolio at a Glance1 CapitaMall CapitaMall CapitaMall Saihan Yuquan Mall 2 ● Portfolio at a Glance Minzhongleyuan 凯德新民众乐园 凯德MALL•赛罕 凯德广场 •诺和木勒 Shuangjing 凯德MALL•双井 Location Wuhan Hohhot Hohhot Beijing GFA (sq m) 41,717 41,938 100,047 49,463 GRA (sq m) 41,717 41,938 76,309 49,463 NLA (sq m) 22,121
CapitaLand Retail China Trust — Q3 2020 Earnings Presentation on 6ix