Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaMall Trust — Citi Asean Investor Conference 2014
66 slides from Singapore Exchange's conference presentation, Jun 13, 2014
Slide 1: CapitaMall Trust
Photo Credit: Kwek Swee Seng, Singapore Photo Credit: Kwek Swee Seng, Singapore CAPITAMALL TRUST Singapore’s First & Largest REIT Citi Asean Investor Conference 2014 13 June 2014
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. 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 assumpti
Slide 3: Contents
Contents Key Highlights and Financial Results Portfolio Updates Asset Enhancement Initiatives Acquisitions & Development Looking Forward Annexes Citi Asean Investor Conference 2014 *June 2014* 3
Slide 4: Key Highlights and Financial Results
Key Highlights and Financial Results Citi Asean Investor Conference 2014 *June 2014* Bugis Junction/Bugis+
Slide 5: Review of 1Q 2014
Review of 1Q 2014 • Operational performance – 172 new leases/renewals achieved with 6.2% positive rental reversion – 98.8% portfolio occupancy rate as at end-March 2014 – Tenants’ sales per square foot (“psf”) decreased by 4.0% year on year – Shopper traffic decreased by 1.9% year on year • Update o
Slide 6: 1Q 2014 Distributable Income Up 4.5% Y-o-Y
1Q 2014 Distributable Income Up 4.5% Y-o-Y Distributable Income (S$ mil) Distributable Income Distribution Per Unit (DPU) (1) (2) 89.1 85.3 S$89.1 2.57 (1) million cents 4.5% Y-o-Y 4.5% Y-o-Y 1Q 2014 1Q 2013 DPU (cents) Annualised DPU Annualised Distribution 2.57 2.46 Yield 10.42 5.24 cents % (Based
Slide 7: 1Q 2014 Gross Revenue
1Q 2014 Gross Revenue Increased by 5.8% versus 1Q 2013 On Comparable Mall Basis(1), 1Q 2014 Gross Revenue Up 6.1% Y-o-Y (2) CMT Portfolio 164.7 155.6 18.6 Tampines Mall 17.7 5.8% Junction 8 14.0 13.5 8.1 Funan DigitaLife Mall 8.1 19.6 IMM Building 18.1 22.2 Due mainly to: Plaza Singapura 19.9 • High
Slide 8: 1Q 2014 Operating Expense
1Q 2014 Operating Expense Increased by 7.1% versus 1Q 2013 On Comparable Mall Basis(1), 1Q 2014 OPEX Up 7.5% Y-o-Y (2) CMT Portfolio 50.4 47.1 4.9 7.1% Tampines Mall 4.4 Junction 8 4.0 3.9 2.8 Funan DigitaLife Mall 2.6 6.6 IMM Building 6.4 5.6 Plaza Singapura 5.0 Due mainly to higher property tax at
Slide 9: 1Q 2014 Net Property Income
1Q 2014 Net Property Income Increased by 5.3% versus 1Q 2013 On Comparable Mall Basis(1), 1Q 2014 NPI Up 5.5% Y-o-Y (2) CMT Portfolio 114.3 108.5 13.7 Tampines Mall 13.3 5.3% 10.0 Junction 8 9.6 5.3 Funan DigitaLife Mall 5.5 13.0 IMM Building 11.7 16.6 Plaza Singapura 14.9 Bugis Junction 12.8 12.8 5
Slide 10: 1Q 2014 Performance of Joint Ventures
1Q 2014 Performance of Joint Ventures(1) 1Q 2014 Net Property Income Up 22.7% Y-o-Y Gross Revenue (S$ million) 28.4 Total 22.6 Total 23.3 25.6% Raffles City Singapore 22.6 5.1 Westgate - Operating Expenses (S$ million) Total 8.0 6.0 Total 6.2 33.8% Raffles City Singapore 5.9 Westgate 1.8 (2) 0.1 Wes
Slide 11: Proactive Capital Management
Proactive Capital Management 799.5 800 700 635.2 7.2 (3) 600 80.0 80.0 (4) 500.0 500 (2) S$ million Funding fully raised for 699.5 412.0 400 refinancing 320.0 (5) (1) 350.0 300 (7) 320.0 505.2 (6) 226.0 350.0 200 100.0 228.0 (6) 250.0 (11) 100 157.6 (8) 190.1 150.0 (9) 140.0 (12) 150.0 100.0 228.0 1
Slide 12: Key Financial Indicators
Key Financial Indicators(1) As at As at 31 March 2014 31 December 2013 Unencumbered Assets as % of Total Assets 100.0% 100.0% Gearing Ratio (2,3) 35.1% 35.3% Net Debt / EBITDA (4) 5.2x 4.9x Interest Coverage (5) 4.4x 5.0x Average Term to Maturity (years) 4.0 3.8 Average Cost of Debt (6) 3.5% 3.5% CM
Slide 13: Healthy Balance Sheet
Healthy Balance Sheet As at 31 March 2014 S$’000 Non-current Assets 8,376,119 Net Asset Value/Unit S$1.74 (as at 31 March 2014) Current Assets 1,254,935 Adjusted Net Asset Value/Unit Total Assets 9,631,054 S$1.71 (excluding distributable income) Current Liabilities 786,682 Non-current Liabilities 2,
Slide 14: Valuations and Valuation Cap Rates
Valuations and Valuation Cap Rates Valuation as at Valuation as at Variance Valuation as at Valuation CMT Portfolio 31 Dec 13 30 Jun 13 31 Dec 13 Cap Rate as at 31 December 2013 S$ million S$ million S$ million S$ per sq ft NLA as at 31 Dec 13 and 30 Jun 13 Tampines Mall 852.0 831.0 21.0 2,585 5.35%
Slide 15: Portfolio Updates
Portfolio Updates Citi Asean Investor Conference 2014 *June 2014* The Atrium@Orchard
Slide 16: Shopper Traffic for 1Q 2014
Shopper Traffic for 1Q 2014 1Q 2014 Shopper Traffic(1) Decreased by 1.9% Y-o-Y 65,000 60,000 Shopper Traffic (‘000) 55,000 50,000 45,000 40,000 1Q 2014 1Q 2013 Source: CMTML (1) For comparable basis, the chart includes the entire CMT portfolio of malls, except Bugis Junction (which is undergoing Pha
Slide 17: Portfolio Tenants' Sales for 1Q 2014
Portfolio Tenants’ Sales for 1Q 2014 1Q 2014 Tenants’ Sales psf(1) Decreased by 4.0% Y-o-Y 90 Tenants’ Sales ($ psf/mth) 80 70 60 50 40 1Q 2014 1Q 2013 Source: CMTML (1) For comparable basis, the chart includes the entire CMT portfolio of malls, except Bugis Junction (which is undergoing Phase 2 AEI
Slide 18: Tenants' Sales by Trade Categories in 1Q 2014
Tenants’ Sales by Trade Categories in 1Q 2014 Cautious Consumer Spending 40% 36.6% Tenants’ Sales $ psf Variance Y-o-Y 35% 30% 23.6% 25% 20% 15% 10% 5.0% 5% 1.0% 0% -5% -0.6% -3.2% -3.3% -3.6% -3.8% -4.9% -10% -5.5% -6.3% -8.5% -15% -11.5% -12.1% -20% -15.3% -25% -21.5% -22.2% -30% (1) Telecommunica
Slide 19: Positive Rental Reversions
Positive Rental Reversions From 1 January to 31 March 2014 (Excluding Newly Created and Reconfigured Units) Net Lettable Area Increase in Current Rental Rates vs No. of Renewals Retention Property Percentage Preceding Rental Rates / New Leases Rate Area (sq ft) of Mall (typically committed 3 years a
Slide 20: Positive Renewals Achieved Year-on-Year
Positive Renewals Achieved Year-on-Year Net Lettable Area Increase in Current Rental Rates vs No. of Preceding Rental (1) CMT Portfolio (Year) Renewals / Area % of Total Forecast Rental Rates New Leases (sq ft) NLA Rates (2) (typically committed 3 years ago) 1Q 2014 172 427,276 10.7% N.A.(3) 6.2% 20
Slide 21: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile as at 31 March 2014(1) Gross Rental Income per Month(2) Number of Leases S$’000 % of Total (3) 2014 466 7,630 12.8 2015 1,021 17,701 29.7 2016 969 16,483 27.7 2017 420 10,380 17.5 2018 & Beyond 77 7,350 12.3 Total 2,953 59,544 100.0 (1) Includes CMT’s 40.0% stake in Ra
Slide 22: 2014 Portfolio Lease Expiry Profile by Property
2014 Portfolio Lease Expiry Profile by Property As at 31 March 2014 Net Lettable Area Gross Rental Income No. of Leases Sq Ft ('000) % of Mall NLA(1) S$'000 % of Mall Income(2) Tampines Mall 25 57.5 17.5% 916 17.4% Junction 8 35 69.1 22.5% 939 22.9% Funan DigitaLife Mall 26 28.8 9.8% 304 12.5% IMM B
Slide 23: High Occupancy Maintained
High Occupancy Maintained 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Mar As at 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Tampines Mall 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Junction 8 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 99.6
Slide 24: Healthy Occupancy Cost
Healthy Occupancy Cost Average Occupancy Cost 19.2% 17.3% 16.1% 15.8% 15.2% (3,4) (3,5) Westfield (1) CFS Retail Westfield CMT (2012) CMT (2013) (1) (Australia & NZ) Property Trust (US) (2) (Australia) Source: Companies reports, CMTML (1) As at 13 November 2013. (2) As at 30 June 2013. (3) Occupancy
Slide 25: Asset Enhancement Initiatives (AEIs)
Asset Enhancement Initiatives (AEIs) Citi Asean Investor Conference 2014 *June 2014* Lot One Shoppers’ Mall
Slide 26: AEI – Tampines Mall
AEI – Tampines Mall Citi Asean Investor Conference 2014 *June 2014* Tampines Mall
Slide 27: Proposed Asset Enhancement Initiatives
Proposed Asset Enhancement Initiatives The proposed AEI for Tampines Mall includes: • Converting Level 5 roof area into new leasable space (~25,000 to 30,000 sq ft of NLA) to house enrichment schools and educational tenants L5 BEFORE Existing roof holds M&E L5 AFTER Reconfigured into Equipment leasa
Slide 28: Tampines Mall: Proposed AEI Plans
Tampines Mall: Proposed AEI Plans BEFORE AFTER Modern Facade (1) Additional leasable space on Level 5 (1) Upgraded Covered Walkway from MRT station (1) (1) Artist’s impression. Citi Asean Investor Conference 2014 *June 2014* 28
Slide 29: Value Creation
Value Creation Projected Return on Investment of 8.0% Estimated Capital Expenditure Target Start Date Target Completion Date S$36.00 mil(1) 1Q 2014 4Q 2015 Projections(2) S$ million Incremental Gross Revenue per annum 3.39 Incremental Net Property Income 2.88 Return On Investment 8.0% Capital Value
Slide 30: AEI – Bugis Junction
AEI – Bugis Junction Citi Asean Investor Conference 2014 *June 2014* Bugis Junction
Slide 31: Bugis Junction - Overview of AEI Plan
Bugis Junction - Overview of AEI Plan Recovered space to feature new F&B offerings(1) Conversion of anchor space to specialty shops on Level 3(1) • The proposed AEI includes: Value Creation(2) – Recovery of close to 70,000 sq ft of 1 Capital Expenditure S$35.0 million anchor space from BHG and conve
Slide 32: Phase 1 AEI Completed
Phase 1 AEI Completed Phase 1 : Completed Phase 2 : Start in 1Q 2014 Target to complete in 3Q 2014 • Asset enhancement works include:- – Revision of lease lines at Basement New F&B Concept 1 to improve line-of-sight to/from the MRT escalator – Further recovery of anchor space Perforated Ceiling from
Slide 33: AEI – JCube
AEI – JCube Citi Asean Investor Conference 2014 *June 2014* 33 JCube
Slide 34: Proposed Asset Enhancement Initiative
Proposed Asset Enhancement Initiative • The proposed AEI for JCube includes: − Strengthening position as a leisure and entertainment focused mall − Reconfiguring Level 2 (mini-anchor space and peripheral units) to feature more than 50 units so as to increase retail offerings − Reconfiguring part of
Slide 35: Level 2
Level 2 Reconfigure Level 2 to create new shops L2 BEFORE Existing configuration Reconfigured to L2 AFTER feature more retail units Citi Asean Investor Conference 2014 *June 2014* 35
Slide 36: Basement 1
Basement 1 Reconfiguring part of Basement 1 to increase the number of food kiosks Existing layout of Reconfigured to B1 BEFORE food kiosks feature more B1 AFTER food kiosks Citi Asean Investor Conference 2014 *June 2014* 36
Slide 37: AEI – IMM Building
AEI – IMM Building Citi Asean Investor Conference 2014 *June 2014* 37 IMM Building
Slide 38: Proposed Phase 2 AEI at IMM Building
Proposed Phase 2 AEI at IMM Building Reconfiguration works to house more outlet stores 2nd Storey Plan Citi Asean Investor Conference 2014 *June 2014* 38
Slide 39: Proposed Phase 2 AEI at IMM Building
Proposed Phase 2 AEI at IMM Building Enhance the outlet shopping experience Setback shop fronts New void to 2nd Storey Plan improve visibility Citi Asean Investor Conference 2014 *June 2014* 39
Slide 40: Acquisitions & Development
Acquisitions & Development Citi Asean Investor Conference 2014 *June 2014* Credit to Benoy Ltd Westgate
Slide 41: Acquisition & Development Track Record
Acquisition & Development Track Record – From 3 to 16 Assets(1) 13 Acquisitions, 1 Divestment and 1 Greenfield Development Since IPO 3 Acquisitions were From Sponsor 27.2% stake in CRS(2) Divestment Remaining 72.8% Hougang Hougang Plaza stake in CRS (2) Plaza(3) 2003 2005 2007 2010 2012 2002 2004 20
Slide 42: Retail Offerings at Westgate
Retail Offerings at Westgate 92% Commitment as at 31 March 2014 Citi Asean Investor Conference 2014 *June 2014* 42
Slide 43: Westgate Wonderland Opened on 26 Feb 2014
Westgate Wonderland Opened on 26 Feb 2014 11,000 sq ft of Thematic Outdoor Playground Designed by Established Theme Park Designer Giant Watering Can Zone Tree House Zone Toddlers’ Play Zone Citi Asean Investor Conference 2014 *June 2014* 43
Slide 44: Kids Club to Open in 2Q 2014
Kids Club to Open in 2Q 2014 A Lively, Fun and Safe Environment for Children Unique Features • 4,600 sq ft thematic outdoor playground and an indoor clubhouse • Supervised play area for children aged four to 12 • Daily activities such as obstacle races and treasure hunts Magic Mushrooms Play Zone •
Slide 45: Divestment of Westgate Tower
Divestment of Westgate Tower • A consortium entered into sales and purchase agreements to purchase Westgate Tower for S$579.4 million (CMT’s 30.0% share is S$173.8 million) • Construction is expected to be completed by end-2014 • Approximately S$45.0 million(2) net gain will be recognised upon obtai
Slide 46: Creating a "3-in-1" Mega Mall in Jurong
Creating a “3-in-1” Mega Mall in Jurong Bringing Value, Entertainment and Lifestyle Experiences • Prime location - ~2.5 times the size 3 of Tampines Regional Centre Value- Focused • Large catchment 2 Mall - Caters to more 1 Family & than 1 million Lifestyle Mall population in the Young & West region
Slide 47: Looking Forward
Looking Forward Citi Asean Investor Conference 2014 *June 2014* IMM Building
Slide 48: Looking Forward
Looking Forward Healthy Underlying Property Fundamentals • Asset enhancement initiatives – Tampines Mall: Focus on asset enhancement works – Bugis Junction: Focus on Phase 2 of asset enhancement works – JCube: Strengthen position as a leisure and entertainment focused mall – IMM Building: Embark on
Slide 49: Thank you
Photo Credit: Kwek Swee Seng, Singapore Photo Credit: Kwek Swee Seng, Singapore Thank you For enquiries, please contact: Ms Audrey Tan, Investor Relations, Direct: (65) 6713 1507 Email: audrey.tan@capitaland.com CapitaMall Trust Management Limited (http://www.capitamall.com) 39 Robinson Road, #18-01
Slide 50: Annexes
Annexes Citi Asean Investor Conference 2014 *June 2014* Plaza Singapura
Slide 51: CapitaMall Trust (CMT)
CapitaMall Trust (CMT) – Major REIT in CapitaLand Group CapitaLan Shopping Serviced d Malls Residences Singapore CapitaLand CapitaLand Shopping Serviced Singapore China Malls Residences 27.6%(1) (1) As at 31 March 2014. Citi Asean Investor Conference 2014 *June 2014* 51
Slide 52: Market Leadership in Singapore Retail
Market Leadership in Singapore Retail Tampines Mall Junction 8 Funan DigitaLife IMM Building Plaza Singapura • 16 properties Westgate • S$9.6 billion asset size Bugis Junction • 5.6 million sq ft NLA (2) Bugis+ • ~2,900 leases estimated Sembawang SC • ~26 million mall visitors each month (3) • 11-ye
Slide 53: Strategically Located Portfolio
Strategically Located Portfolio Close to MRT Stations/Bus Interchanges and Population Catchments Citi Asean Investor Conference 2014 *June 2014* 53
Slide 54: Three Key Pillars
Three Key Pillars 1 Active Lease Management * Positive rental reversions * High occupancy rate * Improve tenant mix 2 Asset Enhancements * Enhance retail experience * Increase the yield and productivity of retail space * Reposition malls with relevant tenant/trade mix 3 Acquisitions & Development *
Slide 55: Steadfast Performance
Steadfast Performance Delivering Consistent Returns Over Time Citi Asean Investor Conference 2014 *June 2014* 55
Slide 56: Defensive Portfolio
Defensive Portfolio More than 70.0% of Malls in Portfolio(1) Cater to Necessity Shopping Discretionary Discretionary Shopping(3) Shopping (3) By Gross By Asset Revenue Valuation (For Year 2013) (As at 31 December 2013) Necessity Shopping (2) Necessity Shopping(2) (1) Excludes CMT’s 30.0% interest in
Slide 57: Diversified Portfolio
Diversified Portfolio No Single Property Contributed over 12.4% by Gross Revenue and 14.3% by Net Lettable Area Portfolio by Portfolio by Net Lettable Area FY2013 Total Gross Revenue as at 31 December 2013 Tampines Mall Junction 8 3.2% Funan DigitaLife Mall 10.1% 3.9% 5.9% 4.3% IMM Building 7.3% 4.5
Slide 58: Well Diversified Trade Mix
Well Diversified Trade Mix Portfolio(1) by Portfolio(1) by Total Gross Rent(2) Net Lettable Area 2.3% 2.5% 2.6% 2.6% 8.7% 19.2% 2.9% 2.9% 27.7% 3.5% 3.2% 1.2% 0.8% 3.5% 0.3% 1.2% 3.1% 0.9% 4.1% For the month of As at 31 December 9.0% December 2013 7.9% 4.9% 2013 5.6% 6.2% 6.2% 14.8% 3.6% 6.1% 2.2% 4
Slide 59: Diverse Tenant Base
Diverse Tenant Base 10 Largest Tenants(1) by Gross Rental Contribute 21.4% of Total Gross Rental No Single Tenant Contributes More than 3.2% of Total Gross Rental Gross Rental(1) by Tenant % of Gross Top 10 Tenants Trade Rental 1 RC Hotels (Pte) Ltd Hotel 3.2% 2 Cold Storage Singapore Supermarket/ B
Slide 60: Population Growth Drives Local Consumption
Population Growth Drives Local Consumption Singapore’s Population Estimated to Reach ~6.5 - 6.9 Million by 2030(1) Singapore Population '000 YoY change Source: Singapore Department of Statistics (1) Singapore Population White Paper, January 2013 Citi Asean Investor Conference 2014 *June 2014* 60
Slide 61: Singapore Households Have Stronger Balance Sheets
Singapore Households Have Stronger Balance Sheets Singaporeans Have One of the Highest Percentages of Home Ownership in the World Household Assets & Liabilities S$’bill 1,700 1,500 1,300 1,100 900 700 500 300 100 -100 2006 2007 2008 2009 2010 2011 2012 Shares & Securities Insurance Funds CPF Balance
Slide 62: STB Targets 17.0 Million Tourists By 2015
STB Targets 17.0 Million Tourists By 2015 2013 Visitor Arrivals Grew 6.7% y-o-y to 15.5 million Singapore Tourist Arrivals New Tourist Attractions million YoY Growth 16.3 18 - 16.8 17.0 40% 16 15.6 14.5 30% 14 20% Marine Life Park 12 10 10% 8 0% 6 -10% 4 Global Financial -20% 2 Crisis Giant Panda Fo
Slide 63: Low Unemployment Rate
Low Unemployment Rate Singapore Has One of the Lowest Unemployment Rates Internationally Singapore’s Overall Unemployment Rate 6.0% 5.0% 4.0% Average(2001-2013): 2.7% 3.0% 2.0% 1.0% 0.0% Oct-90 Oct-92 Oct-94 Oct-96 Oct-98 Oct-00 Oct-02 Oct-04 Oct-06 Oct-08 Oct-10 Oct-12 Feb-98 Jun-07 Jun-89 Feb-90 J
Slide 64: Available Retail Floor Space
Available Retail Floor Space Retail Space at End-2013: 61.1 million sq ft, of which 44.7% is estimated to be shopping centre floor space Singapore Retail Floor Space Supply(1) (million sq ft) Citi Asean Investor Conference 2014 *June 2014* 64
Slide 65: Resilient Retail Sales Growth
Resilient Retail Sales Growth Nominal Retail Sales Over 2001 – 2013 Grew by 3.8% per annum Singapore’s GDP Growth vs Retail Sales Index1 20% 15% 10% 5% 0% 1Q08 1Q00 1Q01 1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 -5% GDP YoY Growth Retail Sales Index YoY Change -10% Source: Departme
Slide 66: Fairly Resilient Retail Rentals
Fairly Resilient Retail Rentals Suburban Retail Rentals Are Especially Resilient to Economic Downturns Singapore Retail Rentals and Quarterly GDP Growth 50 50 40 40 30 30 20 20 10 10 0 0 -10 -10 -20 -20 1Q95 1Q02 1Q09 1Q93 3Q93 1Q94 3Q94 3Q95 1Q96 3Q96 1Q97 3Q97 1Q98 3Q98 1Q99 3Q99 1Q00 3Q00 1Q01 3Q
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