Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaRetail China Trust — Q2 2014 Earnings Presentation
42 slides from Singapore Exchange's earnings presentation, Jul 24, 2014
Slide 1: CapitaRetail China Trust Financial Results for 2Q 2014
CapitaRetail China Trust Financial Results for 2Q 2014 24 July 2014 0 Financial Results for 2Q 2014 *24 July 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 2Q 2014 Highlights Financial Highlights Financial Results Portfolio Update Proactive Asset Management Market Outlook Appendix 2 Financial Results for 2Q 2014 *24 July 2014*
Slide 4: 2Q 2014 Highlights
2Q 2014 Highlights NPI (in SGD) grew 29.5% and Distributable Income grew 18.7% y-o-y • Strong contributions from CapitaMall Grand Canyon and the reopened CapitaMall Minzhongleyuan: CapitaMall Grand Canyon contribute ~12.7% to portfolio NPI Gross revenue and NPI in RMB 24.9% and 26.9% y-o-y respe
Slide 5: Financial Highlights
Financial Highlights 4 Financial Results for 2Q 2014 *24 July 2014* CapitaMall Xizhimen, Beijing, China
Slide 6: 2Q 2014 Distributable Income Grew 18.7%
2Q 2014 Distributable Income Grew 18.7% 2Q 20141 2Q 2013 Change Actual Actual Gross Revenue (RMB’000) 249,888 200,036 24.9% NPI (RMB’000) 167,595 132,096 26.9% NPI (S$’000) 34,214 26,413 29.5% Distributable Income (S$’000) 21,253 17,902 18.7% DPU (Singapore cents) 2.59 2.38 8.8% Annualised Distribut
Slide 7: 1H 2014 Distributable Income Grew 16.0%
1H 2014 Distributable Income Grew 16.0% 1H 20141 1H 2013 Change Actual Actual Gross Revenue (RMB’000) 481,584 400,697 20.2% NPI (RMB’000) 323,230 264,074 22.4% NPI (S$’000) 66,553 52,281 27.3% Distributable Income (S$’000) 40,889 35,242 16.0% DPU (Singapore cents) 4.99 4.69 6.4% Annualised Distribut
Slide 8: Healthy Balance Sheet
Healthy Balance Sheet As at 30 Jun 2014 S$’000 Investment Properties 2,120,109 Net assets attributable 1,253,451 Other Assets 19,069 to unitholders (S$’000) Financial Derivatives Assets 5,922 Cash & Cash Equivalents 60,977 Units In Issue (‘000 units) 818,890 Total Assets 2,206,077 Net Asset Value (N
Slide 9: Distribution Reinvestment Plan (DRP)
Distribution Reinvestment Plan (DRP) • Established on 21 Mar 2013 to provide Unitholders with an option to elect to receive distributions in units in lieu of cash amount of any distributions declared • Participation is optional and Unitholders can increase their holdings in CRCT without incurring br
Slide 10: Distribution Details
Distribution Details Distribution Period For 1 January 2014 to 30 June 2014 Distribution Per Unit 4.99 cents Distribution Timetable Last Day of Trading on “cum” Basis 5 August 2014, 5.00 pm Ex-Date 6 August 2014, 9.00 am Book Closure Date 8 August 2014, 5.00 pm Announcement of Issue Price (DRP) 11 A
Slide 11: Financial Results
Financial Results 10 Financial Results for 2Q 2014 *24 July 2014* CapitaMall Xizhimen, Beijing, China
Slide 12: Property Gross Revenue (in RMB'000): 2Q 2014 vs 2Q 2013
Property Gross Revenue (in RMB’000): 2Q 2014 vs 2Q 2013 On a same-mall basis, Gross Revenue increased by 7.8%1 y-o-y CRCT Portfolio 249,888 200,036 24.9% Multi-Tenanted Malls CapitaMall Xizhimen 65,626 60,637 CapitaMall Wangjing 48,357 43,525 CapitaMall Grand Canyon 33,731 - CapitaMall Minzhongleyua
Slide 13: Net Property Income (in RMB'000): 2Q 2014 vs 2Q 2013
Net Property Income (in RMB’000): 2Q 2014 vs 2Q 2013 On a same-mall basis, NPI increased by 9.9%1 y-o-y CRCT Portfolio 167,595 132,096 26.9% Multi-Tenanted Malls 47,805 CapitaMall Xizhimen 43,110 CapitaMall Wangjing 35,823 31,196 CapitaMall Grand Canyon 21,260 - 2Q 2014: RMB 131,860K 4,016 36.0% Cap
Slide 14: Property Gross Revenue (in RMB'000): 1H 2014 vs 1H 2013
Property Gross Revenue (in RMB’000): 1H 2014 vs 1H 2013 On a same-mall basis, Gross Revenue increased by 7.1%1 y-o-y CRCT Portfolio 481,584 400,697 20.2% Multi-Tenanted Malls 128,097 CapitaMall Xizhimen 118,370 CapitaMall Wangjing 95,525 87,790 CapitaMall Grand Canyon 64,966 - 11,481 1H 2014: RMB 39
Slide 15: Net Property Income (in RMB'000): 1H 2014 vs 1H 2013
Net Property Income (in RMB’000): 1H 2014 vs 1H 2013 On a same-mall basis, NPI increased by 9.1%1 y-o-y CRCT Portfolio 323,230 264,074 22.4% Multi-Tenanted Malls 92,140 CapitaMall Xizhimen 82,477 70,251 CapitaMall Wangjing 63,838 CapitaMall Grand Canyon 40,833 - 1H 2014: RMB 251,059K 2,186 29.5% Cap
Slide 16: Debt Maturity Profile (30 Jun 2014)
Debt Maturity Profile (30 Jun 2014) S$' million CapitaMall Grand 700 S$660.1 mil Excluding RMB denominated loans, Canyon - Secured fixed rate loans will be ~99.2%. Onshore Term Variable Loan 1 600 Rate 24.4% 500 Trust - Unsecured The offshore term loan will be Money Market refinanced upon maturity i
Slide 17: Key Financial Indicators
Key Financial Indicators 2Q 2014 1Q 2014 Unencumbered Assets as % of Total Assets 92.9% 92.2% Gearing1 29.8% 31.8% Net Debt / EBITDA (Times) 5.2 5.7 Interest Coverage (Times) 5.5 5.3 Average Term to Maturity (Years) 2.32 2.46 Average Cost of Debt2 3.60% 3.64% 1. The lower gearing for 2Q 2014 was mai
Slide 18: Attractive Distribution Yield
Attractive Distribution Yield Based on historical gross 8% dividend yield of past 12 months 6.8% 6% 5.7% 4.1% 4.0% 4% 3.3% 2.3% 2.5% 2% 0.3% 0% 1 4 5 CRCT Yield Singapore 10- China 10- FSSTI Yield 3 FSTRE Yield FSTREI Yield CPF Ordinary 12-month year Govt year Govt Account 6 Fixed (S$) 2 Bond Yield
Slide 19: Portfolio Update
Portfolio Update 18 Financial Results for 2Q 2014 *24 July 2014* CapitaMall Qibao, Shanghai, China
Slide 20: Portfolio Valuation
Portfolio Valuation Current Previous NPI Current Valuation Valuation Valuation Variance (30 Jun 2014) (31 Dec 2013) Yield1 (psm of GRA) (%) RMB million RMB million (%) RMB Multi-tenanted Malls CapitaMall Xizhimen 2,710 2,600 4.2 6.9 32,621 CapitaMall Wangjing 2,014 1,900 6.0 7.0 29,613 CapitaMall Gr
Slide 21: Strong Portfolio Occupancy Rate
Strong Portfolio Occupancy Rate 30 Jun 131 30 Sep 131 31 Dec 131 31 Mar 141 30 Jun 141 Multi-Tenanted Malls CapitaMall Xizhimen 98.5% 98.1% 98.3% 95.6%2 96.1%2 CapitaMall Wangjing 99.9% 98.9% 99.0% 99.2% 99.4% CapitaMall Grand Canyon N/A3 N/A3 95.9% 99.8% 99.6% CapitaMall Minzhongleyuan 65.2% N/A4 N
Slide 22: Healthy Portfolio Rental Reversion of 24.9% in 2Q 2014
Healthy Portfolio Rental Reversion of 24.9% in 2Q 2014 From 1 April to 30 June 2014 % of Total Var. over No. of new Area Property Net Lettable last rental leases/renewals (sq m) Area rate1, 2,3 (%) CapitaMall Xizhimen 31 2,552 5.0% 19.1% CapitaMall Wangjing 48 2,010 3.6% 23.9% CapitaMall Grand Canyo
Slide 23: Robust Rental Reversion Trend
Robust Rental Reversion Trend Average 16.0% 24.9% 23.6% 23.0% 18.2% 17.5% 17.0% 17.3% 15.2% 14.9% 13.0% 11.9% 9.5% 10.0% 8.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 22 Financial Results for 2Q 2014 *24 July 2014*
Slide 24: Portfolio Lease Expiry (By Year)
Portfolio Lease Expiry (By Year) Committed Gross Rental Income3 As at 30 June 2014 No. of Leases1,3 % of Total RMB’000 (Jun 14) 2 2014 252 4,990 5.9% 2015 691 20,718 24.7% 2016 257 15,336 18.2% 2017 103 8,625 10.3% Beyond 2017 119 34,386 40.9% CRCT Portfolio3 Weighted Average Lease Term to Expiry By
Slide 25: Portfolio Lease Expiry Profile for 2014
Portfolio Lease Expiry Profile for 2014 Committed Gross Net Lettable Area Rental Income No. of As at 30 June 20141 Leases2 % of Total % of Total Sq m RMB’000 (Jun 14)3 (Jun14)4 CapitaMall Xizhimen 24 728 3.9% 504 10.1% CapitaMall Wangjing 52 2,602 13.9% 1,897 38.0% CapitaMall Grand Canyon 59 1,492 8
Slide 26: Portfolio Lease Expiry Profile for 2015
Portfolio Lease Expiry Profile for 2015 Committed Gross Net Lettable Area Rental Income No. of As at 30 June 2014 Leases1 % of Total % of Total Sq m RMB’000 (Jun 14)2 (Jun 14)3 CapitaMall Xizhimen 101 12,558 24.2% 7,289 35.2% CapitaMall Wangjing 79 4,372 8.4% 3,355 16.2% CapitaMall Grand Canyon 69 5
Slide 27: Portfolio Shopper Traffic & Tenants' Sales
Portfolio Shopper Traffic & Tenants’ Sales Shopper Traffic1 Tenants’ Sales1 (2Q 2014 vs 2Q 2013 & 1Q 2014) (2Q 2014 vs 2Q 2013 & 1Q 2014) '000 RMB psm Ave. Daily No. of Shoppers Ave. Monthly Sales 240 1,600 200 1,200 YoY YoY 160 13.6% 5.5% 120 800 80 400 QoQ QoQ 40 1.6% 2.2% 0 0 2Q 2013 1Q 2014 2Q 2
Slide 28: Proactive Asset Management
Proactive Asset Management 27 Financial Results for 2Q 2014 *24 July 2014* CapitaMall Xizhimen, Beijing, China
Slide 29: CapitaMall Xizhimen & CapitaMall Wangjing Leading the Growth
CapitaMall Xizhimen & CapitaMall Wangjing Leading the Growth CapitaMall Xizhimen CapitaMall Wangjing • 2Q 2014 gross revenue and NPI up • The most entrenched mall in the 8.2% and 10.9% y-o-y matured neighbourhood • Strong rental reversion of 19.1% in 2Q • 2Q 2014 gross revenue and NPI up 2014 11.1%
Slide 30: CapitaMall Xizhimen – Creating Synergy Among Tenants
CapitaMall Xizhimen – Creating Synergy Among Tenants • Brought in a well-known food & beverage chain, Green Tea at level 6 To create synergy with the other dining options, like Nanjing Impressions, Shota Muni Sushi & Grill and Spicy Way Unit used to be occupied by a fitness centre, currently Gre
Slide 31: Appealing to Increasingly Sophisticated Shoppers
Appealing to Increasingly Sophisticated Shoppers • CapitaMall Wangjing Brought in Lily, a ladies fashion brand, popular among young working professionals Increase rental by 47.6% Lily (CapitaMall Wangjing) • CapitaMall Xizhimen Introduced new fashion brand – Odbo to level 3 Personality desig
Slide 32: CapitaMall Saihan – Boosting Returns through Fine-tuning Retail Offerings
CapitaMall Saihan – Boosting Returns through Fine-tuning Retail Offerings Enhance our sports and fashion options to create synergies at the sports and fashion zones adidas 31 Vero Moda Financial Results for 2Q 2014 *24 July 2014* VANS
Slide 33: Unveiled the Revamped CapitaMall Minzhongleyuan
Unveiled the Revamped CapitaMall Minzhongleyuan Reopened on 1 May 2014 after the major uplift; Favourable responses from both retailers and shoppers Rejuvenated Façade Exciting New to Market Concept Shop 32 Newly Installed Weatherproof Roof Attractive Shop Front Financial Results for 2Q 2014 *24 Jul
Slide 34: Improved Infrastructure and Layout – CapitaMall Minzhongleyuan
Improved Infrastructure and Layout – CapitaMall Minzhongleyuan Simplified floor layout to enhance visibility and traffic circulation Layout – Before Layout – After 33 Financial Results for 2Q 2014 *24 July 2014*
Slide 35: Updating Mall Offerings – CapitaMall Minzhongleyuan
Updating Mall Offerings – CapitaMall Minzhongleyuan Before After • Recovered 1,430 sq m from street-front stores • Increased rental by 267% • Differentiate offerings through introducing new to market concept shops 34 Financial Results for 2Q 2014 *24 July 2014*
Slide 36: Attracting Shoppers through Exciting Activities – CapitaMall Minzhongleyuan
Attracting Shoppers through Exciting Activities – CapitaMall Minzhongleyuan Re-establishing our presence through marketing activities; Shopper Traffic hits ~200,000 in the first 5 days of reopening Spacious atrium able to accommodate large crowds 35 Vibrant performances and Financial marketing Resul
Slide 37: Market Outlook
Market Outlook 36 Financial Results for 2Q 2014 *24 July 2014* CapitaMall Grand Canyon, Beijing, China
Slide 38: Market Outlook
Market Outlook • China’s economy expanded by 7.5%* y-o-y in 2Q 2014 • 1H 2014 retail sales up 12.1%* y-o-y to RMB12.4 trillion* • Introduced series of stimulus to pursue stable growth: • Accelerate government spending and invest in infrastructure projects • Reduce reserve ratios for rural commercial
Slide 39: Appendix
Appendix 38 Financial Results for 2Q 2014 *24 July 2014* CapitaMall Wangjing, Beijing, China
Slide 40: Diversified Trade Mix
Diversified Trade Mix By Committed Gross Rent1,3 By Net Lettable Area2,3 Fashion & Accessories 2% 5% 7% 4% 12% Food & Beverage 3% 2% 4% 2% Department Store 3% 28% 1% Supermarket 3% 13% 7% Beauty & Healthcare Shoes & Bags 10% Houseware & furnishings 27% Education 23% 29% 15% Leisure & Entertainment O
Slide 41: Portfolio at a Glance
Portfolio at a Glance CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall Grand Xizhimen Wangjing Minzhong Qibao Saihan Wuhu1 Anzhen Erqi Shuangjing Canyon 凯德MALL• 凯德MALL• leyuan 凯德七宝 凯德MALL• 凯德广场• 凯德MALL• 凯德广场• 凯德MALL• 凯德MALL• 西直门 望京 新民众乐园 购
Slide 42: Thank You
Thank You For enquiries from analysts & investors, please contact (Ms) LENG Tong Yan Investor Relations Tel: (65) 6826 1649 Email: leng.tongyan@capitaland.com 41 Financial Results for 2Q 2014 *24 July 2014*
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