Singapore Exchange Ltd. · SGX:S68

Singapore Exchange — CapitaRetail China Trust — Non-Deal Roadshow (September 2013)

55 slides from Singapore Exchange's roadshow presentation, September 2013

  1. Slide 1: CapitaRetail China Trust

    CapitaRetail China Trust First and Only China Shopping Mall S-REIT United States & Canada Non-Deal Roadshows 16 – 19 September 2013 0 Non-Deal Roadshows *16 – 19 September 2013*

  2. 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

  3. Slide 3: Contents

    Contents  Overview  Growth Strategy  1H 2013 Financial Results  Portfolio Update  Appendix 2 Non-Deal Roadshows *16 – 19 September 2013*

  4. Slide 4: Overview

    Overview 3 Non-Deal Roadshows *16 – 19 September 2013* CapitaMall Xizhimen, Beijing, China

  5. Slide 5: First and Only China Shopping Mall S-REIT

    First and Only China Shopping Mall S-REIT Geographically diversified portfolio of 9 income-producing shopping malls Positioned as one-stop family-oriented shopping, dining and entertainment destinations 6 Growth Cities 535,279 sq m Total GRA RMB8.0 billion Valuation 77.2 million Shopper Traffic Tota

  6. Slide 6: Access to China’s Rapidly Growing Retail Market

    Access to China’s Rapidly Growing Retail Market Increasing Urbanisation – Retailers Continue to Enjoy Strong 1 2 Projected to reach 61.9% in 2030 Sales 20,717 61.9 RMB Mil % 55.0 58.6 18,123 51.1 15,700 47.0 42.5 13,268 35.8 10,849 30.9 8,921 7,641 1995 2000 2005 2010 2015 2020 2025 2030 2006 2007 2

  7. Slide 7: Unique Exposure into Different Tier Cities

    Unique Exposure into Different Tier Cities CRCT’s Portfolio Gross Rentable Area CRCT’s Portfolio Gross Revenue (Gross Rentable Area as at June 2013) (Based on 1H 2013 Gross Revenue) Non-Tier 1 22% Non-Tier 1 Gross Total GRA 41% Revenue 535,279 sq m RMB 400.7m Tier 1 59% Tier 1 78% 6 Non-Deal Roadsho

  8. Slide 8: Balanced Property Portfolio: multi-tenanted malls

    Balanced Property Portfolio 6 multi-tenanted malls drive GROWTH (73% of portfolio NPI) CapitaMall Wangjing, CapitaMall Xizhimen, CapitaMall Qibao, Beijing Beijing Shanghai CapitaMall Minzhongleyuan, CapitaMall Saihan, CapitaMall Wuhu, Wuhan Huhhot Wuhu (51% Stake) 7 Non-Deal Roadshows *16 – 19 Septe

  9. Slide 9: Balanced Property Portfolio: master-leased malls

    Balanced Property Portfolio 3 master-leased malls provide STABILITY (27% of portfolio NPI) CapitaMall Anzhen, CapitaMall Shuangjing, CapitaMall Erqi, Beijing Beijing Zhengzhou 8 Non-Deal Roadshows *16 – 19 September 2013*

  10. Slide 10: Riding on China’s Growth…

    Riding on China’s Growth… Distribution Per Unit (Singapore cents) 9.54 9.46 8.14 8.36 8.70 7.53 6.72 2007 2008 2009 2010 2011 2012 Annualised 1H 2013 7.01 Comparative Yields (%) 3.45 3.66 2.82 2.53 1.22 0.34 CRCT Yield Singapore 10- Singapore 5- CPF Ordinary 12-month Fixed FSSTI Yield FSTRE Yield ye

  11. Slide 11: Key Achievements

    Key Achievements 127% in Net Property Income Annualised 1H 2013: S$105.4 mil 2007: S$46.5 mil 46% in Net Asset Value Per Unit 1H 2013: S$1.47 2007: S$1.01 122% in Distributable Income Annualised 1H 2013: S$71 mil 2007: S$32 mil 10 Non-Deal Roadshows *16 – 19 September 2013*

  12. Slide 12: Growth Strategy

    Growth Strategy 11 Non-Deal Roadshows *16 – 19 September 2013* CapitaMall Wangjing, Beijing, China

  13. Slide 13: Growth Strategy Build Foundation for Future Growth

    Growth Strategy Build Foundation for Future Growth Create value through active asset enhancement initiatives 3 2 External Growth Backed by strong balance 1 sheet, explore expansion through acquisitions from both Maintain Growth internal and external sources Momentum Generate organic growth from exis

  14. Slide 14: Generate Organic Growth through Rebranding

    Generate Organic Growth through Rebranding Case study: CapitaMall Qibao  Better and more attractive street frontage  Widened popular fashion offerings  Strengthening edutainment offerings  Strong F&B operators to attract office crowds and residents 13 Non-Deal Roadshows *16 – 19 September 2013*

  15. Slide 15: Generate Organic Growth through Rebranding

    Generate Organic Growth through Rebranding Case study: CapitaMall Qibao Strong growing momentum in gross revenue and asset value Gross Revenue (RMB Mil) Asset Value (RMB Mil) 460 87.6 420 82.8 72.1 345 363 60.7 2010 2011 2012 Annualised 1H 2010 2011 2012 Jun-13 2013 14 Non-Deal Roadshows *16 – 19 Se

  16. Slide 16: Value Creation through Active Asset Enhancement Initiatives (AEI)

    Value Creation through Active Asset Enhancement Initiatives (AEI) Case study: CapitaMall Saihan Successful transformation of the mall to a one-stop family shopping, dining and entertainment destination Pre-Asset Enhancement Post-Asset Enhancement 15 Non-Deal Roadshows *16 – 19 September 2013*

  17. Slide 17: Value Creation through Active Asset Enhancement Initiatives (AEI)

    Value Creation through Active Asset Enhancement Initiatives (AEI) Case study: CapitaMall Saihan Robust growth in gross revenue and asset value Gross Revenue (RMB Mil) Asset Value (RMB Mil) 48.4 40.8 350 33.4 322 23.4 310 304 17.6 288 2009 2010 2011 2012 Annualised 2009 2010 2011 2012 Jun-13 1H 2013

  18. Slide 18: Maintain Growth Momentum through Strong Rental Reversion

    Maintain Growth Momentum through Strong Rental Reversion Portfolio Rental Reversion (%) 23.6 18.2 17.0 17.3 Average 15.2 14.9 14.9% 13.0 11.9 9.5 8.0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 17 Non-Deal Roadshows *16 – 19 September 2013*

  19. Slide 19: Building Foundation for Future Growth – CapitaMall Minzhongleyuan AEI

    Building Foundation for Future Growth – CapitaMall Minzhongleyuan AEI 18 Non-Deal Roadshows *16 – 19 September 2013*

  20. Slide 20: Building Foundation for Future Growth – CapitaMall Minzhongleyuan AEI

    Building Foundation for Future Growth – CapitaMall Minzhongleyuan AEI  Transformation into an iconic, modern and vibrant mall in Wuhan through enhance shopping environment, refreshing tenant mix and improve layout  Upgrade facilities to improve efficiency and accommodate more F&B tenants Enhance •

  21. Slide 21: Enhancing Returns through Expansion – Grand Canyon Mall

    Enhancing Returns through Expansion – Grand Canyon Mall 20 Non-Deal Roadshows *16 – 19 September 2013*

  22. Slide 22: Grand Canyon Mall – Property Details

    Grand Canyon Mall – Property Details 16, South Third Ring West Road, Location Fengtai District, Beijing A six-storey shopping mall with Description two basement car park levels Opening Date Aug 2010 Site Area ~16,500 sq m GFA excluding ~70,000 sq m Car Park Net Lettable ~43,700 sq m Area No. of Car

  23. Slide 23: Location and Surrounding

    Location and Surrounding 1 N Grand Canyon Mall 2 4 2 11 Metro Line 4 3 5 4 4 Office Towers 5 4 3 Majiapu Subway Station (Subway Line 4 ) Bus Stop (nearest stop is ~300m away from (~500m away from Grand Canyon Mall) Grand Canyon Mall) Residential Area 22 Non-Deal Roadshows *16 – 19 September 2013*

  24. Slide 24: Grand Canyon Mall – 1st Acquisition from Third Party

    Grand Canyon Mall – 1st Acquisition from Third Party1  An attractive income-producing mall  Strategically located with excellent connectivity  Large catchment with high footfall  Strong growth potential from renewals and enhancements  Target NPI yield of 7% - 8% in the longer term  Opportunity

  25. Slide 25: Grand Canyon Mall – Strong Rental and Capital Growth

    Grand Canyon Mall – Strong Rental and Capital Growth Expected to be yield accretive post completion Target NPI yield of 7% – 8%1 in the longer term • 3.5%2 current yield with passing rent below market  Strong potential NPI growth from:  Occupancy expected to increase from 92.7% to 100%  27% lease

  26. Slide 26: Grand Canyon Mall – Financing Structure

    Grand Canyon Mall – Financing Structure  Optimal financing structure through various fund raising options  Including combinations of internal cash resources, debt and equity fund raising RMB mil ~10% 2,000 to ~40% 20% to ~200 mil 50% to 1,500 400 mil ~700 mil to 900 mil 1,000 1,820 mil ~40% 500 ~7

  27. Slide 27: Steady and Sustainable Growth

    Steady and Sustainable Growth • Consistent strong rental reversion; average 14.9% for the past 10 quarters Proactive Asset • Leases making up 17.1% and Management 16% of gross revenue are expiring in 2H 2013 and 2014 respectively Generating Higher Returns Innovative Asset • CapitaMall Minzhongleyuan

  28. Slide 28: CRCT: An Attractive Investment

    CRCT: An Attractive Investment First and Only China Shopping Mall REIT in Singapore  Unique vehicle offering unparalleled growth potential  Proven track record underpinned by strong cash flow  Mid to long term appreciation of RMB  Most resilient sector through economic cycles  Strong contributi

  29. Slide 29: 1H 2013 Financial Results

    1H 2013 Financial Results 28 Non-Deal Roadshows *16 – 19 September 2013* CapitaMall Saihan, Huhhot, China

  30. Slide 30: 1H 2013 Financial Highlights

    1H 2013 Financial Highlights 1H 2013 1H 2012 Change Actual Actual Gross Revenue (RMB’000) 400,697 378,479 5.9% NPI (RMB’000) 264,0741 250,556 5.4% Distributable Income (S$’000) 35,242 33,286 5.9% DPU (Singapore cents) 4.692 4.82 (2.7)% Annualised Distribution Yield (Based on unit price of S$1.41 on

  31. Slide 31: Property Gross Revenue (in RMB’000): 1H 2013 vs 1H 2012

    Property Gross Revenue (in RMB’000): 1H 2013 vs 1H 2012 Excluding CapitaMall Minzhongleyuan1, gross revenue grew 7.0% y-o-y CRCT Portfolio 400,697 378,479 5.9% Multi-Tenanted Malls CapitaMall Xizhimen 118,370 108,545 CapitaMall Wangjing 87,790 82,912 CapitaMall Qibao 43,453 40,378 1H 2013: RMB 313,4

  32. Slide 32: Net Property Income (in RMB’000): 1H 2013 vs 1H 2012

    Net Property Income (in RMB’000): 1H 2013 vs 1H 2012 Excluding CapitaMall Minzhongleyuan1, NPI grew 8.3% y-o-y CRCT Portfolio 264,074 250,556 5.4% Multi-Tenanted Malls CapitaMall Xizhimen 82,477 75,039 CapitaMall Wangjing 63,838 60,427 CapitaMall Qibao 19,560 16,988 1H 2013: RMB 193,868K CapitaMall

  33. Slide 33: Healthy Balance Sheet

    Healthy Balance Sheet As at 30 Jun 2013 S$’000 Investment Properties 1,617,702 Net assets attributable 1,102,747 Other Assets 15,811 to unitholders (S$’000) Financial Derivatives Assets 5,921 Cash & Cash Equivalents 98,228 Units In Issue (‘000 units) 750,106 Total Assets 1,737,662 Interest-bearing B

  34. Slide 34: Key Financial Indicators

    Key Financial Indicators As at 30 June 2013 Unencumbered Assets as % of Total Assets 100.0% Gearing 23.5% Net Debt / EBITDA (Times) 4.1 Interest Coverage (Times) 9.1 Average Term to Maturity (Years) 2.52 Average Cost of Debt 2.58% 33 Non-Deal Roadshows *16 – 19 September 2013*

  35. Slide 35: Well-Spread Debt Maturity Profile

    Well-Spread Debt Maturity Profile Refinanced S$150.5 mil due in June 2013 with extended maturity S$ million Debt Maturity Profile (30 June 2013) 450 S$410.6 million 400 Variable CapitaMall Anzhen Rate 350 Unsecured- Onshore 21.9% Loan 300 Trust - Unsecured 20% Market 250 Term Loan Capitalisation2 20

  36. Slide 36: Portfolio Update

    Portfolio Update 35 Non-Deal Roadshows *16 – 19 September 2013* CapitaMall Qibao, Shanghai, China

  37. Slide 37: Portfolio Valuation Up 4.4%

    Portfolio Valuation Up 4.4% Current Previous Current Valuation Valuation NPI Variance Valuation (30 Jun 2013) (31 Dec 2012) Yield1 (%) (psm of GRA) RMB million RMB million (%) RMB Multi-Tenanted Malls CapitaMall Xizhimen 2,527 2,449 3.2 6.6 30,418 CapitaMall Wangjing 1,850 1,690 9.5 7.0 27,202 Capit

  38. Slide 38: Strong Portfolio Occupancy Rate

    Strong Portfolio Occupancy Rate 30 Jun 121 30 Sep 121 31 Dec 121 31 Mar 131 30 Jun 131 Multi-Tenanted Malls CapitaMall Xizhimen 98.9% 98.5% 94.8% 96.0% 98.5% CapitaMall Wangjing 100% 99.8% 99.5% 99.8% 99.9% CapitaMall Qibao 96.0% 97.5% 97.4% 97.2% 95.1%3 CapitaMall Minzhongleyuan2 76.0% 79.6% 81.3%

  39. Slide 39: High Portfolio Rental Reversion of 17.3% in 2Q 2013

    High Portfolio Rental Reversion of 17.3% in 2Q 2013 From 1 Apr to 30 Jun 2013 1,3 No. of new Var. over last rental rate2, 3 Property leases/renewals (%) CapitaMall Xizhimen 42 +12.9% CapitaMall Wangjing 38 +31.3% CapitaMall Qibao 20 +9.2% CapitaMall Saihan 38 +15.6% CapitaMall Wuhu 35 -1.0%4 CRCT Po

  40. Slide 40: Portfolio Lease Expiry (By Year)

    Portfolio Lease Expiry (By Year) Gross Rental Income3 As at 30 Jun 2013 No. of Leases1,3 % of total RMB’000 (Jun 13)2 2013 328 10,246 17.1 2014 330 9,624 16.0 2015 142 9,385 15.6 2016 55 4,357 7.3 2017 26 3,039 5.1 Beyond 2017 53 23,316 38.9 Weighted average lease term to CRCT Portfolio expiry3 By G

  41. Slide 41: Portfolio Lease Expiry Profile for 2013

    Portfolio Lease Expiry Profile for 2013 Gross Rentable Gross Rental No. of Area3 Income3 As at 30 Jun 2013 Leases1,3 % of % of total Sq m RMB’000 total (Jun 13)2 CapitaMall Xizhimen 68 13,978 16.8 3,920 20.5 CapitaMall Wangjing 81 9,883 14.5 3,769 27.6 CapitaMall Qibao 37 3,426 4.7 798 12.8 CapitaMa

  42. Slide 42: Portfolio Tenants’ Sales & Shopper Traffic

    Portfolio Tenants’ Sales & Shopper Traffic Tenants’ Sales1 Shopper Traffic2 Ave. Monthly Sales Ave. Daily No. of Shoppers RMB psm '000 1,500 200 150 Y-o-Y 1,000 Y-o-Y 4.2% 9.5% 100 500 Q-o-Q 50 Q-o-Q 2.9% 4.0% 0 0 2Q 2012 1Q 2013 2Q 2013 2Q 2012 1Q 2013 2Q 2013 2Q 2012 1Q 2013 2Q 2013 2Q 2012 1Q 201

  43. Slide 43: Appendix

    Appendix 42 Non-Deal Roadshows *16 – 19 September 2013* CapitaMall Erqi, Zhengzhou, China

  44. Slide 44: Grand Canyon Mall – Project Highlights

    Grand Canyon Mall – Project Highlights 43 Non-Deal Roadshows *16 – 19 September 2013* 43 Grand Canyon Mall, Beijing, China

  45. Slide 45: Strategically Located in South Beijing

    Strategically Located in South Beijing Strong economic fundamentals with good growth potential  Fengtai – up-and-coming region with healthy economic fundamentals  Existing population of 2.2 million1  Retail sales grew 11.7% to reach ~RMB 83 bil in 2012  Urban disposable income per capita grew 11

  46. Slide 46: Strategically Located in South Beijing

    Strategically Located in South Beijing Excellent connectivity and easily accessible by public transport  5-min walk to Majiapu Subway Haidian Station of Line 4, the main line Subway Line 4 connecting Beijing’s north-south 1 bound traffic 2  CapitaMall Xizhimen is also located 3 along Line 4 4 Feng

  47. Slide 47: Strategically Located in South Beijing

    Strategically Located in South Beijing Excellent connectivity and easily accessible by public transport Beijing South Railway Station  Close proximity to 4 major bus stops serving ~40 bus services, accessible to other districts in Beijing  1 subway stop away from Beijing South Railway Station  2n

  48. Slide 48: Large Catchment with Strong Shopper Traffic

    Large Catchment with Strong Shopper Traffic From immediate and surrounding population  >55,000 residents and office workers within 10-min walking distance  >650,000 residents and office workers within 5-km radius Residences Office Towers 47 Non-Deal Roadshows *16 – 19 September 2013*

  49. Slide 49: Large Catchment with Strong Shopper Traffic

    Large Catchment with Strong Shopper Traffic Established presence with >1 mil average monthly footfall Grand Canyon Mall 48 Non-Deal Roadshows *16 – 19 September 2013*

  50. Slide 50: Advantage over Competing Retail Offerings

    Advantage over Competing Retail Offerings Opportunities from lack of retail options for shoppers and retailers • Existing options are mainly traditional departmental stores and hypermarkets Competing Offerings - Traditional Departmental Store Format 49 Non-Deal Roadshows *16 – 19 September 2013*

  51. Slide 51: Advantage over Competing Retail Offerings

    Advantage over Competing Retail Offerings One-stop mall for necessity shopping and essential services Grand Canyon Mall 50 Non-Deal Roadshows *16 – 19 September 2013*

  52. Slide 52: Portfolio Details

    Portfolio Details 51 Non-Deal Roadshows *16 – 19 September 2013* CapitaMall Wangjing, Beijing, China

  53. Slide 53: Diversified Trade Mix

    Diversified Trade Mix By Gross Rent1,3 By Net Lettable Area2,3 Department Store 0.8% 1.0% 3.4% 2.1% Supermarket 6.5% 3.2% 18.7% 4.4% 3.6% Fashion & Accessories 7.1% 4.5% 33.4% Food & Beverages 2.4% 2.1% 10.3% Leisure & Entertainment 10.7% Houseware & Furnishings 18.7% 10.5% Beauty & Healthcare Shoes

  54. Slide 54: Portfolio at a Glance

    Portfolio at a Glance CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall Xizhimen Wangjing Qibao Minzhong Saihan Wuhu1 Anzhen Shuangjing Erqi 凯德MALL• 凯德MALL• 凯德七宝 leyuan 凯德MALL• 凯德广场• 凯德MALL• 凯德MALL• 凯德广场• 西直门 望京 购物广场 新民众乐园 赛罕 芜湖 安贞 双井 二七 Location Beij

  55. Slide 55: Thank You

    Thank You For enquiries from analysts & investors, please contact LENG Tong Yan Investor Relations Tel: (65) 6826 5469 Email: leng.tongyan@capitaland.com 54 Non-Deal Roadshows *16 – 19 September 2013*

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