Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Croesus Retail Trust — 3Q FY2016 Earnings Presentation
29 slides from Singapore Exchange's earnings presentation, May 13, 2016
Slide 1: Financial Results
Financial Results For the period from 1 January 2016 to 31 March 2016 (“3Q FY2016”), and; 1 July 2015 to 31 March 2016 (“3Q YTD2016”) 13 May 2016
Slide 2: Important Notice
Important Notice Certain statements in this presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statements and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual res
Slide 3: About Croesus Retail Trust
About Croesus Retail Trust First Asia-Pacific retail business trust with an initial portfolio in Japan listed on the SGX-ST Portfolio comprises 8 quality prime and suburban retail malls with an aggregate NLA of 328,020 sq m and committed occupancy of 98.1% as at 31 March 2016 Exposure to resil
Slide 4: Key Highlights, Financial Highlights, Portfolio Performance, Outlook
Key Highlights Financial Highlights Portfolio Performance Outlook
Slide 5: Key Highlights for 3Q FY2016
Key Highlights for 3Q FY2016 • 3Q FY2016 DPU of 1.86 cents per unit with quarterly year-on-year DPU growth of 19.2%1. • 3Q YTD2016 DPU of 5.36 cents per unit with half yearly year-on-year DPU growth of 8.1%1. • Strong contributions from Torius and the tenants renewal exercise at Mallage Shobu that w
Slide 6: Key Highlights for Post 3Q FY2016
Key Highlights for Post 3Q FY2016 Successful equity fund raising S$52.5 million via a private placement launched and completed on 23 March 2016 and 24 March 2016 respectively. Successful issue of S$60 million 5.0% Fixed Rate Notes Fully swap proceeds to Japanese Yen to get JPY fixed interest r
Slide 7: 3Q Financial Highlights 1 January 2016 to 31 March 2016
3Q Financial Highlights 1 January 2016 to 31 March 2016 1 Jan 2016 to 1 Jan 2015 to 31 Mar 2016 31 Mar 2015 (Actual) (Actual) (Restated) (4) Variance %(5) Income Available for Distribution (¥’000) 1,020,620 815,729 815,729 25.1% Distribution Per Unit (‘DPU’) (Singapore 1.86 1.90 1.56 19.2% cents)(3)
Slide 8: YTD Financial Highlights 1 July 2015 to 31 March 2016
YTD Financial Highlights 1 July 2015 to 31 March 2016 1 Jul 2015 to 1 Jul 2014 to 31 Mar 2016 31 Mar 2015 (Actual) (Actual) (Restated) (4) Variance %(5) Income Available for Distribution (¥’000) 2,912,475 2,481,479 2,481,479 17.4% Distribution Per Unit (‘DPU’) (Singapore 5.36 6.06 4.96 8.1% cents)(3
Slide 9: 3Q FY2016 DPU 19.2% above restated 3Q FY2015
3Q FY2016 DPU 19.2% above restated 3Q FY2015 (JPY’000) 3Q FY2016 3Q FY2015 Variance % Actual Actual Gross Revenue 2,465,596 1,982,267 24.4% Less: Property Operating Expenses (1,056,976) (819,578) 29.0% Net Property Income 1,408,620 1,162,689 21.2% Trustee-Manager’s Fees(1) (178,824) (158,168) 13.1%
Slide 10: 3Q YTD2016 DPU 8.1% above restated 3Q YTD2015
3Q YTD2016 DPU 8.1% above restated 3Q YTD2016 (JPY’000) 3Q YTD2016 3Q YTD2015 Variance % Actual Actual Gross Revenue 6,905,816 5,646,810 22.3% Less: Property Operating Expenses (2,896,508) (2,171,301) 33.4% Net Property Income 4,009,308 3,475,509 15.4% Trustee-Manager’s Fees(1) (521,523) (473,234) 1
Slide 11: Balance Sheet
Balance Sheet (JPY’000) Actual as at Actual as at 31 March 2016 30 June 2015 Investment Properties 96,337,890 87,930,000 Other Non-current Assets 5,729,052 5,062,870 Current Assets 7,785,915 7,408,083 Total Assets 109,852,857 100,400,953 Loans and Borrowings (long-term) 50,727,044 47,487,213 Other N
Slide 12: Debt Maturity Profile
Debt Maturity Profile Total Long-term Debt: JPY 50,727 million Unit: JPY mm 24,361 8,905 8,128 5,389 3,944 0 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 % of total debt maturing 0% 18% 48% 16% 11% 8% • Weighted debt maturity as at 31 March 2016 is 2.4 years 12
Slide 13: Key Financial Indicators
Key Financial Indicators Actual as at Actual as at 31 March 2016 31 December 2015 Gearing Ratio 46.2% 46.3% Interest Coverage Ratio 4.4 times 4.1 times % of Debt Hedged 82.5% 98.9% Average All-In Cost of Debt(1) 1.91% 1.90% Debt Maturity 2.4 years 2.6 years Additional Debt Headroom(2) JPY 37.9 billi
Slide 14: Key Highlights, Financial Highlights, Portfolio Performance, Outlook
Key Highlights Financial Highlights Portfolio Performance Outlook
Slide 15: Portfolio Overview
1 Portfolio Overview Total Portfolio of 8 high-quality retail assets – well-located near major transportation nodes and geographically diversified across Japan 1 2 3 1 8 Denotes order of acquisition 4 5 6 7 8 Acquired NLA (sq m) 1. Aeon Town Moriya May 2013 4 1 68,047 6 5 2. Aeon Town Suzuka May 201
Slide 16: Key Information on the Assets
Key Information on the Assets Age of (2) 3Q YTD2016 Purchase Number of Valuation Annualised City (1) Building Leasehold / Freehold Actual NPI Price (3) Tenants (1) (JPY mm) NPI Yield (yrs) (JPY mm) (JPY mm) 1 master lessee, Aeon Town Moriya Ibaraki 8.8 Freehold 14,400 611.5 12,154 6.7% 111 subtenant
Slide 17: Balanced Portfolio Contributing to Stable Income and Sustainable Growth
Balanced Portfolio Contributing to Stable Income and Sustainable Growth Each of the properties is strategically located within its submarket, being directly connected via major transportation nodes. 3Q Lease Expiry Profile Connectivity YTD2016 Occupancy WALE by NLA (1) By Major NPI % (1) (yrs) FY201
Slide 18: Favourable Lease Profile
Favourable Lease Profile A substantial portion of CRT’s Gross Rental Income is derived from leases structured as Fixed Term Leases, giving it greater flexibility to adjust rentals / tenant composition, or variable rent, allowing it to share any income upside with its tenants. % of Gross Rental Incom
Slide 19: Top Ten Tenants of CRT
Top Ten Tenants of CRT Diversification of CRT’s tenant base achieved post recent acquisitions with addition of new anchor tenants Top 10 Tenants by NLA (As at 31 March 2016) 34.0% 8.0% 6.2% 4.2% 1.8% 1.8% 1.7% 1.5% 1.2% 1.1% Aeon Town Aeon Retail Nafco Costco United Central Toys 'R' Us 109 Sports Ni
Slide 20: New openings and promotional events during 3Q FY2016 (1)
New openings and promotional events during 3Q FY2016 (1) Promotional Events Aeon TownSuzuka : Tsugaru shamisen Torius : Movie Photo Session Torius: Children’s Experience Day live performance Aeon Town Suzuka: Toy Railway 20 Torius : Rock Climbing for Kids Torius: New Year Celebration Showcase
Slide 21: New openings and promotional events during 3Q FY2016 (2)
New openings and promotional events during 3Q FY2016 (2) Promotional Events One’s Mall: Shrine in the Mall One’s Mall: Fire Safety Fair One’s Mall: Spring Break Indoor Playground Aeon Town Moriya: Hiroshi – Fans Aeon Town Moriya : Forest Friendship 21 Luz Omori: Novelty Distribution Concert Meeting
Slide 22: Key Highlights, Financial Highlights, Portfolio Performance, Outlook
Key Highlights Financial Highlights Portfolio Performance Outlook
Slide 23: Outlook: Promising Macro-Environment
Outlook: Promising Macro-Environment • Promising GDP and Tankan data • 4Q 2015 annualised GDP contracted 1.1% lower than its preliminary estimates of 1.4% due to a slight decline in the consumer spending and exports. • Quarterly Tankan index(1) for March 2016 achieved +6 which is an increase of +3 h
Slide 24: Retail Cap Rate Trends
Retail Cap Rate Trends Suburban Retail Cap Rate Trends Prime Retail Cap Rate Trends 8.5% 7.5% 8.0% 7.0% 7.5% 6.5% 7.0% 6.0% 6.5% 5.5% 6.0% 5.0% 5.5% 4.5% 5.0% 4.0% 4.5% 3.5% 4.0% 3.0% Suburban shopping Center (One hour drive from downtown Tokyo) Ginza (Downtown High-End retail property) Sapporo Omot
Slide 25: Significant Retail deals across Japan (1)
Significant Retail deals across Japan (1) Property Name Town/ City Purchaser Vendor Price NOI Cap Closing (JPY Rate (%) Date Billion) Valor Suzuka Shopping Suzuka-shi, Mie Orix J-REIT Inc. Orix Real Estate 3.2 6.3 April 2014 Center (REIT) Inage Kaigan Building Mihama-ku, Tosei REIT Tosei 2.4 6.2 Nov
Slide 26: Significant Retail deals across Japan (2)
Significant Retail deals across Japan (2) Property Name Town/ City Purchaser Vendor Price NOI Cap Closing (JPY Rate (%) Date Billion) Roseo Mito Mito-shi, Ibaraki Kenedix Retail REIT Roseo Godo 9.7 5.7 Feb 2015 Corporation Kaisha Mitsui Shopping Park Misato-shi, Frontier Real Estate Mitsui Real 4.7
Slide 27: Significant News (1)
> ar ca #CrOESUS = Significant News (1) THE STRATES EMS, stimulus moves 27 Bank of Japan mulls over negative rate on some loans HUE SERMETN THOUS Markets shocked by BOJ's decision to hold off more GOVERNMENT & ECONOMY ewe wen Japan March industrial output up 3.6% month on month South Korva March fac
Slide 28: Significant News (2)
EC ROESUS RETAIL TRUST — Rg ‘BEST COMPARES Significant News (2) 28 Croesus trust to acquire Japanese mall foeresd yore Feb Ces Nea. BUSINESS [Og up | (Croesus trust to acquire Japanese mall Fate RE eH IEEAOLO eT Beard rane ns AOPRURATAS SRARARN TED Shae. (ERATE | BUSINESS lup to S$46.2m Croesus Reta
Slide 29: Thank You
Thank You Key Contact: Ms Amanda Chuah Tel: +65 6713 9550 Email: ir@croesusretailtrust.com
Croesus Retail Trust — 3Q FY2016 Earnings Presentation on 6ix