CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaCommercial Trust — Q1 2009 Earnings Presentation
44 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Apr 30, 2009
Slide 1: CapitaCommercial Trust 2009 First Quarter Results
CapitaCommercial Trust 2009 First Quarter Results 30 April 2009
Slide 2: Important Notice
Important Notice This presentation shall be read in conjunction with CCT’s 2009 First Quarter Unaudited Financial Statement Announcement. The past performance of CCT is not indicative of the future performance of CCT. Similarly, the past performance off CapitaCommercial C i C i l Trust T M Managemen
Slide 3: Contents
Contents • First Quarter Highlights • Robust Financial Results • Proactive Capital Management • Stable Portfolio Growth • Market Outlook • Summary • Supplementary Information 3 CapitaCommercial Trust Presentation *Apr 2009*
Slide 4: First Quarter Highlights
First Quarter Highlights g g 4 CapitaCommercial Trust Presentation *Apr 2009*
Slide 5: 1Q 2009 DPU Up 25.1% from 1Q 2008
1Q 2009 DPU Up 25.1% from 1Q 2008 25.1% 3.24¢ 3.00¢ Contribution from 2.59¢ acquisition of One George Street and Wilki Edge Wilkie Ed as well as higher rental 2.00¢ 1Q 2009 income from existing 1Q 2008 properties 1.00¢ 0.00¢ Distribution Per Unit 5 CapitaCommercial Trust Presentation *Apr 2009*
Slide 6: Successfully Secured Refinancing for Debt Maturing in 2009
Successfully Secured Refinancing for g in 2009 Debt Maturing • Obtained commitment of S$160 million from a bank • 3-year 3 year term loan secured over HSBC Building • All-in margin (inclusive of fees) is 3.0% per annum • D Demonstrates t t CCT’ CCT’s anddS Sponsor’s ’ strong t relationship with bank
Slide 7: Proactive Leasing
Proactive Leasing • Signed on new leases and renewals for an aggregate area of 335,800 square feet in the first four months of 2009 – Tenants include Legg Mason, CapitaLand, BNI and Koufu – Key sectors: government, retail, banking, insurance & financial services • Positive rental reversion on a weig
Slide 8: Robust Financial Results
Robust Financial Results 8 CapitaCommercial Trust Presentation *Apr 2009*
Slide 9: 1Q 2009 Distributable Income Above Forecast by 16.0%
1Q 2009 Distributable Income Above Forecast by 16.0% S$’000 1Q 2009 (Forecast) 1Q 2009 1.3% 120,000 96,197 97,461 3 7% 3.7% 100,000 80,000 16.0% 67,407 69,870 60,000 45,404 39,151 40,000 20,000 0 Gross Revenue Net Property Income Distributable Income Higher income Lower property tax, Lower borrowing
Slide 10: 1Q 2009 Gross Revenue Up by 36.9% Compared with 1Q 2008
1Q 2009 Gross Revenue Up by 36.9% Compared with 1Q 2008 S$’000 1Q 2008 1Q 2009 120,000 36.9% 97,461 100,000 40.8% 80,000 71,195 69,870 26.6% 60,000 49,626 45,404 40,000 35,858 20,000 0 Gross Revenue Net Property Income Distributable Income Contribution from Due to the two Higher net income off-set a
Slide 11: 1Q 2009 in line with 4Q 2008
1Q 2009 in line with 4Q 2008 S$’000 0.3% 4Q 2008 1Q 2009 120,000 97 164 97,164 97 461 97,461 6 5% 6.5% 100,000 80,000 69,870 19.6% 65,609 60,000 45,404 37,964 40,000 20,000 0 G Gross Revenue R N tP Net Property t Income I Di t ib t bl IIncome Distributable Higher rental income from Mainly due to cos
Slide 12: Proactive Capital Management
Proactive Capital p Management g 12 CapitaCommercial Trust Presentation *Apr 2009*
Slide 13: Total Assets at S$6.9B, Adj. NAV at S$2.91
Total Assets at S$6.9B, Adj. NAV at S$2.91 31 M Mar 09 31 D Dec 08 S$'000 S$'000 Non-current assets 6,785,655 6,785,965 Current assets 79,046 85,426 Total assets 6,864,701 6,871,391 Current liabilities1 396,460 793,555 Non-current liabilities 2 2,345,513 1,922,945 Net assets 4 122 728 4,122,728 4 15
Slide 14: Secured Bank Commitment of S$160m to refinance 2009 outstanding debt
Secured Bank Commitment of S$160m g debt to refinance 2009 outstanding S$ million 1,200 S$22 m RCS - secured term $370m loan due Sep As at 31 March 2009 1,000 CCT - 34% (0.8%) Convertible Bonds CCT - 3-year Total Gross Debt : secured term loan Put option 22% due in Jun (6%) S$2,632.8 million 800 $65
Slide 15: Stable Portfolio Growth
Stable Portfolio Growth 15 CapitaCommercial Trust Presentation *Apr 2009*
Slide 16: Gross Rental Income Predominantly Contributed by Grade A Offices
Gross Rental Income Predominantly y Grade A Offices Contributed by CCT’s Focus is Owning and Investing in Real Estate and Real Estate-related Assets, which are Income-producing and used,, or Predominantly y used,, for Commercial Purposes p Major usage mix for CCT properties By Gross Rental Income fo
Slide 17: Portfolio Diversification with Focus on Quality
Portfolio Diversification with Focus on Quality About 80% of 1Q 2009 Net Property Income from Grade A Offices and Raffles City Golden Shoe Car Market Street Car Park, 1.0% Park, 2.8% Bugis Village, 2.9% Wilkie Edge, 0.4% HSBC Building, 3.2% (1) Robinson Point, 3.6% Raffles City, 28.4% Starhub Centre
Slide 18: Diverse Tenant Mix in CCT's Portfolio
(1) Diverse Tenant Mix in CCT’s Portfolio Department Store, 1.9% Car Park, 2.3% Legal, 2.5% Education, 1.8% Banking, Insurance & Financial Services Services, Retail Services, 2.9% 36.0% Real Estate & Property Services, 4.0% (2) Standard Chartered Bank Others , 5.5% JPMorgan Chase Food & Beverage, Ba
Slide 19: Top Ten Blue-Chip Tenants Enhance Stability
(1) Top Ten Blue-Chip Tenants Enhance Stability - Contribute about 50% of monthly gross rental income Weighted Average Lease Term to Expiry (by Floor Area) for Top 10 Tenants as at 31 Mar 2009= 6.4 years 11.1% 10.8% 4.7% 4.6% 3.6% 2.7% 2.6% 2.3% 2.0% 1.9% Standard RC Hotels (Pte) Government of JPMor
Slide 20: Committed occupancy consistently above market levels
Committed occupancy consistently above a et levels market e es Committed Occupancy as at 30 April CCT's Committed Occupancy Since Inception 2009 is 97.7% 120% 96.7% 100% 80% (Islandwide) 90.0% Occupancy rate in Singapore’s core CBD 60% is 93.1% and Grade A offices is 40% 97.1% as at end-March 2009 (
Slide 21: Almost Half of the Leases Expiring in 2009 have already been Renewed
Almost Half of the Leases Expiring in 2009 have already been Renewed (1) Leases up for Renewal (by monthly gross rental income) as at 31 March 2009 0.3% 19.7% 17.5% 19.7% 6.1% 3.4% 8.9% 7.5% 1 9% 1.9% 7.7% 3.4% 7.8% 3.5% 3.9% 0.4% 2009 2010 2011 2012 2013 and Beyond Office Retail Hotels and Conventi
Slide 22: Almost Half of the Office Leases Expiring in 2009 have already been Renewed
Almost Half of the Office Leases Expiring in 2009 have already been Renewed Office Leases Expiring as a percentage of monthly office gross rental income as at 31 March 2009 0.4% 27 1% 27.1% 27.2% 8.5% 24.2% 4.6% 10.7% 10.8% 2009 2010 2011 2012 2013 and Beyond R Renewed dLLeases ffor 2009 R Renewed d
Slide 23: Potential Rental Upside from Lease Renewals in 2009
Potential Rental Upside from Lease Renewals in 2009 2009 60% $20.00 $16.00 Grade A Office Average Rent in Q1 2009: S$12.30 psf /month (1) 40% S$10 50 psf/month (1) Prime Office Average Rent in Q1 2009: S$10.50 $12.00 $7.47 $8.00 20% $6.77 $6.07 $5.89 $4.00 0.7% 2 6% 2.6% 2.2% % 1.7% 0% $- Capital To
Slide 24: Limited Percentage of Leases Expiring for the Four Key Office Buildings
Limited Percentage of Leases Expiring for the Four Key Office Buildings Lowers the potential and downside risks associated with the Singapore Office Market over these time periods 2010 2011 60% $20.00 60% $20.00 $16.00 $16.11 $16.00 $14 36 $14.36 40% $12.63 40% $12.00 $12.51 $12.00 $10.40 $6.58 $8.0
Slide 25: Average CCT Office Portfolio Rent still Lower than Market Rents
Average CCT Office Portfolio Rent still Lower than Monthly y Market Rents 3 $18.80 $18.80 $18.65 $15 00 $15.00 $12.30 3 $16.10 $16.10 $16.00 $12.90 $10 50 $10.50 $7.44 $7.73 $6 75 $6.75 $7 20 $7.20 $5.98 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 (1) (2) (2) CCT Office Portfolio Prime Office Average Re
Slide 26: Market Outlook
Market Outlook 26 CapitaCommercial Trust Presentation *Apr 2009*
Slide 27: Expects 2009 to be a Challenging Year
Expects 2009 to be a Challenging Year • Ministry of Trade and Industry (MTI) expects Singapore’s GDP to contract by 6.0 to 9.0 per cent in 2009 • Singapore government has announced a set of expansionary budget measures – to stimulate the economy, and – to enhance the country’s capabilities and compe
Slide 28: Singapore has only 6.7 mil sq ft of Grade A Office
Singapore has only 6.7 mil sq ft of Grade A Office Outside of Central Region Grade A 2.2 Office, Fringe Area 3% 6.7 mil 11.4 sq ft 20% Downtown Core Other Area in sq ft (mil) 27.5 Office 48% grades, Rest of 20.8 mil Central Area sq ft 11.7 21% Orchard Rd 43 4.3 8% • Singapore’s g p Total Office Stoc
Slide 29: Uncertain Office Supply from 2011 Onwards
Uncertain Office Supply from 2011 Onwards – Delay in completion is evident • Some future supply have already been pre-committed, e.g. 1.9 mil sq ft in 2010 & 2012 (MBFC) Singapore Private Office Space (Central Area) 5.0 Ave annual supply = 2.4 mil sq ft R Ave annual demand during previous 4.0 4.1 gr
Slide 30: Summary
Summary y 30 CapitaCommercial Trust Presentation *Apr 2009*
Slide 31: Almost 90% of 2009's forecast gross rental income locked-in
Almost 90% of 2009’s forecast gross rental income(1) locked-in with committed leases Note: (1) Based on the Forecast Gross Rental Income for the “enlarged portfolio”, published in CCT’s circular to unitholders dated 9 June 2008 31 CapitaCommercial Trust Presentation *Apr 2009*
Slide 32: Achieving Higher DPU Year-On-Year
Achieving Higher DPU Year-On-Year 12.2% • Distribution yield based on Projection Year 2009 Distribution Per Unit and closing price per unit on 26.4% (6) 29 April 2009 of S$0.815 = 15.1% 12.34¢ 18.7% (5) 11.00¢ 7.6% 10.59¢ 7.8% (4) 8.55¢ 8.70¢ (3) 7.33¢ (2) 6.81¢ 7.02¢ (1)6.32¢ 6.31¢ 5.68¢ 15 May to
Slide 33: Focus On Fundamentals
Focus On Fundamentals 33 CapitaCommercial Trust Presentation *Apr 2009*
Slide 34: Strategy for Driving DPU Growth
Strategy for Driving DPU Growth Distribution Per Unit Growth Acquisitions / within portfolio Development Projects Asset Enhancement -Rental rate – Singapore -Occupancy & overseas Proactive and prudent capital management 34 CapitaCommercial Trust Presentation *Apr 2009*
Slide 35: Customer Focus
Customer Focus • More than 500 tenants (office and retail) • Tenant retention • Tenant communication and support • Managed by professional property manager, C it L d CapitaLand – Awarded ISO 14000 certification – Awarded A d d Si Singapore S Service i Class (S-Class) certification from Spring Singap
Slide 36: Prime Assets
Prime Assets • Properties in good location, near to key MRT stations • Owns O ns commercial area of more than 3 million sq ft • Lease to quality blue-chip tenants • Most properties are at least Green Mark certified by the Building and Construction Authority of Singapore 36 CapitaCommercial Trust Pre
Slide 37: Supplementary Slides
Supplementary pp y Slides 37 CapitaCommercial Trust Presentation *Apr 2009*
Slide 38: 1Q 2009 Gross Revenue – By Asset
1Q 2009 Gross Revenue (1) – By Asset S$ ‘000 36.9% 100,000 97,461 90,000 1Q 2008 1Q 2009 Due to the proposed 80,000 redevelopment of MSCP 71,195 announced in early 2008 70,000 which has since been aborted in January 2009 60,000 50,000 0.9% 11.7% 24.5% 40,000 30,000 57.7% 64.9% 4.5% 1.8% 28,485 28,72
Slide 39: 1Q 2009 Net Property Income – By Asset
1Q 09 Net Property Income (1) - By Asset S$ ‘000 Higher property operating expense 40.8% 80,000 offset partially by increase in revenue. Increase in property operating 1Q 2008 1Q 2009 expenses due to higher property tax, 69,870 70,000 utilities, maintenance & marketing e expenses. penses 60,000 Due
Slide 40: Consistently Healthy Occupancy Rates
Consistently Healthy Occupancy Rates 2004 2005 2006 2007 2008 1Q 2009 Capital Tower 94.5 100.0 100.0 100.0 99.9 99.9 Six Battery Road 97.5 99.5 100.0 99.9 98.6 97.6 Starhub Centre 98.1 100.0 100.0 99.0 93.1 93.1 Robinson Point 85.2 99.1 100.0 100.0 90.9 95.9 Bugis Village 92.9 92.1 95.3 99.1 96.6 96
Slide 41: Details of Forecast Office Supply for 2009
Details of Forecast Office Supply for 2009 Expected Net Floor Total Net Floor Completion Development Location Area (sf) Area (sf) 60 Robinson Road (space (space addition to Q2 former Overseas Union Bank Building ) Robinson Road 29 753 29,753 EFG Bank Building ( 67 High Street - former Q2 Satnam Hous
Slide 42: Details of Forecast Office Supply for 2010
Details of Forecast Office Supply for 2010 Expected Net Floor Total Net Floor Completion Development Location Area (sf) Area (sf) Tokio Marine Centre (formerly Asia Chambers Q1 redevelopment) McCallum St 133 000 133,000 Q1 Twenty Anson Anson Road 209,000 Marina Bay Financial Centre (Phase 1) – Q2 65
Slide 43: Details of Forecast Office Supply for 2011 - 2013
Details of Forecast Office Supply for 2011 - 2013 Expected Net Floor Total Net Floor Completion Development Location Area (sf) Area (sf) Q1 2011 Ocean Financial Centre Collyer Quay 850 000 850,000 2011 1 Raffles Place (OUB Centre Tower 2) Raffles Place 350,000 Hotel / Office at Upper Pickering Stree
Slide 44: CapitaCommercial Trust Management Limited
CapitaCommercial Trust Management Limited 39 Robinson Road #18-01 Robinson Point Singapore 068911 Tel: (65) 6536 1188 F Fax: (65) (6 ) 6533 6 33 6133 http://www.cct.com.sg For enquiries, please contact: Ms Ho Mei Peng Head, Investor Relations & Communications Direct: (65) 6826 5586 E il ho.meipeng@c
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