CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaMall Trust — Q2 2006 Earnings Presentation
61 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Jul 21, 2006
Slide 1: Second Quarter 2006 Financial Results Presentation
SECOND QUARTER 2006 FINANCIAL RESULTS PRESENTATION 21 July 2006
Slide 2: Disclaimers
Disclaimers This presentation is focused on comparing actual results versus forecasts stated in the CMT Circular to Unitholders dated 26 June 2006. This shall be read in conjunction with paragraph 9 of CMT 2006 Second Quarter Unaudited Financial Statement and Distribution Announcement. This presenta
Slide 3: Financial Highlights
Cap/taMall P Trust Financial Highlights
Slide 4: Financial Results: 2Q 2006 (1 Apr – 30 Jun 2006)
Financial Results : 2Q 2006 (1 Apr – 30 Jun 2006) Distribution Per Unit of 2.77 cents Exceeds Forecast by 0.3% 1 Apr to 30 Jun 2006 Actual Actual Forecast1 Variance Change% Taxable/Distributable income S$38.27 m S$38.13 m + S$0.14 m +0.3 Taxable/Distributable income 2.77¢ 2.76¢ + 0.01¢ +0.3 per unit
Slide 5: Outperformed DPU Forecasts
Outperformed DPU Forecasts Original Revised Variance from Variance from Forecast Actual Paid Forecast Original Revised (Annualised) (Annualised) Forecast Forecast (Annualised) 1Q 2006 11.00 ¢ 1 NA 11.04 © 0.3% NA 2Q 2006 11.03 ¢ 2 11.07 3 11.11 © 0.7% © 0.3% 1. Based on the forecast shown in the CMT
Slide 6: Financial Results: 1H 2006 (1 Jan – 30 Jun 2006)
Financial Results : 1H 2006 (1 Jan – 30 Jun 2006) Committed to Distribute 1Q 2006 Taxable Income Retained of S$4.17 million for Full Year Ending 31 December 2006 1 Jan to 30 June 2006 Actual Forecast1 Variance Change% Taxable income S$80.02 m S$79.89 m + S$0.13 m + 0.3 Taxable Income per unit 5.79¢
Slide 7: 2Q 2006 vs 2Q 2005 and 1H 2006 vs 1H 2005
2Q 2006 vs 2Q 2005 and 1H 2006 vs 1H 2005 2Q 2006 Distribution Per Unit Increased 10.3% over 2Q 2005 2Q 2006 2Q 2005 Variance Change% Actual Annualised taxable income/distribution 11.11¢ 10.07¢ + 1.04¢ +10.3% per unit Annualised distribution yield 5.10% 4.62% +0.48% +10.3% (Based on unit price of S$
Slide 8: Strong Renewals Achieved for 1H 2006
Strong Renewals Achieved for 1H 2006 Summary of renewals/new leases1: (1 January – 30 June 2006) Achieved vs preceding rental rates + 8.1% Achieved vs forecast rental rates2 + 7.2% 1. Only renewal of retail units not budgeted to be affected by asset enhancement works were taken into account, 74
Slide 9: Distribution Details
Distribution Details Distribution Period 1 April to 30 June 2006 Distribution Rate 2.77 cents per unit Distribution Timetable Notice of Book Closure Date 21 July 2006 Last Day of Trading on “cum” Basis 27 July 2006, 5.00 pm Ex-Date 28 July 2006, 9.00 am Book Closure Date 1 August 2006, 5.00 pm Distr
Slide 10: Financial Results
Cap/taMall P Trust Financial Results
Slide 11: Distribution Statement: 2Q 2006 (1 Apr – 30 Jun 2006)
Distribution Statement : 2Q 2006 (1 Apr – 30 Jun 2006) Actual1 Forecast2 Variance 1 Apr to 30 Jun 2006 S$’000 S$’000 (%) Gross Revenue 76,536 74,782 2.3 Less property expenses (27,301) (26,190) (4.2) Net property income 49,235 48,592 1.3 Interest Income 1,420 1,229 15.5 Administrative expenses (5,22
Slide 12: Distribution Statement: 1 Jan – 30 Jun 2006
Distribution Statement : 1 Jan – 30 Jun 2006 Actual1 Forecast2 Variance 1 Jan to 30 Jun 2006 S$’000 S$’000 (%) Gross Revenue 153,217 151,464 1.2 Less property expenses (52,589) (51,478) (2.2) Net property income 100,628 99,986 0.6 Interest Income 2,870 2,679 7.1 Administrative expenses (10,421) (10,
Slide 13: Property Gross Revenue: 1 Apr – 30 Jun 2006
Property Gross Revenue : 1 Apr – 30 Jun 2006 Gross Revenue Exceeded Forecast1 Across The Portfolio 1 Apr – 30 Jun 2006 CMT Portfolio 76.5 74.8 2.3% 13.4 Tampines Mall 13.2 10.6 Junction 8 10.4 Funan 6.0 DigitaLife Mall 6.0 13.2 IMM Building 12.4 15.7 Plaza Singapura 15.7 13.0 Bugis Junction 12.7 1 2
Slide 14: Property Operating Expenses: 1 Apr – 30 Jun 2006
Property Operating Expenses : 1 Apr – 30 Jun 2006 1 Apr – 30 Jun 2006 27.3 CMT Portfolio 26.2 4.2% 3 4.2 Tampines Mall 4.0 3 3.7 Junction 8 3.5 Funan 2.2 DigitaLife Mall 2.4 3 6.5 IMM Building 5.7 Plaza Singapura 4.5 4.6 3 Bugis Junction 4.3 1 4.2 2Q Actual 2Q Forecast Other Assets2 1.9 1.8 0 5 10 1
Slide 15: Net Property Income: 1 Apr – 30 Jun 2006
Net Property Income : 1 Apr – 30 Jun 2006 Net Property Income Exceeded Forecast1 Across The Portfolio 1 Apr – 30 Jun 2006 CMT Portfolio 49.2 48.6 1.3% Tampines Mall 9.2 9.2 Junction 8 6.9 6.8 Funan 3.8 DigitaLife Mall 3.6 6.8 IMM Building 6.7 11.2 Plaza Singapura 11.1 Bugis Junction 8.6 8.5 1 2.7 2Q
Slide 16: Gross Revenue: 1H 2006 vs 1H 2005
Gross Revenue : 1H 2006 vs 1H 2005 Registered Strong Gross Revenue Growth of 5.1% 118.0 5.1% CMT Portfolio1 112.3 Tampines Mall 26.6 24.9 Junction 8 20.9 20.0 Funan 12.0 DigitaLife Mall 11.1 26.7 IMM Building 26.0 31.8 Plaza Singapura 1H 2006 Actual 1H 2005 Actual 30.3 0 10 20 30 40 50 60 70 80 90 1
Slide 17: Operating Expenses: 1H 2006 vs 1H 2005
Operating Expenses : 1H 2006 vs 1H 2005 Cost Control Measures Reduced Operating Cost by 1.0% 40.3 CMT Portfolio1 1.0% 40.7 5.1% Tampines Mall 7.9 7.9 Junction 8 6.9 6.9 Funan 4.4 2 DigitaLife Mall 4.2 IMM Building 12.1 12.9 Plaza Singapura 9.0 1H 2006 Actual 1H 2005 Actual 8.8 0 10 20 30 40 50 60 S$
Slide 18: Net Property Income: 1H 2006 vs 1H 2005
Net Property Income : 1H 2006 vs 1H 2005 Robust Net Property Income Growth of 8.6% CMT Portfolio1 77.7 8.6% 71.6 Tampines Mall 18.8 17.1 Junction 8 13.9 13.0 Funan 7.6 DigitaLife Mall 6.9 14.6 IMM Building 13.1 Plaza Singapura 22.8 1H 2006 Actual 1H 2005 Actual 21.5 0 10 20 30 40 50 60 70 80 90 100
Slide 19: Debt Capital Information as at Jun 2006
Debt Capital Information as at 30 Jun 2006 Debt Maturity Profile Key Statistics 450 433 400 Gearing Ratio 32.0% 350 335 38.6% 300 250 Interest Cover 5.4 times 29.8% 200 172 S$ million 150 125 Average Cost 3.1% 100 58 15.3% of Debt S$125mn 50 11.1% 5.2% 0 Revolving 2007 2009 2010 2012 Credit & Bridge
Slide 20: Valuation and Property Yield
Valuation and Property Yield As at 30 June 2006 Previous Valuation Property Valuation1 20062 Variance Yield3 S$ million Tampines Mall 633.0 635.0 2.0 5.8% Junction 8 473.0 477.0 4.0 5.8% Funan 247.5 252.0 4.5 5.6% DigitaLife Mall IMM Building 400.0 433.0 33.0 6.5% Plaza Singapura 803.0 809.0 6.0 5.3
Slide 21: Balance Sheet
Balance Sheet As at 30 Jun 2006 S$’000 Non Current Assets 3,485,177 Net Asset Value per unit S$1.67 Current Assets 58,635 (as at 30 Jun 2006) Total Assets 3,543,812 Adjusted Net Asset Value per unit S$1.64 (excluding distributable income) Current Liabilities 113,583 Unit Price as at 30 Jun 2006 S$2.
Slide 22: Portfolio Update
Cap/taMall P Trust Portfolio Update
Slide 23: Summary of Renewals / New Leases
Summary of Renewals / New Leases Rental Improvements through Proactive Asset Planning & Leasing Strategy From 1 January to 30 June 2006 (Excluding Newly Created Units) Increase in Current Rental No. of Net Lettable Area Rates VS. Property Renewals/ New Leases % Total Forecast Rental Preceding Area (
Slide 24: Gross Turnover Rent & Step-Up Leases
Gross Turnover Rent & Step-Up Leases % of Total Portfolio of Tenants No. of Tenants in Portfolio 100% 1200 1100 1 1 73.2% 1000 938 80% 75.5% 73.0% 900 800 1 1 742 720 57.9% 696 60% 700 600 40% 500 400 300 20% 200 100 0% 0 Tenants with Step- Tenants Paying Tenats with Step-Up Tenants Paying GTO Up Re
Slide 25: Portfolio Lease Expiry Profile By Year
Portfolio Lease Expiry Profile By Year As at 30 Jun 2006 Net Lettable Area Gross Rental Income No. of % of % of Leases Sq. ft. S$’000 total1 total2 2006 396 518,826 17.8% 4,547 19.8% 2007 628 894,728 30.6% 7,663 33.4% 2008 348 528,488 18.1% 5,188 22.6% 2009 247 459,381 15.7% 4,002 17.4% Weighted Ave
Slide 26: Portfolio Lease Expiry Profile for 2006 By Property
Portfolio Lease Expiry Profile for 2006 By Property Net Lettable Area Gross Rental Income As at 30 June 2006 No. of Leases % of % of Sq. ft. S$’000 total1 total2 Tampines Mall 14 31,966 9.9% 486 12.3% Junction 8 31 13,069 5.3% 355 11.6% Funan 29 39,971 14.4% 260 14.4% DigitaLife Mall IMM Building 19
Slide 27: High Committed Occupancy Rates at All Malls
High Committed Occupancy Rates at All Malls Occupancy Rates1 Close to 100% as at 30 Jun 2006 As at As at As at As at As at As at 31 Mar 05 30 Jun 05 30 Sept 05 31 Dec 05 31 Mar 06 30 Jun 06 Tampines Mall 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% F
Slide 28: Breakdown of DPU Growth Since IPO (Jul 2002)
Breakdown of DPU Growth Since IPO (Jul 2002) Acquisitions, Asset Enhancement & Active Leasing form Core Components of Growth 11.11 ¢2 Asset Enhancement/ CRS Investment Reconfiguration 3% 22% Upfront Payment of IMM Land Premium 7% Acquisitions 49% Active Leasing 19% 6.78 ¢1 1. Annualised forecast bas
Slide 29: Top 10 Tenants
Top 10 Tenants 1. Ten Largest Tenants by Total Gross Rental Contribute 23.0% of Total Gross Rental 2. No One Tenant Contribute more than 4.1% of Total Gross Rental % of Gross % of Net Trade Expiry Area Tenant Rental Lettable Sector Date 1 (sq ft) Income Area BHG (Singapore) Pte. Ltd.2 Department May
Slide 30: Well Diversified Trade Mix Across Portfolio
Well Diversified Trade Mix Across Portfolio By Net Lettable Area By Gross Rental Income 1.6% 0.6% 2.2% 3.4% 3.6 5.7 7.5 15 % .6 % 22 % % .5 6. % 3% 8. 0% 6. 14 4% .1 8. % 4% 7. 4% 20 9. 11 .8 6% 7. .5 % 8% % 9. 10 6% 17 .1 .3 % % Food & Beverage/Food Court Educational/Services Leisure and Entertainm
Slide 31: CapitaRetail Singapore Update
CapitaRetail Singapore Update
Slide 32: Summary of Renewals / New Leases
Summary of Renewals / New Leases CRS is on Target to Deliver 8.5% Coupon Rate From Acquisition to 30 June 2006 (Excluding Newly Created Units) Increase in Current No. of Net Lettable Area Rental Rates VS. Renewals/ Property New % Total Forecast Preceding Leases Area (sq ft) 1 NLA Rental Rates Rental
Slide 33: Valuation and Property Yield
Valuation and Property Yield As at 30 Jun 2006 S$ million Valuation Valuation Variance Property 20041 20052 Yield Lot 1 275 280 5 6.4% Bukit Panjang Plaza 195 207 12 5.8% Rivervale Mall 70 71 1 6.6% 540 558 18 6.1% Less additions in 2005 16.9 Net Increase in Valuations 1.1 Add revaluation surplus as
Slide 34: Asset Enhancements Update
Cap/taMall Asset Enhancements Update
Slide 35: IMM Building
Cap/taMall P Trust IMM Building
Slide 36: 2-Storey Retail Extension Block at IMM
2-Storey Retail Extension Block at IMM Artist Impression 36
Slide 37: Indicative AEI Timeline
Indicative AEI Timeline Activity Target Completion Date Commencement of AEI Works 1st Quarter 2006 Relocation of Open-air Carpark to Level 5 1st Quarter 2006 Circular Carpark Ramp & Carpark 3rd Quarter 2006 Guidance System Level 1 & 2 of Extension Block 3rd & 4th Quarter 2006 Level 3 of Extension Bl
Slide 38: Leasing Status of Entire AEI
Leasing Status of Entire AEI Leasing of the Newly Created Units has been Well on Track. Summary of Leasing Status Percentage of Leases Committed Level One1 89% Level Two1 60% Level Three2 28% The average rental achieved is 6.13% higher than projected rental. 1. Based on newly created units in extens
Slide 39: Successful Relocation of Open-Air Carpark to Level 5
Successful Relocation of Open-Air Carpark to Level 5 Open-air carpark on Level 1 has been relocated to Level 5, whilst maintaining the total number of carpark lots. Circular carpark ramp and electronic carpark guidance system will be put in place to help shoppers locate available carpark lots wi
Slide 40: Proposed Seamless Furniture Mall on Level 3
Proposed Seamless Furniture Mall on Level 3 40
Slide 41: Artist Impression of Shop Front
Artist Impression of Shop Front 41
Slide 42: Artist Impression of Interior View
Artist Impression of Interior View 42
Slide 43: Value Creation of Planned Initiatives
Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$92.5 mil 1st Qtr 2006 1st Qtr 2008 AEI Budget* Gross Revenue S$ 12.1 mil (net of rental loss from decanted retail space) Net Property Income S$ 9.3 mil Capital Expenditure (includes Differential Premium) S$ 92.5 m
Slide 44: Bugis Junction
Cap/taMall P Trust Bugis Junction
Slide 45: Strong Renewals Through Active Asset Management
Strong Renewals Through Active Asset Management From Acquisition1 to 30 June 2006 Increase in Current Rental Net Lettable Area No. of Renewals/ Rates VS. New Leases Forecast Preceding Area (sq ft) % Total NLA Rental Rates Rental Rates 41 35,355 8.6 6.0% 18.9% Following the unlocking of the Seiyu’s
Slide 46: Re-configuration Maximises Space Utilisation
Re-configuration Maximises Space Utilisation Created three new units through relocating toilets to lower yielding space and amalgamating with a few existing units with the freed up space at Malabar Block Void area at Seiyu’s Bubble Lift was converted to a new retail unit of approx 872 sq ft Valu
Slide 47: Installation of Carpark Guidance System
Installation of Carpark Guidance System To improve the traffic flow within the carpark as well as facilitate the ease of locating carpark lots for the shoppers, a Carpark Guidance System was installed. 47
Slide 48: Funan DigitaLife Mall
Cap/taMall P Trust Funan DigitaLife Mall
Slide 49: Asset Enhancement Initiatives
Asset Enhancement Initiatives A 2-storey retail annex which added close to 8,000 sq ft of NLA was constructed and completed on schedule To maximise space usage, some Air Handling Units (AHU) have been relocated to the roof top of the 2-storey annex so as to free up 2,679 sq ft of NLA With the
Slide 50: Value Creation from 2-Storey Retail Annex
Value Creation from 2-Storey Retail Annex Value Creation of AEI Incremental Gross Revenue p.a. S$688,032 Incremental Net Property Income S$529,784 Capital Expenditure S$5.0 mil Return on Investment 10.6% Capital Value of AEI S$9.6 mil (assumed 5.50% Cap Rate) Increase in Value S$4.6 mil Façade of Ne
Slide 51: New Units Created from AHU Relocation
New Units Created from AHU Relocation Several new units were created in place of the AHUs which were relocated to the roof top of 2-Storey Annex. 51
Slide 52: Junction 8
Cap/taMall P Trust Junction 8
Slide 53: Successful Installation of Carpark Guidance System
Successful Installation of Carpark Guidance System The Carpark Guidance System was completed in 1st week of July 2006. 53
Slide 54: Jurong Entertainment Centre
Jurong Entertainment Centre
Slide 55: Increase in Gross Plot-Ratio
Increase in Gross Plot-Ratio Urban Redevelopment Authority has granted an increase in Gross Plot- Ratio (GPR) from 1.85 to 3.0 Before After Variance Increase of GPR Increase of GPR Gross Plot Ratio 1.8514 3.000 62% Allowable GFA 170,000 sft 275,400 sft* 62% GRP increase is subject to the payment
Slide 56: Strong Renewals Through Active Asset Management
Strong Renewals Through Active Asset Management From Acquisition1 to 30 June 2006 Increase in Current Rental Rates No. of Net Lettable Area VS. Renewals/ New Leases Forecast Preceding Area (sq ft) % Total NLA Rental Rates Rental Rates 15 42,805 38.5 7.1% 14.8% In addition to the introduction of the
Slide 57: Sub-division of Retail Unit
Sub-division of Retail Unit Before After An additional annual rental revenue of S$43,600 was achieved through the sub- division of a large unit into two smaller units. 57
Slide 58: Other Updates
Cap/taMall P Trust Other Updates
Slide 59: Ability to Identify Quality Assets Strengthens Pipeline
Ability to Identify Quality Assets Strengthens Pipeline Sembawang Shopping Centre Approval to convert 45,267 sq ft of Residential GFA to Retail GFA Finalising an enhancement plan which will be launched in 2007 Hougang Plaza Obtained approval to increase plot ratio from 1.4 to 3.0 for full resi
Slide 60: In Summary
In Summary 1. Confident of delivering a DPU of 11.07 cents in 2006, barring any unforeseen circumstances 2. Committed to distribute 100% of taxable income available for distribution to Unitholders for the full financial year ending 31 December 2006 3. Acquisition of a 40% interest in Raffles City wi
Slide 61: The End
The End Cap/taMall P Trust