CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaMall Trust — Q2 2008 Earnings Presentation
91 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Jul 17, 2008
Slide 1: CapitaMall Trust Second Quarter 2008 Financial Results Briefing
CAPITAMALL TRUST Second Quarter 2008 Financial Results Briefing 17 July 2008
Slide 2: Disclaimers
Disclaimers This presentation is focused on comparing actual results versus forecasts for the CMT malls as stated in the Forecast Consolidated Statement of Total Return and Distribution Income of CMT and its subsidiaries dated 22 January 2008 and for RCS Trust as stated in the forecast shown in the
Slide 3: Financial Highlights
Cap/taMall P Trust Financial Highlights
Slide 4: Financial Results 2Q 2008
Financial Results 2Q 2008 (1 Apr – 30 Jun 2008) Distribution Per Unit of 3.52 Cents Exceeds Forecast1 by 1.7% Actual Forecast1 Variance Change 2 Distributable income S$58.6 m S$57.6 m S$1.0 m 1.7% Distribution per unit 3.52 ¢ 3.46 ¢ 0.06 ¢ 1.7% Comprise: 3.46 ¢ 3.45 ¢ 0.01 ¢ 0.3% Taxable Income Dist
Slide 5: 2Q 2008 vs 2Q 2007 and 1H 2008 vs 1H 2007
2Q 2008 vs 2Q 2007 and 1H 2008 vs 1H 2007 2Q 2008 Distribution Per Unit Increased 13.2% over 2Q 2007 2Q 2008 2Q 2007 Variance Change% Actual Annualised distribution per unit 14.16¢ 12.51¢ + 1.65¢ +13.2% Annualised distribution yield 4.66% 4.12% +0.54% +13.2% (Based on unit price of S$3.04 on 16 July
Slide 6: Breakdown of DPU Growth Since IPO (Jul 2002)
Breakdown of DPU Growth Since IPO (Jul 2002) Acquisitions, Asset Enhancements & Active Leasing form Core Components of Growth 14.16 ¢2 Asset Enhancements / Reconfiguration & Others 42% Upfront Payment of IMM Land Premium 5% Active Leasing 20% Acquisitions 1 33% 6.78 ¢ 1. Annualised forecast based on
Slide 7: Steady DPU Growth Since Listing in July 2002
Steady DPU Growth Since Listing in July 2002 Multi-Pronged Strategy Delivers Continuous DPU Growth +6.1% 14.162¢ 14 +14.1% 13.34¢ +14.3% +7.9% 11.69¢ 12 +18.1% 10.23 ¢ 10 +9.4% 9.48 ¢ 1 8.03 ¢ FY2008 8 7.34 ¢ FY2007 DPU2 FY2006 Actual FY2005 Actual 6 FY2004 DPU Actual DPU FY2003 Actual FY2002 DPU 4
Slide 8: Potential for Growth in Singapore
Potential for Growth in Singapore Ownership of Private Retail Stock in Singapore (by NLA) Private Fund CapitaCommercial Trust 5.7% 1.3% Strata owned CapitaLand 7.0% 3.9% Developers 34.4% CapitaMall Trust 13.0% Other REITS 9.6% Fragmented ownership 25.1% Source : UBS Research , June 2008 8
Slide 9: On Track to Achieve Target Local Asset Size of S$9.0 billion by 2010
On Track to Achieve Target Local Asset Size of S$ 9.0 billion by 2010 With the acquisition of The Atrium@Orchard, CMT’s total deposited property will increase from S$6.6bn1 to S$7.2bn Strengthens CMT’s position as the largest REIT by asset size and market capitalisation in Singapore On track t
Slide 10: Distribution Details
Distribution Details Distribution Period 1 April to 30 June 2008 Distribution Rate 3.52 cents per unit Distribution Timetable Notice of Book Closure Date 17 July 2008 Last Day of Trading on “cum” Basis 22 July 2008, 5.00 pm Ex-Date 23 July 2008, 9.00 am Book Closure Date 25 July 2008 Distribution Pa
Slide 11: Financial Results
Cap/taMall Financial Results
Slide 12: Distribution Statement 2Q 2008
Distribution Statement 2Q 2008 (1 Apr – 30 Jun 2008) Actual Forecast1 Variance S$’000 S$’000 (%) Gross Revenue 125,632 119,822 4.8 Less property operating expenses (41,992) (39,654) 5.9 Net property income 83,640 80,168 4.3 Interest Income 590 19 N.M Administrative expenses (9,117) (7,883) 15.6 Inte
Slide 13: Distribution Statement 1H 2008
Distribution Statement 1H 2008 (1 Jan – 30 Jun 2008) Actual Forecast1 Variance S$’000 S$’000 (%) Gross Revenue 246,695 237,900 3.7 Less property operating expenses (78,388) (78,735) (0.1) Net property income 168,307 159,165 5.7 Interest Income 775 54 N.M Administrative expenses (17,067) (15,696) 8.7
Slide 14: Property Gross Revenue 2Q 2008
Property Gross Revenue 2Q 2008 (1 Apr – 30 Jun 2008) Portfolio Gross Revenue Exceeded Forecast1 by 4.8% 125.6 CMT Portfolio 119.8 4.8% 15.6 Tampines Mall 14.5 12.0 Junction 8 11.4 Funan 7.4 DigitaLife Mall 7.1 18.4 IMM Building 17.7 17.9 Plaza Singapura 17.7 16.0 Bugis Junction 15.0 3.3 Other Assets
Slide 15: Property Operating Expense 2Q 2008
Property Operating Expense 2Q 2008 (1 Apr – 30 Jun 2008) Property Operating Expense Exceeded Forecast1 by 5.9%2 CMT Portfolio 42.0 39.6 5.9% Tampines Mall 4.7 4.2 Junction 8 4.0 3.7 Funan 2.8 DigitaLife Mall 2.7 IMM Building 6.4 6.2 Plaza Singapura 5.3 5.1 Bugis Junction 5.7 5.5 Other Assets3 1.6 1.
Slide 16: Net Property Income 2Q 2008
Net Property Income 2Q 2008 (1 Apr – 30 Jun 2008) Portfolio Net Property Income Exceeded Forecast1 by 4.3% CMT Portfolio 83.6 80.2 4.3% Tampines Mall 10.9 10.3 Junction 8 8.0 Funan 7.6 DigitaLife Mall 4.6 4.4 IMM Building 12.0 11.5 Plaza Singapura 12.6 12.6 Bugis Junction 10.3 9.5 Other Assets2 1.7
Slide 17: Property Gross Revenue 2Q 2008 vs 2Q 2007
Property Gross Revenue 2Q 2008 vs 2Q 2007 Gross Revenue Outperformed by 10.6% on Comparable Mall Basis 125.6 CMT Portfolio 113.6 10.6% Tampines Mall 15.6 13.9 Junction 8 12.0 11.2 Funan 7.4 DigitaLife Mall 6.9 18.4 IMM Building 15.8 Plaza Singapura 17.9 17.1 Bugis Junction 16.0 15.0 Other Assets1 3.
Slide 18: Property Operating Expense 2Q 2008 vs 2Q 2007
Property Operating Expense 2Q 2008 vs 2Q 2007 Operating Expenses Increased Marginally on Comparable Mall Basis 42.0 CMT Portfolio 40.3 4.2% Tampines Mall 4.7 4.4 Junction 8 4.0 4.1 Funan 2.8 DigitaLife Mall 2.6 6.4 IMM Building 6.8 Plaza Singapura 5.3 5.4 5.7 Bugis Junction 6.1 Other Assets1 1.6 1.3
Slide 19: Net Property Income 2Q 2008 vs 2Q 2007
Net Property Income 2Q 2008 vs 2Q 2007 Net Property Income Outperformed by 14.1% on Comparable Mall Basis 83.6 CMT Portfolio 14.1% 73.3 Tampines Mall 10.9 9.5 Junction 8 8.0 7.1 Funan 4.6 DigitaLife Mall 4.3 12.0 IMM Building 9.0 12.6 Plaza Singapura 11.7 10.3 Bugis Junction 8.9 Other Assets1 1.7 1.
Slide 20: Property Gross Revenue 1H 2008 vs 1H 2007
Property Gross Revenue 1H 2008 vs 1H 2007 Strong Gross Revenue Growth of 9.6% on Comparable Mall Basis CMT Portfolio 246.7 225.1 9.6% Tampines Mall 30.3 27.6 Junction 8 23.6 22.2 Funan 14.5 DigitaLife Mall 13.2 36.4 IMM Building 31.5 Plaza Singapura 35.4 33.9 31.7 Bugis Junction 29.0 Other Assets1 6
Slide 21: Property Operating Expenses 1H 2008 vs 1H 2007
Property Operating Expenses 1H 2008 vs 1H 2007 Stabilised Portfolio Operating Expenses on Comparable Mall Basis 78.4 2.6% CMT Portfolio 76.4 Tampines Mall 8.7 8.3 Junction 8 7.4 7.5 Funan 5.0 DigitaLife Mall 5.1 IMM Building 12.2 13.0 Plaza Singapura 9.8 9.8 Bugis Junction 10.6 10.7 2.4 Other Assets
Slide 22: Net Property Income 1H 2008 vs 1H 2007
Net Property Income 1H 2008 vs 1H 2007 Robust Net Property Income Growth of 13.3% on Comparable Mall Basis 168.3 13.3% CMT Portfolio 148.7 Tampines Mall 21.6 19.3 Junction 8 16.2 14.7 Funan 9.5 DigitaLife Mall 8.1 24.2 IMM Building 18.5 Plaza Singapura 25.6 24.1 Bugis Junction 21.1 18.3 Other Assets
Slide 23: Valuation and Property Yield
Valuation and Property Yield CMT Portfolio Previous Valuation 2008 Valuation As at 30 June 2008 Valuation1 20082 Variance Property Yield3 S$ per sq ft NLA S$ million Million million 720.0 771.0 51.0 5.4% 2,365 Tampines Mall 521.0 580.0 59.0 5.3% 2,353 Junction 8 304.5 337.0 32.5 5.3% 1,134 Funan Dig
Slide 24: Debt Capital Information as at June 2008
Debt Capital Information as at 30 June 2008 (including 40% share in RCS Trust and 100% share in CRS) Debt Maturity Profile Key Statistics Fixed Rate Term Loan from Silver Maple Fixed Rate Term Loan from Silver under CMBS1 Oak under CMBS1 – 40% interest in RCS Trust CMT (excluding 40% share in Short
Slide 25: Proforma Debt Capital Information as at June 2008
Proforma Debt Capital Information as at 30 June 2008 (Post Acquisition of The Atrium@Orchard) (including 40% share in RCS Trust and 100% share in CRS) Proforma Debt Maturity Profile Post Key Statistics Convertible Bonds Due 2013 CMT Post-Acquisition 4 Fixed Rate Term Loan from Silver Fixed Rate Term
Slide 26: Refinancing Due in 2008 and 2009
Refinancing Due in 2008 and 2009 • Facilities / drawings under unsecured multicurrency medium term note programme to refinance debts due within next 12 months. • Swap rate locked in for five years for S$320 million Term Loan due for refinancing in August 2009 Fixed Rate Term Loan from Silver Maple u
Slide 27: Balance Sheet
Balance Sheet As at 30 June 2008 S$’000 Non Current Assets 6,333,803 Net Asset Value per unit S$2.43 Current Assets 387,790 (as at 30 June 2008) Total Assets 6,721,593 Adjusted Net Asset Value per unit S$2.39 (excluding distributable income) Current Liabilities 382,465 Non-Current Liabilities 2,301,
Slide 28: Year on Year Net Asset Value per Unit Growth
Year on Year Net Asset Value per Unit Growth Net Asset Value Per Unit Registered an Average Annual Growth of 18% Since 2003 +8% S$ 2.393,4 3 2.4 +18% S$ 2.21 +14% 2 2 1 S$ 1.87 +25% S$ 1.64 1 1.6 +27% S$ 1.31 1.2 S$ 1.03 0.8 0.4 0 2003 2004 2005 2006 2007 YTD 2008 1. NAV computations were based on C
Slide 29: Portfolio Update
Cap/taMall Portfolio Update
Slide 30: Summary of Renewals / New Leases
Summary of Renewals / New Leases Strong Rental Rates Achieved vs Forecast & Preceding Rentals From 1 January to 30 June 2008 (Excluding Newly Created Units) No. of Increase/(Decrease) in % Net Lettable Area Renewals Current Rental Rates VS Property Retention /New Rate Area % Total % Forecast % Prece
Slide 31: Strong Renewals Achieved Year-on-Year
Strong Renewals Achieved Year-on-Year Net Lettable Area Increase in Current Rental Rates Vs CMT Portfolio No. of Renewals/ Area % of Preceding (Year) New Leases (Sq Ft) Total Forecast Rental NLA1 Rental Rates Rates YTD 2008 193 319,087 9.9% 3.4%2 9.9% 20073 346 660,397 23.7 5.0%4 12.0% 20065 299 505
Slide 32: Portfolio Lease Expiry Profile for 2008 By Property
Portfolio Lease Expiry Profile for 2008 By Property Net Lettable Area Gross Rental Income No. of Leases % of % of As at 30 Jun 2008 Sq. ft. S$’000 total1 total2 Tampines Mall 21 27,004 8.4% 402 9.2% Junction 8 17 9,796 4.0% 244 7.3% Funan 31 35,254 11.9% 344 16.3% DigitaLife Mall IMM Building 58 53,
Slide 33: Portfolio Lease Expiry Profile by Year
Portfolio Lease Expiry Profile by Year Gross Rental Income 1 As at 30 June 2008 No. of Leases S$’000 % of Total2 2008 227 3,083 10.1 2009 672 9,975 32.6 2010 737 11,165 36.4 2011 277 5,162 16.8 2012 and 20 1,251 4.1 Beyond Weighted Average Lease Term to Expiry by Rental & NLA CMT Portfolio As at 30
Slide 34: Gross Turnover and Gross Rent Comparison
Gross Turnover and Gross Rent Comparison Tenants’ Sales Growth Outpaces Increase in Gross Rent1 Tampines Mall (Sample Size2: 107 ) Sales Gross Rent % Increase % Increase (in’000s) (in ‘000s) 2007 67,538 12,665 2008 72.304 7.1 13,419 6.0 Plaza Singapura (Sample Size2 : 143 ) Sales Gross Rent % Increa
Slide 35: Gross Turnover Rent & Step-Up Leases
Gross Turnover Rent & Step-Up Leases % of Total Portfolio of Tenants1 No. of Tenants1 in the Portfolio 100% 1600 1,499 1,487 86.4% 85.8% 84.1% 1,393 1400 80% 76.6% 1,269 1200 60% 1000 79.1% 800 77.3% 1,370 40% 92.1% 600 1,280 91.9% 400 20% 200 6.7% 6.8% 117 113 0% 7.9% 8.1% 0 Tenants with Step- Tena
Slide 36: High Committed Occupancy Rates at All Malls
High Committed Occupancy Rates at All Malls Achieved Close to 100% Occupancy Rate as at 30 June 2008 As at As at As at As at As at As at 31 Mar 07 30 Jun 07 30 Sept 07 31 Dec 07 31 Mar 08 30 Jun 08 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%
Slide 37: Top 10 Tenants
Top 10 Tenants 10 largest tenants1 by total gross rental contribute 21.0% of total gross rental No one tenant contributes more than 3.6% of total gross rental % of % of Net Trade Expiry Area Gross Tenant Rental Lettable Sector Date 2 (sq ft) Income Area BHG (Singapore) Pte. Ltd3 Department store May
Slide 38: Well Diversified Trade Mix Across the Portfolio
Well Diversified Trade Mix Across the Portfolio Portfolio1 By Net Lettable Area By Gross Rent as at 30 June 2008 as at 30 June 2008 2.1% 2.0% 0.6% 3.5% 3.3% 5.1% 4.1% 16.2% 5.4% 24.5% 8.3% 5.9% 8.8% 13.3% 6.5% 9.4% 7.7% 12.5% 22.0% 9.4% 11.4% 18.0% Food & Beverage/Food Court Warehouse Educational/Se
Slide 39: Potential of Trade Remixing to Optimise Rental
Potential of Trade Remixing to Optimise Rental Potential to attract higher rent paying trade type (such as Fashion, Gifts and Specialty) and further optimise trade mix to enhance shoppers’ traffic Department stores’ dominant presence at some of our malls may be evaluated Average Rent1 psf per mo
Slide 40: Incremental Net Property Income from Uncompleted AEI Initiatives
Incremental Net Property Income from 1 Uncompleted AEI Initiatives 14.0 12.4 12.0 10.0 9.5 8.0 6.0 4.0 2.0 1.5 0.6 0.9 0.0 Plaza Bugis Lot One Sembawang Jurong Singapura Junction Shopping Entertainment Centre 2 Centre 1. Incremental net property income from 1H 2008. 2. Asset enhancement works for Se
Slide 41: Asset Enhancements Update
Cap/taMall P Trust Asset Enhancements Update
Slide 42: AEI Timeline and Capital Expenditure Outlay
AEI Timeline1 and Capital Expenditure1 Outlay 2007 2008 2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q S$48.8M S$12.2M IMM Building S$9.9M Tampines Mall S$24.3M S$44.0M Sembawang Shopping Centre S$4.8M Junction 8 S$0.7M S$2.5M Plaza Singapura S$18.8M S$12.6M S$3.4 M S$5.1 M Bugis Junction S$51.0M S$24.4M
Slide 43: The Atrium@Orchard
Cap/taMall P Trust The Atrium@Orchard
Slide 44: Value Creation Opportunities
Value Creation Opportunities The Manager proposes to expand the retail footprint of the Atrium@Orchard (Atrium) by integrating with Plaza Singapura via the change of use of the Gross Floor Area (GFA)1 Unproductive and lower yielding areas within the Atrium have been identified for potential conv
Slide 45: Value Creation Opportunities
Value Creation Opportunities After integration of the Atrium and Plaza Singapura, the integrated development will enjoy more than 850,000 sq ft of NLA (post AEI1) with a combined frontage of approximately 170 meters, becoming one of the largest integrated developments along Orchard Road The Mana
Slide 46: Artist's Impression Following Proposed Integration of Atrium and Plaza Singapura
Artist’s Impression Following The Proposed Integration of The Atrium and Plaza Singapura1 1 Subject to obtaining approvals from the relevant authorities 46
Slide 47: Proposed Value Creation Initiatives – Level 1
Proposed Value Creation Initiatives – Level 1 Plaza Singapura Existing Retail Areas New Retail Areas Retail Before AEI After AEI Variance GFA 36,600 sq ft 59,680 sq ft 23,080 sq ft NLA 16,092 sq ft 34,107 sq ft 18,015 sq ft 1 Subject to obtaining approvals from the relevant authorities 47
Slide 48: Proposed Value Creation Initiatives – Level 2
Proposed Value Creation Initiatives – Level 2 Plaza Singapura Existing Office Areas New Retail Areas Retail Before AEI After AEI Variance GFA - 97,274 sq ft 97,274 sq ft NLA - 71,023 sq ft 71,023 sq ft 1 Subject to obtaining approvals from the relevant authorities 2 Preliminary technical feasibility
Slide 49: Proposed Value Creation Initiatives – Level 3
Proposed Value Creation Initiatives – Level 3 Plaza Singapura Existing Office Areas New Retail Areas Retail Before AEI After AEI Variance GFA - 94,491 sq ft 94,491 sq ft NLA - 66,997 sq ft 66,997 sq ft Notes: 1 Subject to obtaining approvals from the relevant authorities 2 49 Preliminary technical f
Slide 50: Proposed AEI Impact on Atrium's GFA & NLA
Proposed AEI Impact on Atrium’s GFA & NLA Before AEI After AEI Variance GFA (sq ft) Office & ancillary 517,874 303,029 214,845 Retail 36,601 251,446 214,845 Total 554,475 554,475 - NLA (sq ft) Office 357,354 186,355 170,999 Retail 16,092 172,128 156,035 Total 373,446 358,482 14,964 Note: 1 Subject t
Slide 51: Value Creation Opportunities
Value Creation Opportunities The additional Retail GFA is created via: Donating approximately 43,000 sq ft of GFA for Civic & Community usage Converting low yielding office space; and Converting unproductive ancillary GFA Exploring opportunities to convert approximately an additional 3,000
Slide 52: Value Creation of Planned Initiatives
Value Creation of Planned Initiatives Capital Phase Estimated Net Lettable Expenditure Completion Area 1 – Level 1 End-2009 34,100 sq ft S$150.1 mil 2 – Level 2 Mid-2010 71,000 sq ft 3 – Level 3 & C&CI Areas End-2010 66,900 sq ft AEI Budget1 Incremental Gross Revenue p.a. S$ 30.9 mil Incremental Net
Slide 53: Lot One Shoppers' Mall
Cap/taMall P Trust Lot One Shoppers’ Mall
Slide 54: Lot One Shoppers' Mall Proposed Asset Enhancement Works
Lot One Shoppers’ Mall Proposed Asset Enhancement Works New Façade Wet Playground on Level 5 Rooftop Plaza New Streetscape Basement 1 Market Place 54
Slide 55: Lot One Proposed Asset Enhancement Initiatives
Lot One Shoppers’ Mall Proposed Asset Enhancement Initiatives Decant space currently occupied by the National Library Board. It will occupy area classified for use by Civic and Community Institution, which is deemed non commercial GFA. Create 4-storey retail extension block measuring over 16,500
Slide 56: Lot One Proposed Basement 1 Plan
Lot One Shoppers’ Mall Proposed Basement 1 Plan Reconfiguration of existing Supermarket space to F&B units / kiosks and specialty units SUPERMARKET New escalator from Level 1 Open Plaza F&B Retail New food street through Before AEI After AEI Variance reconfiguration of existing kiosks Gross Rent per
Slide 57: Lot One Proposed Level 1 Plan
Lot One Shoppers’ Mall Proposed Level 1 Plan Extension of retail floor plate towards Choa Chu Kang MRT Station New escalator for direct connection to Basement 1 New escalator to ease circulation from Levels 1 to 5 Fully covered 4 storey high Open Plaza Slabbing of voids to create a F&B larger atrium
Slide 58: Lot One Proposed Level 2 Plan
Lot One Shoppers’ Mall Proposed Level 2 Plan New units created through extension of floor plate over the Open Plaza New escalator to ease circulation from Levels 1 to 5 F&B Retail Slabbing of voids to create 8 nos. of retail kiosks Before AEI After AEI Variance Gross Rent per mth S$354,612 S$524,766
Slide 59: Lot One Proposed Level 3 Plan
Lot One Shoppers’ Mall Proposed Level 3 Plan New units created through extension of floor plate over the Open Plaza New escalator to ease circulation from Levels 1 to 5 F&B Retail Slabbing of voids to create 4 nos. of retail kiosks Before AEI After AEI Variance Gross Rent per mth S$318,826 S$405,101
Slide 60: Lot One Proposed Level 4 Plan
Lot One Shoppers’ Mall Proposed Level 4 Plan Relocation of Food Court from Basement 1 to Level 4 Enlarged Community Library of over 25,000sf LIBRARY New escalator to ease circulation from Levels 1 to 5 FOOD COURT F&B New void to enhance visibility of the upper levels Retail Before AEI After AEI Vari
Slide 61: Lot One Proposed Level 5 Plan
Lot One Shoppers’ Mall Proposed Level 5 Plan Stage Landscaped Roof Plaza TV incorporating Wet & Dry Room Play Area Playground and TV Room New escalator to ease circulation Event from Levels 1 to 5 Plaza Splash Zone F&B Retail Open Plaza with Amphitheatre for Community Events Before AEI After AEI Var
Slide 62: Lot One New Shops on Level 2
Lot One Shoppers’ Mall New Shops on Level 2 62
Slide 63: Lot One New Shops on Level 3
Lot One Shoppers’ Mall New Shops on Level 3 63
Slide 64: Lot One New Shops on Level 4
Lot One Shoppers’ Mall New Shops on Level 4 64
Slide 65: Lot One Indicative AEI Timeline
Lot One Shoppers’ Mall Indicative AEI Timeline Completed on Schedule Activity Commencement Date Start of AEI 3rd Quarter 2007 Activity Target Completion Date1 Level 1 Extension January 2008 Level 2 Extension 1st Quarter 2008 Level 3 Extension 1st Quarter 2008 Levels 4 and 5 Extension 2nd Quarter 200
Slide 66: Lot One AEI Leasing Update
Lot One Shoppers’ Mall AEI Leasing Update – 84% of The Projected Increase in Rents Committed Before AEI After AEI1 Variance Net Lettable Area 203,530 216,790 + 6.5% (sq ft) Average Rent psf S$ 10.04 S$ 12.14 + 20.9% per month Gross Rent per S$2,043,650 S$2,632,814 + 28.8% month S$5.8 million (84%) o
Slide 67: Lot One Valuation Creation of Planned Initiatives
Lot One Shoppers’ Mall Valuation Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$51.7 mil 3rd Qtr 2007 4th Qtr 2008 AEI Budget1 Incremental Gross Revenue p.a. S$ 6.9 mil Incremental Net Property Income S$ 5.2 mil Total Capital Expenditure S$ 51.7 mil Return on Invest
Slide 68: Lot One Active Management Increases Property Yield
Lot One Shoppers’ Mall Active Management Increases Property Yield At Acquisition In June 2007 Total Acquisition Cost S$376.0 million Entry Property Yield 4.6% After Asset Enhancement Initiatives On Stabilised Basis Total Acquisition Cost S$376.0 million Other Capex S$0.9 million Asset Enhancement In
Slide 69: Bugis Junction
Cap/taMall Bugis Junction
Slide 70: Bugis Junction Proposed Plan - Level 2 of Retail Block
Bugis Junction Proposed Plan - Level 2 of Retail Block Before AEI After AEI Existing Façade Facing Hylam Street New Façade Facing Hylam Street Slabover existing voids & extension of lease line to Conversion of façade into glass parapets enhance value and improve circulation to improve visibility 70
Slide 71: Bugis Junction Conversion of Internal Façade for Levels 2 and 3
Bugis Junction Proposed Plan – Conversion of Internal Façade for Levels 2 and 3 of Retail Block Existing Facade New Facade 71
Slide 72: Bugis Junction Proposed Plan - Level 3 of Retail Block
Bugis Junction Proposed Plan - Level 3 of Retail Block Before AEI After AEI Slabover of existing voids and extension of lease Reconfigured retail units 100% committed line to enhance value & improve circulation L3 façade converted to glass parapets Current After AEI 1 Variance Net Lettable Area (sq
Slide 73: Bugis Junction Value Creation of Planned Initiatives
Bugis Junction Value Creation of Planned Initiatives On Level 3, approximately 40% of the projected increase in rental revenue per annum has been committed on a stabilised basis Capital Expenditure Start Date Completion Date S$8.5 million 2nd Quarter 2008 3th Quarter 2009 AEI Budget1 Incremental Gro
Slide 74: Funan DigitaLife Mall
Cap/taMall P Trust Funan DigitaLife Mall
Slide 75: Funan DigitaLife Mall Exploring Options to Maximise Value
Funan DigitaLife Mall Exploring Options to Maximise Value Submitted for Written Permission (WP) to maximise unutilised GFA of approx. 388,000 sq ft. Funan employed only 3.89 of its allowable plot ratio of 7.0 Differential Premium locked in at $65.2 million and paid in June 2008 The effective l
Slide 76: Funan Proposed Retail cum Office Development
Funan DigitaLife Mall Proposed Retail cum Office Development Preliminary Facade Design Office Lobby Note: Plan is subject to obtaining approval from relevant authorities 76
Slide 77: Funan Proposed Retail cum Office Development
Funan DigitaLife Mall Proposed Retail cum Office Development L6 – L9 Office B1 – L5 Retail Carpark 77 77 Note: Plan is subject to obtaining approval from relevant authorities
Slide 78: Funan Proposed Retail cum Office Development
Funan DigitaLife Mall Proposed Retail cum Office Development Proposed Office Entrances Office Layout on a Typical Floor Garden/Light Court 2 Office Entrances On Level 1 – Fronting North Bridge Rd and Hill Street Transfer Lobby for the Office Development On Level 3 78 Note: Plan is subject to obtaini
Slide 79: Plaza Singapura
Cap/taMall Plaza Singapura
Slide 80: Plaza Singapura Proposed Plan - Level 3
Plaza Singapura Proposed Plan - Level 3 Level 3 - Reconfiguration and subdivision to enhance the retail offering Before After 13 new units 80
Slide 81: Plaza Singapura Proposed Plan - Level 3
Plaza Singapura Proposed Plan - Level 3 100% Committed World of Golf’s Sports network Crocs John Little John Levis Little Kids Baby Spa PINC Sanrio Gift Cold Leonard Cool Toys Wear Drake 81
Slide 82: Plaza Singapura Average Rent per sq ft Grows 58.7%
Plaza Singapura Average Rent per sq ft Grows 58.7% Impact On Rental Of Affected Units Before AEI After AEI Variance Net Lettable Area (sq. ft) 21,082 20,238 - 4.0% Average Rent per sq. ft $6.12 $9.71 + 58.7% Gross Rent per month S$129,108 S$196,596 + 52.3% 82
Slide 83: Plaza Singapura Value Creation of Planned Initiatives
Plaza Singapura Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$2.45 million 3rd Quarter 2008 4th Quarter 2008 AEI Budget1 Incremental Gross Revenue S$0.81 million Incremental Net Property Income S$0.61 million Capital Expenditure S$2.45 million Return on Inves
Slide 84: Junction 8
Cap/taMall Junction 8
Slide 85: Junction 8 Proposed Asset Enhancement Initiatives
Junction 8 Proposed Asset Enhancement Initiatives Approval obtained from Urban Redevelopment Authority to enclose 10 metre walkway Create seamless shopping experience for our shoppers Expect electricity cost savings as a result of minimal air-con leakages from existing shops along the walkway
Slide 86: Singapore Retail Market Overview
Singapore Retail Market Overview
Slide 87: Retail Rents Have Not Gone Beyond Pre-Crisis Level
Retail Rents Have Not Gone Beyond Pre-Crisis Level Retail Rents have not increased to pre-crisis levels in comparison to Residential and Office Rentals $ psf for $ psf for Office & Retail Rent Residential rent Forecast 45 25 40 S$ 35.46 35 20 Retail Rent2 still below its historical peak 30 S$ 14.62
Slide 88: Potential Upside in Retail Rental Rates
Potential Upside in Retail Rental Rates1 Net Effective Rental Per sft pm Forecast 45 Orchard Road2 Projected Increase3 of 17.5% 40 35 Suburban Areas4 Projected 30 Increase3 of 16.1% 25 Other City Areas5 Projected 20 Increase3 of 16.9% 15 FY2008 FY2009 FY2010 FY2011 FY2012 2Q00 3Q00 4Q00 1Q01 2Q01 3Q
Slide 89: Positive Sentiment in Singapore Retail Sector
Positive Sentiment in Singapore Retail Sector Singapore welcomed 4.3 million visitors in Jan-May 2008 (4.3% growth over same period last year); Hosting of F1 Grand Prix will boost tourism and retail market in 2008 Local consumer sentiment remains encouragingly strong as indicated by the MasterIn
Slide 90: Singapore Still Relatively Under-Shopped
Singapore Still Relatively Under-Shopped Retail Floor Space Per Capita Sq ft 45 38.2 40 35 30 25 22.1 20 14.4 13.8 13.2 15 11.2 10.3 10.6 10 5 - USA Australia United Hong Kong South Japan Singapore Singapore Source : Urbis February 2008 Kingdom Korea (2007) (2012) Singapore remains “under-shopped”
Slide 91: Thank You
Thank You For enquiries, please contact: TONG Ka-Pin (Ms) Head, Investor Relations & Corporate Communications Tel : (65)-6536 1188 Fax : (65)-6536 3884 Email: tong.ka-pin@capitaland.com http://www.capitamall.com 91