Oue Real Estate Investment Trust · SGX:TS0U
Oue Real Estate Investment Trust — OUE Commercial REIT — Citi ASEAN C-Suite Forum (June 2016)
40 slides from Oue Real Estate Investment Trust's conference presentation, Jun 2, 2016
Slide 1: Presentation for Citi ASEAN C-Suite Forum
Presentation for Citi ASEAN C-Suite Forum 2 June 2016
Slide 2: Important Notice
Important Notice This presentation shall be read in conjunction with OUE Commercial REIT’s Financial Results announcement for 1Q 2016 dated 10 May 2016. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in OUE Commerc
Slide 3: Agenda
Agenda Overview Key Highlights Financial Performance and Capital Management Portfolio Performance Appendices 3
Slide 4: Overview of OUE C-REIT
Overview of OUE C-REIT OUE C-REIT is a Singapore real estate investment trust listed on the Mainboard of Singapore Exchange Securities Trading Limited with the principal investment strategy of investing, directly or indirectly, in a portfolio of income-producing real About OUE C-REIT estate which
Slide 5: Premium Portfolio of Assets: OUE Bayfront
Premium Portfolio of Assets OUE Bayfront OUE Bayfront GFA (sq m) 46,774.6 Office: 35,334.5 NLA (sq m) Retail: 1,830.1 Overall: 37,164.6 Office : 98.2% Committed Occupancy Retail : 98.8% as at 31 Mar 2016 Overall : 98.2% Number of Car Park Lots 245 Valuation S$1,146.0 m (as at 31 Dec 2015) OUE Bayfro
Slide 6: OUE Bayfront – Tenants by Trade Sector
Premium Portfolio of Assets OUE Bayfront – Tenants by Trade Sector By gross rental income for month of March 2016 6
Slide 7: Premium Portfolio of Assets: One Raffles Place
Premium Portfolio of Assets One Raffles Place One Raffles Place GFA (sq m) 119,626.2 Office (Tower 1): 28,890.7 Office (Tower 2): 27,061.8 Attributable NLA (sq m) Retail: 9,500.2 Overall: 65,452.7 Office (Tower 1): 88.0% Committed Occupancy Office (Tower 2): 93.2% as at 31 Mar 2016 Retail: 95.6% Ove
Slide 8: One Raffles Place – Tenants by Trade Sector
Premium Portfolio of Assets One Raffles Place – Tenants by Trade Sector By gross rental income for month of March 2016 8
Slide 9: Premium Portfolio of Assets: Lippo Plaza
Premium Portfolio of Assets Lippo Plaza Lippo Plaza GFA (sq m) 58,521.5 Office: 33,538.6 Attributable NLA (sq m) Retail: 5,685.9 Overall: 39,224.5 Office : 98.1% Committed Occupancy Retail : 92.5% as at 31 Mar 2016 Overall : 97.3% Number of Car Park Lots 168 RMB2,401.0 m / RMB41,028 psm Valuation(1)
Slide 10: Lippo Plaza – Tenants by Trade Sector
Premium Portfolio of Assets Lippo Plaza – Tenants by Trade Sector By gross rental income for month of March 2016 10
Slide 11: Financial Performance & Capital Management
Financial Performance & Capital Management
Slide 12: Consistent Growth in Distribution
Consistent Growth in Distribution Delivered consistent year-on year growth in distribution to Unitholders Distribution History Since IPO (1) Period commencing from OUE C-REIT’s listing date of 27 January 2014 to 31 March 2014 (2) For a meaningful comparison, the amount available for distribution for
Slide 13: Key Highlights
Key Highlights Financial Highlights 1Q 2016 gross revenue and net property income more than doubled from a year ago to S$42.9 million and S$33.3 million respectively due to contribution from One Raffles Place, which was acquired in October 2015 As a result, 1Q 2016 amount available for distribut
Slide 14: Key Highlights: Capital Management
Key Highlights Capital Management Aggregate leverage as at 31 March 2016 of 40.5% with a weighted average cost of debt of 3.56% p.a. Proportion of fixed rate loans increased from 63.8% as at 31 December 2015 to 79.2% as at 31 March 2016, with an average term of fixed rate debt of 2.95 years No
Slide 15: 1Q 2016 vs 1Q 2015
1Q 2016 vs 1Q 2015 1Q 2016 1Q 2015 Change Gross Revenue (S$m) 42.9 20.4 +110.2% Net Property Income (S$m) 33.3 15.7 +111.7% Amount Available for Distribution (S$m) 17.0(1) 12.6 +35.1% DPU (cents) 1.32 0.99(2) +33.3% • 1Q 2016 gross revenue of S$42.9 million more than doubled from 1Q 2015 due to cont
Slide 16: 1Q 2016 vs 1Q 2015 Statement
1Q 2016 vs 1Q 2015 S$'000 1Q 2016 1Q 2015 Change (%) Gross revenue 42,914 20,411 110.2 Property operating expenses (9,659) (4,704) 105.3 Net property income 33,255 15,707 111.7 Other income 703 1,798 (60.9) Amortisation of intangible asset (1,118) (1,047) 6.8 Manager's management fees (2,345) (1,262
Slide 17: Healthy Balance Sheet
Healthy Balance Sheet S$ million As at 31 Mar 2016 Investment Properties 3,384.0 Total Assets 3,435.1 Loans and borrowings 1,305.6 Total Liabilities 1,490.3 Net Assets Attributable to Unitholders 1,181.0 Units in Issue (’000) 1,292,335 NAV per Unit (S$) 0.91 17
Slide 18: Capital Management
Capital Management Every 25bps increase in floating interest rates is expected to reduce distribution by S$0.7 million per annum, or 0.05 cents in DPU As at 31 Mar 2016 As at 31 Dec 2015 Aggregate Leverage 40.5% 40.1% S$1,274m(1) comprising S$1,272m(2) comprising Total debt - S$1,236m - S$1,231m - R
Slide 19: Debt Maturity Profile as at 31 Mar 2016
Debt Maturity Profile as at 31 Mar 2016 No refinancing requirement in 2016 (1) Based on SGD:CNY exchange rate of 1:4.764 19
Slide 20: Portfolio Performance
Portfolio Performance
Slide 21: Portfolio Composition
Portfolio Composition By Asset Value(1) By Revenue Contribution(2) By Segment Revenue(2) (1) Based on independent valuations as at 31 December 2015 and OUE C-REIT’s proportionate interest in One Raffles Place (2) For 1Q 2016 and based on OUE C-REIT’s attributable interest in One Raffles Place 21
Slide 22: Resilient and Steady Portfolio
Resilient and Steady Portfolio OUE C-REIT’s Portfolio Committed Occupancy (1) Proforma committed occupancy as at 30 September 2013 as disclosed in OUE C-REIT’s Prospectus dated 17 January 2014 22
Slide 23: Office Occupancy In Line with Market
Office Occupancy In Line with Market Singapore Shanghai (1) Singapore Market Occupancy refers to Core CBD office occupancy for 1Q 2016 according to CBRE Research. Shanghai Market Occupancy refers to Shanghai Grade A office occupancy for 1Q 2016 according to Colliers International Shanghai 23
Slide 24: Positive Office Rental Reversions
Positive Office Rental Reversions 1Q 2016 Average Passing Rent Rental 1Q 2016 Committed Rents(2) Reversions(1) Mar 2016 Mar 2015 OUE Bayfront 4.9% S$12.00 – S$12.30 psf/mth S$11.82 psf/mth S$10.60 psf/mth One Raffles Place 3.0% S$8.50 – S$12.50 psf/mth S$10.27 psf/mth N.A.(3) Lippo Plaza 5.3% RMB9.5
Slide 25: Lease Expiry Profile - Portfolio
Lease Expiry Profile - Portfolio WALE(1) of 2.8 years by NLA(2) and 2.9 years by Gross Rental Income As at 31 Mar 2016 (1) “WALE” refers to the weighted average lease term to expiry (2) “NLA” refers to net lettable area 25
Slide 26: Lease Expiry Profile - OUE Bayfront
Lease Expiry Profile - OUE Bayfront More than 60% of gross rental income is due only in 2019 and beyond. To-date, the Manager has completed the renewal of all expiring leases in 2016 WALE of 3.5 years by NLA and 3.4 years by Gross Rental Income As at 31 Mar 2016 26
Slide 27: Lease Expiry Profile - One Raffles Place
Lease Expiry Profile - One Raffles Place WALE of 2.6 years by NLA and 2.4 years by Gross Rental Income As at 31 Mar 2016 27
Slide 28: Lease Expiry Profile - Lippo Plaza
Lease Expiry Profile - Lippo Plaza WALE of 2.3 years by NLA and 3.3 years by Gross Rental Income As at 31 Mar 2016 28
Slide 29: Quality and Diversified Tenant Base
Quality and Diversified Tenant Base Top 10 tenants(1) contribute approximately 26.8% of gross rental income WALE by NLA 4.2 years As at 31 Mar 2016 (1) The top ten tenants of the portfolio does not take into account one tenant who would otherwise be among the top 10 tenants by gross rental income as
Slide 30: Diversified Tenant Base
Diversified Tenant Base By gross rental income for month of March 2016 30
Slide 31: Appendices
Appendices • Singapore Office Market • Shanghai Office Market
Slide 32: Overview of Singapore Office Sector
Overview of Singapore Office Sector Singapore’s CBD – Comprises traditional areas of Raffles Place, Shenton Way/Robinson Road/Cecil Street as well as Marina Bay – Many established global financial institutions and headquarters of MNCs are located in Marina Bay and Raffles Place, while Shenton Way/R
Slide 33: Singapore Office Market
Singapore Office Market Core CBD office occupancy remained unchanged QoQ at 95.1% as at 1Q 2016, while Grade A office rents fell by 4.8% QoQ to S$9.90 psf/mth As demand continues to be lacklustre, the completion of major new CBD office developments from 3Q 2016 is expected to impact vacancy Sour
Slide 34: Demand and Supply vs Office Rental
Demand and Supply vs Office Rental Island-wide Office Demand, Supply vs Office Rental Source: URA statistics, CBRE Research 2Q11 was the last period where CBRE provided Prime office Rental data. Prime Grade A office rental data not available prior to 1Q02 34
Slide 35: Known Office Supply Pipeline
Known Office Supply Pipeline Office Supply Pipeline in Singapore’s CBD and Fringe CBD (NLA sq ft) Note: Excluding strata-titled office Source: CBRE Research, 1Q 2016 35
Slide 36: Overview of Shanghai Office Sector
Overview of Shanghai Office Sector Puxi, the traditional business and commercial hub of Shanghai – Key office and commercial districts within Puxi are concentrated in the Jing’an, Huangpu and Xuhui areas, which together form the traditional downtown CBD of Shanghai – Puxi draws international retail
Slide 37: Shanghai Office Market
Shanghai Office Market CBD Grade A office occupancy in Shanghai continued to rise due to firm demand amidst the lack of new completions, rising 1.0 ppt QoQ to 96.0% as at 1Q 2016 Average Shanghai CBD Grade A office rents increased 1.7% QoQ to RMB10.3 psm/day, while average rents in Puxi grew by
Slide 38: Demand, Supply and Vacancy
Demand, Supply and Vacancy Shanghai CBD Grade A Net Absorption, New Supply and Vacancy Rate Source: Colliers International 38
Slide 39: CBD Grade A Office Supply Pipeline
CBD Grade A Office Supply Pipeline Office Supply Pipeline in Shanghai CBD (sq m) Source: Colliers International, 4Q15 39
Slide 40: Thank you
Z Z i = COMMER SIAL I Thank you
OUE Commercial REIT — Citi ASEAN C-Suite Forum (June 2016) on 6ix