Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Starhill Global REIT — Q3 FY2017/18 Earnings Presentation
42 slides from Singapore Exchange's earnings presentation, Apr 26, 2018
Slide 1: Third Quarter FY 2017/18 Financial Results
Third Quarter FY 2017/18 Financial Results 26 April 2018 Singapore Australia Malaysia China Japan 1
Slide 2: cry +
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Slide 3: Key highlights
Key highlights 3Q FY17/18 DPU at 1.09 cents – NPI decreased by 2.3% y-o-y mainly due to weaker contributions from the office portfolio, disruption of income from asset redevelopment works at Plaza Arcade in Perth and lower revenue at Myer Centre Adelaide – DPU was lower by 7.6% y-o-y to 1.09 cents
Slide 4: 3Q FY17/18 financial highlights
3Q FY17/18 financial highlights 3 months ended 3 months ended Period: 1 Jan – 31 Mar 31 Mar 2018 31 Mar 2017 % Change (3Q FY17/18) (3Q FY16/17) Gross Revenue $51.7 mil $53.3 mil (3.0%) Net Property Income $40.3 mil $41.2 mil (2.3%) Income Available for Distribution $25.4 mil $27.1 mil (6.3%) Income
Slide 5: YTD FY17/18 financial highlights
YTD FY17/18 financial highlights 9 months ended 9 months ended Period: 1 Jul – 31 Mar 31 Mar 2018 31 Mar 2017 % Change (YTD FY17/18) (YTD FY16/17) Gross Revenue $157.2 mil $162.7 mil (3.4%) Net Property Income $122.1 mil $125.5 mil (2.7%) Income Available for Distribution $77.8 mil $84.1 mil (7.5%)
Slide 6: DPU performance
DPU performance Cents (3) FY 2014/15 (18 months) 8.00 7.60 7.00 2.49 6.00 (Jan’14- FY 2016/17 June’14) 4.92 4Q 5.00 3Q 1.18 2Q 4.00 1Q 1.18 3.00 5.11 5.18 1.09 4.39 5.00 3.90 4.12 (July ’14- 2.00 3.58 3.80 June’15) 1.26 2.90 3.10 1.17 1.00 1.30 1.20 - FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
Slide 7: 3Q FY17/18 financial results
3Q FY17/18 financial results $’000 3Q FY17/18 3Q FY16/17 % Change Gross Revenue 51,742 53,326 (3.0%) Notes: 1. Being accretion of tenancy Less: Property Expenses (11,458) (12,105) (5.3%) deposit stated at amortised cost in accordance with Net Property Income 40,284 41,221 (2.3%) Financial Reporting
Slide 8: YTD FY17/18 financial results
YTD FY17/18 financial results YTD YTD $’000 % Change FY17/18 FY16/17 Gross Revenue 157,179 162,652 (3.4%) Notes: 1. Being accretion of tenancy deposit stated at amortised Less: Property Expenses (35,040) (37,162) (5.7%) cost in accordance with Financial Reporting Net Property Income 122,139 125,490
Slide 9: 3Q FY17/18 financial results
3Q FY17/18 financial results Revenue Net Property Income $’000 3Q FY17/18 3Q FY16/17 % Change $’000 3Q FY17/18 3Q FY16/17 % Change Wisma Atria Wisma Atria Retail 13,781 14,003 (1.6%) Retail 10,786 10,904 (1.1%) Office (1) 2,554 2,764 (7.6%) Office (1) 1,811 2,010 (9.9%) Ngee Ann City Ngee Ann City R
Slide 10: YTD FY17/18 financial results
YTD FY17/18 financial results Revenue Net Property Income YTD YTD YTD YTD $’000 % Change $’000 % Change FY17/18 FY16/17 FY17/18 FY16/17 Wisma Atria Wisma Atria Retail (1) 42,194 43,680 (3.4%) Retail (1) 33,186 34,233 (3.1%) Office (2) 7,726 8,412 (8.2%) Office (2) 5,521 6,123 (9.8%) Ngee Ann City Ng
Slide 11: Attractive trading yield versus other investment instruments
Attractive trading yield versus other investment instruments 7.00% 6.05% 6.00% 5.00% 3.76% 4.00% 3.00% 5.70% 2.50% 2.29% 2.05% 2.00% 1.00% 0.35% 0.00% SG REIT Annualised SGREIT Annualised CPF Ordinary 10-Year Singapore 5-Year Singapore 12-month Bank Fixed 3QFY17/18 FY17/18Yield Yield Account Governm
Slide 12: Trading Volume
Unit price performance $0.85 Starhill Global REIT’s Unit Price Movement 20,000,000 Liquidity statistics and Daily Traded Volume Average daily traded 3.1 mil (1 April 2017 to 31 March 2018) 18,000,000 volume for 3Q FY17/18 $0.80 16,000,000 (units) 1 14,000,000 Estimated free float2 55% $0.75 12,000,0
Slide 13: Distribution timetable
Distribution timetable Distribution Period 1 January 2018 to 31 March 2018 Distribution Amount 1.09 cents per unit Distribution Timetable Notice of Books Closure Date 26 April 2018 Last Day of Trading on “Cum” Basis 2 May 2018, 5.00 pm Ex-Date 3 May 2018, 9.00 am Book Closure Date 7 May 2018, 5.00 p
Slide 14: Proactive capital management
Proactive capital management Average debt maturity is approximately 3.8 years as at 31 March 2018 Financial Ratios 31 March 2018 $ million Debt maturity profile Total debt $1,135 million 450 As at 31 March 2018 Gearing 35.3% 400 Interest cover(1) 4.1x * Average interest rate p.a.(2) 3.14% 350 Unencu
Slide 15: Interest rate and foreign exchange exposures
Interest rate and foreign exchange exposures BORROWINGS Interest rate exposure AS AT 31 March 2018 Borrowings as at 31 March 2018 are about 99% Borrowings hedged via hedged by a combination of: interest rate Borrowings caps 87% fixed rate debt and interest rate swaps; fixed/hedged 12% via interest
Slide 16: Balance sheet remains strong
Balance sheet remains strong Total assets of approximately $3.2 billion NAV As at 31 March 2018 $’000 statistics Non Current Assets 3,144,534 NAV Per Unit (as at 31 March 2018) (1) $0.92 Current Assets 70,369 Adjusted NAV Per Unit (net of distribution) $0.91 Total Assets 3,214,903 Current Liabilitie
Slide 17: Portfolio Performance Update
2 Portfolio Performance Update Myer Centre Adelaide Adelaide, Australia 17
Slide 18: Balance of long term and short term leases
Balance of long term and short term leases Master leases and long-term leases, incorporating periodic rent reviews, represent 48.8% of gross rent as at 31 March 2018 Ngee Ann City Property Retail (Singapore) Expires in 2025 with a 5.5% increase in base rent f rom 8 June 2016. Next rent rev iew in
Slide 19: Retail portfolio occupancy resilient at 98.1%
Retail portfolio occupancy resilient at 98.1% 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 30 Jun 30 Jun 30 Jun 31 Mar As at 05 06 07 08 09 10 11 12 13 15 16 17 18 SG Retail 100.0% 100.0% 100.0% 98.3% 100.0% 99.1% 98.3% 99.8% 99.9% 99.4% 99.2% 99.2% 99.1% SG Office 92.8% 97.8% 98.7
Slide 20: Top 10 tenants contribute 57.5% of portfolio gross rents
Top 10 tenants contribute 57.5% of portfolio gross rents Tenant Name Property % of Portfolio Gross Rent (1) (2) Toshin Development Singapore Pte Ltd Ngee Ann City, Singapore 21.4% Ngee Ann City & Wisma Atria, Singapore YTL Group (3) 15.1% Starhill Gallery & Lot 10, Malaysia Myer Pty Ltd Myer Centre
Slide 21: Staggered portfolio lease expiry profile
Staggered portfolio lease expiry profile Weighted average lease term of 6.2 and 4.7 years (by NLA and gross rent respectively) Portfolio lease expiry (as at 31 March 2018) (1)(2) 60% By NLA By Gross rent (4) 51.4% (4) 50% 45.9% Excluding Malaysia’s master lease, 40% (3) 35.5% 8.5% and 15.0% of total
Slide 22: Staggered portfolio lease expiry profile by category
Staggered portfolio lease expiry profile by category Retail Lease Expiry Profile by Gross Rents Office Lease Expiry Profile By Gross Rents (as at 31 March 2018) (1) (as at 31 March 2018) (2) (4) 49.7% 50% 40% 33.7% 40% 30% 25.2% (3) 30% 28.4% 19.8% 19.3% 20% 20% 11.5% 10% 10% 8.1% 2.3% 2.0% 0% 0% FY
Slide 23: Singapore Retail: Toshin master lease provides income stability
Singapore Retail (Wisma Atria & Ngee Ann City) Toshin master lease provides income stability S$ million Wism a Atria Retail Million Tenant Sales and Traffic Wisma Atria Retail Traffic Count at Primary Entrances 50 8 49 7 Revenue and NPI decreased 1.6% and 1.1% y-o-y Retail Sales Turnover 48 6 resp
Slide 24: Singapore Retail: High occupancies sustained
Singapore Retail High occupancies sustained notwithstanding soft retail climate Lease expiry schedule (by gross rent) as at 31 March 2018 100% Wisma Atria Ngee Ann City (1) Proactive leasing 87.5% 80% Includes Toshin master lease at Ngee Ann City Property Sustained high occupancy for 60% Singapo
Slide 25: Singapore Offices: Committed occupancies rose to 90.7%
Singapore Offices Committed office occupancies rose to 90.7% as at 31 March 2018 3Q FY17/18 revenue and NPI declined 10.4% and 12.4% y-o-y respectively Committed office occupancies rose to 90.7% as at 31 March 2018, an improvement from 89.4% as at 31 December 2017 and 83.5% as at 30 September 20
Slide 26: Singapore Offices
Singapore Offices Lease expiry schedule (by gross rent) as at 31 March 2018 50% 40.7% 40% Wisma Atria Property 30% 27.1% 27.2% Ngee Ann City Property 25.0% 24.8% 17.6% 19.0% 20% 14.8% 10% 1.9% 1.9% 0% FY17/18 FY18/19 FY19/20 FY20/21 Beyond FY20/21 Committed occupancy rates (by NLA) 100% 93.1% 95.8%
Slide 27: Australia - Myer Centre Adelaide, David Jones Building & Plaza Arcade
Australia - Myer Centre Adelaide, David Jones Building & Plaza Arcade Revenue and NPI for 3Q FY17/18 was 10.0% and Australia portfolio: 13.8% respectively lower than in 3Q FY16/17, mainly Balance of long term and short-to-medium term due to Plaza Arcade redevelopment works, lower leases as at 31 M
Slide 28: Plaza Arcade's redevelopment
Plaza Arcade’s redevelopment UNIQLO commences renovation works Handover of premises to anchor tenant UNIQLO who has commenced renovation works, with completion targeted in 2H 2018 The new international tenant will complement the city centre’s revitalised retail offerings as landlords within the
Slide 29: Australia Properties: Long-term leases with David Jones and Myer
Australia Properties Long-term leases with David Jones and Myer Lease expiry schedule (by gross rent) as at 31 March 2018 80% 73.9% (1) (2) 68.1% Perth (DJ and PA) Myer Centre Adelaide 60% David Jones’ long term lease accounts for 22.1% of 40% Australia portfolio by gross 20% 12.6% 10.1% rent as a
Slide 30: Malaysia – Starhill Gallery and Lot 10 Property
Malaysia – Starhill Gallery and Lot 10 Property Lot 10 rejuvenation completed Revenue and NPI in 3Q FY17/18 rose by 6.4% and 6.3% respectively over the previous corresponding period in 3Q FY16/17, mainly due to appreciation of the Malaysian ringgit against the Singapore dollar For Lot 10, extern
Slide 31: Others: China Property and Japan Properties
Others China Property and Japan Properties NPI for 3Q FY17/18 was approximately S$0.9 million, up 144.1% over 3Q FY16/17 mainly due to lower expenses for the China Property, following the conversion of the departmental store model to a single tenancy model Renovation works in China Completion of
Slide 32: Outlook
3 Outlook Lot 10 Kuala Lum pur, Malaysia
Slide 33: Looking ahead
Looking ahead Singapore’s economy grew by 4.3% y-o-y in 1Q 2018, higher than the 3.6% growth in 4Q 2017. Retail sales (excluding motor vehicles) registered a 1.8% y-o-y growth in 2017. International visitor arrivals rose 6.2% y-o-y to 17.4 million for 2017 while tourism receipts for nine months to
Slide 34: Looking ahead
Looking ahead Completion Organic growth from rental reversion Toshin: 5.5% increase in base rent for master lease in Ngee Ann City Retail from June 2016. Next rent review in June 2019 Katagreen: Master tenancy for Starhill Gallery and Lot 10 extended from June 2016 to June 2019 with 6.67% rental upl
Slide 35: Summary
Summary 11 mid to high-end retail properties in five countries Quality Assets: - Singapore makes up about 68% of total assets with Australia and Malaysia about 29% of total Prime Locations assets as core markets. China and Japan account for the balance of the portfolio Quality assets with strong
Slide 36: Appendices
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Slide 37: 68% of total asset value attributed to Singapore
68% of total asset value attributed to Singapore ASSET VALUE 3Q FY17/18 GROSS REVENUE 3Q FY17/18 GROSS REVENUE BY COUNTRY AS AT 31 MARCH 2018 BY COUNTRY BY RETAIL/OFFICE Others* 3.0% Others* Malaysia Office Malaysia 2.3% 12.1% 11.9% 13.8% Australia 16.6% Australia 21.3% Singapore Singapore 62.6% 68.
Slide 38: Singapore – Wisma Atria Property: Diversified tenant base
Singapore – Wisma Atria Property Diversified tenant base WA retail trade mix – by % gross rent WA office trade mix – by % gross rent (as at 31 March 2018) (as at 31 March 2018) Banking and Information Aerospace Financial General Trade Technology 2.8% Services Health & 5.4% Government 2.8% 1.8% Beaut
Slide 39: Singapore – Ngee Ann City Property: Stable of quality tenants
Singapore – Ngee Ann City Property Stable of quality tenants NAC retail trade m ix – by % gross rent NAC office trade m ix – by % gross rent (as at 31 March 2018) (as at 31 March 2018) General Trade Banking & Services 0.5% Financial Aerospace 2.5% 4.7% Services Beauty & Petroleum 5.2% Wellness Consu
Slide 40: References used in this presentation
References used in this presentation 1Q, 2Q, 3Q, 4Q means the periods between 1 July to 30 September; 1 October to 31 December; 1 January to 31 March and 1 April to 30 June 3Q FY16/17 means the period of 3 months from 1 January 2017 to 31 March 2017 3Q FY17/18 means the period of 3 months from 1 Jan
Slide 41: Disclaimer
Disclaimer This presentation has been prepared by Y TL Starhill Global REIT Management Limited (the “Manager”), solely in its capacity as Manager of Starhill Global Real Estate Inv estment Trust (“Starhill Global REIT”). A press release, together with Starhill Global REIT’s unaudited financial state
Slide 42: YTL Starhill Global REIT Management Limited
YTL Starhill Global REIT Management Limited CRN 200502123C Manager of Starhill Global REIT 391B Orchard Road, #21-08 Ngee Ann City Tower B Singapore 238874 Tel: +65 6835 8633 Fax: +65 6835 8644 www.starhillglobalreit.com 42
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