Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaLand Mall Trust — FY2017 Earnings Presentation
40 slides from Singapore Exchange's earnings presentation, Jan 24, 2018
Slide 1: CapitaLand Mall Trust Full Year 2017 Financial Results
CAPITALAND MALL TRUST Singapore’s First & Largest Retail REIT Full Year 2017 Financial Results 24 January 2018
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumpti
Slide 3: Contents
Contents ▪ Review of FY 2017 ▪ Key Financial Highlights ▪ Portfolio Updates ▪ Asset Enhancement Initiative (‘AEI’) Update ▪ Striving for Excellence ▪ Looking Forward 3 CapitaLand Mall Trust Full Year 2017 Financial Results *January 2018*
Slide 4: Review of FY 2017
Review of FY 2017 Operational Performance , , , , 1.7% 99.2% . 0.3% . 0.0% 5 as at end-Dec 2017 Y-o-Y Y-o-Y . . . Rental reversion Portfolio Shopper traffic Tenants’ sales occupancy rate per square foot 1 1 Asset Updates Proactive Capital Management 1 Issued 6-year S$100.0 million and 10-year S$100.
Slide 5: Key Financial Highlights
Key Financial Highlights Clarke Quay
Slide 6: 4Q 2017 Distributable Income Up 0.8% Y-o-Y
4Q 2017 Distributable Income Up 0.8% Y-o-Y Distributable Income (S$ mil) Distributable Income Distribution Per Unit (DPU) (1) (2) 102.9 102.0 (1) S$102.9 2.90 million cents 0.8% Y-o-Y 0.7% Y-o-Y 4Q 2017 4Q 2016 DPU (cents) Annualised DPU Annualised Distribution 2.90 2.88 Yield 11.51 5.61 cents % (Ba
Slide 7: FY 2017 Distributable Income Up 0.4% Y-o-Y
FY 2017 Distributable Income Up 0.4% Y-o-Y Distributable Income (S$ mil) Distributable Income Distribution Per Unit (DPU) 395.8 (1) 394.3 (2) (1) S$395.8 11.16 million cents 0.4% Y-o-Y 0.3% Y-o-Y FY 2017 FY 2016 DPU (cents) 11.16 11.13 DPU Distribution Yield 11.16 5.44 cents % (Based on closing unit
Slide 8: Attractive Yield versus Other Investments
Attractive Yield versus Other Investments As at 31 December 2017 Net Yield for: Individual: 5.2% (0% tax) Corporate Overseas: 4.7% (10% tax) 6 Corporate Local: 4.3% (17% tax) 5.2 4.0 4 320 bps yield spread 3.1 Yield % 2.5 2.0 2 1.7 0.3 0 CMT 10Y Govt Bond 5Y Govt Bond CPF Ordinary 12-mth (S$) Strait
Slide 9: Steady Distributable Income Growth
Steady Distributable Income Growth S$ million 400 392.0 394.3 395.8 375.3 356.2 316.9 294.8 301.6 300 282.0 238.4 211.2 200 169.4 126.8 98.1 100 64.9 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (1) Based on compounded annual growth rate (‘CAGR’). 9 CapitaLand Mall Tr
Slide 10: 4Q 2017 Financial Performance
4Q 2017 Financial Performance Gross Revenue Net Property Income Distributable Income S$172.4 S$119.3 S$102.9 (1) million million million 1.8% Y-o-Y 2.6% Y-o-Y 0.8% Y-o-Y S$ million 172.4 4Q 2017 4Q 2016 169.3 119.3 116.2 (1) (2) 102.9 102.0 Gross Revenue Net Property Income Distributable Income (1)
Slide 11: FY 2017 Financial Performance
FY 2017 Financial Performance Gross Revenue Net Property Income Distributable Income S$682.4 S$478.2 S$395.8 (1) million million million 1.1% (2) Y-o-Y 0.3% (2) Y-o-Y 0.4% Y-o-Y S$ million FY 2017 FY 2016 682.4 689.7 478.2 479.7 (1) (3) 395.8 394.3 Gross Revenue Net Property Income Distributable Inc
Slide 12: FY 2017 Gross Revenue decreased by 1.1% versus FY 2016
FY 2017 Gross Revenue decreased by 1.1% versus FY 2016 On Comparable Mall Basis(1), FY 2017 Gross Revenue Up 0.6% Y-o-Y CMT Portfolio 682.4 689.7 79.3 1.1% Tampines Mall 79.3 58.8 Junction 8 58.8 82.9 IMM Building 80.7 89.7 Plaza Singapura 90.1 84.8 Bugis Junction 83.9 Mainly due to closure of Funan
Slide 13: FY 2017 Operating Expenses decreased by 2.8% versus FY 2016
FY 2017 Operating Expenses decreased by 2.8% versus FY 2016 On Comparable Mall Basis(1), FY 2017 OPEX Down 0.8% Y-o-Y CMT Portfolio 204.2 210.0 2.0% Tampines Mall 21.0 2.8% 20.5 16.7 Junction 8 17.0 IMM Building 25.7 26.6 23.0 Plaza Singapura 22.6 Bugis Junction 23.7 23.1 Mainly due to closure of Fu
Slide 14: FY 2017 Net Property Income decreased by 0.3% versus FY 2016
FY 2017 Net Property Income decreased by 0.3% versus FY 2016 On Comparable Mall Basis(1), FY 2017 NPI Up 1.2% Y-o-Y CMT Portfolio 478.2 58.3 479.7 Tampines Mall 58.8 0.3% Junction 8 42.1 41.8 IMM Building 57.2 54.1 66.7 Plaza Singapura 67.5 Bugis Junction 61.1 60.8 30.9 Lot One Shoppers' Mall 30.8 M
Slide 15: FY 2017 Performance of Joint Ventures
(1) FY 2017 Performance of Joint Ventures FY 2017 Net Property Income Down 2.2% Y-o-Y Gross Revenue (S$ million) 113.0 Total Total 117.8 4.1% 92.0 Raffles City Singapore 93.9 21.0 Westgate 23.9 Operating Expenses (S$ million) 28.2 Total Total 9.4% 31.1 21.9 Raffles City Singapore 23.8 6.3 Westgate 7
Slide 16: Debt Maturity Profile as at December 2017
Debt Maturity Profile1 as at 31 December 2017 700 - 605.2 600 (2) 100.0 500 484.0 446.7 460.0 450.0 (2) 72.0 (2) (2) 400 100.0 368.0 120.0 S$ million (2) 48.0 242.5 292.8 300 (4) 12.4 (2) 100.0 300.0 (3) 505.2 162.0 100.0 350.0 199.0 100.0 (9) 200 100.0 (6) (12) 126.0 (8) 99.0 (5) 190.1 100 157.6 (1
Slide 17: Key Financial Indicators
Key Financial Indicators As at As at 31 December 2017 30 September 2017 Unencumbered Assets as % of Total Assets 100.0% 100.0% Aggregate Leverage(1) 34.2% 34.7% Net Debt / EBITDA(2) 6.4x 6.5x Interest Coverage(3) 4.8x 4.8x Average Term to Maturity (years) 4.9 4.8 Average Cost of Debt(4) 3.2% 3.2% CM
Slide 18: Valuations and Valuation Cap Rates
Valuations and Valuation Cap Rates Valuation Valuation Variance Valuation Valuation Cap Rate Valuation Cap Rate as at 31 Dec 17 as at 31 Dec 16 as at 31 Dec 17 as at 31 Dec 17 as at 31 Dec 16 S$ million S$ million S$ million S$ per sq ft NLA % % Tampines Mall 1,045.0 994.0 51.0 2,947 4.85 5.35 Junct
Slide 19: Healthy Balance Sheet
Healthy Balance Sheet As at 31 December 2017 S$’000 Non-current Assets 9,919,880 Net Asset Value/Unit S$1.95 (as at 31 December 2017) Current Assets 584,562 Adjusted Net Asset Value/Unit Total Assets 10,504,442 S$1.92 (excluding distributable income) Current Liabilities 748,201 Non-current Liabiliti
Slide 20: Distribution Details
Distribution Details Distribution Period 1 October to 31 December 2017 Sub-point Distribution Per Unit 2.90 cents Notice of Books Closure Date 24 January 2018 Last Day of Trading on ‘cum’ Basis 29 January 2018, 5.00 pm Ex-Date 30 January 2018, 9.00 am Books Closure Date 1 February 2018 Distribution
Slide 21: Portfolio Updates
Portfolio Updates Bukit Panjang Plaza
Slide 22: Shopper Traffic
(1) Shopper Traffic FY 2017 decreased by 0.3% Y-o-Y 400 Shopper Traffic (million) 350 300 250 200 150 100 50 0 FY 2017 FY 2016 (1) For comparable basis, CMT portfolio excludes Funan which was closed in July 2016 for redevelopment. 22 CapitaLand Mall Trust Full Year 2017 Financial Results *January 20
Slide 23: Tenants' Sales Psf Per Month
(1) Tenants’ Sales Psf Per Month FY 2017 Held Steady Y-o-Y 100 Tenants’ Sales ($ psf/mth) 75 50 FY 2017 FY 2016 (1) For comparable basis, CMT portfolio excludes Funan which was closed in July 2016 for redevelopment. 23 CapitaLand Mall Trust Full Year 2017 Financial Results *January 2018*
Slide 24: Tenants' Sales by Trade Categories in FY 2017
Tenants’ Sales by Trade Categories in FY 2017 Cautious Consumer Spending 30 24.8 25 Y-o-Y Variance of Tenants’ Sales $ psf/mth (%) 20 16.9 15.6 15 10 6.6 5.1 3.8 5 1.8 1.8 0.4 0 -5 (0.1) (1.9) (3.1) (3.4) (3.5) -10 (7.2) -15 (13.2) -20 (1) (15.4) (2) Leisure & Entertainment Gifts & Souvenirs Fashion
Slide 25: Average Occupancy Cost
Average Occupancy Cost (1) 18.7% 19.0% FY 2017 FY 2016 (1) Occupancy cost is defined as a ratio of gross rental (inclusive of service charge, advertising & promotional charge and gross turnover rent) to tenants’ sales. CMT portfolio excludes Funan which was closed in July 2016 for redevelopment. 25
Slide 26: Rental Reversions
Rental Reversions From 1 January to 31 December 2017 (Excluding Newly Created and Reconfigured Units) Net Lettable Area Increase in Current Rental Rates vs Number of Retention Preceding Rental Percentage Property Renewals / Rate Area Rates of Property New Leases (%) (sq ft) (typically committed (%)
Slide 27: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile(1) as at 31 December 2017 Weighted Average Expiry by Gross Rental Income 1.9 Years Gross Rental Income per Month(2) Number of Leases S$’000 % of Total (3) 2018 1,017 16,182 28.1 2019 932 17,650 30.7 2020 780 14,748 25.6 2021 136 4,671 8.1 2022 35 3,791 6.6 2023 and bey
Slide 28: Portfolio Lease Expiry Profile for 2018
Portfolio Lease Expiry Profile for 2018 (1) Net Lettable Area Gross Rental Income Number of As at 31 December 2017 Leases % of Property NLA(2) % of Property Income(3) Tampines Mall 68 24.4 29.9 Junction 8 49 13.6 22.5 IMM Building(4) 244 29.8 41.3 Plaza Singapura 85 22.1 27.9 Bugis Junction 56 16.0
Slide 29: High Occupancy Maintained
High Occupancy Maintained 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec (%, As at) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Tampines Mall 100.0 100.0 100.0 100.0 100.0 100.0 99.5 100.0 99.2 100.0 Junction 8 100.0 100.0 100.0 100.0 99.6 99.4 100.0 100.0 99.9 100.0 (1)
Slide 30: AEI Update - Funan
Unda I BRICKS SB. 60 OF LIGHTS ———— ===
Slide 31: Construction Progress on Schedule
Construction Progress on Schedule Piling Works Completed Superstructure at Level 4 and Basement Works in Progress Overview of Site (from The Adelphi) 31 CapitaLand Mall Trust Full Year 2017 Financial Results *January 2018*
Slide 32: Strong Retail Leasing Interest
Strong Retail Leasing Interest Selection of Committed Tenants Artist’s impression. 32 CapitaLand Mall Trust Full Year 2017 Financial Results *January 2018*
Slide 33: Funan's First Office Tenant
Funan’s First Office Tenant WeWork Leased 40,000 Square Feet of Office Space • Located across two floors of Funan’s North Office Block – namely Level 4, which is the prime connector space linking office blocks with retail and serviced residence components, and Level 5 • Leverage on Funan’s central l
Slide 34: Striving for Excellence
Striving for Excellence Bugis+
Slide 35: Exclusive Click & Collect Lounges
Exclusive Click & Collect Lounges Available in Seven Malls to Create Integrated Shopping Experience • Complemented online shop-in- shop concept mall with an unique in-mall collection service at Bedok Mall, Bugis+, IMM Building, JCube, Plaza Singapura, Tampines Mall, and Westgate Bedok Mall • Unmanne
Slide 36: Marketing Activities
Marketing Activities Delighting Our Shoppers with Exciting Events Christmas Projection at Dora the Explorer at Westgate Bukit Panjang Plaza Ballerina Decoration at Wintry Fun at Bugis Junction Junction 8 36 CapitaLand Mall Trust Full Year 2017 Financial Results *January 2018*
Slide 37: Awards & Accolades Achieved in 2017
Awards & Accolades Achieved in 2017 4Q 2017 October November May August 2nd Runner Up (Large Cap) Water Efficiency Award Partner Award for Platinum Singapore Investor Relations (Junction 8) January Contributions to the Best of the Breeds REITs Award - Website Survey 2017 PUB, Singapore's National Wa
Slide 38: Looking Forward
Looking Forward Junction 8
Slide 39: Looking Forward
Looking Forward • The Singapore economy grew by 3.1%(1) on a year-on-year basis in 4Q 2017 and 3.5%(1) in 2017. This is in line with the Singapore Government’s growth forecast of ‘3.0% to 3.5%’(1) • Focus on the active lease management for the 1,017 leases due for renewal in 2018 and operational exc
Slide 40: Thank you
Thank you For enquiries, please contact: Ms Audrey Tan, Investor Relations, Direct: (65) 6713 1507 Email: audrey.tan@capitaland.com CapitaLand Mall Trust Management Limited (http://www.cmt.com.sg) 168 Robinson Road, #30-01 Capital Tower, Singapore 068912 Tel: (65) 6713 2888; Fax: (65) 6713 2999