Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Starhill Global REIT — Q4 FY2015/16 Earnings Presentation
58 slides from Singapore Exchange's earnings presentation, Jul 29, 2016
Slide 1: Fourth Quarter FY2015/16 Financial Results
Fourth Quarter FY2015/16 Financial Results 29 July 2016 Singapore Australia Malaysia China Japan 1
Slide 2: Financial Highlights
1 Financial Highlights Wisma Atria Singapore
Slide 3: Key highlights
Key highlights FY15/16 DPU up 1.4% y-o-y to 5.18 cents; 4Q FY15/16 DPU stable at 1.29 cents − Annualised 4Q FY15/16 yield of 6.61% based on closing price of S$0.785 on 30 June 2016 Group revenue rose by 3.6% y-o-y in 4Q FY15/16 – Mainly due to full period contribution from Myer Centre Adelaide w
Slide 4: 4Q FY15/16 financial highlights
4Q FY15/16 financial highlights 3 months ended 3 months ended Period: 1 Apr – 30 Jun 30 Jun 2016 30 Jun 2015 % Change (4Q FY15/16) (6Q FY14/15) Gross Revenue $53.6 mil $51.8 mil 3.6% Net Property Income $41.4 mil $41.3 mil 0.2% Income Available for Distribution $28.4 mil $29.5 mil (3.4%) Income to b
Slide 5: Rolling 12 months financial highlights
Rolling 12 months financial highlights 12 months ended 12 months ended Period: 1 Jul – 30 Jun 30 Jun 2016 30 Jun 2015 % Change (Jul 15 – Jun 16) (Jul 14 – Jun 15 ) Gross Revenue $219.7 mil $197.2 mil 11.4% Net Property Income $170.3 mil $159.4 mil 6.9% Income Available for Distribution $116.5 mil $1
Slide 6: FY15/16 financial highlights
FY15/16 financial highlights Figures presented below include the 12-month period from 1 July 2015 to 30 June 2016 (FY15/16) and 18-month period from 1 January 2014 to 30 June 2015 (FY14/15). Therefore, the comparative amounts presented in relation to the 12-month period in the current financial year
Slide 7: DPU performance
DPU performance FY 2014/15 (18 months) cents 7.60 Jul14 – Jun15 (12 months) 8.00 5.11 7.00 1.29 FY 2015/16 6.00 (12 months) 1.26 5.18 5.00 1.29 1.29 6Q 4.00 5Q 1.27 1.26 3.00 4Q 5.00 3Q 4.12 4.39 2.00 3.80 3.90 1.25 1.32 3.58 2Q 2.90 3.10 1Q 1.00 1.24 1.31 - FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 F
Slide 8: 4Q FY15/16 financial results
4Q FY15/16 financial results $’000 4Q FY15/16 6Q FY14/15 % Change Gross Revenue 53,646 51,786 3.6% Less: Property Expenses (12,255) (10,472) 17.0% Net Property Income 41,391 41,314 0.2% Less: Fair Value Adjustment (1) 374 (120) NM Notes: 1. Being accretion of tenancy Borrowing Costs (9,448) (8,797)
Slide 9: Rolling 12 months financial results
Rolling 12 months financial results $’000 Jul 15 – Jun 16 Jul 14 – Jun 15 % Change Gross Revenue 219,679 197,152 11.4% Less: Property Expenses (49,357) (37,785) 30.6% Notes: Net Property Income 170,322 159,367 6.9% 1. Being accretion of tenancy deposit stated at Less: Fair Value Adjustment (1) (106)
Slide 10: FY15/16 financial results
FY15/16 financial results Figures presented below include the 12-month period from 1 July 2015 to 30 June 2016 (FY15/16) and 18-month period from 1 January 2014 to 30 June 2015 (FY14/15). Therefore, the comparative amounts presented in relation to the 12-month period in the current financial year ar
Slide 11: 4Q FY15/16 financial results
4Q FY15/16 financial results Revenue Net Property Income $’000 4Q FY15/16 6Q FY14/15 % Change $’000 4Q FY15/16 6Q FY14/15 % Change Wisma Atria Wisma Atria Retail (1) 14,224 14,838 (4.1%) Retail (1) 10,970 11,407 (3.8%) Office 2,881 2,875 0.2% Office 2,094 2,108 (0.7%) Ngee Ann City Ngee Ann City Ret
Slide 12: Rolling 12 months financial results
Rolling 12 months financial results Revenue Net Property Income $’000 Jul 15 - Jun 16 Jul 14 - Jun 15 % Change $’000 Jul 15 - Jun 16 Jul 14 - Jun 15 % Change Wisma Atria Wisma Atria Retail 58,249 58,100 0.3% Retail 45,389 45,430 (0.1%) Office (1) 11,804 11,330 4.2% Office (1) 8,751 8,436 3.7% Ngee A
Slide 13: FY15/16 financial results
FY15/16 financial results Figures presented below include the 12-month period from 1 July 2015 to 30 June 2016 (FY15/16) and 18-month period from 1 January 2014 to 30 June 2015 (FY14/15). Therefore, the comparative amounts presented in relation to the 12-month period in the current financial year ar
Slide 14: Attractive trading yield versus other investment instruments
Attractive trading yield versus other investment instruments 7.00% 6.61% 6.00% 5.00% 4.70% 6.26% 4.00% 3.00% 2.50% 1.91% 2.00% 1.51% 1.00% 0.35% 0.00% SGREIT Annualised CPF Ordinary 10-Year Singapore 5-Year Singapore 12-month Bank Fixed 4Q FY15/16 Yield Account Government Bond Government Bond Deposi
Slide 15: Unit price performance
Unit price performance Starhill Global REIT’s Unit Price Movement and Liquidity statistics Daily Traded Volume (1 July 2015 to 30 June 2016) Average daily traded 1.4 mil $0.95 9,000 volume for 4Q FY15/16 (units)1 8,000 $0.90 Estimated free float2 54% 7,000 $0.85 Trading Volume (‘000) 6,000 Market ca
Slide 16: Distribution timetable
Distribution timetable Distribution Period 1 April 2016 to 30 June 2016 Distribution Amount 1.29 cents per unit Distribution Timetable Notice of Books Closure Date 29 July 2016 Last Day of Trading on “Cum” Basis 3 August 2016, 5.00 pm Ex-Date 4 August 2016, 9.00 am Book Closure Date 8 August 2016, 5
Slide 17: Staggered debt maturity profile averaging 3.1 years
Staggered debt maturity profile averaging 3.1 years No significant debt refinancing requirement until year 2018 Debt maturity profile Total debt $1,127 million $ million As at 30 June 2016 * Gearing 35.0% 400 Interest cover(2) 4.3x 350 Average interest rate p.a.(3) 3.09% (1) Unencumbered assets rati
Slide 18: Interest rates and foreign exchange exposures
Interest rates and foreign exchange exposures BORROWINGS Interest rates exposure AS AT 30 JUNE 2016 Borrowings Borrowings as at 30 June 2016 are about 100% Borrowingshedged via hedged by a combination of: interest hedged via rate caps 26% interest rate caps 86% fixed rate debt and interest rate sw
Slide 19: Healthy balance sheet with total assets of approximately $3.2 billion
Healthy balance sheet with total assets of approximately $3.2 billion NAV As at 30 June 2016 $’000 statistics Non Current Assets 3,139,141 NAV Per Unit (as at 30 June 2016) (1) $0.920 Current Assets 83,019 Adjusted NAV Per Unit (net of distribution) $0.910 Total Assets 3,222,160 Current Liabilities
Slide 20: Valuation of investment properties
Valuation of investment properties Revaluation gains mainly for the Singapore and Australia properties are partially offset by divestment of Roppongi Terzo, drop in the valuation of Renhe Spring Zongbei Property and negative foreign currency movements Description Revaluation 30 Jun 16 30-Jun-15 Cape
Slide 21: Portfolio Performance Update
2 Portfolio Performance Update Starhill Gallery Kuala Lumpur, Malaysia 21
Slide 22: Defensive portfolio with upside potential: Balance of long term and short term leases
Defensive portfolio with upside potential: Balance of long term and short term leases Master leases and long-term leases, incorporating periodic rent reviews, represent 44.6% of gross rent as at 30 June 2016 Ngee Ann City Property Retail (Singapore) Expires 2025 with a 5.5% increase in base Master
Slide 23: Maintained high occupancies through economic cycles
Maintained high occupancies through economic cycles As at 31 Dec 05 31 Dec 06 31 Dec 07 31 Dec 08 31 Dec 09 31 Dec 10 31 Dec 11 31 Dec 12 31 Dec 13 30 Jun 15 30 Jun 16 SG Retail 100.0% 100.0% 100.0% 98.3% 100.0% 99.1% 98.3% 99.8% 99.9% 99.4% 99.2% SG Office 92.8% 97.8% 98.7% 92.4% 87.2% 92.5% 95.3%
Slide 24: Well-staggered portfolio lease expiry profile
Well-staggered portfolio lease expiry profile Weighted average lease term of 7.1 and 5.1 years (by NLA and gross rent respectively) Portfolio Lease Expiry (as at 30 June 2016) (1)(2) 45.0% 42.8% (4) By NLA By Gross Rent 40.0% 36.1% (3) 34.4% (4) 35.0% 30.2% (3) 30.0% 25.0% 19.1% 20.0% 15.0% 13.0% 10
Slide 25: Well-staggered portfolio lease expiry profile by category
Well-staggered portfolio lease expiry profile by category Retail Lease Expiry Profile by Gross Rents Office Lease Expiry Profile By Gross Rents (as at 30 Jun 2016) (1) (as at 30 Jun 2016) (2) 50% 40% 33.2% 39.4% (4) 40% 29.6% 30% 26.6% 30.8% (3) 30% 20% 20% 17.4% 9.7% 10% 10% 7.1% 3.5% 2.7% 0% 0% FY
Slide 26: Maintained full occupancy at Ngee Ann City Property
Singapore Retail Maintained full occupancy at Ngee Ann City Property Lease expiry schedule (by gross rent) as at 30 Jun 2016 Includes Toshin master lease at Ngee Ann City 100% Wisma Atria Property Ngee Ann City Property Property 86.4% (1) 80% 5.5% increase in base rent from Toshin master lease* in
Slide 27: Singapore – Wisma Atria Property (Retail)
Singapore – Wisma Atria Property (Retail) Shopper traffic up 2.3% y-o-y S$ million Million 60.0 7.5 Traffic Count at Primary Entrances 50.0 7.0 4Q FY15/16 revenue declined 4.1% y-o-y Retail Sales Turnover 40.0 while NPI declined 3.8% y-o-y on the back of 6.5 30.0 lower occupancy 6.0 20.0 Shopper
Slide 28: New and upcoming tenants at Wisma Atria
New and upcoming tenants at Wisma Atria New tenants New tenant Kotobuki Coffee opened at Wisma Atria Level 1 New tenant Proofer Boulangerie opened at Wisma Atria New tenant FitFlop opened at Wisma Atria Level 1 in in May 2016 basement in May 2016 June 2016 Upcoming new tenants and concepts New tenan
Slide 29: Activities at Wisma Atria
Activities at Wisma Atria Emoji icons adorn Wisma Atria in June 2016 Huge turnout at popular Hong Kong singer G.E.M Tang’s fan meet-and-greet at Wisma Atria in July 2016 TAG Heuer showcase at Wisma Atria Level 1 indoor atrium in May 2016 29
Slide 30: Orchard Road retail resilience
Orchard Road retail resilience Limited new retail supply in Orchard Road Tourism recovery in Singapore 1.6 Source: STB May 2016 2.0 Source: CBRE, 1Q 2016 Millions 1.4 Millions 1.5 1.2 1.0 1.0 0.8 0.5 0.6 0.4 0.0 0.2 2016 2017 2018 0.0 Outside Central Region Fringe Area Rest of Central Area JAN FEB M
Slide 31: Secured 5.5% increase in base rent for Toshin master lease
Singapore – Ngee Ann City Property (Retail) Secured 5.5% increase in base rent for Toshin master lease 4Q FY15/16 revenue up 1.9% and NPI up 0.5% over the previous corresponding period Ngee Ann City Property (Retail) maintained full occupancy as at 30 June 2016 Secured a 5.5% increase in base
Slide 32: Singapore offices
Singapore offices Driven by limited new supply 4Q FY15/16 revenue down 0.9% and NPI down Limited new office supply in Orchard Road 3.6% over the previous corresponding period due 5 to lower occupancies million sq ft 4 Occupancy for the Singapore office portfolio stood 3 at 95.6% in 4Q FY15/16 2
Slide 33: Proactive leasing efforts
Singapore Office Proactive leasing efforts Lease expiry schedule (by gross rent) as at 30 Jun 2016 50% Wisma Atria Property Ngee Ann City Property 38.1% Occupancies at Wisma Atria 40% 37.4% Property and Ngee Ann City 30% 28.3% 27.8% Property inched downwards to 26.4% 24.8% 97.9% and 94.0% respecti
Slide 34: Contribution from Myer Centre Adelaide
Australia – Myer Centre Adelaide, David Jones Building & Plaza Arcade Contribution from Myer Centre Adelaide 4Q FY15/16 revenue and NPI up 46.4% and 32.6% respectively over the previous corresponding period mainly due to full quarter contribution from Myer Centre Adelaide acquired in May 2015, par
Slide 35: Stability from long-term leases
Australia Stability from long-term leases Lease expiry schedule (by gross rent) as at 30 Jun 2016 80% Perth Properties Myer Centre Adelaide 70.2% (1) 61.1% (2) 60% 40% David Jones’ lease accounts for 59.1% of revenue for Perth 20% 13.1% 13.8% 10.1% 9.7% 9.3% Properties in 4Q FY15/16 6.0% 5.7% 1.0%
Slide 36: Remains a destination for luxury retailers in Kuala Lumpur
Malaysia – Starhill Gallery and Lot 10 Property Remains a destination for luxury retailers in Kuala Lumpur Malaysia Properties’ 4Q FY15/16 revenue and NPI declined 7.4% and 7.3% respectively over the previous corresponding period, largely due to depreciation of the Malaysian ringgit against the Si
Slide 37: China – Renhe Spring Zongbei Property
China – Renhe Spring Zongbei Property The China portfolio contributed 1.9% of the Group’s revenue in 4Q FY15/16 In SGD terms, NPI in 4Q FY15/16 decreased 55.8% y-o-y. The decline was largely attributed to lower revenue as the high-end luxury retail segment continues to be impacted by the austeri
Slide 38: Full occupancies maintained
Japan Properties Full occupancies maintained The Japan portfolio contributed 1.5% of the Group’s revenue in 4Q FY15/16 In SGD terms, NPI in 4Q FY15/16 declined 37.0% y-o-y largely attributable to loss of income contribution due to divestment of one Japanese asset in January 2016, partially offse
Slide 39: Outlook
3 Outlook David Jones Building & Plaza Arcade Perth, Australia
Slide 40: Outlook
Outlook Focus on prime locations • Orchard Road – Singapore’s iconic shopping strip • Rundle Mall – Adelaide’s premier retail precinct • Hay Street Mall & Murray Street Mall – Perth’s CBD • Bukit Bintang – Kuala Lumpur’s premier shopping and entertainment district Delivering value to Unitholders •Fo
Slide 41: Looking ahead
Looking ahead Completion Steady organic growth from rental reversion Toshin: 5.5% increase in base rent for master lease in Ngee Ann City Retail from 8 June 2016. Next rent review in June 2019 Wisma Atria: Limited new supply of prime retail space along Orchard Road which is sought after by internati
Slide 42: Summary – Well positioned for growth
Summary – Well positioned for growth 12 mid to high-end retail properties in five countries Quality Assets: - Singapore makes up ~68% of total assets with Australia and Malaysia ~28% of total assets as Prime Locations core markets. China and Japan account for the balance of the portfolio Quality
Slide 43: Appendices
4 Appendices Lot 10 Property Kuala Lumpur, Malaysia
Slide 44: 68% of total asset value attributed to Singapore
68% of total asset value attributed to Singapore ASSET VALUE 4Q FY15/16 GROSS REVENUE 4Q FY15/16 GROSS REVENUE BY COUNTRY AS AT 30 JUN 2016 BY COUNTRY BY RETAIL/OFFICE China Japan China Japan 1.4% 2.1% 1.9% 1.5% Office Malaysia Malaysia 13.4% 12.1% 12.1% Australia Australia 16.1% 22.6% Singapore Sin
Slide 45: 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 30 June 2016) (as at 30 June 2016) Government Banking and General Trade Aerospace related Others 2.5% Financial 3.8% 2.4% 3.5% Services Health & Petroleum 1.6%
Slide 46: Stable of luxury tenants
Singapore – Ngee Ann City Property Stable of luxury tenants NAC retail trade mix – by % gross rent NAC office trade mix – by % gross rent (as at 30 June 2016) (as at 30 June 2016) Services Others Aerospace General Trade 2.6% 4.5% 4.3% 0.5% Banking and Financial Services Beauty & 5.2% Wellness Fashio
Slide 47: Top 10 tenants contribute 55.6% of portfolio gross rents
Top 10 tenants contribute 55.6% of portfolio gross rents Tenant Name Property % of Portfolio Gross Rent (1) (2) Toshin Development Singapore Pte Ltd Ngee Ann City, Singapore 20.6% Ngee Ann City & Wisma Atria, Singapore YTL Group(3) 14.5% Starhill Gallery & Lot 10, Malaysia Myer Pty Ltd Myer Centre A
Slide 48: Singapore – Wisma Atria Property
Singapore – Wisma Atria Property Address 435 Orchard Road, Singapore 238877 Wisma Atria comprises a podium block with four levels and one basement level of retail, three levels of car parking space and 13 levels of office space in the office block. Description Starhill Global REIT's interest in Wism
Slide 49: Singapore – Ngee Ann City Property
Singapore – Ngee Ann City Property Address 391/391B Orchard Road, Singapore 238874 Ngee Ann City is a commercial complex with 18 levels of office space in the twin office tower blocks (Tower A and B) and a seven-storey podium with three basement levels comprising retail and car parking space. Descri
Slide 50: Adelaide, Australia – Myer Centre Adelaide
Adelaide, Australia – Myer Centre Adelaide Address 14-38 Rundle Mall, Adelaide SA 5000, Australia Myer Centre Adelaide comprises a retail centre, three office buildings and four basement levels with approximately 467 car parking lots. The retail centre is spread across eight Description floors and a
Slide 51: Perth, Australia – David Jones Building & Plaza Arcade
Perth, Australia – David Jones Building & Plaza Arcade David Jones Building Address 622-648 Hay Street Mall, Perth, Western Australia A four-storey property, which includes a heritage-listed building constructed circa 1910 that was formerly the Savoy Description hotel. The property is anchored by th
Slide 52: Kuala Lumpur, Malaysia – Starhill Gallery
Kuala Lumpur, Malaysia – Starhill Gallery Address 181 Jalan Bukit Bintang, 55100 Kuala Lumpur, Malaysia Starhill Gallery is a shopping centre comprising part of a Description seven-storey building with five basements and a 12-storey annex building with three basements. Net lettable area 306,113 sq f
Slide 53: Kuala Lumpur, Malaysia – Lot 10 Property
Kuala Lumpur, Malaysia – Lot 10 Property Address 50 Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia 137 parcels and 2 accessory parcels of retail and office spaces held under separate strata titles within a shopping centre known as Lot 10 Shopping Centre which consists of Description an 8-storey b
Slide 54: Chengdu, China – Renhe Spring Zongbei Property
Chengdu, China – Renhe Spring Zongbei Property Address No.19, Renminnan Road, Chengdu, China A four-storey plus mezzanine level retail department store Description completed in 2003. Part of a mixed-use commercial complex comprising retail and office. Gross floor area 100,854 sq ft Number of tenants
Slide 55: Japan Properties
Japan Properties – Properties are within five minutes’ walk from nearest subway stations Harajyuku: 1) Harajyuku Secondo No. of Properties 4 Total Net 32,678 sq ft Lettable Area Total No. of 17 (1) tenants Ebisu: Title Freehold 1) Daikanyama Bldg 2) Ebisu Fort Total Valuation S$67.0 million(1) Megur
Slide 56: 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 4Q FY15/16 means the period of 3 months from 1 April 2016 to 30 June 2016 6Q FY14/15 means the period of 3 months from 1 April
Slide 57: Disclaimer
Disclaimer This presentation has been prepared by YTL Starhill Global REIT Management Limited (the “Manager”), solely in its capacity as Manager of Starhill Global Real Estate Investment Trust (“Starhill Global REIT”). A press release, together with Starhill Global REIT’s unaudited financial stateme
Slide 58: 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 58
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