Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaMall Trust — FY2009 Earnings Presentation
51 slides from Singapore Exchange's earnings presentation, Jan 22, 2010
Slide 1: CapitaMall Trust Full Year 2009 Financial Results
CAPITAMALL TRUST Singapore’s First & Largest REIT Full Year 2009 Financial Results 22 January 2010 CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 2: Disclaimers
Disclaimers This presentation is focused on comparing CapitaMall Trust’s (“CMT”) actual results for the period ended 31 December 2009 versus actual results for the period ended 31 December 2008. This shall be read in conjunction with paragraph 8 of CMT’s 2009 Full Year Unaudited Financial Statement
Slide 3: Key Highlights
Key y Highlights g g 3 CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 4: 4Q 2009 Distributable Income Exceeds 4Q 2008 by 25.5%
4Q 2009 Distributable Income Exceeds 4QQ 2008 byy 25.5% % 4Q 2009 4Q 2008 Variance Change Distributable income 5 (1) S$76.5m S$76 9 (2) S$60.9m S$60 S$15.6m $ 25.5% 25 5% Estimated distribution per unit (DPU) 2.40¢(3) 1.93¢(4) 0.47¢ 24.4% Annualised distribution per unit 9.52¢(3) 7.66¢(4) 1.86¢ 24.3
Slide 5: FY2009 Distributable Income Exceeds FY2008 by 18.3%
FY2009 Distributable Income Exceeds FY2008 by y 18.3% FY2009 FY2008 Variance Change Distributable income S$282.0m S$282 0 S$238.3m S$238 3 S$43.7m S$43 7 18.3% 18 3% Full year distribution per unit (DPU) 8.85¢(1) 7.52¢(2) 1.33¢ 17.7% Distribution yield 4.86% 4.13% 0.73% 17.7% (Based on unit price of
Slide 6: Attractive Yield versus Other Investments
Attractive Yield versus Other Investments Net Yield for: Individual: Based on historical 4.9% (0% tax) gross dividend yield of 8 past 12 months Corporate Overseas: 4.4% (10% tax) 6 4.9 d% Corporate Local: 40 4.0 Yield 2.2% 2 2% yield spread 4 1% (17% tax) 4.1% 4 over 10-Yr Bond 2.7 2.9 2.5 2 1.3 05
Slide 7: Steady Distributable Income Growth
Steady Distributable Income Growth S$282.0mil S$238.4mil S$211.2mil S$169 4mil S$169.4mil S$126.8mil S$98.1mil S$64.9mil 2003 2004 2005 2006 2007 2008 FY2009 (1) Based on compound annual growth rate. 7 CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 8: Financial Results
Financial Results 8 CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 9: Distribution Statement 4Q 2009
Distribution Statement 4Q 2009 (1 Oct – 31 Dec 2009) 4Q 2009 4Q 2008 Variance S$’000 S$’000 (%) Gross revenue 140,104 134,462 4.2 Less p property p y operating p g expenses p ((44,054) ,05 ) (48,548) ((9.3)) Net property income 96,050 85,914 11.8 Interest income 234 245 (4.5) Administrative expenses
Slide 10: Distribution Statement FY2009
Distribution Statement FY2009 (1 Jan – 31 Dec 2009) FY2009(1) FY2008 Variance S$’000 S$’000 (%) Gross revenue 552,700 510,901 8.2 Less property operating expenses (175,932) (169,771) 3.6 Net property income 376,768 341,130 10.4 Interest income 1,038 1,881 (44.8) Administrative expenses (39,882) (35,
Slide 11: FY 2009 Gross Revenue Increased by 8.2% versus FY 2008
FY 2009 Gross Revenue Increased by 8.2% versus FY 2008 On a comparable mall basis(1), FY 2009 Gross Revenue grew by 3.6% VS FY 2008 CMT Portfolio 552.7 510.9 Tampines Mall 63.7 61.6 8.2% Junction 8 48.5 47.4 Funan DigitaLife Mall 29.3 29.2 Mainly due to acquisition of IMM Building 73.9 73.2 The Atri
Slide 12: FY 2009 Operating Expenses
FY 2009 Operating Expenses On a comparable mall basis((1)), FY 2009 Operating Expenses decreased by 1.3% versus FY 2008 3.6% Increase mainly due to operating expenses off The Atrium@Orchard, Sembawang Shopping Centre and Lot One Shoppers’ Mall (2) (3) FY 2009 FY 2008 ((4)) S$ million (1) Excludes Se
Slide 13: FY 2009 Net Property Income Increased by 10.4% versus FY 2008
FY 2009 Net Property Income Increased by 10.4% versus FY 2008 On a comparable mall basis(1), FY 2009 Net Property Income grew by 6.1% VS FY 2008 10.4 % (2) (3) FY 2009 FY 2008 ((4)) S$ million (1) Excludes Sembawang Shopping Centre (SSC), Jurong Entertainment Centre (JEC) and The Atrium@Orchard. ((2
Slide 14: Debt Maturity Profile
Debt Maturity Profile Fixed Rate Term Loan from Silver Maple under CMBS Fixed Rate Term Loan from Silver Oak under CMBS - 40% interest in RCS Trust Revolving Credit Facility of RCS Convertible Bonds due in 2013 with put option in 2011 Fixed Rate Notes issued under CMT MTN Pte. Ltd. Floating Rate Not
Slide 15: Adequate Funds for Refinancing Due in 2010
Adequate Funds for Refinancing Due in 2010 Available internal resources and existing bank facilities can cover debts due for refinancing in 2010 Fixed Rate Notes issued under CMT MTN Pte. Ltd. Floating Rate Notes issued under CMT MTN Pte. Ltd. (1) Fixed Rate Term Loan from Silver Maple under CMBS 35
Slide 16: Valuations and Valuation Cap Rate
Valuations and Valuation Cap Rate Valuation as at Valuation as at Valuation as at Valuation as at Valuation as at Variance Cap rate 1 Jun 09(1) 31 Dec 09 S$ million 31 Dec 09 1 Jun 09 31 Dec 09 Variance CMT Portfolio S$ million S$ million S$ per sq ft Valuation Cap Valuation Cap (bps) as at 31 Dec 2
Slide 17: Healthy Balance Sheet
Healthy Balance Sheet As at 31 December 2009 S$’000 Non-Current Assets 7,059,945 Net Asset Value per unit S$1.56 (as at 31 Dec 2009) Current Assets 363,056 Adjusted Net Asset Value per unit S$1.54 Total Assets 7,423,001 , , (excluding distributable income) Current Liabilities 588,927 Non-Current Lia
Slide 18: Distribution Details
Distribution Details Distribution Period 1 October to 31 December 2009 Estimated Distribution Per Unit 2.40 cents(1) Distribution Timetable Notice of Books Closure Date 22 January 2010 Last Day of Trading on “cum” 27 January 2010, 5.00 pm Basis Ex-Date 28 January 2010, 9.00 am Books Closure Date 1 F
Slide 19: Portfolio Updates
Portfolio Updates p 19 CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 20: Shopper Traffic Remains Strong in FY2009
Shopper Traffic Remains Strong in FY2009 Despite p Difficult Economic Conditions 1.2% lower than FY2008; 10.9% higher than FY2007 250,000 c ('000) 200,000 opper Traffic 150,000 100,000 Sho 50,000 0 FY 2007 FY 2008 FY 2009 Source: CMTML For comparable basis, the chart includes the entire CMT portfoli
Slide 21: Improving Shopper Traffic
Improving Shopper Traffic Year-on-year shopper traffic on an uptrend since August 2009 4% Change % 2% 0% Year-on-Year Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 -2% -4% Y -6% Source: CMTML For comparable basis, the chart includes the entire CMT portfolio of malls, except Jurong Entertainment Centre w
Slide 22: Portfolio Gross Turnover for 4Q 2009
Portfolio Gross Turnover for 4Q 2009 • 2.4% lower than 4Q 2008; 0.4% lower than 4Q 2007 • 11.3% higher than 3Q 2009 100 er $ psf 90 oss Turnove 80 70 Gro 60 50 4Q 2007 4Q 2008 3Q 2009 4Q 2009 Source: CMTML Based on gross turnover submitted by tenants at Tampines Mall, Junction 8, Funan DigitaLife Ma
Slide 23: Portfolio Gross Turnover for FY2009
Portfolio Gross Turnover for FY2009 2.7% lower than FY2008; 2.9% higher than FY2007 90 over $ psf 80 Gross Turno 70 60 G 50 FY 2007 FY 2008 FY 2009 Source: CMTML Based on gross turnover submitted by tenants at Tampines Mall, Junction 8, Funan DigitaLife Mall, IMM Building, Plaza Singapura, Bugis Jun
Slide 24: Consumer Spending Remains Cautious
Consumer Spending Remains Cautious Gross Turnover by Trade Categories, FY2009 VS FY2008 FY 09 vs FY 08 7.1% 10% 3.5% 1.5% 0.2% 5% 0% 0.0% -1.1% Year-on-Yearr Change % -2.0% -5% -3.7% -7.2% -8.1% -10% -8.4% -8.5% -9.2% -9.4% -12..0% -15% -14.0% % -17.1% -20% -20.9% -25% -30% Y -35% Services* Supermar
Slide 25: Healthy Occupancy Cost In Line with Regional Peers
Healthy Occupancy Cost In Line with Regional Peers Average Occupancy Cost(1) 1 4% 17.4% 17.2% 16.7% 16.1% 14.9% ((2)) ((4)) ((5)) Westfield W fi ld CFS RRetailil Westfield W fi ld (US) CMT (2008) CMT (2009) (Australia & Property Trust NZ) (2) (Australia) (3) S Source: C Companies i reports t and d C
Slide 26: Positive Rental Reversions
Positive Rental Reversions Exceptions due to tenant remixing and introduction of new concepts From 1 January to 31 December 2009 (Excluding Newly Created Units) Net Lettable Area Average No. of Increase/(Decrease) in Growth Property Renewals Retention Current Rental Rates vs Rate Per /New Rate A Are
Slide 27: Improving Renewal Rate Throughout 2009
Improving Renewal Rate Throughout 2009 Positive rental reversions achieved despite challenging times Increase in Current Rental Rates vs CMT Portfolio Number of Net Lettable Area Preceding Rental (By Quarter)(1) Renewals/ (Sq Ft) Rates New Leases (typically committed 3 years ago) 1Q 2009 125 169,233
Slide 28: Portfolio Lease Expiry Profile for 2010 By Property
Portfolio Lease Expiry Profile for 2010 By Property Net Lettable Area Gross Rental Income No. of As at 31 December 2009 Sq Ft (’000) % of Mall NLA(1) S$’000 % of Mall Income(2) Leases Tampines Mall 60 140.2 42.8% 1,799 40.0% Junction 8 71 99.9 40.5% 1,400 40.4% Funan DigitaLife Mall 55 113.0 38.2% 6
Slide 29: Close to 100% Occupancy Maintained Throughout 2009
Close to 100% Occupancy Maintained g Throughout 2009 As at As at As at As at As at As at As at As at As at 31 Dec 01 31 Dec 02 31 Dec 03 31 Dec 04 31 Dec 05 31 Dec 06 31 Dec 07 31 Dec 08 31 Dec 09 Tampines Mall 100.0% 100.0% 99.3% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Junction 8 100.0% 100.0% 10
Slide 30: Updates on Asset Enhancement Initiatives
Updates on A Asset tEEnhancement h t Initiatives I iti ti (“AEI”) 30 CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 31: Raffles City Singapore
Raffles City Singapore 31 CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 32: Strong Leasing Interest for New Space
Strong Leasing Interest for New Space More than 63% of net lettable area at Raffles City Singapore’s proposed Basement 2 Link has been pre-committed AEI works have commenced; on schedule to complete by end-2010 Target AEI Works New escalator connection to B2 link Completion Basement 1 – Phase 1 2nd
Slide 33: Jurong Entertainment Centre
Jurong Entertainment Centre 33 CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 34: AEI Plans Refined Further
AEI Plans Refined Further • AEI plans for Jurong Entertainment Centre (JEC) – Deferred in 2009 due to economic downturn – Subsequently refined to improve layout and circulation of plans for new mall – To give JEC an iconic design and distinctive façade, Benoy, the widely acclaimed architect who desi
Slide 35: Basement 1 Floor Plan
Basement 1 Floor Plan(1) Food court Specialty shops & food kiosks Supermarket Before AEI After AEI N t Lettable Net L tt bl Area A ((sq ft)(2) 0 37 535 37,535 (1) Above floor plan is subject to approvals and changes. (2) Based on Manager’s estimates. 35 CapitaMall Trust Full Year 2009 Financial Resu
Slide 36: Level 1 Floor Plan
Level 1 Floor Plan(1) 24-hour through block link Food & beverage outlets with street frontage Before AEI After AEI Variance Net Lettable Area (sq ft)((2)) 18 956 18,956 34 740 34,740 +83% (1) Above floor plan is subject to approvals and changes. (2) Based on Manager’s estimates. 36 CapitaMall Trust
Slide 37: Level 2 Floor Plan
Level 2 Floor Plan(1) 24-hour through block link Before AEI After AEI Variance Net Lettable Area (sq ft)(2) 41,541 39,624 -5% (1) Above floor plan is subject to approvals and changes. (2) Based on Manager’s estimates. 37 CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 38: Level 3 Floor Plan
Level 3 Floor Plan(1) Ice Rink level with tiered seats Food F d & beverage b outlets with seats surrounding ice rink Before AEI After AEI Variance N t Lettable Net L tt bl Area A ((sq ft)(2) 44 132 44,132 56 504 56,504 +28% 28% (1) Above floor plan is subject to approvals and changes. (2) Based on M
Slide 39: Jurong Entertainment Centre Perspective – Ice Rink Level
Jurong Entertainment Centre Perspective p – Ice Rink Level CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 40: Level 4 Floor Plan
Level 4 Floor Plan(1) Six-screen Cinema Food F d & beverage b outlets with seats surrounding ice rink Before AEI After AEI Variance N t Lettable Net L tt bl Area A ((sq ft)(2) 5 985 5,985 35 751 35,751 +497% 497% (1) Above floor plan is subject to approvals and changes. (2) Based on Manager’s estima
Slide 41: Level 5 Floor Plan
Level 5 Floor Plan(1) Landscaped Rooftop Plaza (1) Above floor plan is subject to approvals and changes. 41 CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 42: Financials & Indicative Timeline
Financials & Indicative Timeline Projected Incremental Rents(1) Description Before AEI After AEI(2) Variance All Allowable bl Gross G Plot Pl t Ratio R ti 1 85 1.85 3 45 3.45 16 1.6 +86% 86% Gross Floor Area (sq ft) 170,071 316,818 146,747 +86% Net Lettable Area (sq ft) 110,614 204,153 93,539 +85% A
Slide 43: Creating Value
Creating Value Capital Expenditure Start Date Completion Date S$200.32 million 2nd Quarter 2010 1st Quarter 2012 AEI Budget(1) Incremental Gross Revenue per annum $23.81 million Incremental Net Property Income $16.07 million p Capital Expenditure p Required q $200.32 million $ Return On Investment 8
Slide 44: Jurong Entertainment Centre Perspectives
Jurong Entertainment Centre Perspectives p (1) Internal Layout of the new JEC Façade of the new JEC (1) Above perspectives are subject to changes. 44 CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 45: Iconic and Distinctive Façade Design for JEC
Iconic and Distinctive Façade Design for JEC CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 46: Market Review & Outlook
Market Review & Outlook 46 CapitaMall Trust Full Year 2009 Financial Results *January 2010*
Slide 47: Better Economic Outlook for 2010
Better Economic Outlook for 2010 Gl b l economic Global i recovery • Asia’s growth expected to remain robust • Singapore government expects economy to grow by 3% to 5% in 2010 • Improvement in consumer confidence Real GDP Growth 10% Consensus Forecast 8% 6% 5.6% 5.3% 4% 3 0% 3.0% 2% 0.6% 0% 2002 200
Slide 48: Expected Pickup in Tourist Arrival to Benefit Retail Sector
Expected Pickup in Tourist Arrival to Benefit Retail Sector Expected 12 million visitors (+25% Y-o-Y growth) in 2010 for Singapore, with • Opening of integrated resorts • Hosting of Youth Olympic Games Singapore Visitor Arrivals 25 Forecast n) 30% Arrivals (million Year-on--Year Change 20 10% 15 12.
Slide 49: Uptick in Consumer Sentiment
Uptick in Consumer Sentiment Retail sales (excluding motor vehicle sales) • Month-on-month growth of 0.3% in Nov 2009 over Oct 2009 • Year-on-year growth of 4.0% in Nov 2009, the first increase in 13 months Retail Sales Index at Current Price 145 12% sales) n-Year Change % 140 8% 135 otor vehicle s
Slide 50: CMT's Outlook
CMT’s Outlook Resilient FY2009 performance • Distributable income grew by 18.3% year-on-year • Positive rental reversions and strong portfolio occupancy achieved despite a difficult year M More optimistic ti i ti market k t outlook tl k • Global economic recovery • Uptick in consumer sentiment R • R
Slide 51: Thank You
Thank You For enquiries, please contact: Jeanette Pang (Ms) I Investor t Relations R l ti Tel : (65)-6536 1188 Fax : (65)-6536 3884 Email: jeanette.pang@capitaland.com http://www.capitamall.com 51 CapitaMall Trust Full Year 2009 Financial Results *January 2010*