Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Suntec REIT — Shareholder Meeting (April 2023)
49 slides from Singapore Exchange's shareholder meeting presentation, Apr 20, 2023
Slide 1: Suntec REIT Annual General Meeting
SUNTEC REIT ANNUAL GENERAL MEETING 20 April 2023
Slide 2: Agenda
03 18 FY 22 Highlights Australia Portfolio Performance 04 27 FY 22 Highlights UK Portfolio Performance 05 32 Financial Highlights Singapore Retail Portfolio Performance 09 40 Capital Management Suntec Convention Performance Agenda 12 43 Singapore Office Portfolio ESG Highlights Performance 45 Lookin
Slide 3: FY 22 Highlights
FY 22 Highlights Distributable Income to Unitholders Sustainability Awards S$255.5 million +3.4% y-o-y Portfolio Management Retained AUM Increased Highest Accolade GRESB Global Sector Leader for 0.8% to S$12.3 Office-Listed Category Distribution per unit billion to Unitholders #1 Asia (Office) 8.884
Slide 4: FY 22 Operational Highlights
FY 22 Operational Highlights Portfolio Committed Occupancy Portfolio WALE 98.3% 97.5% 4.5 2.4 Overall Office Portfolio Overall Retail Portfolio Overall Office Portfolio Overall Retail Portfolio Work Done Office Portfolio 61% 39% 1.17M sq ft Retail Portfolio 68% 32% Renewal Leases New Leases 4
Slide 5: Financial Highlights
Olderfleet, 477 Suntec City MBFC Properties One Raffles Quay Collins Street Financial Highlights The Minster Building 177 Pacific Highway 55 Currie Street Nova Properties 21 Harris Street Southgate Complex5
Slide 6: Strong Financial Performance in FY 22
Strong Financial Performance in FY 22 NPI Grew 24% in FY 22 Mainly due to: 19.3% FY 21 Gross Revenue & Net Property Income FY 22 Higher contributions from Suntec City Office, Suntec City Mall and Suntec Convention 24.0% Higher contributions from The Minster Building3, London Lower occupancy and abse
Slide 7: Decline in DI from Operations
Decline in DI from Operations Distributable Income (S$ mil) 3.4% From 255.5 Operations 23.0 From capital 247.2 Mainly due to 232.5 Higher interest rates FY 21 FY 22 Higher proportion of asset management fees in cash (50%) vs FY 21 (20%) DPU to Unitholders (SG cents) Higher NPI from better operating
Slide 8: Diversified Portfolio Across Geography and Sector
Diversified Portfolio Across Geography and Sector Singapore Market and Office Assets are Mainstays Income Contribution by Geography 67% 21% 12% Singapore Australia UK 3.0% Income Contribution by Sector 75% 22% Office Retail Convention 8
Slide 9: Capital Management
Capital Management Olderfleet, 477 Collins Street, Melbourne
Slide 10: Key Financial Indicators
Key Financial Indicators Increase in Fixed Interest Rate Borrowings and Foreign Currency Income Hedging As at 31 Dec 21 As at 31 Dec 22 NAV Per Unit1 S$2.11 S$2.12 Total Debt Outstanding S$4,944 mil S$4,865 mil Aggregate Leverage Ratio2 43.7% 42.4% Weighted Average Debt Maturity 2.92 years 2.85 year
Slide 11: Refinanced S$400 mil loan with Sustainability-Linked Loan
Refinanced S$400 mil loan with Sustainability-Linked Loan ~27% of Total Debt are Green/Sustainability-Linked Loans Debt Maturity Profile Perpetual Securities 1600 1,600 (First Reset) 1400 1,400 204 1200 1,200 1000 1,000 400 800 800 204 400 600 1185 600 280 300 900 300 400 400 200 366 200 326 200 200
Slide 12: Singapore Office Portfolio Performance
Singapore Office Portfolio Performance 12 One Raffles Quay, Singapore
Slide 13: Highlights of Singapore Office Portfolio
Highlights of Singapore Office Portfolio High Occupancies with Well-Spread Lease Expiries Committed Occupancy Lease Expiry Profile As at 31 Dec 22 % of Total NLA4 Comparison Core CBD Occupancy: 94.7%3 1.5% 99.9% 100.0% 94.1% 98.5% 25.4% 19.2% 20.1% 14.0% 11.1% 8.7% Suntec City One Raffles MBFC Tower
Slide 14: Highlights of Singapore Office Portfolio
Highlights of Singapore Office Portfolio 18 Quarters of Positive Rent Reversion New Tenants by Sector (sq ft) Technology, Media and Telecommunications 24% 39% Work Done1 Banking, Insurance and Financial Services 22% 61% Shipping and Freight Forwarding 15% 631,700 sq ft Trading & Investments 8% Manuf
Slide 15: Suntec City Office
Suntec City Office Near Full Occupancy with Robust Rent Reversion Committed Occupancy 99.9% FY 22 Rent Reversion +4.8% Asset Enhancement Works Completed in June 2022 Sustainability Green Mark Platinum FY 23 Lease Expiry 21.8%1 Note: 1. By net lettable area. 15
Slide 16: One Raffles Quay / Marina Bay Financial Centre Properties
One Raffles Quay /Marina Bay Financial Centre Properties High Occupancy with Strong Rent Reversion Committed Occupancy ORQ 100% MBFC Properties1 94.0% FY 22 Rent Reversion +9.1%2 Sustainability Green Mark Platinum FY 23 Lease Expiry One Raffles Quay, Singapore MBFC Properties, Singapore ORQ 20.9%3 N
Slide 17: Singapore Office Outlook and Focus
Singapore Office Outlook and Focus Uncertainties from global macroeconomic and Office market softens Rents expected to volatile financial markets with expected slowdown plateau amidst soft persist in office demand market conditions Tenant retention and Revenue continues to maintaining high Rent reve
Slide 18: Australia Portfolio Performance
Australia Portfolio Performance Southgate Complex, Melbourne
Slide 19: Highlights of Australia Portfolio
Highlights of Australia Portfolio Majority of Lease Expiries from 2028 Onwards Committed Occupancy Lease Expiry Profile As at 31 Dec 22 % of Total NLA3 Comparison AUS Nationwide CBD Office Occupancy: 85.8%1 100.0% 97.0% 99.5% 100.0% 97.6% 55.6% 92.3% 3.2% 16.5% 5.7% 8.6% 7.6% 2.8% 177 Pacific 21 Har
Slide 20: Highlights of Australia Portfolio
Highlights of Australia Portfolio Strong Rent Reversions New Tenants by Sector (sq ft) Banking, Insurance and Financial 34% Services 38% Work Done1 Government and Government-Linked 66% 15% 237,500 sq ft Offices Manufacturing & Distribution 12% Renewal Leases Real Estate and Property Services 8% New
Slide 21: 177 Pacific Highway, Sydney
177 Pacific Highway, Sydney Full Occupancy and Long WALE with Strong Sustainability Rating Committed Occupancy 100% WALE 5.7 years Sustainability 6-Star NABERS Energy Rating FY 23 Lease Expiry 7.0%1 Note: 1. By net lettable area. 21
Slide 22: 21 Harris Street, Sydney
21 Harris Street, Sydney High Occupancy and Long WALE with Strong Sustainability Rating Committed Occupancy 97.0%1 WALE 7.3 years Sustainability 6-Star NABERS Energy Rating Lease Expiry No Expiry until 2026 Notes: 1. Rent guarantee on vacant spaces until April 2023. 22
Slide 23: Southgate Complex, Melbourne
Southgate Complex, Melbourne Re-evaluating Redevelopment Feasibility Committed Occupancy 92.3% WALE 3.2 years Sustainability 4.5-Star NABERS Energy Rating FY 23 Lease Expiry 23.2%1 Note: 1. By net lettable area. 23
Slide 24: Olderfleet, 477 Collins Street, Melbourne
Olderfleet, 477 Collins Street, Melbourne Long WALE with Strong Sustainability Ratings Committed Occupancy 99.5% WALE 9.1 years Sustainability 6 Star Green Star Rating and WELL Core Platinum Certification Lease Expiry No Expiry until 2025 24
Slide 25: 55 Currie Street, Adelaide
55 Currie Street, Adelaide Full Occupancy With Strong Sustainability Rating Committed Occupancy 100% WALE 2.1 years Sustainability 5.5-Star NABERS Energy Rating FY 23 Lease Expiry 51.8%1 Note: 1. By net lettable area. 25
Slide 26: Australia Outlook and Focus
Australia Outlook and Focus Business Nationwide CBD office Demand remains healthy confidence impacted by vacancy continues to for good quality office macroeconomic increase as new supply buildings with sound uncertainties hits market ESG credentials Asset enhancement Revenue impacted by initiatives
Slide 27: UK Portfolio Performance
UK Portfolio Performance Nova Properties, London
Slide 28: Highlights of UK Portfolio
Highlights of UK Portfolio High Occupancies with Long WALE Committed Occupancy Lease Expiry Profile As at 31 Dec 22 % of Total NLA2 Comparison 92.2% of lease expiries will be in 2028 and beyond if tenants do not Central exercise lease breaks London Office Occupancy 6.8% 91.5%1 100% 96.7% 98.3% 61.4%
Slide 29: Nova Properties, London
Nova Properties, London Full Occupancy with Long WALE and Good Sustainability Rating Committed Occupancy 100% WALE 9.1 years1 Sustainability Office BREEAM rating of “Very Good” Lease Expiry No Expiry until 2027 Note: 1. WALE to Break is 8.1 years 29
Slide 30: The Minster Building, London
The Minster Building, London Strong Occupancy with Long WALE Committed Occupancy 96.7% WALE 9.9 years2 Sustainability Office BREEAM rating of “Very Good” FY23 Lease Expiry 6.1%3 Note: 1. Income support for vacant / retail spaces till July 2023. 2. WALE to Break is 7.4 years 3. By net lettable area 3
Slide 31: UK Office Outlook and Focus
UK Office Outlook and Focus Office market continues Central London office Slow down in new space to be impacted by occupancy falls to 91.5%1 take up by technology economic challenges as leasing demand slows sector Enhance tenant Revenue remains experience through Proactive lease resilient, underpinn
Slide 32: Singapore Retail Portfolio Performance
Singapore Retail Portfolio Performance Suntec City, Singapore
Slide 33: Highlights of Singapore Retail Portfolio
Highlights of Singapore Retail Portfolio High Occupancy and Well-Spread Lease Expiry Committed Occupancy Lease Expiry Profile As at 31 Dec 22 % of Total NLA2 Comparison Secondary market occupancy 89.7%1 2.1% 98.3% 92.7% 98.1% 25.9% 25.6% 19.5% 18.8% 3.1% 5.0% Suntec City Mall Marina Bay Link Overall
Slide 34: Highlights of Singapore Retail Portfolio
Highlights of Singapore Retail Portfolio Demand Driven by Food and Beverage and Lifestyle Tenants New Tenants by Sector (sq ft) 32% Work Done1 Food and Beverage 54% 274,600 sq ft 68% Renewal Leases New Leases Lifestyle 39% Rent Reversion +4.4% Fashion 7% Notes: 1. Reflects net lettable area of new l
Slide 35: Suntec City Mall Performance
Suntec City Mall Performance Suntec City Mall, Singapore
Slide 36: Suntec City Mall
Suntec City Mall Strong Occupancy and 3 Consecutive Quarters of Positive Rent Reversion Refreshed Trade Mix with 57 new-to-market/new-to-Suntec brands Committed Occupancy 98.3% FY 22 Rent Reversion eggslut’s 2nd outlet Tai Er’s largest outlet +4.8% in Singapore in Singapore Sustainability Green Mark
Slide 37: Strong Return of Events and Roadshows
Strong Return of Events and Roadshows Atrium Occupancy Recovered to Near 2019 Klook Travel Fest 2022 Amazon.sg House Electric Vehicle (EV) Weekend Clarins in the City Cool Haus Tiger Broker Pop-Up 37
Slide 38: Tenant Sales Surpassed 2019 Since Reopening
Tenant Sales Surpassed 2019 Since Reopening Mall Traffic Increased Steadily Shopper Traffic and Tenant Sales psf (Against 2019) 140% Reopening (26 Apr) 121% 121% 115% 115% 117% 112% 113% 117% 120% 104% 100% 2019 103% 106% 105% 102% 102% 108% Average 104% 101% 94% 91% 80% 89% 87% 85% 85% 82% 82% 74%
Slide 39: Singapore Retail Outlook and Focus
Singapore Retail Outlook and Focus Continued recovery of Retail sales expected to MICE and tourism Rent growth and slow amidst weaker GDP expected to strengthen occupancy underpinned growth1 traffic and help tenant by active leasing demand sales and limited supply Intensify efforts to Proactive leas
Slide 40: Suntec Convention Performance
Suntec Convention Performance Suntec Convention
Slide 41: 2H 22 Saw Return of Larger Scale Events
2H 22 Saw Return of Larger Scale Events Mall Footfall and Tenant Sales Benefitted from Recovery of Convention Business > 900 Events in 2022 COMEX 2022 Anime Festival Asia 2022 Bookfest @ Singapore 2022 1 – 4 Sep 22 25 – 27 Nov 22 9 – 18 Dec 22 41
Slide 42: Suntec Convention Outlook and Focus
Suntec Convention Outlook and Focus Recovery momentum Domestic consumer and Positive impact from expected to continue corporate events remain China’s reopening likely for international MICE as stable pillars to be seen in 2H 23 events Full recovery expected in Growing higher yielding Income contribu
Slide 43: ESG Highlights
ESG Highlights 21 Harris Street
Slide 44: ESG's Achievements in 2022
ESG's Achievements in 2022 Green Mark Platinum Suntec City Office Towers All 12 assets certified “Water Efficient Award for Suntec City Green Building certified Building” by the Public Office Towers Utilities Board (PUB) Awarded GRESB highest accolade of Global Sector Leader for Office-Listed catego
Slide 45: Looking Ahead
Looking Ahead 55 Currie Street, Adelaide
Slide 46: Future Earnings Impacted by Macro Factors
Future Earnings Impacted by Macro Factors Rising Interest Rates Improvements in Weaker FX Reduced Operating Earnings Performance Higher Energy Costs 46
Slide 47: Navigating Challenges
Navigating Challenges Unlock Value from Asset Proactive Capital Enhancement Initiatives and Potential Management Divestment of Mature Assets Explore Good Quality, Accretive Continual Commitment to Assets Sustainability Practices 47
Slide 48: Thank you
Thank you For enquiries, please contact: Melissa Chow Eugenia Ong Manager, Investor Relations Manager, Portfolio Management Melissa.chow@esr.com Eugenia.ong@esr.com The Minster Building, London
Slide 49: Disclaimer
Disclaimer The information included in this release does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for units in Suntec REIT (“Units”) in Singapore or any other jurisdiction. This presentation may contain forward-looking state