CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — Q1 2022 Earnings Presentation
43 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Apr 29, 2022
Slide 1: 1Q 2022 Business Update
CapitaLand Integrated Commercial Trust 1Q 2022 Business Update 29 April 2022 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. 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 assumptions. Representative examples of these factors incl
Slide 3: Table of Content
Table of Content 04 19 Highlights Performance By Asset Type 10 28 Financials & Focus & Capital Management Outlook 15 30 Portfolio Market Performance Information Funan, Singapore Capi t aLand I nt egr at ed Com m er c i al Tr us t 3
Slide 4: Highlights
Highlights 66 Goulburn Street, Sydney, Australia
Slide 5: Delivering on CICT's Value Creation Strategy Through Portfolio Reconstitution
Delivering on CICT’s Value Creation Strategy Through Portfolio Reconstitution Disciplined execution of ongoing portfolio reconstitution journey with capital recycling into higher yielding or growth assets JCube exit yield: <4% One George Street March/April 2022 exit yield: 3.17% Australia Portfolio
Slide 6: Portfolio and Operational Highlights
Portfolio and Operational Highlights(1) Portfolio Portfolio Committed Portfolio 10.9 Portfolio 3.7 Property S$22.9 Occupancy 93.6% NLA(2) million sq ft WALE(3) years Value(4) Billion Suburban Mall Retail Portfolio ▼0.8% 1Q 2022 ▲0.6% Average ▲1.5% Q-o-Q Tenants’ Sales Downtown Mall Singapore Office
Slide 7: Portfolio Update: CapitaSpring and Six Battery Road
Portfolio Update: CapitaSpring and Six Battery Road CapitaSpring Six Battery Road — Injecting more vibrancy into the integrated development as more F&B tenants open — All leasable space obtained TOP in Feb and more employees return to office 2022 — Committed retail units at L1 podium block progressi
Slide 8: Completed Acquisition of 70.0% Interest in CapitaSky
Completed Acquisition of 70.0% Interest in CapitaSky (formerly known as 79 Robinson Road) ✓ Acquired 70.0% interest in Southernwood Property Pte Ltd (SWP), which holds CapitaSky, from wholly owned subsidiaries of Mitsui & Tokyo Tatemono JV and CapitaLand Investment (CLI) on 27 April 2022 ✓ Acquired
Slide 9: Portfolio Property Value by Geography and Asset Type
Portfolio Property Value by Geography and Asset Type Australia, Germany, 3% 4% Australia, Germany, 3% 4% Retail, Office, 30% Retail, 41% Office, 39% S$22.9 31% S$23.8 billion(1) billion(2) as at 31 March 2022 Integrated Integrated Development, Development, 30% 29% Singapore, 93% Singapore, 93% Notes
Slide 10: Financials & Capital Management
Financials & Capital Management Bugis Junction, Singapore
Slide 11: CICT Financial Performance
CICT Financial Performance(1) 1Q 2022 higher gross revenue offset by rise in utilities expenses Gross 1Q 2022 Y-o-Y 1Q 2022 Y-o-Y Net Property Revenue(1) S$339.7M ▲ 1.5% Income(1) S$248.3M ▲ 0.5% Retail Asset Performance (2) Office Asset Performance Integrated Development (S$ m) (S$ m) Performance (
Slide 12: Well-diversified Sources of Funding
Well-diversified Sources of Funding Facilities in place to refinance debt due 2022(1) Exclude share of joint ventures’ Debt Maturity Profile(2) borrowings 17% S$ million 16% Funding sources as at 31 Mar 2022 1,624 1,600 14% MTN 59% 1,455 1,400 1,311 12% Unsecured Bank 33% 11% Loans 1,200 10% 870 1,0
Slide 13: Proactive Capital Management
Proactive Capital Management As at As at 31 March 2022 31 December 2021 Aggregate Leverage(1) 39.1%(2) 37.2% Total Borrowings (S$ billion)(3) 8.8 8.1 % of Borrowings on Fixed Interest Rate(3) 85% 88% % of Total Assets that are Unencumbered 93.5% 96.1% Interest Coverage(4) 4.2x 4.1x Average Term to M
Slide 14: Embedding Sustainability in our Business Strategy and Operations
Embedding Sustainability in our Business Strategy and Operations Embarking on innovative pilots to progress towards 2030 targets Tampines Mall subscribed to be part of Singapore's first brownfield district Tapping onto sustainable financing opportunities cooling system at Tampines Tampines Mall is o
Slide 15: Portfolio Performance
Portfolio Performance CapitaSpring, Singapore
Slide 16: Portfolio WALE Stable at 3.7 Years as at 31 Mar 2022
Portfolio WALE(1) Stable at 3.7 Years as at 31 Mar 2022 Retail Portfolio WALE(2) 2.0 years Office Portfolio WALE(3) 4.0 years Integrated Development Portfolio WALE 5.4 years 14.8% 14.2% 13.8% 12.1% 8.7% 7.7% 6.0% 4.6% 4.2% 4.9% 4.0% 3.0% 2.0% 2022 2023 2024(4) 2025 2026 2027 and beyond Retail Office
Slide 17: No Single Tenant Contributes More Than 6% of Gross Rental Income
No Single Tenant Contributes More Than 6% of CICT’s Total Gross Rental Income(1) % of Total Ranking Top 10 Tenants for March 2022 Trade Sector Gross Rent 1 RC Hotel (Pte) Ltd 5.1 Hotel 2 WeWork Singapore Pte. Ltd.(2) 2.7 Real Estate and Property Services Supermarket / Beauty & Health / Services / Fo
Slide 18: Portfolio Committed Occupancy at 93.6% as at 31 Mar 2022
Portfolio Committed Occupancy at 93.6% as at 31 Mar 2022 (1,2) (2) 96.8% 96.6% 96.0% 97.6% (4) 91.5% 91.4%(3) 93.9% 93.6% (5) (5) Retail Office Integrated Development Portfolio As at 31 Dec 2021 As at 31 Mar 2022 Notes: (1) 1Q 2022 retail occupancy fell slightly mainly due to expiry of leases in Cla
Slide 19: Performance by Asset Type
Performance by Asset Type Note: The retail and office asset information comprises the respective retail and office components of integrated Plaza Singapura, Singapore developments unless stated otherwise, in order to show the operating metrics and trends.
Slide 20: Retail Performance Overview
Retail Performance Overview Compared Against 1Q 2021 Monthly Average 1Q 2022 New Retail Offerings and Expansion Retail by NLA Occupancy(1) 1Q 2022 Tenants’ Sales psf Toys & IT Hobbies 2% 96.6% ▲0.6% Y-o-Y 8% as at 31 Mar 2022 Education 9% 1Q 2022 Shopper Traffic New to market F&B ▼5.3% Y-o-Y Service
Slide 21: Suburban Malls Registered a Second Quarter of Positive Rental Reversion
Suburban Malls Registered a Second Quarter of Positive Rental Reversion on an Average Rent Basis Renewed and New Retail Leases(1) in 1Q 2022 Rental Reversion (1,2) for 1Q 2022 Net Lettable Area No. of Retention Percentage Incoming Year 1 Rents Average Incoming Rents Renewals / Area Rate of Retail vs
Slide 22: 1Q 2022 Tenants' Sales psf Surpassed 1Q 2021 While Shopper Traffic Improved
1Q 2022 Tenants’ Sales psf Surpassed 1Q 2021 While Shopper Traffic Improved 4.3%(1) Since 29 Mar Relaxation Retail Portfolio Tenants’ Sales and Shopper Traffic Performance Surge in Omnicron cases Start of Stabilisation Phase Various End of Phase 2 (HA) End of Stabilisation Phase and relaxation relax
Slide 23: Y-o-Y Improvement Seen for Most Trade Categories in 1Q 2022
Y-o-Y Improvement Seen for Most Trade Categories in 1Q 2022 1Q 2022 Tenants’ Sales(1) Y-o-Y Performance by Trade Categories 11.6% 4.5% 2.6% 2.1% 1.7% 0.1% -0.2% -1.0% -1.1% -2.3% -2.4% -2.5% -3.1% -5.3% -6.8% (2) Leisure & Entertainment Shoes & Bags Services Food & Beverages Books & Stationery Educa
Slide 24: Enlivening Our Retail Malls with New Offerings and Activation of Atrium Space
Enlivening Our Retail Malls with New Offerings and Activation of Atrium Space Curating retail experiences in 1Q 2022 Engaging shoppers with return of atrium activities Toys & Hobbies Fashion Jewellery LEGO Certified Store at Funan bossini X at Bugis Junction SOAMI flagship store at Raffles City Sing
Slide 25: Leveraging CapitaStar Ecosystem & Partnerships
Leveraging CapitaStar Ecosystem & Partnerships Increased consumer engagement and bolster tenants’ sales >1.27M members >12% Y-o-Y voucher sales Scalable Marketing Solutions Tapped into the membership bases of increase in Mar 2022 for Retailers and Corporate partners to attract new customers to shop
Slide 26: Office Performance Overview
Office Performance Overview Singapore, Germany and Australia Office Assets Office Occupancy(1) Total New and Renewal Leases (sq ft) 91.4% 804,650 as at 31 Mar 2022 1Q 2022 (New leases: 12.2%(2)) Singapore Office Assets Average 1Q 2022 1Q 2022 Return of office Leasing enquiries: Top 3 business sector
Slide 27: Office Portfolio Occupancy by Geography
Office Portfolio Occupancy by Geography CICT Office Portfolio: 91.4% as at 31 Mar 2022 95.8% 95.8% (2) 90.4% 92.3%(1) 75.5% (3,4) (5) Singapore Portfolio Germany Portfolio Australia Portfolio As at 31 Dec 2021 As at 31 Mar 2022 Notes: (1) CBRE’s Singapore Core CBD market occupancy as at 1Q 2022 was
Slide 28: Focus & Outlook
Focus & Outlook Asia Square Tower 2, Singapore
Slide 29: Positive Outlook Underpins Continual Focus on Value Creation and Portfolio Reconstitution
Positive Outlook Underpins Continual Focus on Value Creation and Portfolio Reconstitution to Deliver Sustainable Value Positive economic outlook in Singapore CICT’s Focus in 2022 • GDP grew by 3.4% Y-o-Y in 1Q 2022 based on advance estimates by Ministry Trade and Industry. 2022 GDP expected to grow
Slide 30: Market Information
Market Information 100 Arthur Street, North Sydney, Australia
Slide 31: Limited Retail Supply Between 2022 and 2024
Limited Retail Supply Between 2022 and 2024 Total retail supply in Singapore averages approximately 0.4 million sq ft (2022 - 2024), lower than: ― Last 3-year historical annual average supply (2019 - 2021) of 0.5 million sq ft ― Last 5-year historical annual average supply (2017 - 2021) of 0.8 milli
Slide 32: Known Future Retail Supply in Singapore (2022 – 2024)
Known Future Retail Supply in Singapore (2022 – 2024) Expected Completion Proposed Retail Projects Location NLA (sq ft) 2022 Grantral Mall @ Macpherson (Citimac A&A) Macpherson Road 67,500 2022 Boulevard 88 Cuscaden Road/Orchard Boulevard 32,000 2022 Shaw Plaza Balestier(A/A) Balestier Road 67,500 2
Slide 33: Suburban Rent Registered Slight Increase Q-o-Q While Orchard Rent Stabilises
Suburban Rent Registered Slight Increase Q-o-Q While Orchard Rent Continues to Stabilise in 1Q 2022 15.0% $40.00 $35.00 10.0% $30.00 5.0% $25.00 0.0% $20.00 (2) (1) Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014
Slide 34: Singapore Retail Sales Performance
Singapore Retail Sales Performance Most industries recorded Y-o-Y declines in February 2022 while sales of Cosmetics, Toiletries & Medical Goods increased 21.0% Y-o-Y mainly attributed to higher demand for pharmaceutical and medical products (S$ billion) 4.5 30.0% 4.0 26.2% 3.9 25.0% 3.5 3.7 3.5 3.6
Slide 35: Singapore Office Stock as at end-4Q 2021
Singapore Office Stock as at end-4Q 2021 Island-wide office stock Singapore Stock % of Grade A office Decentralised, (sq ft) total Core CBD 23.3% stock Core CBD 32.0 mil 51.5% 14.8 mil sq ft (46.2% of Core Core CBD, CBD stock) 51.5% Fringe CBD 15.7 mil 25.3% Decentralised 14.5 mil 23.2% Fringe CBD,
Slide 36: Annual New Supply Averages 0.9 Mil Sq Ft Over 3 Years
Annual New Supply Averages 0.9 Mil Sq Ft Over 3 Years; CBD Core Occupancy at 93.8% as at end-1Q 2022 Singapore Private Office Space (Central Area)(1) – Net Demand & Supply 2.5 Forecast average annual gross 2.2 new supply 1.9 2.0 1.8 1.9 (2022 to 2024): 0.9 mil sq ft 1.6 1.6 1.7 1.5 1.4 1.3 sq ft mil
Slide 37: Known Future Office Supply in Central Area (2022 – 2024)
Known Future Office Supply in Central Area (2022 – 2024) No commercial sites on Government Land Sales Confirmed List (13 Jan 2022); Two white sites (1) on reserve list, namely Kampong Bugis and Woodlands Ave 2 (Fringe Area) Expected Completion Proposed Office Projects Location NLA (sq ft) 2022 Hub S
Slide 38: Grade A Office Rent Rose for Fourth Consecutive Quarter
Grade A Office Rent Rose for Fourth Consecutive Quarter 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 Mthly rent (S$ / sq ft ) 11.15 11.30 11.45 11.55 11.50 11.15 10.70 10.40 10.40 10.50 10.65 10.80 10.95 Q-o-Q Change 3.2% 1.3% 1.3% 0.9% -0.4% -3.0% -4.0% -2.8% 0% 1.0
Slide 39: Demand and Supply in Frankfurt Office and its Two Submarkets
Demand and Supply in Frankfurt Office and its Two Submarkets (%) (‘000 sq m) Frankfurt Office 800 15 600 10 400 7.8 5 200 0 0 2015 2016 2017 2018 2019 2020 2021 YTD Mar 2022 New Supply ('000 sqm) Demand ('000 sqm) Vacancy rate (%) (%) (%) (‘000 sq m) Banking District (‘000 sq m) Airport Office Distr
Slide 40: Rental Range in Frankfurt
Rental Range in Frankfurt Rental range by submarket (€ / square metre / month) Frankfurt West City CBD C B 45.50 45.50 Westend Gallileo D 34.62 Banking District 25.00 21.57 22.00 19.38 A5 (%) 18.00 B43 Niederrad South 7.00 MAC A3 Frankfurt Total Banking District Airport District Region D Region A A
Slide 41: Sydney CBD: Improving Market and Demand Sentiment
Sydney CBD: Improving Market and Demand Sentiment Net Supply/Net Absorption ('000 sq m) Net Effective Rent (A$/sq m/annum) Vacancy 120 10% 100 9.3% 9% 1,000 80 8% 900 60 7% 800 40 700 6% 20 600 5% 0 500 4% -20 400 3% -40 300 -60 2% 200 -80 1% 100 -100 0% 0 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 2Q
Slide 42: North Sydney CBD: New Supply to Rejuvenate CBD and Demand to Pick Up
North Sydney CBD: New Supply to Rejuvenate CBD and Demand to Pick Up Net Supply/Net Absorption ('000 sq m) Net Effective Rent (A$/sq m/annum) Vacancy 120 18% 100 16.6% 16% 700 80 14% 600 60 12% 500 40 10% 400 20 8% 300 0 6% 200 -20 4% -40 2% 100 -60 0% 0 4Q 2021 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 20
Slide 43: The End
The End For enquiries, please contact: Ms Ho Mei Peng, Head, Investor Relations Direct: (65) 6713 3668 | Email: ho.meipeng@capitaland.com CapitaLand Integrated Commercial Trust Management Limited (http://www.cict.com.sg) 168 Robinson Road, #25-00 Capital Tower, Singapore 068912 Tel: (65) 6713 2888 |
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