Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — SPH REIT — Q4 FY2014 Earnings Presentation
25 slides from Singapore Exchange's earnings presentation, Oct 13, 2014
Slide 1: Results presentation for the period ended 31 August 2014
PRIVATE AND CONFIDENTIAL For the period ended 31 August 2014 13 October 2014
Slide 2: Disclaimer
Disclaimer This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in SPH REIT (“Units”). The value of Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guarantee
Slide 3: Contents
Contents Results Slide 3 Balance sheet Slide 8 Operational performance Slide 12 Growth strategy and market outlook Slide 20 Distribution details and timetable Slide 23 Credit Suisse (Singapore) Limited was the sole global coordinator and issue manager for the initial public offering of SPH REIT (the
Slide 4: Key highlights
Key highlights 4Q FY14# DPU exceeded forecast^ by 6.1% YTD# DPU of 5.99 cents Annualised distribution yield: - 5.08% (based on closing price of $1.065 per unit on 29 August 2014), and - 6.01% (based on IPO price of $0.90 per unit on 24 July 2013) Positive YTD rental reversions of 8.5% Valu
Slide 5: 4Q Distribution per unit exceeded forecast by 6.1%
4Q Distribution per unit exceeded forecast by 6.1% Actual Forecast (a) Variance 4Q FY14 S$’000 S$’000 % Gross revenue 51,074 50,360 1.4% Property expenses (13,071) (13,703) (4.6%) Net property income (NPI) 38,003 36,657 3.7% Total amount distributable to 34,940 32,821 6.5% unitholders Distribution p
Slide 6: YTD Distribution per unit exceeded forecast by 3.8%
YTD Distribution per unit exceeded forecast by 3.8% YTD Actual (a) YTD Forecast (a),(b) Variance S$’000 S$’000 % Gross revenue 222,921 221,977 0.4% Property expenses (57,011) (60,378) (5.6%) Net property income (NPI) 165,910 161,599 2.7% Total amount distributable to 150,345 144,484 4.1% unitholders
Slide 7: Higher NPI contribution from both properties
Higher NPI contribution from both properties S$m Gross Revenue Net Property Income 250.0 222.9 222.0 200.0 180.6 180.0 165.9 161.6 150.0 136.7132.6 100.0 50.0 42.3 42.0 29.2 29.0 – Portfolio Paragon The Clementi Portfolio Paragon The Clementi Mall Mall 6
Slide 8: Total DPU of 5.99 cents since IPO
Total DPU of 5.99 cents since IPO Cents 1.60 1.39 1.35 1.39 1.30 1.20 0.80 0.56 0.40 - (a) (b) Partial period Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Note: (a) For the period from 24 July 2013 (listing date) to 31 August 2013. (b) Q2 FY14 performance was boosted by variable rent during the festive period. 7
Slide 9: Balance sheet
Unsaved Document / 23/04/2013 / 09:00 1. Balance sheet Overview
Slide 10: Financial position
Financial position Actual Prospectus Pro-forma 31 Aug 2014 28 Feb 2013 S$’000 S$’000 Total assets 3,269,033 3,116,177 Total liabilities 915,967 884,461 Net assets 2,353,066 2,231,716 Net asset value per unit S$0.93 S$0.89 Gearing (a) 26.0% 27.3% (a) Gearing is computed based on total debt/ total ass
Slide 11: No refinancing till 2016
No refinancing till 2016 54.7% of the S$850m debt facility on a fixed rate basis Average cost of debt: 2.33% Weighted average term to maturity: 4.0 years Debt maturity profile S$m 20 115 280 250 185 - 2016 2017 2018 2019 2020 Fixed Floating 10
Slide 12: Valuation of properties about S$3.16b
Valuation of properties about S$3.16b Valuation Valuation Capitalisation as at 31 Aug 2014 as at 28 Feb 2013 rate S$m (a) S$m (c) Paragon 2,588.0 2,500.0 4.85% - Retail 4.25% - Medical Suite/Office The Clementi Mall (b) 571.0 553.0 5.00% SPH REIT Portfolio 3,159.0 3,053.0 Notes (a) Valuations as at
Slide 13: Operational performance
Unsaved Document / 23/04/2013 / 09:00 1. Overview Operational performance
Slide 14: Steady and resilient performance
Steady and resilient performance • Track record of 100% occupancy • Strong rental reversions • FY14# visitor traffic held steady year-on-year • Tenant sales impacted by retail sentiment and decline in tourist arrivals • FY14# occupancy cost was 18.1% for Paragon and 15.3% for The Clementi Mall Parag
Slide 15: Rental reversions up 8.5% for the portfolio
Rental reversions up 8.5% for the portfolio Number of NLA As a % Change compared renewals / new renewed / new of properties' to preceding (a) (c) leases leases (sf) NLA rental rates Paragon 102 282,316 39.9% 10.5% The Clementi 127 153,272 79.6% 5.5% Mall SPH REIT (b) Portfolio 229 435,588 48.4% 8.5%
Slide 16: Well-staggered portfolio lease renewal
Well-staggered portfolio lease renewal Weighted Average Lease Expiry (WALE) as at 31 August 2014 By NLA 2.2 years By Gross Rental Income 2.4 years Lease expiry as at 31 August 2014 FY2015 FY2016 FY2017 FY2018 FY2019 and beyond Expiries as a % of total 16.3% 26.1% 35.3% 18.9% 3.4% NLA Expiries as a %
Slide 17: Paragon and The Clementi Mall lease expiry
Paragon: well staggered lease expiry Expiry by Gross Rental Income Expiry by NLA 30.0% 30.5% 19.5% 18.6% 19.1% 19.5% 21.9% 23.9% 12.8% 4.2% FY2015 FY2016 FY2017 FY2018 FY2019 & FY2015 FY2016 FY2017 FY2018 FY2019 & beyond beyond The Clementi Mall (a) : tenant retention rate of more than 90% for first
Slide 18: Steady visitor traffic
Steady visitor traffic Paragon The Clementi Mall 29.2 29.4 18.6 18.4 FY 2013 FY 2014 FY 2013 FY 2014 * All figures (in million) Note: (a) FY 2013 refers to the financial year from 1 September 2012 to 31 August 2013 (b) FY 2014 refers to the financial year from 1 September 2013 to 31 August 2014 17
Slide 19: Tenant sales impacted by retail sentiment and decline in tourist arrivals
Tenant sales impacted by retail sentiment and decline in tourist arrivals Paragon The Clementi Mall 711.0 679.0 242.0 234.0 FY 2013 FY 2014 FY 2013 FY 2014 * All figures (in $million) Note: (a) FY 2013 refers to the financial year from 1 September 2012 to 31 August 2013 (b) FY 2014 refers to the fin
Slide 20: Events
Events 28 June 2014 16 - 20 July 2014 New Zealand “Westlake Choralation” Choir performance "See The Big Picture" event by world renowned savant artist (1st place winner in the Vienna 8th Summa Cum Laude Stephen Wiltshire who drew the skyline of Singapore from International Youth Music Festival) memo
Slide 21: Multi-pronged growth strategy to ensure growth
Multi-pronged growth strategy to ensure growth Ensure that interests of all stakeholders, including tenants, shoppers and unitholders are protected while keeping its properties at the forefront of evolving retail mall trends and Proactive asset relevant to changing demands of consumers management
Slide 22: Continual asset enhancement in progress
Continual asset enhancement in progress • Chiller decanting project - Creation of approximately 5,000sf of net lettable area - Works are expected to complete in FY 2016 • Other two asset enhancement projects - To generate a combined net lettable area of 5,000sf, to be phased in from FY 2016 - Projec
Slide 23: Market outlook
Market outlook • Outlook for Singapore economy remains modest - MTI has narrowed the growth forecast for 2014 to between 2.5% and 3.5% - Growth in labour intensive segments such as retail and food services may be weighed down by labour constraints • Visitor arrivals declined in recent months - For t
Slide 24: Distribution details and timetable
Distribution details and timetable Distribution period 4Q FY14 (1 June 2014 – 31 August 2014) Distribution per unit 1.39 cents per unit Ex-date 17 October 2014 Books closure date 21 October 2014 Payment date 14 November 2014 23
Slide 25: Thank You
Thank You Please visit www.sphreit.com.sg for more information.