CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaMall Trust — Q1 2008 Earnings Presentation
72 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Apr 22, 2008
Slide 1: CapitaMall Trust 1st Quarter 2008 Financial Results
CAPITAMALL TRUST 1ST QUARTER 2008 FINANCIAL RESULTS 22 April 2008
Slide 2: Disclaimers
Disclaimers This presentation is focused on comparing actual results versus forecasts stated in the Forecast Consolidated Statement of Total Return and Distribution Income of CMT and its subsidiaries dated 22 January 2008. This shall be read in conjunction with paragraph 9 of CMT’s 2008 First Quarte
Slide 3: Financial Highlights
Cap/taMall P Trust Financial Highlights
Slide 4: Financial Results 1Q 2008
Financial Results 1Q 2008 (1 Jan – 31 Mar 2008) Amount Available for Distribution Exceeds Forecast1 by 13.5% Distribution Per Unit of 3.48 Cents Exceeds Forecast1 by 3.0% Actual Forecast1 Variance Change Amount available for distribution S$65.4 m S$57.7 m S$7.7 m 13.5% 2 Distributable income S$58.0
Slide 5: Financial Results DPU Comparison
Financial Results DPU Comparison 1Q 2008 Distribution Per Unit Increased 15.0% over 1Q 2007 1Q 2008 1Q 2007 Variance Change% 1 2 Annualised distribution per unit 14.00¢ 12.17¢ + 1.83¢ +15.0% Annualised distribution yield 4.02% 3.50% +0.52% +15.0% (Based on unit price of S$3.48 on 21 April 2008) 1. A
Slide 6: Distribution Details
Distribution Details Distribution Period 1 January to 31 March 2008 Distribution Rate 3.48 cents per unit Distribution Timetable Notice of Book Closure Date 22 April 2008 Last Day of Trading on “cum” Basis 25 April 2008, 5.00 pm Ex-Date 28 April 2008, 9.00 am Book Closure Date 30 April 2008, 5.00 pm
Slide 7: Steady DPU Growth Since Listing in July 2002
Steady DPU Growth Since Listing in July 2002 Multi-Pronged Strategy Delivers Continuous DPU Growth +4.9% 14.002¢ 14 +14.1% 13.34 ¢ +14.3% +7.9% 11.69 ¢ 12 +18.1% 10.23 ¢ 10 +9.4% 9.48 ¢ 1 8.03 ¢ FY2008 8 7.34 ¢ FY2007 DPU2 FY2006 Actual FY2005 Actual 6 FY2004 DPU Actual DPU FY2003 Actual FY2002 DPU
Slide 8: Breakdown of DPU Growth Since IPO (Jul 2002)
Breakdown of DPU Growth Since IPO (Jul 2002) Acquisitions, Asset Enhancements & Active Leasing form Core Components of Growth 14.00 ¢2 Asset Enhancements / Reconfiguration & Others 38% Upfront Payment of IMM Land Premium 5% Active Leasing Acquisitions 19% 37% 6.78 ¢1 1. Annualised forecast based on
Slide 9: Financial Results
Cap/taMall Financial Results
Slide 10: Distribution Statement 1Q 2008
Distribution Statement 1Q 2008 (1 Jan – 31 Mar 2008) Actual Forecast1 Variance S$’000 S$’000 (%) Gross Revenue 121,063 117,134 3.4 Less property operating expenses (36,396) (38,860) (6.3) Net property income 84,667 78,274 8.2 Interest Income 185 35 N.M Administrative expenses (7,950) (7,777) 2.2 Int
Slide 11: Property Gross Revenue 1Q 2008
Property Gross Revenue 1Q 2008 (1 Jan – 31 Mar 2008) Portfolio Gross Revenue Outperformed Forecast1 by 3.4% CMT Portfolio 121.1 117.1 3.4% Tampines Mall 14.8 14.2 Junction 8 11.5 11.3 Funan 7.2 DigitaLife Mall 7.2 18.0 IMM Building 17.3 17.5 Plaza Singapura 17.0 Bugis Junction 15.6 15.0 Other Assets
Slide 12: Property Operating Expense 1Q 2008
Property Operating Expense 1Q 2008 (1 Jan – 31 Mar 2008) Rigorous Cost Management Contains Portfolio Operating Expenses CMT Portfolio 36.4 38.8 6.3% Tampines Mall 4.1 4.1 3.4 Junction 8 3.7 Funan 2.3 DigitaLife Mall 2.7 5.7 IMM Building 6.3 Plaza Singapura 4.5 4.7 4.8 Bugis Junction 5.7 Other Assets
Slide 13: Net Property Income 1Q 2008
Net Property Income 1Q 2008 (1 Jan – 31 Mar 2008) Portfolio Net Property Income Outperformed Forecast1 by 8.2% CMT Portfolio 84.7 78.3 8.2% Tampines Mall 10.7 10.1 Junction 8 8.1 7.6 Funan 4.9 DigitaLife Mall 4.5 IMM Building 12.3 11.0 Plaza Singapura 13.0 12.3 10.8 Bugis Junction 9.3 2.4 Other Asse
Slide 14: Property Gross Revenue 1Q 2008 vs 1Q 2007
Property Gross Revenue 1Q 2008 vs 1Q 2007 Strong Gross Revenue Growth of 9.7% on Comparable Mall Basis CMT Portfolio 106.8 97.4 9.7% Tampines Mall 14.8 13.7 Junction 8 11.5 11.0 Funan 7.2 DigitaLife Mall 6.3 IMM Building 18.0 15.6 Plaza Singapura 17.5 16.9 Bugis Junction 15.6 14.0 Other Assets1 3.2
Slide 15: Property Operating Expense 1Q 2008 vs 1Q 2007
Property Operating Expense 1Q 2008 vs 1Q 2007 Stabilised Portfolio Operating Expenses on Comparable Mall Basis 30.9 CMT Portfolio 30.8 0.6% 0.3% 4.1 Tampines Mall 3.9 Junction 8 3.4 3.4 Funan 2.3 DigitaLife Mall 2.5 IMM Building 5.7 6.2 Plaza Singapura 4.5 4.4 Bugis Junction 4.8 4.6 Other Assets1 0.
Slide 16: Net Property Income 1Q 2008 vs 1Q 2007
Net Property Income 1Q 2008 vs 1Q 2007 Robust Net Property Income Growth of 14.0% on Comparable Mall Basis 75.9 CMT Portfolio 66.6 14.0% Tampines Mall 10.7 9.8 Junction 8 8.1 7.6 Funan 4.9 DigitaLife Mall 3.8 12.3 IMM Building 9.4 Plaza Singapura 13.0 12.5 Bugis Junction 10.8 9.4 Other Assets1 2.4 2
Slide 17: Debt Capital Information as at March 2008
Debt Capital Information as at 31 March 2008 (including 40% share in RCS Trust and 100% share in CRS) S$155.0 million 3.25% Fixed Rate Notes Due 2010 Issued on 1 April 2008 Debt Maturity Profile Key Statistics Commercial Mortgage Backed Security CMBS under Silver Oak to part 783.0 (“CMBS”) under Sil
Slide 18: Balance Sheet
Balance Sheet As at 31 Mar 2008 S$’000 Non-Current Assets 5,942,809 Net Asset Value per unit S$2.25 Current Assets 85,506 (as at 31 March 2008) Total Assets 6,028,315 Adjusted Net Asset Value per unit S$2.21 (excluding distributable income) Current Liabilities 308,484 Non-Current Liabilities 1,976,6
Slide 19: Portfolio Update
Cap/taMall Portfolio Update
Slide 20: Summary of Renewals / New Leases
Summary of Renewals / New Leases Strong Rental Rates Achieved vs Forecast & Preceding Rentals From 1 January to 31 March 2008 (Excluding Newly Created Units) No. of Increase/(Decrease) in Net Lettable Area Renewals Retention Current Rental Rates VS /New Rate Area % Total % Forecast % Preceding Prope
Slide 21: Strong Renewals Achieved Year-on-Year
Strong Renewals Achieved Year-on-Year Net Lettable Area Increase in Current Rental Rates Vs CMT Portfolio No. of Renewals/ Area % of Preceding (Year) New Leases (Sq Ft) Total Forecast Rental NLA1 Rental Rates Rates 1Q 2008 101 194,978 6.9 4.3%2 10.4% 20073 346 660,397 23.7 5.0%4 12.0% 20065 299 505,
Slide 22: Portfolio Lease Expiry Profile for 2008 By Property
Portfolio Lease Expiry Profile for 2008 By Property Net Lettable Area Gross Rental Income No. of Leases % of % of As at 31 Mar 2008 Sq. ft. S$’000 total1 total2 Tampines Mall 45 42,453 13.3% 699 20.1% Junction 8 25 12,317 5.0% 317 19.1% Funan 38 45,634 15.5% 420 20.2% DigitaLife Mall IMM Building 88
Slide 23: Gross Turnover Rent & Step-Up Leases
Gross Turnover Rent & Step-Up Leases % of Total Portfolio of Tenants1 No. of Tenants1 in the Portfolio 100% 1600 1469 3 1493 3 3 86.4% 85.0%3 81.6% 2 1400 80% 2 1200 1149 2 64.4% 1000 2 60% 908 800 40% 600 400 20% 200 0% 0 Tenants with Step- Tenants Paying Tenants w ith Step- Tenants Paying GTO Up R
Slide 24: High Committed Occupancy Rates at All Malls
High Committed Occupancy Rates at All Malls Achieved Close to 100% Occupancy Rate as at 31 Mar 2008 As at As at As at As at As at As at 31 Dec 06 31 Mar 07 30 Jun 07 30 Sept 07 31 Dec 07 31 Mar 08 Tampines Mall 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Junction 8 100.0% 100.0% 100.0% 100.0% 100.0% 1
Slide 25: Portfolio Lease Expiry Profile by Year
Portfolio Lease Expiry Profile by Year Gross Rental Income As at 31 March 20081 No. of Leases S$’000 % of Total2 2008 388 4,988 16.6 2009 647 9,818 32.6 2010 727 11,064 36.7 2011 150 2,552 8.5 2012 and 19 1,693 5.6 Beyond Weighted Average Lease Term to Expiry by Rental & NLA CMT Portfolio As at 31 M
Slide 26: Asset Enhancements Update
Cap/taMall P Trust Asset Enhancements Update
Slide 27: AEI Timeline and Capital Expenditure Outlay
AEI Timeline1 and Capital Expenditure1 Outlay 2007 2008 2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q S$48.8M S$12.2M IMM Building S$9.9M Tampines Mall S$24.3M S$44.0M Sembawang Shopping Centre S$4.8M Junction 8 S$0.7M S$2.5M Plaza Singapura S$18.8M S$12.6M S$8.5M Bugis Junction S$51.0M S$24.4M S$7.5M Ra
Slide 28: Lot One Shoppers' Mall
Cap/taMall P Trust Lot One Shoppers’ Mall
Slide 29: Lot One Shoppers' Mall Proposed Asset Enhancement Works
Lot One Shoppers’ Mall Proposed Asset Enhancement Works New Façade Wet Playground on Level 5 Rooftop Plaza New Streetscape Basement 1 Market Place 29
Slide 30: Lot One Shoppers' Mall Proposed Asset Enhancement Works
Lot One Shoppers’ Mall Proposed Asset Enhancement Works Decant space currently occupied by the National Library Board. It will occupy area classified for use by Civic and Community Institution, which is deemed non commercial GFA. Create 4-storey retail extension block measuring over 16,500 sq ft
Slide 31: Lot One Shoppers' Mall Proposed Basement 1 Plan
Lot One Shoppers’ Mall Proposed Basement 1 Plan Reconfiguration of existing Supermarket space to F&B units / kiosks and specialty units SUPERMARKET New escalator from Level 1 Open Plaza F&B Retail New food street through reconfiguration of existing kiosks 31
Slide 32: Lot One Shoppers' Mall Proposed Level 1 Plan
Lot One Shoppers’ Mall Proposed Level 1 Plan Extension of retail floor plate towards Choa Chu Kang MRT Station New escalator for direct connection to Basement 1 New escalator to ease circulation from Levels 1 to 5 Fully covered 4 storey high Open Plaza Slabbing of voids to create a F&B larger atrium
Slide 33: Lot One Shoppers' Mall Proposed Level 2 Plan
Lot One Shoppers’ Mall Proposed Level 2 Plan New units created through extension of floor plate over the Open Plaza New escalator to ease circulation from Levels 1 to 5 F&B Retail Slabbing of voids to create 8 nos. of retail kiosks 33
Slide 34: Lot One Shoppers' Mall Proposed Level 3 Plan
Lot One Shoppers’ Mall Proposed Level 3 Plan New units created through extension of floor plate over the Open Plaza New escalator to ease circulation from Levels 1 to 5 F&B Retail Slabbing of voids to create 4 nos. of retail kiosks 34
Slide 35: Lot One Shoppers' Mall Proposed Level 4 Plan
Lot One Shoppers’ Mall Proposed Level 4 Plan Relocation of Food Court from Basement 1 to Level 4 Enlarged Community Library of over 25,000sf LIBRARY New escalator to ease circulation from Levels 1 to 5 FOOD COURT F&B Retail New void to enhance visibility of the upper levels 35
Slide 36: Lot One Shoppers' Mall Proposed Level 5 Plan
Lot One Shoppers’ Mall Proposed Level 5 Plan Stage Landscaped Roof Plaza TV Room incorporating Wet & Dry Play Area Playground and TV Room New escalator to ease circulation Event from Levels 1 to 5 Plaza Splash Zone F&B Retail Open Plaza with Amphitheatre for Community Events 36
Slide 37: Lot One Shoppers' Mall New Shops on Level 1
Lot One Shoppers’ Mall New Shops on Level 1 37
Slide 38: Lot One Shoppers' Mall New Shops on Level 2
Lot One Shoppers’ Mall New Shops on Level 2 38
Slide 39: Lot One Shoppers' Mall New Shops on Level 2
Lot One Shoppers’ Mall New Shops on Level 2 39
Slide 40: Lot One Shoppers' Mall AEI Leasing Update
Lot One Shoppers’ Mall AEI Leasing Update – 71% Of The Projected Increase In Rents Committed Average Rent S$ per sq ft per mth Before AEI After AEI1 Variance + 20.0% Total / Average S$ 10.04 S$ 12.05 (+ S$4.9 mil p.a) S$4.9 million (71%) out of the S$6.9 million projected increase in rental revenue
Slide 41: Lot One Shoppers' Mall Indicative AEI Timeline
Lot One Shoppers’ Mall Indicative AEI Timeline Completed on Schedule Activity Commencement Date Start of AEI 3rd Quarter 2007 Activity Target Completion Date1 Basement 1 Reconfiguration 4th Quarter 2008 Level 1 Extension January 2008 Level 2 Extension 1st Quarter 2008 Level 3 Extension 1st Quarter 2
Slide 42: Lot One Shoppers' Mall Value Creation of Planned Initiatives
Lot One Shoppers’ Mall Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$51.7 mil 3rd Qtr 2007 4th Qtr 2008 AEI Budget1 Incremental Gross Revenue p.a. S$ 6.9 mil Incremental Net Property Income S$ 5.2 mil Total Capital Expenditure S$ 51.7 mil Return on Investment
Slide 43: Jurong Entertainment Centre
Jurong Entertainment Centre
Slide 44: Jurong Entertainment Centre Proposed AEI - Facade
Jurong Entertainment Centre Proposed AEI - Facade Olympic-sized skating rink New Façade 44
Slide 45: Jurong Entertainment Centre AEI Following Increase in Plot Ratio
Jurong Entertainment Centre AEI Following Increase in Plot Ratio Before Increase of GPR After Increase of GPR Variance Gross Plot Ratio (GPR) 1.85 3.0 62% Allowable GFA 170,000 sq ft 275,500 sq ft1 62% Net Lettable Area 111,000 sq ft 209,700 sq ft1 89% 1 Based on Manager's estimates URA has grante
Slide 46: Jurong Entertainment Centre Proposed AEI – Level 1
Jurong Entertainment Centre Proposed AEI – Level 1 F&B Retail Before After Current After AEI1 Variance Net Lettable Area 18,950 sq ft 36,040 sq ft + 17,090 sq ft 1. Based on Manager's estimates. 46
Slide 47: Jurong Entertainment Centre Proposed AEI – Level 2
Jurong Entertainment Centre Proposed AEI – Level 2 F&B Retail Before After Current After AEI1 Variance Net Lettable Area 41,540 sq ft 51,640 sq ft + 10,100 sq ft 1. Based on Manager's estimates. 47
Slide 48: Jurong Entertainment Centre Proposed AEI – Level 3
Jurong Entertainment Centre Proposed AEI – Level 3 Proposed new Olympic-sized ice skating rink F&B Retail Before After Current After AEI1 Variance Net Lettable Area 44,130 sq ft 62,110 sq ft + 17,980 sq ft 1. Based on Manager's estimates. 48
Slide 49: Jurong Entertainment Centre Proposed AEI – Level 3
Jurong Entertainment Centre Proposed AEI – Level 3 Examples of Olympic-sized Ice Skating Rinks 49
Slide 50: Jurong Entertainment Centre Proposed AEI – Level 4
Jurong Entertainment Centre Proposed AEI – Level 4 F&B Retail Before After Current After AEI1 Variance Net Lettable Area 5,980 sq ft 31,880 sq ft + 25,900 sq ft 1. Based on Manager's estimates. 50
Slide 51: Jurong Entertainment Centre Proposed AEI – Level 5
Jurong Entertainment Centre Proposed AEI – Level 5 F&B Retail Before After Current After AEI1 Variance Net Lettable Area 0 sq ft 28,060 sq ft + 28,060 sq ft 1. Based on Manager's estimates. 51
Slide 52: Jurong Entertainment Centre Value Creation of Planned Initiatives
Jurong Entertainment Centre Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$138.24 million 4th Quarter 2008 4th Quarter 2009 AEI Budget1 Incremental Gross Revenue S$ 17.72 million Incremental Net Property Income S$ 12.41 million Capital Expenditure (includes Di
Slide 53: Sembawang Shopping Centre
Cap/taMall Sembawang Shopping Centre
Slide 54: Sembawang Shopping Centre Redevelopment Work Commenced
Sembawang Shopping Centre Redevelopment Work Commenced New Facade Rooftop Landscaped Plaza Decant 42,610 sq ft of residential gross floor area to Basement 1, Levels 1 and 2 Shift less prime space 35,974 sq ft of gross floor area from Level 3 and 4 to Basement 1, Levels 1 and 2. Relocate car pa
Slide 55: Sembawang Shopping Centre Strong Leasing Commitment of over 80%
Sembawang Shopping Centre Strong Leasing Commitment of over 80% Anchor Tenants Committed Some of the Specialties Committed 55
Slide 56: Sembawang Shopping Centre Value Creation of Planned Initiatives
Sembawang Shopping Centre Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$68.4 million 1st Quarter 2007 4th Quarter 2008 AEI Budget1 Gross Revenue S$6.8 million (net of rental loss from decanted retail space) Net Property Income S$5.5 million Capital Expenditur
Slide 57: Bugis Junction
Cap/taMall Bugis Junction
Slide 58: Bugis Junction AEI – Level 3, Food Junction, Completed
Bugis Junction AEI – Level 3, Food Junction, Completed Level 3 Before AEI After AEI Reconfigured Retail Area Food Junction relocated from Basement 1 to Level 3 58
Slide 59: Bugis Junction New Facade Along Hylam & Malay Streets
Bugis Junction New Facade Along Hylam & Malay Streets Create Open Concept for restaurant block through: Creation of balconies on Level 2 Converting opaque shop fronts on Level 3 to glass parapets Before After 59
Slide 60: Bugis Junction Proposed AEI– Basement 1, 100% Committed
Bugis Junction Proposed AEI– Basement 1, 100% Committed Basement 1 Creation of a myriad of specialty shops and food concept outlets Phases 1 and 2 AEI Before AEI After AEI 100% Committed Reconfigured Retail Area • Basement 1 works will be completed over 3 phases, 100% committed • Phase 3 works start
Slide 61: Bugis Junction Basement Market Place (Phase 1&2) – Completed
Bugis Junction Basement 1 Market Place (Phase 1&2) – Completed 100% Tenants Committed 61
Slide 62: Bugis Junction Indicative AEI Timeline
Bugis Junction Indicative AEI Timeline Completed on Schedule Activity Commencement Date Start of AEI works 4th Quarter 2006 Activity Target Completion Date1 New Foodcourt at Level 3 3rd Quarter 2007 New balconies at Level 2 of the 3rd Quarter 2007 restaurant block at Hylam street New façade for Hyla
Slide 63: Bugis Junction Value Creation of Planned Initiatives
Bugis Junction Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$31.4 million 4th Quarter 2006 2nd Quarter 2008 AEI Budget1 Incremental Gross Revenue S$5.4 million Incremental Net Property Income S$4.0 million Capital Expenditure S$31.4 million Return on Investme
Slide 64: Bugis Junction AEI – Level 2 of Retail Block
Bugis Junction AEI – Level 2 of Retail Block Level 2 Plan After AEI Before AEI Slabover existing voids and Convert wall façade extension of lease line, to into glass parapets, enhance value and improve to improve visibility circulation 64
Slide 65: Bugis Junction AEI – Level 3 of Retail Block
Bugis Junction AEI – Level 3 of Retail Block Level 3 Plan After AEI Before AEI Slabover existing voids and Convert wall façade Reconfiguration of extension of lease line, to into glass parapets, retail layout, to enhance value and improve to improve visibility increase variety and circulation improv
Slide 66: Bugis Junction AEI – Levels 2 and 3 of Retail Block
Bugis Junction AEI – Levels 2 and 3 of Retail Block Existing Facade New Facade 66
Slide 67: Bugis Junction AEI – Levels 2 and 3 of Retail Block
Bugis Junction AEI – Levels 2 and 3 of Retail Block Existing Façade Facing Hylam Mall New Façade Facing Hylam Mall 67
Slide 68: Bugis Junction Value Creation of Planned Initiatives
Bugis Junction Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$8.5 million 2nd Quarter 2008 4th Quarter 2008 AEI Budget1 Incremental Gross Revenue S$1.06 million Incremental Net Property Income S$0.85 million Capital Expenditure S$8.5 million Return on Investme
Slide 69: Plaza Singapura
Cap/taMall Plaza Singapura
Slide 70: Plaza Singapura Value Creation – Level 3
Plaza Singapura Value Creation – Level 3 Reconfiguration to :- ¾Increase retail offering, strengthen the positioning and mix on family and lifestyle merchandise ¾Increase average rent ¾Improve visibility and circulation 70
Slide 71: Plaza Singapura Value Creation of Planned Initiatives
Plaza Singapura Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$2.45 million 2nd Quarter 2008 4th Quarter 2008 AEI Budget1 Incremental Gross Revenue S$0.56 million Incremental Net Property Income S$0.42 million Capital Expenditure S$2.45 million Return on Inves
Slide 72: Thank You
Thank You For enquiries, please contact: TONG Ka-Pin (Ms) Investor Relations & Corporate Communications Manager Tel : (65)-6536 1188 Fax : (65)-6536 3884 Email: tong.ka-pin@capitaland.com.sg http://www.capitamall.com 72