Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Saizen REIT — Shareholder Meeting (October 2010)
15 slides from Singapore Exchange's shareholder meeting presentation, Oct 19, 2010
Slide 1: Annual General Meeting Presentation
Annual General Meeting Presentation 19 October 2010 www.saizenreit.com.sg
Slide 2: Disclaimer
Disclaimer • The value of units (the “Units”) of Saizen Real Estate Investment Trust (“Saizen REIT”) and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits in, or guaranteed by, Japan Residential Assets Manager Limited as manager of Saizen REIT (the “Manag
Slide 3: Overview of Real Estate Assets & Loans
Overview of Real Estate Assets & Loans • Saizen REIT can be viewed in two parts: “Healthy” part accounts for about 79% of Group assets and 91% of Group NAV Defaulted part accounts for about 21% of Group assets and 9% of Group NAV Cash flow from “Healthy” part is freely distributable to investors If
Slide 4: Overview
Overview 1. Resumed distributions for FY2010 2. Maturity default of loan of YK Shintoku; on-going efforts to seek refinancing 3. Financial position strengthened with loan repayments, new banking relationships and loan refinancing 4. Property operations and portfolio value remained stable 5. Partial
Slide 5: 1. Resumption of distribution
1. Resumption of distribution • FY2010 distribution of 0.26 cents per Unit, in respect of 2 months’ cash flow • Distribution represents operational cash generated from 8 “healthy” subsidiaries (ie. excluding cash flow of YK Shintoku) • Distribution of cash generated from “healthy” part of the REIT i
Slide 6: 2. YK Shintoku loan
2. YK Shintoku loan • Maturity default in November 2009 • Commenced discussions with financial institutions on potential refinancing of loan; any refinancing has to be on reasonable terms • Unencumbered properties of JPY 12 billion available as collateral for new loans • No indication of foreclosure
Slide 7: 2. YK Shintoku loan – Current loan balance
2. YK Shintoku loan – Current loan balance Original loan balance: JPY 7.953 billion Less: • Net sale proceeds (14 properties): (JPY 1.9 billion) • YK Shintoku’s operational cash flow: (JPY 0.2 billion) JPY 5.9 billion Less: • Applicable cash reserves: (JPY 0.6 billion) Net outstanding loan balance:
Slide 8: 3. Capital management
3. Capital management • At time of IPO (2007), all loans were CMBS loans Company Source of Debt Maturity Date Loan Amount Property Value (JPY’mln) (31 May 2007) (JPY’mln) YK Shingen CMBS Loan Dec 2009 7,620.0 12,322.1 YK Keizan CMBS Loan Apr 2010 1,536.3 3,606.7 YK Kokkei CMBS Loan Nov 2009 842.0 1,
Slide 9: 3. Capital management – current capital structure
3. Capital management Current capital structure Prevailing Loan Property Company Source of Debt Maturity Loan-to- Interest Amount Value Date value (%) Rate (%) (JPY’mln) (JPY’mln) YK Keizan Unencumbered - - - 2,616.6 - YK Shingen Unencumbered - - - 9,424.4 - GK Chosei FI Loan May 2011 3.23875 436.7
Slide 10: 3. Capital management – recent bank loan refinancing
3. Capital management • Recent successful bank loan refinancing Date of Cost of Loan Amount Company Refinancing Refinancing (%) (JPY’mln) Sep 2009 Mizuho Bank 3.50 1,000 Mar 2010 Tokyo Star Bank 3.75625 2,000 June 2010 Societe Generale 3.8275 5,900 Total 8,900 10
Slide 11: 4. Property operations and portfolio value
4. Property operations and portfolio value • Property operations has been stable and is expected to remain stable • Average occupancy rate of 91.7% in FY2010 • Tenant turnover improved from 22% in FY2009 to 20% in FY2010 • Overall rental reversions of contracts entered into during FY2010 were at ren
Slide 12: 5. Divestments
5. Divestments • Partial and progressive divestment of YK Shintoku properties to facilitate refinancing of YK Shintoku’s loan • Divested 5 properties in FY2010 and a further 9 properties in FY2011 to-date • Total sale price JPY 1,953.5 million • Sale prices were at a weighted average discount of 4%
Slide 13: Outlook for FY2011
Outlook for FY2011 • Property operations expected to remain stable • Continue to seek refinancing for loan of YK Shintoku • Only loan to mature in FY2011 will be repaid using internal cash resources or be refinanced • Explore divestment of existing properties and new acquisitions rebalancing of port
Slide 14: Key Financial Information
Key Financial Information Number of Units in Issue as at 18 October 2010 1,111,004,712 Outstanding Warrants as at 18 October 2010 335,352,705 Warrant proceeds received as at 18 October 2010 S$14.56 million Potential warrant proceeds (assuming exercise of all outstanding S$30.18 million warrants as a
Slide 15: Q&A
SaizenREIT ): Q&A