Altus Holdings Limited · HKEX:8149
Altus — Saizen Real Estate Investment Trust — 2Q FY2015 Earnings Presentation
19 slides from Altus's earnings presentation, February 2015
Slide 1: Presentation
Presentation February 2015 www.saizenreit.com.sg
Slide 2: Disclaimer
Disclaimer • The value of units (the “Units”) in 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: Saizen REIT in Brief
Saizen REIT in Brief Only Singapore-listed REIT to offer access exclusively to Japanese residential properties Properties targeted at mass market tenants in 14 cities Size of portfolio: JPY 41.7 billion (S$460 million1) Saizen REIT has a corporate family rating of Ba3, with a stable outlook
Slide 4: Well-diversified Portfolio
Well-diversified Portfolio Portfolio Total number of properties: 136 Region City distribution by revenue (%) Kumamoto 17.4 Kitakyushu 10.5 Fukuoka 6.0 Kyushu Kagoshima 3.1 Oita 0.9 37.9 Sapporo 24.5 Hokkaido Hakodate 0.7 25.2 Sendai 10.3 Koriyama 2.9 Tohoku Morioka 1.6 14.8 Hiroshima 14.5 Chugoku Ku
Slide 5: Distributions
Distributions Distribution per Unit 3.10 Singapore cents Distribution period 1 July 2014 to 31 December 2014 Date payable 27 March 2015 Singapore cents Distribution per Unit (DPU) JPY 3.50 3.50 3.00 3.00 2.50 2.50 2.00 2.00 Actual DPU (Singapore cents) 1.50 1.50 1.00 1.00 DPU in JPY‐terms 0.50 0.50
Slide 6: Distributions
Distributions For 1H FY2015, the use of capital cash resources to offset loan principal repayment contributed to 1.39 cents out of the DPU of 3.10 cents At present, loan principal amortisation amounts to approximately JPY 681 million annually Going forward, the ability to offset such loan prin
Slide 7: Hedging of Distribution Payments
Hedging of Distribution Payments Distributions have been hedged as follows: Distribution period 6-month period ended 6-month period ending 31 December 2014 30 June 2015 Expected payment March 2015 September 2015 Hedge rate (S$/JPY) 81.9 85.6 Hedge instrument Forward contract Forward contract 7
Slide 8: Hedging of Distribution Payments
Hedging of Distribution Payments The weakening of the JPY against the S$ has weighed on Saizen REIT’s net asset value and income in S$-terms As Saizen REIT’s distributable income from operations is generated in JPY, its S$- denominated distributions are dependent on the JPY-S$ cross rates The
Slide 9: 2Q FY2015 Overview
2Q FY2015 Overview Revenue and net property income remained stable Average occupancy rate in 2Q FY2015 was 90.0% (2Q FY2014 and 1Q FY2015: 90.6% and 90.1% respectively) Properties in Sendai, which had been experiencing higher occupancy rates in the past few years, continued to see a normalisat
Slide 10: Proportion of rental reversions
2Q FY2015 Overview Rental reversions (residential units) in Oct - Dec 2014 100% Proportion of rental reversions 30% 80% 59% 60% Rent decrease 34% Same rent 40% 26% Rent increase 20% 35% 15% 0% 2008 and before 2009 onwards In cases where the previous rental contract was entered from 2009 onwards, t
Slide 11: Occupancy Rates
80% 85% 90% 95% 100% Jun-08 Sep -08 Jun 08 Dec-08 Mar-09 Jun-09 Sep -09 Dec-09 Mar-10 Jun-10 Occupancy Rates Sep -10 Dec-10 Mar-11 Jun-11 Sep -11 Dec-11 Mar-12 Jun-12 Sep -12 Dec-12 Mar-13 Jun-13 Sep -13 Dec-13 Mar-14 Jun-14 Sep -14 Dec-14 Average occupancy rates remained stable above 90% since 11
Slide 12: Stable Rental Rates
Stable Rental Rates Average rental rates maintained above JPY 1,500 / sqm (approx. S$19 / sqm) since Jun 08 2,000 Average rental rates of residential units (JPY / sqm) 1,500 1,000 500 0 Sep-08 Dec-08 Sep-09 Dec-09 Sep-10 Dec-10 Sep-11 Dec-11 Sep-12 Dec-12 Sep-13 Dec-13 Sep-14 Dec-14 Mar-09 Mar-10
Slide 13: Debt Profile of TK Operators
Debt Profile of TK Operators Prevailing Loan Property Annual loan TK operator Source of Debt Maturity Guarantor Loan-to- Interest Amount Value amortisation Date Fee (%) value (%) Rate (%) (JPY’mln) (JPY’mln) (JPY’mln) GK Choan Unencumbered 721.0 YK Shinzan Bank of Fukuoka Mar 2020 2.223 0.175 1,725.
Slide 14: Debt Profile of TK Operators
Debt Profile of TK Operators All loans are: non-recourse to Saizen REIT not cross-collateralised long-term in nature (7 to 30-year loans) secured only by specific properties of the TK operator(s) Interest rates for 89% of loans outstanding are fixed 14
Slide 15: Debt Profile of TK Operators
Debt Profile of TK Operators 6.00% 12 5.00% 10 4.00% 8 WA loan interest 3.00% 6 rate 2.00% 4 Loan duration 1.00% 2 (years) 0.00% 0 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 After FY2023 FY2023 Nearest loan maturity is in FY2022 March 202
Slide 16: Upcoming Plans of Saizen REIT
Upcoming Plans of Saizen REIT Capital management Seek opportunities to expand and further diversify banking relationships in Japan and Singapore Headroom to increase gearing level from 36% currently to between 40% and 45% Ability to operate under higher gearing is supported by stable rental
Slide 17: Upcoming Plans of Saizen REIT
Upcoming Plans of Saizen REIT Conduct of Unit buy-back activities when opportunities arise Buying back Units in times of Unit price weakness can serve as a useful and positive signalling mechanism to the equity capital markets, provided that the REIT Manager considers such buy-backs to be an eff
Slide 18: Key Financial Information
Key Financial Information Number of Units in issue as at 9 February 2015 283,611,720 NAV attributable to Unitholders as at 31 December 2014 1 S$312 million NAV per Unit as at 31 December 2014 1 S$1.10 Market capitalisation as at 31 December 2014 2 S$244 million 2Q FY2015 interest cover ratio 6.1 tim
Slide 19: Thank You
SaizenREIT )r Thank You 19
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