Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Paragon REIT — FY2023 Earnings Presentation
27 slides from Singapore Exchange's earnings presentation, Feb 5, 2024
Slide 1: FY2023 Financial Results
FY2023 Financial Results Date: 5 February 2024
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 PARAGON 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 guara
Slide 3: Contents
Contents Key highlights 4–5 Financial results 7–9 Balance sheet 11 – 13 Operations review 15 – 20 Growth strategy and market outlook 22 – 23 Distribution details and timeline 25 2
Slide 4: FY2023 Key highlights
FY2023 Key highlights PARAGON [NS
Slide 5: FY2023 Key highlights
FY2023 Key highlights Improvement in overall financial performance • Gross Revenue for FY2023 grew 1.8% to S$288.9 million compared to FY20221 • Net Property Income (“NPI”) for FY2023 grew 1.7% year-on-year1 (“yoy”) to S$215.1 million • DPU of 2.60 cents declared as final distribution for the six mo
Slide 6: FY2023 Key highlights
FY2023 Key highlights Singapore • Tenant sales and footfall remain supported by resilient domestic demand and the gradual increase in tourist arrivals • Tenant sales for FY2023 declined marginally by 2% yoy over FY20221 Australia • Retail sector fundamentals remained robust due to low unemployment r
Slide 7: FY2023 Financial results
Bi w Heri iesit 9 FY2023 Financial results PARAGON |i
Slide 8: FY2023 Financial performance
FY2023 Financial performance FY2023 FY20221 % S$’000 S$’000 +/(-) Gross revenue 288,926 283,821 1.8 Property expenses (73,857) (72,326) 2.1 Net property income 215,069 211,495 1.7 Income available for distribution 135,612 158,950 (14.7) Distribution to Unitholders 142,180 154,9552 (8.2) Distribution
Slide 9: FY2023 – Improved portfolio Revenue and NPI
FY2023 – Improved portfolio Revenue and NPI Gross revenue Net property Income (in millions in local currency) (in millions in local currency) $288.9 $215.1 $283.8 $211.5 $128.2 $132.4 $167.5 $172.3 A$53.5 A$57.5 A$37.2 A$40.1 $43.1 $44.1 $30.8 $31.5 A$12.5 A$12.0 $6.1 $6.4 A$16.6 A$16.6 $4.9 $5.2 Po
Slide 10: Distribution to unitholders
Distribution to unitholders 7.24 5.99 1.72 5.47 5.50 5.53 5.54 5.60 5.40 5.02 2.74 2.74 2.77 2.79 2.80 2.85 2.84 2.96 2.60 2.72 1.04 3.25 2.73 2.73 2.74 2.74 2.75 2.68 2.44 2.42 1.68 1 2 3 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 16M FY2023 FY2022 1H 2H 4M Notes: 1 Does not include th
Slide 11: Balance Sheet
Balance Sheet WAV NCLOINEREIT °°
Slide 12: Resilient balance sheet
Resilient balance sheet % S$’000 31 December 2023 31 December 2022 +/(-) Total assets 4,268,723 4,256,892 0.3 - Total liabilities 1,377,488 1,377,792 Net assets 2,891,235 2,879,100 0.4 Net asset value per unit S$0.91 S$0.91 - 11
Slide 13: Improved valuations underpinned by market recovery in Singapore
Improved valuations underpinned by market recovery in Singapore Singapore assets Valuation (S$ million) 1 Capitalisation rate (%) As at 31 Dec 2023 As at 31 Dec 2022 Variance As at 31 Dec 2023 As at 31 Dec 2022 4.50% - Retail 4.50% - Retail 2,730.0 2,679.0 1.9% 3.75% - Medical Suite / Office 3.75% -
Slide 14: Capital management
Capital management S$ million Debt Maturity Profile 600 S$1.3 billion (excl perpetual securities) as at 31 December 2023 Gearing 1 30% 500 Average Cost of Debt 4.3% 400 300 Weighted Average 2.1 years Term to Maturity 300 Floating rate % 15% Fixed rate % 85% 447 200 Interest Coverage Ratio 3.5 times
Slide 15: Operations review
Operations review WV NCLOINEREIT +4
Slide 16: Resilient portfolio
Resilient portfolio 98.1% 2.7m 5.1 years 3.0 years Portfolio occupancy Net Lettable Area (“NLA”) sf WALE by NLA WALE by Gross Rental Income Singapore Australia Paragon The Clementi Mall The Rail Mall Westfield Marion Figtree Grove SA NSW Singapore Australia The Clementi The Rail Westfield Figtree As
Slide 17: Sustainable returns supported by high occupancy
Sustainable returns supported by high occupancy Number of NLA renewed/ As a % Occupancy renewals / new leases of properties’ Change compared to As at 31 December 2023 rate new leases1 (‘000 sqft) NLA preceding rental rates 2 100% 95 155 21.5% 11.6% 100% 71 112 57.3% 8.7% 95.5% 11 28 55.3% 12.8% Sing
Slide 18: Well staggered lease expiry profile
Well staggered lease expiry profile Lease expiry as at FY2028 & FY2023 FY2024 FY2025 FY2026 FY2027 31 Dec 2023 beyond PARAGON REIT Portfolio Expiries as a % of total NLA 3% 10% 12% 15% 12% 48% Expiries as a % of Gross rental income 2% 13% 19% 23% 24% 19% Singapore assets Expiries as a % of total NLA
Slide 19: Proactive management of lease expiries
Proactive management of lease expiries Singapore assets Expiry by NLA Expiry by Gross Rental Income 31% 30% 28% 22% 25% 19% 11% 12% 14% 8% 0% 0% FY23 FY24 FY25 FY26 FY27 FY28 & FY23 FY24 FY25 FY26 FY27 FY28 & Beyond Beyond 40% 35% 21% 22% 17% 19% 13% 12% 10% 11% 0% 0% FY23 FY24 FY25 FY26 FY27 FY28 &
Slide 20: Stable lease expiry profile
Stable lease expiry profile Australia assets Expiry by NLA 1 Expiry by Gross Rental Income 1 72% 42% 19% 10% 13% 9% 8% 8% 4% 6% 4% 5% FY23 FY24 FY25 FY26 FY27 FY28 & FY23 FY24 FY25 FY26 FY27 FY28 & Beyond Beyond 68% 42% 19% 18% 14% 8% 9% 10% 4% 3% 2% 3% FY23 FY24 FY25 FY26 FY27 FY28 & FY23 FY24 FY25
Slide 21: Resilient tenant sales
Resilient tenant sales Assets Visitor traffic (million) 1 Tenant sales (Local currency $ million)1 713.1 691.9 14.6 15.2 FY2022 FY2023 FY2022 FY2023 24.7 247.1 249.8 20.6 FY2022 FY2023 FY2022 FY2023 848.2 11.7 11.9 794.6 FY2022 FY2023 FY2022 FY2023 4.7 202.2 3.9 188.7 FY2022 FY2023 FY2022 FY2023 Not
Slide 22: Growth strategy and market outlook
Growth strategy and market outlook 21
Slide 23: Multi-pronged strategy to ensure growth
Multi-pronged 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 relevant to changing demands of consumers Proactive asset management and ◼ C
Slide 24: Market outlook
Market outlook ◼ Based on advanced estimates, Singapore’s real GDP expanded 2.8% yoy in 4Q 2023, compared to 1.0% yoy growth in 3Q 2023. For 2023, GDP grew by 1.2%, moderating from the 3.6% growth in 2022. ◼ Retail sales (excluding motor vehicles) declined 2.7% yoy for December 2023, mainly due to R
Slide 25: Distribution details & timeline
Distribution details & timeline 24
Slide 26: Distribution details and timeline
Distribution details and timeline 6M ended 31 December 2023 Distribution period (1 July 2023 – 31 December 2023) Distribution per unit 2.60 cents per unit Distribution yield a 5.67% Ex-date 13 February 2024 Record date 14 February 2024 Payment date 22 March 2024 Note: a. Computed based on 12M period
Slide 27: Thank You
Thank You Please visit www.paragonreit.com.sg for more information 26