Starhill Global Real Estate Investment Trust · SGX:P40U
Starhill Global Real Estate Investment Trust — Q2 2009 Earnings Presentation
42 slides from Starhill Global Real Estate Investment Trust's earnings presentation, Jul 29, 2009
Slide 1: Second Quarter 2009 Financial Results
Second Quarter 2009 Financial Results 29 JJuly l 2009
Slide 2: Agenda
Agenda Î Financial Highlights Î Portfolio P tf li P Performance f U Update d t – Singapore – Tokyo – Chengdu Î Growth Strategies – Asset Enhancements – Business Strategy 29 July 2009 Starhill Global REIT 2
Slide 3: Key highlights
Key highlights 2Q 2009: 2009 Income to be distributed up 7.9% 9% 2Q 2009 DPU of 1.90 cents achieved, a 6.7% increase over 2Q 2008 and highest ever since i IPO Retail portfolio bolstered by resilient retail master lease structure at Ngee Ann City and doubling of shopper traffic to Wisma Atria bas
Slide 4: 2Q 2009 financial highlights
2Q 2009 financial highlights DPU off 1.90 1 90 cents exceeded 2Q 2008 by 6 6.7% % Period: 1 Apr – 30 Jun 2009 2Q 2009 2Q 2008 % Change Gross Revenue $33.4 mil $30.2 mil 10.5% Net Property Income $27.0 mil $23.2 mil 16.4% Income Available for Distribution $18.8 mil (1) $17.2 mil 9.5% Income to be Dis
Slide 5: DPU performance
DPU performance Compounding average growth rate of 12.1% since 1Q 2007 1.90 1 90 1.90 1.87 1.85 1.80 1.78 1.78 1.76 1.70 1.68 1.60 1.54 1.50 1.50 1.47 1.40 1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 29 July 2009 Starhill Starhill Global Global REIT REIT 5
Slide 6: 2Q 2009 financial results
2Q 2009 financial results $’000 2Q09 2Q08 % Change 2Q 2009 gross revenue exceeded Gross Revenue 33,378 30,201 10.5% 2Q 2008 by 10.5% due primarily to Less: Property Expenses (6,336) (6,599) (4.0%) higher rates achieved from office renewals and new leases, the rent Depreciation (55) (427) (87.1%) g
Slide 7: 2Q 2009 financial results
2Q 2009 financial results Revenue Net Property Income $’000 2Q 2009 2Q 2008 % Change $’000 2Q 2009 2Q 2008 % Change Wisma Atria Wisma Atria Retail (1) 11,310 11,428 (1.0%) Retail(1) 9,120 8,604 6.0% Office (1) (2) 2,702 2,103 28.5% Office(1) 2,207 1,470 50.1% Ngee Ann City Ngee Ann City Retail (1) (
Slide 8: Trading yield
Trading yield Attractive trading yield compared to other investment instruments 14 12.00% 12.00 12 99.81 9.81% 81% 10 8 11.55% 9.41% 6 4 2.59% 2.59 2.50% 2.50 2 1.45% 1.45 0.45% 0 45 0.45 - Starhill Global Average S-Reit 10-Year Spore CPF Ordinary 5-Year Spore (4) Bank Fixed (2) (4) REIT FY2009 yiel
Slide 9: Unit price performance
Unit price performance 1.40 70,000 1.20 60,000 Liquidity statistics 1.00 50,000 Tra Last 3 months average 2.8 mil ading Volume ('000s) 0.80 40,000 daily trading volume (units) Unit Price (SGD) Estimated free float 74.0% 0.60 30,000 0.40 20,000 Market cap (30 Jun 09) 1 $612 mil U 0.20 10,000 0.00 0 M
Slide 10: Distribution timetable
Distribution timetable Distribution Period 1 April to 30 June 2009 Distribution Amount 1.90 cents per unit Distribution Timetable Notice of Books Closure Date 29 July 2009 Last Day of Trading on “Cum” Basis 3 August 2009, 5.00 pm Ex-Date 4 August 2009, 9.00 am Books Closure Date 6 August 2009, 5.00
Slide 11: Debt profile
Debt profile As at 30 Jun 2009 $’000 Term loan (CMBS equivalent) 380,000 Term loan (Secured) 190,000 Revolving Credit Facilities 45,800 Japan Bond 46,946 Chinese Loan 6,025 Total Debt 668,771 Fixed Rate Debt (up to Sept 2010) 1 89.4% Gearing Ratio 2 33.2% Interest Cover 4.9x Weighted Average Effecti
Slide 12: Debt profile
Debt profile No significant f debt maturing until September S 2010 S$ million Debt maturity profile Weighted Average Effective Interest Rate is 700 2.93% p.a. 617 600 89.4% of borrowings is fixed (including 500 derivatives) until September 2010 400 S$35m of RCF refinanced. Final maturity 300 e
Slide 13: Balance sheet
Balance sheet As at 30 Jun 2009 $’000 NAV statistics Non Current Assets 1,972,717 NAV Per Unit (as at 30 Jun 2009) (1) $1.28 Current Assets 38,850 Adjusted NAV Per Unit (1) $1 27 $1.27 Total Assets 2,011,567 (net of distribution) Current Liabilities (2) (65,022) Closing price as at 30 Jun 2009 $0.63
Slide 14: Valuation of investment properties
Valuation of investment properties 6.9% drop in the valuation of Starhill Global REIT’s investment properties as at 30 Jun 2009 15-Jun-09 Description 31-Dec-08 Capex FX 30-Jun-09 Change Change Revaluation (1) S$'000 S$ 000 S$'000 S$ 000 S$'000 S$ 000 S$'000 S$ 000 S$'000 S$ 000 S$'000 S$ 000 % Wisma
Slide 15: Agenda
Agenda Î Financial Highlights Î Portfolio Performance Update – Singapore – Tokyo – Chengdu Î Growth Strategies – Asset Enhancements – Business Strategy 15 29 July 2009 Starhill Global REIT
Slide 16: Portfolio summary
Portfolio Portfolio summary Di Diversified ifi d portfolio tf li comprising i i SiSingapore, J Japan and d Chi China assets t Gross Revenue by Retail and Office Gross Revenue by Property Gross Revenue by Country (2Q 09) (2Q 09) (2Q 09) Renhe Spring Zong Bei Property Office 11% China NAC 11% 18% 40%
Slide 17: Portfolio lease expiry
Portfolio Portfolio lease expiry Weighted average lease term off 2 2.52 2 and 2.35 2 3 years (by ( NLA and gross rent respectively)) Portfolio Lease Expiry (as at 30 June 2009) 50% Office Retail 45.8% Japan Total By NLA By Gross Rent sq ft WA NAC WA NAC 39.4% 40% Remaining 2009 35,963 11,517 20,764
Slide 18: Portfolio lease expiry profile by year
Portfolio Portfolio lease expiry profile by year 1 2 out off 1931 leases expire by 2011, 172 2011 accounting for f 60% off gross rental income 1 Office Leases Retail Leases Gross Rental Income per month Year 2 Weighted Weighted Office Retail % of Total No. of No. of average average S$’000 leases ren
Slide 19: Portfolio top 10 tenants
Portfolio Portfolio top 10 tenants T 10 tenants Top t t contributed t ib t d 44% off th the portfolio tf li gross rentt Leased Area % of Portfolio % of Portfolio Tenant Name Property Lease Expiry (sq ft) Gross Rent 1 NLA Toshin Development Co Ltd NAC 225,969 Jun 2013 26.6% 30.3% Ebisu Fort Sep 2012,
Slide 20: Office portfolio lease expiry profile and passing rents
Portfolio Office portfolio lease expiry e pir profile and passing rents Portfolio Office Lease Expiry and Average Gross Passing Rents Sq ft S$ psf pm ÎIn 2Q 2009, asking office rent was S$10.00 psf 100,000 11 pm while leases committed averaged S$9 S$9.80 80 psf 90,000 11 pm 80,000 10.60 70,000 10 9.
Slide 21: Retail passing rents
Portfolio Retail passing rents Wisma Atria’s average passing rents are above market average Average Passing Rents for Wisma Atria & Ngee Ann City Retail S$ psf pm ÎNgee Ann City’s average retail rents are lower given 40 36.53 the master lease with Toshin that accounts for 89% 36.40 34.50 34.40 35 33
Slide 22: Occupancy costs
Portfolio Occupancy costs Average retail occupancy costs Average retail occupancy costs Î The higher occupancy cost at Wisma Atria is attributed to the higher proportion of fashion 29% tenants given the centre centre’ss positioning as a female female- 30% 25% centric mall 20% 17% 16% Î Renhe Spring
Slide 23: Wisma Atria Property - Overview
Wisma Atria Wisma Atria Property - Overview Lease Expiry Schedule (by NLA) as at 30 June 2009 Retail Office Î Weighted average lease term of 1.4years (by NLA) 60% – Retail: 1.55 years; Office: 1.11 years 50% 46.8% Î High committed occupancy (95.1% by NLA) 39.9% – Retail: 97.5%; Office: 92.0% 40% 31.
Slide 24: Wisma Atria Property - Overview
Wisma Atria Wisma Atria Property - Overview Wisma Atria Wi At i Retail R t il Expiring E ii Leases L Wisma Atria Office Expiring Leases and their Average Passing Rents and their Average Passing Rents WA Retail Lease Expiry & Average Gross Rent Sq ft Sq ft S$ psf S$ psf pm pm p 50,000 50,000 38.30 40
Slide 25: Wisma Atria Property - Diversified tenant base
Wisma Atria Wisma Atria Property - Diversified tenant base WA WA Retail R tTrade Retailil T dMix Trade Mi– by Mix B %%NLA - By NLA WA Office Trade Mix – by % NLA (as at 30 Jun 2009) (as at 30 Jun 2009) Travel/Leisure Shoes & Services 0.9% Accessories Consultancy / 3.7% 8.4% Aerospace Services Tradin
Slide 26: Wisma Atria Property – Traffic and centre sales
Wisma Atria Wisma Atria Property – Traffic and centre sales Shopper traffic and sales improved significantly following re re-opening opening of the basement MRT linkway Wisma Atria Traffic Count at Primary Entrances Wisma Atria Property Retail Sales Turnover Million S$ 25 2.5 Year 2007 Year 2008 Yea
Slide 27: Wisma Atria Property – Basement traffic count
Wisma Atria Wisma Atria Property – Basement traffic count B Basement t ttraffic ffi hhas experienced i d a resurgence since i th the MRT linkway li k opened d on 3 June J 2009 Basement Entrances Traffic Count from 1 Jun - 28 July 2009 Linkway reopened ION opened on 21 on 3 Jun 2009 July 2009 80 000
Slide 28: Wisma Atria Property – Basement traffic count
Wisma Atria Wisma Atria Property – Basement traffic count Overall centre traffic has also increased significantly g y since the MRT linkway y opened on 3 June 2009. All Entrances Traffic Count from 1 June - 28 July 2009 Linkway reopened on ION opened on 21 3 Jun J 2009 July 2009 120,000 100,000 80,0
Slide 29: Wisma Atria Property – Integration with ION Orchard
Wisma Atria Wisma Atria Property – Integration with ION Orchard Side entrance created on Wisma Atria Level 2 to complement commissioning of MRT escalators New level 2 connection New escalators from Orchard MRT WISMA ATRIA ION ORCHARD New escalators leading directly from Orchard MRT station in the ba
Slide 30: Wisma Atria Property – New lettable area at Basement and Level 1
Wisma Atria Wisma Atria Property p y– New lettable area at Basement and Level 1 Removal of new escalators to unlock valuable lettable area following reopening of basement MRT linkway Î Removal of escalators Basement floor between basement and Level 1 near GAP after re re- To Orchard MRT Station open
Slide 31: Ngee Ann City Property - Overview
Ngee Ann City Ngee Ann City Property - Overview Lease Expiry Schedule (by NLA) as at 30 June 2009 100% Retail Office 91.0% 90% Î Weighted average lease term of 2.9 years (by NLA) 80% – Retail: 3.71 years; Office 1.26 years 70% 60% 50.8% 50% Î Close to full committed occupancy (97 (97.4% 4% by NLA) 3
Slide 32: Ngee Ann City Property - Overview
Ngee Ann City Ngee Ann City Property - Overview Ngee Ann City Retail Expiring Leases Ngee Ann City Office Expiring Leases and their Passing Average Rents and their Passing Average Rents Sq ft Sq ft S$ psf S$ p psf 250,000 18 60,000 17.00 14 16.60 17 50,000 200,000 16 12 40,000 5 15 10 150 000 150,00
Slide 33: Ngee Ann City - Diversified tenant base
Ngee Ann City Ngee Ann City - Diversified tenant base NAC Retail Trade mix – by % NLA NAC Office Trade Mix – by % NLA (as at 30 Jun 2009) (as at 30 Jun 2009) Aerospace Travel/Leisure 4.1% Services 6.2% General Trade Real Estate & Banking and 1.9% 0.4% Property Services Financial Services Beauty & 7
Slide 34: Japan Properties - Overview
Japan Properties Japan Properties - Overview Î Weighted average lease term by NLA is 4.3 years Î Full occupancy except for the Daikanyama property Î Four of the seven properties (69% by NLA) have fixed rent master leases expiring between 2012 and 2015 – provides stability of cashflow over an extende
Slide 35: Renhe Spring Zongbei Property - Overview
Renhe Spring Zongbei Renhe Spring Zongbei Property - Overview Q Quality high-growth asset in Chengdu, C C China Î Full occupancy as at end June 2009 Î Strong sales growth at Renhe Spring Zongbei Property amidst current weak global economic conditions Î 2Q 2009 sales were 41 41.3% 3% higher than 2Q 2
Slide 36: Agenda
Agenda Î Financial Highlights Î Portfolio Performance Update – Singapore – Tokyo Î Growth Strategies – Asset Enhancements – Business Strategy 29 July 2009 Starhill Global REIT 36
Slide 37: Growth contributors
Growth contributors Growth contributors for 2009 and 2010 Rental Reversions Ngee Ann City – Toshin rent increased by 19.75% from 8 Jun 2008 for 3 yrs Wisma Atria – post re-opening of MRT linkway on 3 June 2009 Asset Enhancements Ngee Ann City – Level 5 reconfiguration – from Jun 2008 Wisma Atria – R
Slide 38: The Rights Issue
The Rights Issue Offer Structure • Fully underwritten and renounceable Rights Issue • Gross proceeds of approximately S$337.3 million • 1 for 1 rights ratio • “Nil-paid” rights trading period : 24 July – 3 August 2009; Close of rights issue : 7 August 2009 Rights Issue Price • S$0.35 per Rights Unit
Slide 39: Rights Issue - Improved financial flexibility
Ri ht IIssue - Improved Rights I d financial fi i l flexibility fl ibilit •1 T revitalise To it li properties ti ahead h d off an iincreasingly i l challenging h ll i retail t il sector t along l O Orchard h dR Road d sible Asset hancement •2 Wisma Atria’s plot ratio has not been fully utilised; pot
Slide 40: References used in this presentation
References used in this presentation 1Q, 2Q, 3Q, 4Q means the periods between 1 January to 31 March; 1 April to 30 June; 1 July to 30 September; and 1 October to 31 December respectively CMBS means Commercial Mortgage Backed Securities DPU means distribution per unit FY means financial year for the
Slide 41: Disclaimer
Di l i Disclaimer This presentation has been prepared by YTL Pacific Star REIT Management Limited (the “Manager”), solely in its capacity as Manager of Starhill Global Real Estate Investment Trust (“Starhill Global REIT”). A press release has been made by the Manager and posted on SGXNET on 29 July
Slide 42: Investor, Analyst and Media Contact
Investor, Analyst and Media Contact: Ms Mok Lai Siong Tel : +65 6835 8633 Email : info@starhillglobalreit.com 29 July 2009
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