Capitaland China Trust · SGX:AU8U
Capitaland China Trust — H1 2024 Earnings Presentation
47 slides from Capitaland China Trust's earnings presentation, Jul 30, 2024
Slide 1: Financial Results for 1H 2024
CapitaLand China Trust Financial Results for 1H 2024 30 July 2024 CapitaMall Xizhimen, Beijing, China Financial Results for 1H 2024 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors incl
Slide 3: Table of Contents
Table of Contents 01 05 Key Highlights Business Park Portfolio 02 06 Financial Results & Logistics Park Portfolio Capital Management 03 07 Portfolio Overview Looking Forward 04 08 Retail Portfolio Appendix Kunshan Bacheng Logistics Park, Kunshan, China C a p i t a L a n d C h i n a Tr u s t Financia
Slide 4: Key Highlights
Key Highlights Singapore-Hangzhou Science & Technology Park Phase II, Hangzhou, China Financial Results for 1H 2024 4
Slide 5: First and Largest China-Focused S-REIT
First and Largest China-Focused S-REIT Diversified and Resilient Portfolio Total Assets1 No. of Properties S$4.8 billion 18 Located in Gross Floor Area 12 cities ~1.8 million sq m Market Cap2 Distribution Yield3 S$1.2 billion 8.9% Notes: 1. As at 30 June 2024. 2. As at 29 July 2024. Retail Business
Slide 6: 1H 2024 Key Highlights
1H 2024 Key Highlights Gross Revenue 2.3% YoY Net Property Income (NPI) 4.9% YoY Shopper Traffic (1H YoY) • Retail portfolio: Decreased 0.3% • Retail portfolio: Despite exit of CapitaMall +14.1% NPI (RMB million) YoY: Shuangjing, overall retail NPI increased 0.3% • Primarily due to the absence of Yo
Slide 7: Operations Updates
Operations Updates RETAIL BUSINESS LOGISTICS PARKS PARKS Active Tenancy Remix Proactive Lease Management Proactive Lease Management • Revitalised anchor spaces and offerings to capture spending • Actively targeting new sector occupiers • Proactively engaging a broader leasing network oriented toward
Slide 8: Capital Management Updates
Capital Management Updates Strong Support From Onshore and Offshore Banks; Diversified Funding Sources Enhancing Our Financial Resilience Interest Rates Savings: Completed Refinancing for All Loans due FY 2024: Active debt and cash management, along with an increased Secured sustainable refinancing
Slide 9: Financial Results & Capital Management
Financial Results & Capital Management Shanghai Fengxian Logistics Park, Shanghai, China Financial Results for 1H 2024 9
Slide 10: 1H 2024 Financial Highlights
1H 2024 Financial Highlights 1H 2024 vs 1H 2024 vs 1H 2024 1H 2023 2H 2023 1H 2023 (%) 2H 2023 (%) Gross Revenue (RMB’000) 925,929 947,781 (2.3) 964,687 (4.0) Net Property Income (RMB’000) 631,328 663,709 (4.9) 630,014 0.2 Amount available for distribution to 51,302 63,128 (18.7) 50,735 1.1 Unithold
Slide 11: Balance Sheet
Balance Sheet As at 30 June 2024 S$’000 Non-Current Assets 4,540,103 Current Assets 276,554 1.19 Total Assets 4,816,657 Net Asset Value (NAV) Current Liabilities 314,273 per Unit (S$) Non-Current Liabilities 2,087,811 Total Liabilities 2,402,084 Unitholders' Funds 2,033,519 Perpetual Securities Hold
Slide 12: Healthy Financial Position
Healthy Financial Position1 Impact to Distribution from Floating Loan Interest Rates Movement 30 Jun 2024 31 Mar 2024 Distribution Impact DPU Impact DPU Impact Change in Interest Rates (p.a) (S$ million)5 (S cents)6 (%)7 Total Debt (S$ million) 1,849.1 1,864.9 SGD loans + 50 bps - 1.0 - 0.06 - 0.9 R
Slide 13: Debt Maturity Profile
Well-Staggered Maturity Profile Increased RMB denominated facilities from 23% in Mar to 27% in Jun 2024 FTZ Bond 6% CCIRS Secured Refinancing Due 2025 and 2026 Ahead of Maturity 8% Onshore RMB Loan 13% S$ million Funding 450.0 SGD Loans Sources 7.1 Secured Refinancing (Floating) 400.0 4.5 11% 11.1 S
Slide 14: Distribution Details
Distribution Details Distribution Schedule Distribution per Unit Last Day of Trading on “cum” Basis 5 Aug 2024, 5.00 pm 3.01 S Cents Ex-Date 6 Aug 2024, 9.00 am Record Date 7 Aug 2024, 5.00 pm Distribution Period Distribution Payment Date 25 Sep 2024 1 January 2024 to 30 June 2024 C a p i t a L a n
Slide 15: Portfolio Overview
Portfolio Overview Kunshan Bacheng Logistics Park, Kunshan, China Financial Results for 1H 2024 15
Slide 16: Building Strength through Diversification and Continuous Tenancy Remix
Building Strength through Diversification and Continuous Tenancy Remix Enhanced Portfolio Stability with Reduced Tenant Concentration Risks F&B increased from 23.5%2 to 26.7% with specialty Retail 70.3% Business Park 26.8% F&B tenants attracting sales and footfall Tenant Food & Beverages 26.7% Elect
Slide 17: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile Lease Expiry Profile1 WALE (years) Retail Business Park Logistics Park Portfolio By Gross Rental Income2 1.9 1.6 1.4 1.8 % of total Gross Rental Income2 By Net Lettable Area 3.2 1.6 1.5 2.1 21.1% 19.7% 11.8% 8.6% 6.6% 6.9% 7.2% 6.4% 4.3% 3.6% 1.5% 0.7% 0.0% 0.6% 0.3% 0
Slide 18: Retail Portfolio
Retail Portfolio CapitaMall Yuhuating, Changsha, China Financial Results for 1H 2024 18
Slide 19: Retail Portfolio Overview
Retail Portfolio Overview Harbin, 12.7% 17.3 9 6 Total Valuation1 Retail Cities (across 4 Hohhot, 6.0% (RMB billion) Malls core city clusters) Beijing, 48.6% Chengdu, 8.4% Guangzhou, 19.7% Changsha, 4.6% Note: 1. Based on valuation on a 100% basis as at 31 December 2023. C a p i t a L a n d C h i n
Slide 20: Retail Portfolio Shopper Traffic and Tenant Sales
Portfolio Shopper Traffic and Tenant Sales1 YoY double-digit growth in AEI malls making significant contributions, accounting 1H YoY Shopper Traffic (million) footfall across all malls3 for ~70% of the 6.6% increase in tenant sales Beijing Malls led by +17.8% CapitaMall Grand Canyon following AEI an
Slide 21: High Retail Occupancy at 97.8%
High Retail Occupancy at 97.8%1 Improved Occupancy Across Retail Assets Occupancy of 96.4% 97.5% 98.2% 97.7% 97.8% Retail Portfolio Investment Property 30-Jun-23 30-Sep-23 31-Dec-23 31-Mar-24 30-Jun-24 CapitaMall Xizhimen 98.4% 99.0% 99.5% 98.2% 99.1% Rock Square 97.5% 97.5% 98.9% 98.9% 98.2% Capita
Slide 22: Retail Portfolio Leasing Updates
Retail Portfolio Leasing Updates Retail contribute 70.3% of Portfolio GRI1 Healthy Retention Rate and Occupancy Cost Reversion Rate For 1H 2024 Average vs Average Basis2 1H 2024 Renewed Leases, 58.6% New Leases -1.0% Retail Retention by NLA New Leases, 41.4% Renewed Leases 2.5% Portfolio 1.2% • High
Slide 23: Retail Portfolio Lease Expiry Profile
Retail Portfolio Lease Expiry Profile Lease Expiry Profile by Year1 Weighted Average % of Total Gross % of Total Lease Expiry (years) Year No. of Leases Rental Income2,3 Net Lettable Area4 2024 881 28.1% 20.3% 1.9 2025 792 30.0% 21.8% By Gross Rental Income2 2026 306 16.8% 16.1% 3.2 2027 160 9.8% 11
Slide 24: Attracting Tenants with Strong Market Appeal
Attracting Tenants with Strong Market Appeal Unveiling New Brands that are First in the Respective Cities or Districts; Capitalising on Growing Trend for Domestic Brands The Roll’ING 泽田本家 美心烘焙之家 Fufuland at CapitaMall Xuefu at Rock Square at Rock Square at Rock Square 1st in Harbin 1st in Haizhu Dis
Slide 25: Designing Engaging Lifestyle Experiences Incorporating Sustainability
Designing Engaging Incorporating Sustainability Lifestyle Experiences in Our Operations Concert that Sherlock Holmes World Autism Protecting Transcends Time – Get On the Case! Awareness Day Our Oceans Partnered with a local band Collaborated with 6 key tenants Partnered with Heilongjiang Hosted a cl
Slide 26: Business Park Portfolio
Business Park Portfolio Singapore-Hangzhou Science & Technology Park Phase II, Hangzhou, China Financial Results for 1H 2024 26
Slide 27: Business Park Portfolio Overview
Business Park Portfolio Overview 5.5 5 3 Total Valuation1 Cities Xi’an, 23.0% Business (RMB billion) Parks Suzhou, 42.8% Hangzhou, 34.2% Note: 1. Based on valuation on a 100% basis as at 31 December 2023. C a p i t a L a n d C h i n a Tr u s t Financial Results for 1H 2024 27
Slide 28: Increased Business Park Occupancy to 90.5%
Increased Business Park Occupancy to 90.5%1 Occupancy of Business 91.5% 91.0% 90.2% 90.5% 90.8% Park Portfolio Investment Property 30-Jun-23 30-Sep-23 31-Dec-23 31-Mar-24 30-Jun-24 Ascendas Xinsu Portfolio 96.7% 97.4% 97.5% 97.4% 97.1% Ascendas Innovation Towers 92.0% 87.7% 90.1% 88.9% 91.0% Ascenda
Slide 29: Business Park Highlights
Business Park Highlights Business Parks contribute 26.8% of Portfolio GRI1 Suzhou Business Park Market Xi’An Business Park Market Occupancy Hangzhou Business Park Market Occupancy (SIP) (XHTZ) Occupancy (HEDA) Submarket Reported occupancy of 80.6% as at 2Q 2024 Declined 9.1% yoy to 65.6% at 2Q Decli
Slide 30: Business Park Portfolio Leasing Updates
Business Park Portfolio Leasing Updates Maintain Healthy Business Park Retention Rate Increased Exposure in Targeted Sectors Electronics, 24.9% Biomedical Science , 22.8% Renewed Leases, 65.1% E-Commerce, 17.7% 1H 2024 Sectors of Business Park New Leases, 34.9% New Tenants ICT, 9.1% Retention by by
Slide 31: Business Park Portfolio Lease Expiry Profile
Business Park Portfolio Lease Expiry Profile Lease Expiry Profile By Year1 % of Total Gross % of Total Year No. of Leases Weighted Average Rental Income2 Net Lettable Area3 Lease Expiry (years) 2024 151 24.5% 23.2% 2025 244 32.1% 31.9% 1.6 2026 177 23.6% 22.8% By Gross Rental Income 2027 65 16.1% 18
Slide 32: Nurturing our Business Park Community
Nurturing Green Adventure Day Annual Family Fun Run Dragonboat Festival our Collaborated with CoreNet, a real estate association, to organise a hiking trip for tenants Organised a family event at Ascendas Xinsu Portfolio Celebrated the Dragonboat Festival at Ascendas Innovation Hub and Ascendas Inno
Slide 33: Logistics Park Portfolio
Logistics Park Portfolio Kunshan Bacheng Logistics Park, Kunshan, China Financial Results for 1H 2024 33
Slide 34: Logistics Park Portfolio Overview
Logistics Park Portfolio Overview 1.51 4 4 Wuhan, 22.0% Total Valuation Logistics Cities (RMB billion) Parks Kunshan, 19.6% Shanghai, 35.7% Chengdu, 22.7% Note: 1. Based on carrying value of investment properties on a 100% basis as at 30 June 2024. Adjusted based on current market and operating cond
Slide 35: Logistics Park Occupancy of 90.3%
Logistics Park Occupancy of 90.3%1,2 Excluding Shanghai Fengxian Logistics Park Occupancy of Logistics 88.9%3 91.2% 91.3% 82.0% 90.3%1,2 Park Portfolio Investment Property 30-Jun-23 30-Sep-23 31-Dec-23 31-Mar-24 30-Jun-24 Shanghai Fengxian Logistics Park4 98.6% 98.6% 60.3% Under repositioning evalua
Slide 36: Logistics Park Highlights
Logistics Park Highlights Logistics Parks contribute 2.9% of Portfolio GRI1 Shanghai Grade A Logistics Occupancy2 Market • City’s logistics occupancy rate declined 1.6% QoQ to 83.4% in 1Q 2024 Insights2 • Supply wave expected in 2024, with annual supply expected to reach 1.4 million sq m • Landlords
Slide 37: Logistics Park Portfolio Lease Expiry Profile
Logistics Park Portfolio Lease Expiry Profile Lease Expiry Profile By Year1 % of Total Gross % of Total Weighted Average Year No. of Leases Rental Income2 Net Lettable Area3 Lease Expiry (years) 2024 20 22.0% 18.4% 1.4 2025 17 52.9% 59.2% By Gross Rental Income 2026 3 11.9% 9.3% 1.5 2027 14 13.2% 13
Slide 38: CLCT's Focus
CLCT’s Focus Positioned and aligned to China’s Long-Term Growth Guided by our Create, Unlock and Extract Strategy: ✓ Create: Increase diversification and resilience of revenue streams and seek yield accretive acquisition ✓ Unlock: Monetised 6 of 7 IPO assets to-date, reducing exposure to mature, non
Slide 39: Business Outlook
Business Outlook Retail • China's economy grew 5.0% YoY while retail sales increased 3.7% YoY for 1H ✓ CLCT positioned to leverage on domestic consumption with the 20241. completed AEIs. • At the Third Plenum meeting held in July 2024, the Chinese government laid Action plan: CLCT to continuously st
Slide 40: Thank you
Thank you For enquiries, please contact: Ms Nicole Chen, Investor Relations Direct: (65) 6713 1648, Email: nicole.chen@capitaland.com CapitaLand China Trust Management Limited (https://www.clct.com.sg) 168 Robinson Road, #30-01 Capital Tower, Singapore 068912 Tel: (65) 6713 2888, Fax: (65) 6713 2999
Slide 41: Gross Revenue (in RMB'mil)
Gross Revenue (in RMB’mil) 1H 2024 1H 2023 Portfolio1 800.0 1H 2024 658.7 2 661.0 925.9 600.0 RMB mil -2.3% YoY 400.0 243.5 243.5 1H 2023 200.0 947.8 RMB mil 23.7 43.3 - Retail Business Parks Logistics Parks Notes: 1. Presented based on 100% interest. 2. 1H 2024 excludes contribution from CapitaMall
Slide 42: Net Property Income (in RMB'mil)
Net Property Income (in RMB’mil) 1H 2024 1H 2023 Portfolio1 800.0 1H 2024 600.0 631.3 RMB mil 442.1 2 440.8 -4.9% YoY 400.0 1H 2023 191.5 200.0 175.3 663.7 RMB mil 13.9 31.4 - Retail Business Parks Logistics Parks Notes: 1. Presented based on 100% interest. 2. 1H 2024 excludes contribution from Capi
Slide 43: Portfolio at a Glance
Portfolio at a Glance1 CapitaMall CapitaMall CapitaMall Grand Rock Square CapitaMall Xuefu Xizhimen Wangjing Canyon 乐峰广场 凯德广场•学府 凯德MALL•西直门 凯德MALL•望京 凯德MALL• 大峡谷 Location Beijing Guangzhou Beijing Beijing Harbin GFA (sq m) 83,075 88,279 83,768 92,918 123,811 GRA (sq m) 83,075 83,591 68,010 69,967 10
Slide 44: Portfolio at a Glance
Portfolio at a Glance1 CapitaMall CapitaMall CapitaMall Xinnan CapitaMall Yuhuating Nuohemule Aidemengdun 凯德广场• 新南 凯德广场•雨花亭 凯德广场•诺和木勒 凯德广场•埃德蒙顿 Location Chengdu Hohhot Changsha Harbin GFA (sq m) 91,816 100,047 75,431 49,040 GRA (sq m) 53,619 76,309 62,080 43,394 NLA (sq m) 36,786 44,218 43,289 28,13
Slide 45: Portfolio at a Glance
Portfolio at a Glance1 • Portfolio at a Xinsu Glance Ascendas Portfolio Ascendas Innovation Towers Ascendas Innovation Hub Singapore-Hangzhou Science Technology Singapore-Hangzhou Science Technology Park Phase I Park Phase II 腾飞新苏 新加坡腾飞科汇城 腾飞创新中心 新加坡杭州科技园一期 新加坡杭州科技园二期 Location Suzhou Xi’an Xi’an Han
Slide 46: Portfolio at a Glance
Portfolio at a Glance1 Shanghai Fengxian Kunshan Bacheng Wuhan Yangluo Chengdu Shuangliu Logistics Park Logistics Park Logistics Park Logistics Park 上海奉贤物流园 昆山巴城物流园 武汉阳逻物流园 成都双流物流园 Location Shanghai Kunshan Wuhan Chengdu GFA (sq m) 62,785 43,945 86,973 71,556 Land Use Right Expiry 20 July 2059 16 Ju
Slide 47: Retail Portfolio Lease Expiry Profile
Retail Portfolio Lease Expiry Profile Lease Expiry Profile for 20241 % of Total % of Total Investment Property No. of Leases Gross Rental Income2,3 Net Lettable Area4 CapitaMall Xizhimen 100 26.4% 17.0% Rock Square 54 19.5% 11.9% CapitaMall Wangjing 81 27.9% 16.1% CapitaMall Grand Canyon 71 24.5% 15
CapitaLand China Trust — H1 2024 Earnings Presentation on 6ix