Spring Real Estate Investment Trust · HKEX:1426
Spring Real Estate Investment Trust — FY2013 Earnings Presentation
21 slides from Spring Real Estate Investment Trust's earnings presentation, Mar 18, 2014
Slide 1: Spring REIT Annual Results Presentation 2013
SPRING REIT (1426.HK) Annual Results Presentation 2013 18 March 2014
Slide 2: Disclaimer
Disclaimer This presentation may contain information which is proprietary, confidential and/or legally privileged and has been prepared by Spring Asset Management Limited, in its capacity as the manager (the “Manager”) of Spring Real Estate Investment Trust (the “Trust”). This presentation is being
Slide 3: The Property
The Property A part of China Central Place (“CCP”) The Property (华贸中心), a prime mixed-use complex with well-recognized brand hotels and shopping centres All office floors of Office Tower 1 and Office Tower 2 in CCP and approximately 600 car parking spaces (the “Property”). Total GFA 145,373 sq.m.(1)
Slide 4: Agenda
Agenda 1 Key Messages 2 Results Highlight 3 Outlook 4 Strategies 3
Slide 5: Key Messages
Unsaved Document / 7/15/2013 / 17:51 Key Messages 4
Slide 6: Key Messages: Five Competitive Strengths
Key Messages Five Competitive Strengths Hold Strong 1 Exposure to Premium Grade office buildings Part of China Central Place – a prime 2 mixed-use complex in Beijing CBD and a well recognized brand Maintains high occupancy rate of 96% with 3 a diverse and high quality tenant base Attractive distribu
Slide 7: Results Highlight
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Slide 8: Results Highlight: Strong Performance for the Year 2013
Results Highlight Strong Performance for the Year 2013 Strong Operating Performance - Total revenue +25.4% YoY to US$66.3 mn 1 - Net property income +26.1% YoY to US$49.5 mn - Occupancy at 96% (unchanged since 2011) Positive Rental Reversion 2 - 52% of the existing leases were entered into in 2013 (
Slide 9: Strong Financial Performance
Strong Financial Performance (US$ ‘000) For the Year Ended 31 December 2013 2013 2012 YoY Total Revenue 66,349 52,903 25.4% Net Property Income 49,536 39,273 26.1% Special Distribution per Unit (HK$) (1) 0.070 N/A N/A From the Listing Date to 31 December 2013 Actual OC Forecast Diff Total Revenue 5,
Slide 10: Distribution
Distribution Regular Distribution (From Listing Date to 31 December 2013) Implied distribution per unit (annualized) of HK$0.214 Implied distribution yield (annualized) of 6.8%(1) First distribution to be paid together with the distribution for the six months ending 30 June 2014 Special Distribution
Slide 11: Debt Position
Debt Position Secured term loan facility Principal amount: US$515 million Borrower: RCA01 Tenor: 3 years (maturity 27 January 2016, with 1-year extension option) Interest rate: 3-month LIBOR + 3.50% per annum Interest rate cap LIBOR at 1.3% Early Partial Repayment of the Term Loan Facility US$50 mil
Slide 12: Occupancy Rates and Tenant Base
Occupancy Rates and Tenant Base Diverse and high quality tenant base – 126 tenants under 175 leases(1) Diversified tenant profile High quality tenant base By leased office GFA By monthly rental revenue Top 5 tenants(1) (As of 31 December 2013) (For the month of December 2013) % of Tenants Total Offi
Slide 13: Outlook
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Slide 14: Current Market Condition
Current Market Condition Favourable Supply-Demand Dynamics Grade A office market in Beijing Grade A office market in Beijing CBD (sq.m., GFA) (sq.m., GFA) 96.2% 97.2% 97.4% 94.4% 96.5% 95.1% 1,200,000 90.4% 86.8% 100% 800,000 88.1% 100% 86.5% 82.8% 80.1% 80.3% 80% 74.3% 80% 900,000 600,000 60% 60% 6
Slide 15: Future Grade-A Office Supply
Future Grade-A Office Supply List of Future Supply Limited Grade A office supply in next few years (sq.m., GFA available for leases) Approx. GFA Completion available for 415,386 (1) (2) (3) Property name District year leases (sq.m.) 371,000 Ocean International Centre Phase 2 CBD 2014 53,000 243,957
Slide 16: Positive Rental Reversion Potential
Positive Rental Reversion Potential Average Monthly Spot Rental vs Average Monthly Passing Rental (RMB per sq.m. per month) (1) 375 332 30.2% 241 288 198 226 30.2% rental reversion 201 188 potential in the coming years 2010 2011 2012 2013 Average monthly spot rental Average monthly passing rental (1
Slide 17: Expiring Lease Profile: Strong Rental Reversion in 2014
Expiring Lease Profile Strong Rental Reversion in 2014 Expiring profile and expiring rent (Rent in RMB per sqm per month) 372 357 323 251 44% 32% 13% 11% 2014 2015 2016 2017 and beyond Expiring leases as a % of leased office GFA Average Monthly Rental for Expiring Leases 16
Slide 18: Strategies
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Slide 19: Strategies
Strategies 1. Asset Management Strategy Maintain high occupancy rates Optimize tenant mix Control property expenses Increase returns through asset enhancement 2.Capital and Risk Management Strategy Prudent financial and capital management policy 3. Acquisition Strategy Seek yield-enhancing acquisiti
Slide 20: Outlook
Outlook Positive rental reversion remains a key theme Attractive distribution Highest estimated yield and growth among HK REITs prospects According to aggregated analysts’ estimates and market data from Bloomberg. Strong organic Upside potential from future rental reversion growth Upward rental reve
Slide 21: Thank You
I ETETAS'OEO Oe Strategies SpringREIT Thank You
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