CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — H1 2023 Earnings Presentation
58 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Aug 1, 2023
Slide 1: 1H 2023 Financial Results
CapitaLand Integrated Commercial Trust 1H 2023 Financial Results 1 August 2023
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 Content
Table of Content 04 34 Highlights Focus & Outlook 10 37 Financials & Property Details Capital Management 18 44 Market Portfolio Information Performance 23 Performance By Asset Type CapitaSpring, Singapore CapitaSpring, Singapore
Slide 4: Highlights
Highlights CapitaSpring, Singapore
Slide 5: Delivering A Steady Performance Amidst Challenges
Delivering A Steady Performance Amidst Challenges Steady 1H 2023 Financial Performance Outlook • Net property income up 10.1% year-on-year (YoY) Retail • Distributable income increased 1.7% YoY • Retail rent and occupancy rate • Distribution per unit rose 1.5% YoY expected to continue positive traje
Slide 6: Achieved 1H 2023 DPU of 5.30 cents, Up 1.5% Year-on-year
Achieved 1H 2023 DPU of 5.30 cents, Up 1.5% Year-on-year Distributable Income (S$ million) 1H 2023 702.4 (2) Distributable Income 2H 2022 355.1 (1) 353.2 S$353.2 (1) 1H 2022 347.3 (3) million FY 2022 1H 2023 DPU (cents) 1H 2023 10.58 Distribution Per Unit (DPU) 2H 2022 5.36 (4) 5.30 5.30 (4) 1H 2022
Slide 7: Resilient Operating Metrics
Resilient Operating Metrics Total NLA for new Portfolio 96.7% 1H 2023 and renewed leases Total Borrowings 78% ▲ 0.5 ppts QoQ 1.0M Committed Active Portfolio on Fixed Interest Occupancy(1) Leasing sq ft Rate Retail Portfolio Tenant Sales psf(3) ▲6.9% ▲6.0% 4.3 YTD Jun 2023 Shopper Traffic(4) Years Of
Slide 8: Refreshing and Introducing New Retail Offerings
Refreshing and Introducing New Retail Offerings CQ @ Clarke Quay Raffles City Singapore • Ongoing asset enhancement works expected to be completed by late 2H 2023 • Unveiling new F&B, Fashion and Lifestyle tenants • Curating tenant mix with several new retail tenant openings in 2Q 2023 Simply Retro
Slide 9: Overseas Assets Seeing Leasing Interests
Overseas Assets Seeing Leasing Interests Cautiously optimistic in light of macroeconomic environment SYDNEY, AUSTRALIA FRANKFURT, GERMANY Legal, Technology Financial Services, 88.6% and Professional 95.3% Renewable Energy ▲ 5.2 ppts QoQ Committed Leasing Services sectors ▲ 0.7 ppts QoQ and Aviation
Slide 10: Financials & Capital Management
Financials & Capital Management Capital Tower (left), CapitaSky (right) Singapore
Slide 11: 2Q 2023 Financial Performance
2Q 2023 Financial Performance Boosted by full contribution from CapitaSky and 101-103 Miller St and Greenwood Plaza completed in 2Q 2022 and higher gross rental income from existing properties, partially offset by higher operating expenses largely due to utilities Gross 2Q 2023 YoY 2Q 2023 YoY Net P
Slide 12: 1H 2023 Financial Performance
1H 2023 Financial Performance Boosted by full contribution from acquisitions completed in 1H 2022 and higher gross rental income from existing properties, partially offset by higher operating expenses largely due to utilities Gross 1H 2023 YoY Net Property 1H 2023 YoY Revenue S$774.8M ▲ 12.7% Income
Slide 13: Diversified Revenue Streams Provide Stability
Diversified Revenue Streams Provide Stability Germany Office, Australia Office, 3.5% 3.8% Singapore (2) Office, 5.8% Singapore Suburban Retail, Singapore Hotels & 28.2% Convention Centre, 6.4% S$774.8 million(1) Singapore Downtown Retail, 24.6% Singapore CBD Office, 27.7% Notes: (1) Based on 1H 2023
Slide 14: Healthy Balance Sheet
Healthy Balance Sheet As at 30 June 2023 S$’000 Non-current Assets 24,410,866 Net Asset Value/Unit S$2.12 Current Assets 309,064 Adjusted Net Asset Value/Unit S$2.07 (excluding distributable income) Total Assets 24,719,930 Current Liabilities 857,519 Non-current Liabilities 9,537,607 Total Liabiliti
Slide 15: Proactive Capital Management
Proactive Capital Management As at As at 30 June 2023 31 March 2023 Aggregate Leverage(1) 40.4% 40.9% Total Borrowings (S$ billion) 9.6 9.7 % of Borrowings on Fixed Interest Rate 78% 77% % of Total Assets that are Unencumbered 93.3% 93.3% Interest Coverage(2) 3.3x 3.4x Average Term to Maturity (year
Slide 16: Long Debt Profile with an Average Maturity of 4.3 Years
Long Debt Profile with an Average Maturity of 4.3 Years Debt Maturity Profile(1) Exclude share of JVs’ borrowings S$ million Funding sources 1,800 15% 15% MTN 50% 14% 1,600 1,528 13% 13% 1,502 Debt issuance in 2Q 2023: Unsecured Bank Loans 43% 99 1,421 1,400 1,327 12% Issued S$400.0 million 7-year 1
Slide 17: Distribution Details
Distribution Details Distribution Period 1 January to 30 June 2023 Distribution Per Unit 5.30 cents Notice of Record Date Tuesday, 1 August 2023 Last Day of Trading on ‘cum’ Basis Monday, 7 August 2023, 5.00 pm Ex-Date Tuesday, 8 August 2023, 9.00 am Record Date Thursday, 10 August 2023 Distribution
Slide 18: Portfolio Performance
Portfolio Performance Raffles City Singapore
Slide 19: Portfolio Committed Occupancy Increased to 96.7%
Portfolio Committed Occupancy Increased to 96.7% Portfolio committed occupancy increased 0.5 ppts QoQ and 2.9 ppts YoY 98.5% 98.7% 95.4% 97.5% 97.8% 96.2% 96.7% 94.8% 31 Mar 2023 30 Jun 2023 31 Mar 2023 30 Jun 2023 31 Mar 2023 30 Jun 2023 31 Mar 2023 30 Jun 2023 (1, 2) Retail Office (2) Integrated D
Slide 20: Portfolio WALE Stable at 3.6 Years
Portfolio WALE(1) Stable at 3.6 Years Retail Portfolio WALE(2) 2.2 years Office Portfolio WALE(3) 3.6 years Integrated Development Portfolio WALE 5.3 years 14.7% 14.5% 14.3% Leases due 2023 actively 13.1% pushed to new expiries in 2026 and 2028 and beyond 8.5% 6.6% 6.0% 5.1% 5.2% 3.9% 3.0% 3.0% 2.1%
Slide 21: No Single Tenant Contributes More Than 5.4% of CICT's Total Gross Rental Income
No Single Tenant Contributes More Than 5.4% of CICT’s Total Gross Rental Income(1) % of Total Ranking Top 10 Tenants for June 2023 Trade Sector Gross Rent 1 RC Hotels (Pte) Ltd 5.4 Hotel 2 WeWork Singapore Pte. Ltd. 2.4(2) Real Estate and Property Services Supermarket / Beauty & Health / Services /
Slide 22: Diversified Tenants' Business Trade Mix
Diversified Tenants’ Business Trade Mix Other Retail and Product Trades Supermarket 2.5% Gifts & Souvenirs / Toy & Hobbies / Books & Stationery 2.5% IT, Media and Telecommunications / Sporting goods 4.2% Services 2.5% Fashion, Leisure & Entertainment / 5.3% 2.0% Other Retail and Music & Video Travel
Slide 23: Performance by Asset Type
Performance by Asset Type Note: The retail and office asset information comprises the respective retail and office components of integrated Westgate, Singapore developments unless stated otherwise, in order to show the operating metrics and trends.
Slide 24: Retail Performance Overview
Retail Performance Overview YTD Jun 2023 New Retail Offerings and Expansion Space Top 5 Trade Categories(3) Opening in 2Q 2023 by NLA Retail Occupancy(1) Contribution YoY Performance Home Furnishing Others 4.5% 98.7% 5.7% ▲ 0.2 ppts QoQ > 69% ▲ 5.1% Shoes & Bags 4.6% as at 30 Jun 2023 of gross renta
Slide 25: Rental Reversion Continued to be Positive
Rental Reversion Continued to be Positive Gross turnover rents ranged between 5% and 17% of respective mall’s gross rental income Net Lettable Area Rent Reversion(1) for YTD Jun 2023 No. of Percentage of Average Incoming Rents YTD Jun 2023 Renewals / Retention Rate Area Retail Portfolio vs New Lease
Slide 26: YTD Jun 2023 Shopper Traffic and Tenant Sales Up YoY
YTD Jun 2023 Shopper Traffic and Tenant Sales Up YoY Tenant sales psf continued to surpass that of 2019 level while shopper traffic showed gradual recovery YTD Jun 2023 Tenant Sales psf (1) (YoY Performance) Retail Portfolio Suburban Mall Downtown Mall • Tenant sales psf improvement YoY as a result
Slide 27: Continued Improvement Seen for Most of the Trade Categories
Continued Improvement Seen for Most of the Trade Categories YTD Jun 2023 Tenant Sales(1) YoY Performance by Trade Categories 22.9% 22.9% 11.6% 9.5% 9.0% 8.3% 7.7% 7.1% 6.6% 2.1% 1.0% -0.9% -3.1% -6.7% -7.0% Services(2) Fashion Home Furnishing Leisure & Entertainment Shoes & Bags Sporting Goods Depar
Slide 28: Office Performance Overview
Office Performance Overview Singapore, Germany and Australia Office Assets Office Occupancy(1) Total New and Renewed Leases (sq ft) 95.4% 210,900 304,200 New leases: ▲ 0.6 ppts QoQ 37.1%(2) as at 30 Jun 2023 1Q 2023 2Q 2023 Singapore Office Average YTD Jun 2023 YTD Jun 2023 Leasing Enquiries: Top 3
Slide 29: Office Portfolio Occupancy by Geography
Office Portfolio Occupancy by Geography CICT Office Portfolio: 95.4% as at 30 Jun 2023 (2) 96.7% 96.6% (1) 94.6% 95.3% (3) 88.6% 83.4% Singapore Portfolio Germany Portfolio Australia Portfolio As at 31 Mar 2023 As at 30 Jun 2023 Notes: (1) Largely attributed by lower committed occupancy at Capital T
Slide 30: CICT's Average Expiring Rents at Selected Grade A Offices are Below Market Rent
CICT's Average Expiring Rents at Selected Grade A Offices are Below Grade A Office Market Rent(1) Already in talks for major leases due in 2024 2023 2024 (2) (2) 20% Average rent of leases expiring is S$11.12 psf Average rent of leases expiring is S$10.99 psf 20% 15% $11.92 15% $11.98 $11.18 $11.06
Slide 31: Curating and Optimising Retail Tenant Mix in 2Q 2023
Curating and Optimising Retail Tenant Mix in 2Q 2023 F&B Fashion, Beauty & Lifestyle Mister Donut, Junction 8 Bulgogi Syo, Bugis Junction Matchaya, CapitaSpring Love and Bravery, Plaza Singapura Golden Village, Bugis+ (new-to-market) (new-to-market) (new-to-portfolio) CHAFFIC, Westgate Buta Kizoku,
Slide 32: Engaging with Shoppers via Various Campaigns
Engaging with Shoppers via Various Campaigns Raffles City CapitaVerse Spring/Summer 2023 (5 & 6 April 2023) (1 to 30 April 2023) A 24-hour fashion, arts, entertainment party in the metaverse, integrating physical and virtual retail experiences. National Library Read! Fest 2023 at Funan (16 to 23 Jun
Slide 33: Engaging Communities and Promoting Wellness
Engaging Communities and Promoting Wellness Live It Up! 2023 (16 June to 9 July 2023) Held in conjunction with Singapore Tourism Board’s Wellness Festival Singapore 2023, over 80 nature-based wellness activities were held across CapitaLand’s retail and workspace properties. Singapore Heritage Festiv
Slide 34: Focus & Outlook
Focus & Outlook Main Airport Center, Frankfurt, Germany
Slide 35: Macroeconomic and Market Outlook
Macroeconomic and Market Outlook Singapore Economic Outlook(1) Australia Economic Outlook(3) Reported Forecast 1Q 2023 2023 GDP GDP 2.3% YoY Growth Forecast 1.25% YoY 2Q 2023 GDP 0.7% YoY 2023 GDP 0.5% to 2.5% YoY CPI and Unemployment Trend (%) June 2023 MAS 2023 MAS Core Core Inflation 4.2% YoY Inf
Slide 36: Committed to Delivering Sustainable Return and Navigating Changes with Agility
Committed to Delivering Sustainable Return and Navigating Changes with Agility Portfolio Growth Value Creation Sustainability • Complete ongoing AEI at CQ @ Clarke Quay • Aligned with CLI Sustainability • Drive higher occupancy and Master Plan 2030 rents through active asset and • Upgrade of lifts a
Slide 37: Property Details
Property Details Six Battery Road, Singapore
Slide 38: Driving Occupancy Through Active Asset Management and Proactive Leasing Strategy
Driving Occupancy Through Active Asset Management and Proactive Leasing Strategy Improving occupancies higher than URA’s Singapore retail occupancy rate of 92.5%(1) Occupancy (%) (2) 100 100 99.5 99.3 100 100 98.7 99.3 100 99.7 99.7 99.9 98.1 98.8 99.6 100.0 99.5 99.6 96.3 96.8 94.4 94.4 95.6 96.0 A
Slide 39: Proactive Leasing Strategy to Manage Tenant Mix and Mall Positioning
Proactive Leasing Strategy to Manage Tenant Mix and Mall Positioning Retail Portfolio WALE(1) : 2.2 years 28.1% 27.8% 25.1% 7.5% 5.7% 5.8% 2023 2024 2025 2026 2027 2028 and beyond Note: (1) Based on gross rental income of committed leases in retail properties and retail components in Integrated Deve
Slide 40: Occupancy of Office Portfolio at 95.4% as at 30 Jun 2023
Occupancy of Office Portfolio at 95.4% as at 30 Jun 2023 Higher than market occupancies for Singapore, Germany and Australia Singapore Occupancy: Germany Occupancy: Australia Occupancy: CICT Portfolio: 96.6% CICT Portfolio: 95.3% CICT Portfolio: 88.6% CBRE SG Core CBD: 94.8% Frankfurt Sydney CBD: 85
Slide 41: Proactively Manage Lease Expiry for Stability Through Market Cycles
Proactively Manage Lease Expiry for Stability Through Market Cycles Office Portfolio WALE(1): 3.6 years 33.5% 20.0% 15.3% 14.3% 12.0% 4.9% 2023 2024 (2) 2025 2026 2027 2028 and beyond Notes: (1) Based on gross rental income as at 30 June 2023. (2) Commerzbank has given notice to end its lease at Gal
Slide 42: Occupancy of Integrated Developments at 97.8% as at 30 Jun 2023
Occupancy of Integrated Developments at 97.8% as at 30 Jun 2023 Occupancy (%) 97.1 97.1 97.8 98.1 98.6 99.0 99.9 100 91.5 92.9 Retail: 94.4 Retail: 94.4 Retail: 96.3 Retail: 96.8 Retail: 98.0 Retail: 98.6 Office: 100 Office: 100 Office: 100 Office: 100 Office: 100 Office: 100 Raffles City Singapore
Slide 43: Long and Stable WALE for Integrated Development Portfolio
Long and Stable WALE for Integrated Development Portfolio Integrated Development Portfolio WALE(1) : 5.3 years 17.0% 16.6% 13.7% 14.0% 10.3% 6.7% 4.9% 4.4% 5.1% 2.5% 3.1% 1.4% 0.3% 2023 2024 2025 2026 2027 2028 and beyond Retail Office Hospitality Note: (1) Based on gross rental income as at 30 June
Slide 44: Market Information
Market Information 66 Goulburn Street, Sydney, Australia
Slide 45: Limited Retail Supply Between 2023 and 2026 at an Annual Average of 0.3 million sq ft
Limited Retail Supply Between 2023 and 2026 at an Annual Average of 0.3 million sq ft Lower than the last 5-year historical annual average supply (2018-2022) of 0.6 million sq ft; increased supply in 2023 due to several project completion delays from 2022 Singapore Retail Supply (million sq ft) 0.44
Slide 46: Known Future Retail Supply in Singapore (2023 – 2026)
Known Future Retail Supply in Singapore (2023 – 2026) Future supply are mainly in the Outside Central Region and Fringe submarkets Expected Proposed Retail Projects Submarket Location NLA (sq ft) Completion 8 Club Street Rest of Central Region Club Street 33,300 iMall Fringe Marine Parade Central 60
Slide 47: Orchard Road Retail Rents Continued to Recover While Suburban Retail Rents Remained Resilient
Orchard Road Retail Rents Continued to Recover While Suburban Retail Rents Remained Resilient 1Q 21(1) 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 Orchard Road (S$ 34.90 34.55 34.20 34.20 34.20 34.20 34.45 34.55 34.85 35.20 psf/mth) QoQ Change N.M. -1.00% -1.01% 0.00% 0.00% 0.00% 0.73% 0.2
Slide 48: Singapore Retail Sales Performance
Singapore Retail Sales Performance Most industries recorded YoY sales growth in May 2023 Jan to May 2023: - Online Sales Proportion ranged between 12.6% (S$ billion) (Jan) and 15.2% (Mar); - Total Retail Sales monthly average at S$3.5 billion, 5.0 30% above monthly average in 2019, 2020 and 2021 4.5
Slide 49: Singapore Tourism Activity Poised to Recover by 2024
Singapore Tourism Activity Poised to Recover by 2024 Singapore’s international visitor arrivals (IVA) hit approx. 6 million from Jan to Jun 2023, almost half of the expectation for 2023; 2023 IVA expected to reach around 12 to 14 million visitors to bring about S$18 to 21 billion in tourism receipts
Slide 50: Singapore Office Stock as at end-March 2023
Singapore Office Stock as at end-March 2023 Islandwide office stock Singapore Stock % of Grade A office Decentralised, (sq ft) total Core CBD 23.6% stock Core CBD 31.7 mil 50.9% 14.8 mil sq ft (46.6% of Core Core CBD, CBD stock) 50.9% Fringe CBD 15.9 mil 25.5% Decentralised 14.7 mil 23.6% Fringe CBD
Slide 51: Annual New Supply Averages 0.6 Mil sq ft Over 4 Years; CBD Core Occupancy at 94.8%
Annual New Supply Averages 0.6 Mil sq ft Over 4 Years; CBD Core Occupancy at 94.8% as at 2Q 2023 Singapore Private Office Space (Central Area)(1) – Net Demand & Supply Forecast average annual gross new supply 2.5 2.2 (2023 to 2026): 0.6 mil sq ft 1.9 2.0 1.8 1.9 1.6 1.6 1.7 1.5 1.4 1.3 1.0 1.0 sq ft
Slide 52: Known Future Office Supply in Central Area (2023–2026)
Known Future Office Supply in Central Area (2023– 2026) No supply in CBD core(1) for the next two years (2024 – 2025); only one white site at Woodlands Ave 2 (Fringe Area) and one commercial site at Punggol Walk are on the Government Land Sales (GLS) reserve list while two white sites at Jurong Lake
Slide 53: Grade A Office Rent Continued to Climb Albeit at a Slower Rate in 2Q 2023
Grade A Office Rent Continued to Climb Albeit at a Slower Rate in 2Q 2023 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 Mthly rent (S$ / sq ft ) 10.40 10.50 10.65 10.80 10.95 11.30 11.60 11.70 11.75 11.80 QoQ Change 0.0% 1.0% 1.4% 0.5% 1.4% 3.2% 2.7% 0.9% 0.4% 0.4% S$18.80 20 18 Monthl
Slide 54: Demand and Supply in Frankfurt Office and its Two Submarkets
Demand and Supply in Frankfurt Office and its Two Submarkets 57% of the 2023-2025 Frankfurt office supply is already pre-let(1) (‘000 sq m) Frankfurt Office 800 0 600 0 400 8.0% 0 200 0 0 2015 2016 2017 2018 2019 2020 2021 2022 YTD Jun 2023 New Supply ('000 sqm) Demand ('000 sqm) Vacancy rate (%) (‘
Slide 55: Rental Range in Frankfurt
Rental Range in Frankfurt Rents are on an upward trend due to the continuing demand for high-quality and sustainable office space Frankfurt Rental range by submarket West C City CBD (€ / square metre / month) Westend B Gallileo 46.50 46.50 D Banking District 34.34 A5 24.30 25.00 B43 22.00 21.91 Nied
Slide 56: Sydney CBD
Sydney CBD JLL projects positive demand over the medium term but vacancy rate to trend upwards driven by robust development pipeline in 2024; Effective rents have increased 7 consecutive quarters and incentives broadly stabilised. Sydney CBD Office Space - Net Demand, Net Absorption & Vacancy Sydney
Slide 57: North Sydney CBD
North Sydney CBD Total stock remains unchanged while vacancy to remain elevated for the medium term North Sydney CBD - Net Demand, Net Absorption & Vacancy North Sydney - Net Effective Rents 120 25% $700 Thousands sqm 100 19.9% $600 20% 80 $500 60 15% $400 40 $300 10% 20 $200 0 5% -20 $100 -40 0% $0
Slide 58: The End
The End For enquiries, please contact: Ms Ho Mei Peng, Head, Investor Relations Direct: (65) 6713 3668 | Email: ho.meipeng@capitaland.com CapitaLand Integrated Commercial Trust Management Limited (http://www.cict.com.sg) Tel: (65) 6713 2888 | Fax: (65) 6713 2999
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