Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaLand Retail China Trust — Q1 2017 Earnings Presentation
34 slides from Singapore Exchange's earnings presentation, Apr 21, 2017
Slide 1: CapitaLand Retail China Trust Financial Results for 1Q 2017
CapitaLand Retail China Trust Financial Results for 1Q 2017 21 April 2017 0 Financial Results for 1Q 2017 *21 April 2017*
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. 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 assumpti
Slide 3: Contents
Contents 1Q 2017 Highlights Financial Highlights Financial Results Portfolio Update CapitaMall Wangjing, Beijing Proactive Asset Management Moving Forward Appendix CapitaMall Qibao, Shanghai 2 Financial Results for 1Q 2017 *21 April 2017*
Slide 4: 1Q 2017 Highlights
1Q 2017 Highlights 1Q 2017 Gross Revenue & NPI increased 13.4% & 15.1% y-o-y respectively • Delivering strong financial performance • NPI in SGD terms grew 9.8% y-o-y • Distributable income increased 5.0% y-o-y • Excluding property tax impact, DPU would have grown 10.3% y-o-y • Annualised 1Q 2017 DP
Slide 5: Financial Highlights
Financial Highlights 4 Financial Results for 1Q 2017 *21 April 2017* CapitaMall Wangjing, Beijing, China
Slide 6: 1Q 2017 Net Property Income Grew 15.1%
1Q 2017 Net Property Income Grew 15.1% 1Q 2017 1 1Q 2016 Change Actual Actual Gross Revenue (RMB’000) 290,865 256,528 13.4% NPI (RMB’000) 2 194,896 169,394 15.1% NPI (S$'000) 40,303 36,692 9.8% Distributable Income (S$’000) 24,355 23,185 5.0% DPU (Singapore cents) 2.74 2.71 1.1% Annualised Distribut
Slide 7: On a same property tax basis, 1Q 2017 NPI growth would be 22.8%
On a same property tax basis, 1Q 2017 NPI growth would be 22.8% 1Q 20171 1Q 2016 Change NPI (RMB’mil) NPI 194.9 169.4 15.1% Impact of Additional Property Tax Provision 13.12 - NA NPI (same property tax basis for Beijing 208.0 169.4 22.8% Malls) DPU (Singapore Cents) DPU 2.74 2.71 1.1% Impact of Addi
Slide 8: Healthy Balance Sheet
Healthy Balance Sheet As at 31 Mar 2017 S$’000 Investment Properties 2,595,439 Net assets attributable 1,400,670 Other Assets 20,656 to unitholders (S$'000) Financial Derivatives Assets 1,326 Cash & Cash Equivalents 131,383 Units In Issue (‘000 units) 888,746 Total Assets 2,748,804 Net Asset Value (
Slide 9: Financial Results
Financial Results 8 Financial Results for 1Q 2017 *21 April 2017* CapitaMall Xinnan, Chengdu, China
Slide 10: Property Gross Revenue (in RMB'mil): 1Q 2017 vs 1Q 2016
Property Gross Revenue (in RMB’mil): 1Q 2017 vs 1Q 2016 Gross Revenue increased 13.4% y-o-y CRCT Portfolio 290.9 256.5 0.2% 13.4% Multi-Tenanted Xizhimen 71.6 68.4 From 1 May 2016, 57.1 revenue is net of Wangjing 57.0 5% VAT 36.5 Grand Canyon 36.3 1Q 2017: 238.2 16.3% 32.2 1Q 2016: 204.8 Xinnan 1Q 2
Slide 11: Net Property Income (in RMB'mil): 1Q 2017 vs 1Q 2016
Net Property Income (in RMB’mil): 1Q 2017 vs 1Q 2016 Net Property Income increased 15.1% y-o-y CRCT Portfolio 194.9 169.4 15.1% 15.1% Multi-Tenanted Xizhimen1 49.6 47.8 Wangjing 1 40.7 42.5 Grand Canyon 1 24.4 23.8 1Q 2017: 159.5 Xinnan 23.4 17.8% 1Q 2017: 195.5 NA 1Q 2016: 135.4 13.7% Qibao 12.0 1Q
Slide 12: Debt Maturity Profile (31 Mar 2017)
Debt Maturity Profile (31 Mar 2017) S$' million S$989.4mil CapitaMall Grand Canyon - Secured 1,000 Onshore Term Loan1 Trust - Unsecured Money Market Line Excluding RMB denominated loan, Variable MML and bridge term loan, fixed rate (MML) 800 Rate ~ 87.5% Trust - Unsecured Offshore Term Loan 46.9% 60
Slide 13: Key Financial Indicators
Key Financial Indicators Gearing Average Cost of Debt Loan Breakdown As at 31 Mar 2017, CRCT hedged 36.4% 2.49% 50.0% of its total non-RMB denominated term loans. 31 Dec 2016: 35.3% 31 Dec 2016: 2.81% 4.1% Average Term to Unencumbered Assets Maturity (Years) as % of Total Assets1 1.55 98.5% 31 Dec 2
Slide 14: Comparative Yields
Comparative Yields Based on historical gross dividend yield of past 12 months 7.5% 6.1% 4.2% 3.3% 3.4% 2.5% 2.3% 0.3% CRCT Yield 1 Singapore 10- China 10-year FSSTI Yield 3 FSTRE Yield 4 FSTREI Yield 5 CPF Ordinary 12-month year Govt Govt Bond Account 6 Fixed (S$) Bond Yield 2 Yield 2 Deposit 7 Sour
Slide 15: Portfolio Update
Portfolio Update 14 Financial Results for 1Q 2017 *21 April 2017* CapitaMall Xizhimen, Beijing, China
Slide 16: Strong Portfolio Occupancy Rate
Strong Portfolio Occupancy Rate 31 Mar 161 30 Jun 161 30 Sep 161 31 Dec 161 31 Mar 171 Multi-Tenanted Malls CapitaMall Xizhimen 97.9% 99.2% 99.5% 97.8% 98.0% CapitaMall Wangjing 99.2% 99.3% 97.6% 99.6% 99.5% CapitaMall Grand Canyon 99.0% 98.4% 98.3% 96.6% 98.7% CapitaMall Xinnan2 - - - 98.2% 99.6% C
Slide 17: Portfolio Rental Reversion in 1Q 2017
Portfolio Rental Reversion in 1Q 2017 From 1 Jan to 31 Mar 2017 % of Total Var. over No. of new Area Property Net Lettable last rental leases/renewals (sq m) Area rate1, 2,3 CapitaMall Xizhimen 38 3,148 6.3% 3.0% CapitaMall Wangjing 25 849 1.6% 1.4% CapitaMall Grand Canyon 30 2,630 5.8% (7.0%)4 Capi
Slide 18: Portfolio Lease Expiry (By Year)
Portfolio Lease Expiry (By Year) Total Rental Income As at 31 Mar 2017 No. of Leases1,3 % of total RMB’000 (Mar 2017)2 2017 547 11,941 12.9% 2018 470 23,196 25.0% 2019 260 15,748 17.0% 2020 113 9,877 10.6% 2021 40 4,553 4.9% Beyond 2021 73 27,491 29.6% CRCT Portfolio Weighted average lease term to e
Slide 19: Portfolio Lease Expiry Profile for 2017
Portfolio Lease Expiry Profile for 2017 Net Lettable Area Total Rental Income No. of As at 31 Mar 2017 Leases1 % of total % of total Sq m RMB’000 (Mar 2017)2 (Mar 2017)3 CapitaMall Xizhimen 78 4,169 8.3% 3,879 17.2% CapitaMall Wangjing 58 2,111 3.9% 2,037 11.5% CapitaMall Grand Canyon 49 1,583 3.5%
Slide 20: Portfolio Shopper Traffic & Tenants' Sales
Portfolio Shopper Traffic & Tenants’ Sales Shopper Traffic1,2 Tenants’ Sales1,2 (1Q 2017 vs 4Q 2016 & 1Q 2016) (1Q 2017 vs 4Q 2016 & 1Q 2016) '000 Ave. Daily No. of Shoppers RMB psm Ave. Monthly Sales 300 2,000 250 1,500 200 YoY YoY 7.7% 2.4% 150 1,000 100 QoQ 500 QoQ 50 0.7% 7.5% - 0 1Q 2016 4Q 201
Slide 21: Proactive Asset Management
Proactive Asset Management 20 Financial Results for 1Q 2017 *21 April 2017* CapitaMall Grand Canyon, Beijing, China
Slide 22: CapitaMall Minzhongleyuan – Gaining Traction Among Shoppers
CapitaMall Minzhongleyuan – Gaining Traction Among Shoppers Healthy shopper traffic and sales growth of >90% and >60% y-o-y respectively Newly Opened Stores 21 Financial Results for 1Q 2017 *21 April 2017*
Slide 23: CapitaMall Xinnan – Expanding Dining Options
CapitaMall Xinnan – Expanding Dining Options • Reconfigured a large unit on level 4 • Brought in 2 popular new dining concepts • Achieved strong rental reversion of >140% • Target to open in 2Q 2017 Lei Men Ramen, 雷门拉面 Dou Wa, 逗蛙 22 Financial Results for 1Q 2017 *21 April 2017*
Slide 24: CapitaMall Grand Canyon – Driving Retail Space Efficiency
CapitaMall Grand Canyon – Driving Retail Space Efficiency Converted underutilized common area to retail space • Reconfigured common area on level 1 to 3 to retail space • Created >600 sq m of leasable area • Brought in popular fashion, sports and food & beverage retailers to drive traffic and divers
Slide 25: CapitaMall Wangjing – Attracting Quality Retailer
CapitaMall Wangjing – Attracting Quality Retailer Renowned international brand, Armani Exchange opened in Jan 2017 24 Financial Results for 1Q 2017 *21 April 2017*
Slide 26: Moving Forward
Moving Forward 25 Financial Results for 1Q 2017 *21 April 2017* CapitaMall Xinnan, Chengdu, China
Slide 27: Moving Forward
Moving Forward • 1Q 2017 China’s GDP grew 6.9%* y-o-y, faster than expected • 1Q 2017 urban disposable income and expenditure increased 6.3%* and 5.4%* y-o-y respectively • Staying ahead of the competition: • Xizhimen and Wangjing – Rejuvenation to maintain their leadership positions • Xinnan – Enha
Slide 28: Appendix
Appendix 27 Financial Results for 1Q 2017 *21 April 2017* CapitaMall Xizhimen, Beijing, China
Slide 29: Diversified Trade Mix
Diversified Trade Mix By Total Rent1 By Net Lettable Area2 1% 2% 1% 1% Fashion & Accessories Food & Beverages 2% 6% Department Store 3% 2% 13% Supermarket 2% 3% 28% 3% 4% Beauty & Healthcare 3% 1% 3% 2% 13% Shoes & Bags Education 7% Houseware & furnishings Leisure & Entertainment 8% 25% Sundry & Ser
Slide 30: Trade Mix by Total Rental Income
29 28.2 Fashion & Accessories 25.1 Food & Beverage 22.5 22.8 15.0 Department Store Supermarket 16.4 Beauty & Healthcare 7.7 8.4 6.88.1 Shoes & Bags For the Month of March 2017 Education 3.3 3.1 3.2 3.0 1.7 Houseware & furnishings Leisure & Entertainment Financial Results for 1Q 2017 *21 April 2017*
Slide 31: Trade Mix by Committed Net Lettable Area
30 13.3 Fashion & Accessories 12.5 Food & Beverage 11.4 11.9 28.8 Department Store 31.4 24.7 Supermarket 26.9 Beauty & Healthcare Shoes & Bags Education As at 31 March 2017 2.1 3.0 1.2 1.1 2.6 2.1 Houseware & furnishings 4.0 4.5 Leisure & Entertainment 5.74.8 Financial Results for 1Q 2017 *21 April
Slide 32: Portfolio at a Glance (Multi-Tenanted Malls)
Portfolio at a Glance (Multi-Tenanted Malls) CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall CapitaMall Grand Xizhimen Wangjing Xinnan Qibao Saihan Minzhong Wuhu1 Canyon 凯德MALL• 凯德MALL• 凯德广场• 凯德七宝 凯德MALL• leyuan 凯德广场• 凯德MALL• 西直门 望京 新南 购物广场 赛罕 新民众乐园 芜湖 大峡谷 Location Beiji
Slide 33: Portfolio at a Glance (Master Leased Malls)
Portfolio at a Glance (Master Leased Malls) CapitaMall Anzhen CapitaMall Erqi CapitaMall Shuangjing 凯德MALL•安贞 凯德广场•二七 凯德MALL•双井 Location Beijing Zhengzhou Beijing GFA1 (sq m) 43,443 92,356 49,463 GRA1 (sq m) 43,443 92,356 49,463 NLA1 (sq m) 43,443 92,356 51,1933 7 Oct 2034 Land Use Right Expiry 5 Ma
Slide 34: Thank You
Thank You For enquiries, please contact: (Ms) LENG Tong Yan, Investor Relations Direct: (65) 6713 1649, Email: leng.tongyan@capitaland.com 168 Robinson Road, #30-01 Capital Tower, Singapore 068912 Tel: (65) 6713 2888, Fax: (65) 6713 2999 33 Financial Results for 1Q 2017 *21 April 2017*
CapitaLand Retail China Trust — Q1 2017 Earnings Presentation on 6ix