CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaMall Trust — H1 2014 Earnings Presentation
43 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Jul 23, 2014
Slide 1: CapitaMall Trust First Half 2014 Financial Results
Photo Credit: Kwek Swee Seng, Singapore Photo Credit: Kwek Swee Seng, Singapore CAPITAMALL TRUST Singapore’s First & Largest REIT First Half 2014 Financial Results 23 July 2014
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 Review of 2Q 2014 Key Financial Highlights Portfolio Updates Asset Enhancement Initiatives Looking Forward 3 CapitaMall Trust 1st Half 2014 Financial Results *July 2014*
Slide 4: Review of 2Q 2014
Review of 2Q 2014 • Operational performance (year-to-date) – 327 new leases/renewals achieved with 6.6% positive rental reversion – 98.6% portfolio occupancy rate as at end-June 2014 – Tenants’ sales per square foot (“psf”) decreased by 3.7% year on year – Shopper traffic decreased by 2.0% year on y
Slide 5: Key Financial Highlights
Key Financial Highlights CapitaMall Trust 1st Half 2014 Financial Results *July 2014* Westgate
Slide 6: 2Q 2014 Distributable Income Up 6.5% Y-o-Y
2Q 2014 Distributable Income Up 6.5% Y-o-Y Distributable Income(1) (S$ mil) (1) Distributable Income Distribution Per Unit (DPU) 93.4 87.7 S$93.4 2.69 million cents 6.5% Y-o-Y 6.3% Y-o-Y 2Q 2014 2Q 2013 DPU (cents) Annualised DPU Annualised Distribution 2.69 2.53 Yield 10.79 5.37 cents % (Based on u
Slide 7: 1H 2014 Distributable Income Up 5.5% Y-o-Y
1H 2014 Distributable Income Up 5.5% Y-o-Y Distributable Income (1) (S$ mil) (1) Distributable Income Distribution Per Unit (DPU) 182.5 173.0 S$182.5 5.26 million cents 5.5% Y-o-Y 5.4% Y-o-Y 1H 2014 1H 2013 DPU (cents) Annualised DPU Annualised Distribution 5.26 4.99 Yield 10.61 5.28 cents % (Based
Slide 8: Attractive Yield versus Other Investments
Attractive Yield versus Other Investments As at 30 June 2014 Net Yield for: Individual: 5.4% (0% tax) Corporate Overseas: 4.9% (10% tax) 6 Corporate Local: 4.5% (17% tax) 5.4 4.0 4 310 bps yield spread 3.3 Yield % 2.3 2.5 2 1.2 0.3 0 CMT 1H 2014 10-yr Govt Bond 5-yr Govt Bond CPF Ordinary 12-mth Fix
Slide 9: 5-Year Historical Yield versus Singapore Government Bonds
5-Year Historical Yield versus Singapore Government Bonds 10 9 8 7 CMT Yield 6 Yield (%) 5 4 3 10Y Bond Yield 2 1 5Y Bond Yield 0 2009 2010 2011 2012 2013 2014 Sources: Bloomberg, Monetary Authority of Singapore 9 CapitaMall Trust 1st Half 2014 Financial Results *July 2014*
Slide 10: 2Q 2014 Financial Performance
2Q 2014 Financial Performance (1) Gross Revenue Net Property Income Distributable Income S$164.3 S$114.0 S$93.4 million million million 2.5% Y-o-Y 4.4% Y-o-Y 6.5% Y-o-Y S$ million 2Q 2014 2Q 2013 164.3 160.3 (2) 114.0 109.2 (2) 93.4 87.7 Gross Revenue Net Property Income Distributable Income(1) (1)
Slide 11: 1H 2014 Financial Performance
1H 2014 Financial Performance (1) Gross Revenue Net Property Income Distributable Income S$329.0 S$228.3 S$182.5 million million million 4.1% Y-o-Y 4.9% Y-o-Y 5.5% Y-o-Y S$ million 1H 2014 1H 2013 329.0 315.9 (2) 228.3 217.6 (2) 182.5 173.0 Gross Revenue Net Property Income Distributable Income(1) (
Slide 12: 1H 2014 Gross Revenue Increased by 4.1% versus 1H 2013
1H 2014 Gross Revenue Increased by 4.1% versus 1H 2013 On Comparable Mall Basis(1), 1H 2014 Gross Revenue Up 4.3% Y-o-Y (2) 329.0 CMT Portfolio 315.9 37.2 Tampines Mall 36.3 4.1% Junction 8 28.2 27.4 16.6 Funan DigitaLife Mall 16.6 39.2 IMM Building 36.9 44.4 Due mainly to: Plaza Singapura 40.6 • Hi
Slide 13: 1H 2014 Operating Expenses Increased by 2.5% versus 1H 2013
1H 2014 Operating Expenses Increased by 2.5% versus 1H 2013 On Comparable Mall Basis(1), 1H 2014 OPEX Up 2.9% Y-o-Y (2) 100.7 CMT Portfolio 98.3 9.9 2.5% Tampines Mall 9.6 Junction 8 7.8 8.0 5.5 Funan DigitaLife Mall 5.5 13.3 IMM Building 13.2 • Due mainly to higher property tax, 11.6 maintenance an
Slide 14: 1H 2014 Net Property Income Increased by 4.9% versus 1H 2013
1H 2014 Net Property Income Increased by 4.9% versus 1H 2013 On Comparable Mall Basis(1), 1H 2014 NPI Up 4.9% Y-o-Y (2) CMT Portfolio 228.3 217.6 27.3 4.9% Tampines Mall 26.7 20.4 Junction 8 19.4 11.1 Funan DigitaLife Mall 11.1 25.9 IMM Building 23.7 32.8 Plaza Singapura 30.3 Bugis Junction 25.6 25.
Slide 15: 1H 2014 Performance of Joint Ventures
1H 2014 Performance of Joint Ventures (1) 1H 2014 Net Property Income Up 23.9% Y-o-Y Gross Revenue (S$ million) Total 57.1 45.1 Raffles City Singapore 46.4 Total 45.1 26.7% Westgate 10.7 - Operating Expenses (S$ million) Total 16.2 12.0 12.4 Total Raffles City Singapore 34.2% 11.9 Westgate 3.8 0.1 (
Slide 16: Debt Maturity Profile as at June 2014
Debt Maturity Profile1 as at 30 June 2014 799.5 800 700 615.1 (3) 9.6 600 80.0 (4) 80.0 500 (2) 699.5 S$ million 412.0 400 320.0 (5) 300 505.2 (7) 226.0 320.0 350.0 200 100.0 100 205.5 (6) 250.0 (8) (11) (12) 150.0 157.6 (9) 190.1 140.0 150.0 100.0 126.0 205.5 62.0 (10) 0 2014 2015 2016 2017 2018 20
Slide 17: Key Financial Indicators
(1) Key Financial Indicators As at As at 30 June 2014 31 March 2014 Unencumbered Assets as % of Total Assets 100.0% 100.0% Gearing Ratio (2,3) 34.3% 35.1% Net Debt / EBITDA (4) 5.0x 5.2x Interest Coverage (5) 4.7x 4.4x Average Term to Maturity (years) 4.2 4.0 Average Cost of Debt (6) 3.6% 3.5% CMT’s
Slide 18: Valuations and Valuation Cap Rates
Valuations and Valuation Cap Rates Valuation Valuation Variance Valuation as at Valuation Valuation as at 30 Jun 14 as at 31 Dec 13 30 Jun 14 Cap Rate Cap Rate CMT Portfolio as at 30 June 2014 S$ million S$ million S$ million S$ per sq ft NLA as at 30 Jun 14 as at 31 Dec 13 Tampines Mall 889.0 852.0
Slide 19: Healthy Balance Sheet
Healthy Balance Sheet As at 30 June 2014 S$’000 Non-current Assets 8,549,150 Net Asset Value/Unit S$1.79 (as at 30 June 2014) Current Assets 897,439 Adjusted Net Asset Value/Unit Total Assets 9,446,589 S$1.76 (excluding distributable income) Current Liabilities 1,148,150 Non-current Liabilities 2,12
Slide 20: Distribution Details
Distribution Details Distribution Period 1 April to 30 June 2014 Sub-point Distribution Per Unit 2.69 cents Notice of Books Closure Date 23 July 2014 Last Day of Trading on “cum” Basis 29 July 2014, 5.00 pm Ex-Date 30 July 2014, 9.00 am Books Closure Date 1 August 2014 Distribution Payment Date 29 A
Slide 21: Portfolio Updates
Portfolio Updates CapitaMall Trust 1st Half 2014 Financial Results *July 2014* Bugis+
Slide 22: Shopper Traffic for 1H 2014
Shopper Traffic for 1H 2014 1H 2014 Shopper Traffic(1) Decreased by 2.0% Y-o-Y 130,000 Shopper Traffic (‘000) 120,000 110,000 100,000 90,000 80,000 1H 2014 1H 2013 Source: CMTML (1) For comparable basis, the chart includes the entire CMT portfolio of malls, except Bugis Junction (which is undergoing
Slide 23: Portfolio Tenants' Sales for 1H 2014
Portfolio Tenants’ Sales for 1H 2014 1H 2014 Tenants’ Sales psf(1) Decreased by 3.7% Y-o-Y 90 Tenants’ Sales ($ psf/mth) 80 70 60 50 40 1H 2014 1H 2013 Source: CMTML (1) For comparable basis, the chart includes the entire CMT portfolio of malls, except Bugis Junction (which is undergoing Phase 2 AEI
Slide 24: Tenants' Sales by Trade Categories in 1H 2014
Tenants’ Sales by Trade Categories in 1H 2014 Cautious Consumer Spending 40% Tenants’ Sales $ psf Variance Y-o-Y 35% 30% 25% 20% 15% 13.1% 13.0% 10% 5% 3.0% 1.0% 0% -5% -0.5% -0.7% -1.3% -1.5% -2.1% -3.0% -4.8% -10% -6.2% -7.2% -8.3% -8.5% -15% -13.0% -20% -17.2% -25% -23.1% -30% (1) Services Superm
Slide 25: Rental Reversions
Rental Reversions From 1 January to 30 June 2014 (Excluding Newly Created and Reconfigured Units) Net Lettable Area Increase in Current Rental Rates vs No. of Retention Preceding Rental Property Renewals / Percentage Rate Area (sq ft) Rates New Leases of Mall (typically committed 3 years ago) Tampin
Slide 26: Renewals Achieved Year-on-Year
Renewals Achieved Year-on-Year Net Lettable Area Increase in Current Rental Rates vs No. of Preceding Rental CMT Portfolio (Year)(1) Renewals / Rates Area % of Total Forecast Rental New Leases (typically (sq ft) NLA Rates (2) committed 3 years ago) 1H 2014 327 695,903 17.4% N.A.(3) 6.6% 2013 629 942
Slide 27: Portfolio Lease Expiry Profile as at June 2014
Portfolio Lease Expiry Profile as at 30 June 2014(1) Gross Rental Income per Month(2) Number of Leases S$’000 % of Total (3) 2014 229 3,827 6.4 2015 1,006 17,420 29.0 2016 976 16,501 27.4 2017 646 14,554 24.2 2018 & Beyond 84 7,840 13.0 Total 2,941 60,142 100.0 (1) Includes CMT’s 40.0% stake in Raff
Slide 28: 2014 Portfolio Lease Expiry Profile by Property
2014 Portfolio Lease Expiry Profile by Property Net Lettable Area Gross Rental Income No. of As at 30 June 2014 Leases Sq Ft ('000) % of Mall NLA(1) S$'000 % of Mall Income(2) Tampines Mall 13 22.0 6.7% 380 7.1% Junction 8 15 22.5 7.3% 374 9.0% Funan DigitaLife Mall 7 7.2 2.5% 58 2.4% IMM Building(3
Slide 29: High Occupancy Maintained
High Occupancy Maintained 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 30 Jun As at 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Tampines Mall 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 95.4%(3) Junction 8 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 99
Slide 30: Asset Enhancement Initiative (AEI) – Bukit Panjang Plaza
Asset Enhancement Initiative (AEI) – Bukit Panjang Plaza CapitaMall Trust 1st Half 2014 Financial Results *July 2014* Bukit Panjang Plaza
Slide 31: Proposed Asset Enhancement Initiative
Proposed Asset Enhancement Initiative The proposed AEI for Bukit Panjang Plaza includes: • Expansion of Community/Sports Facility Scheme (“CSFS”) space on Level 4 to free up approximately 18,000 sq ft of commercial Gross Floor Area (“GFA”) • Transfer of commercial GFA to create a new 2-storey Food a
Slide 32: Bukit Panjang Plaza: Level 4
Bukit Panjang Plaza: Level 4 Expansion Of CSFS Space To Free Up Commercial GFA Before Current CSFS Space (NLB) After Expanded Current Expansion of CSFS space to free CSFS CSFS up commercial GFA Space Space (NLB) 32 CapitaMall Trust 1st Half 2014 Financial Results *July 2014*
Slide 33: Bukit Panjang Plaza: Level 2 and 3
Bukit Panjang Plaza: Level 2 and 3 New 2-Storey F&B Block Relocation of Garden Plaza from Level 2 to Level 4 Before After New L4 Garden Plaza New L3 F&B Space Current L2 Garden Plaza New L2 F&B Space 33 CapitaMall Trust 1st Half 2014 Financial Results *July 2014*
Slide 34: Bukit Panjang Plaza: Level 2 and 3
Bukit Panjang Plaza: Level 2 and 3 Transfer Commercial GFA From Level 4 To Level 2 And 3 Level 2 Before After Current roof Convert existing roof garden garden to F&B space Level 3 Before After Current Air New F&B Space space 34 CapitaMall Trust 1st Half 2014 Financial Results *July 2014*
Slide 35: Bukit Panjang Plaza: Level 2 and 3
Bukit Panjang Plaza: Level 2 and 3 New Extension Block With More F&B Offerings Level 2 Level 3 Additional leasable space on Level 2(1) Walkway leading to Level 3 extension block(1) (1) Artist’s impression. 35 CapitaMall Trust 1st Half 2014 Financial Results *July 2014*
Slide 36: Bukit Panjang Plaza: Facade Rejuvenation
Bukit Panjang Plaza: Facade Rejuvenation Before After Current Facade Updated Facade(1) (1) Artist’s impression. 36 CapitaMall Trust 1st Half 2014 Financial Results *July 2014*
Slide 37: Value Creation
Value Creation Projected Return on Investment of 8.0% Estimated Capital Expenditure Target Start Date Target Completion Date S$18.49 mil(1) 3Q 2014 3Q 2016 Projected Returns(2) S$ million Incremental Net Property Income 1.48 Capital Expenditure for Reconfiguration works 18.49 Return On Investment 8.
Slide 38: Update on JCube
David Hong, CapitaLand “Building People” Photography Competition 2012 Update on JCube CapitaMall Trust 1st Half 2014 Financial Results *July 2014* JCube
Slide 39: Update on JCube
Update on JCube Re-configuration of 25,000 sq ft space on Level 2 Reconfiguration of Level 2 space 39 CapitaMall Trust 1st Half 2014 Financial Results *July 2014*
Slide 40: Update on JCube
Update on JCube Trendy Cluster of Shops at J.Avenue • New ‘J.Avenue’ zone with street shopping ambience to open progressively from September 2014 • About two-thirds of the 70 units have been committed Entrance of J.Avenue(1) Retail units in J.Avenue(1) (1) Artist’s impression. 40 CapitaMall Trust 1s
Slide 41: Looking Forward
Koh Siew Peng, CapitaLand “Building People” Photography Competition 2012 Looking Forward CapitaMall Trust 1st Half 2014 Financial Results *July 2014* Raffles City Singapore
Slide 42: Looking Forward
Looking Forward Healthy Underlying Property Fundamentals • Asset enhancement initiatives – Tampines Mall: Continuation of Level 5 works to house educational tenants – Bugis Junction: Completion of Phase 2 asset enhancement works – JCube: Re-configuration of Level 2 to add street shopping retail unit
Slide 43: Thank you
Photo Credit: Kwek Swee Seng, Singapore Photo Credit: Kwek Swee Seng, Singapore Thank you For enquiries, please contact: Ms Audrey Tan, Investor Relations, Direct: (65) 6713 1507 Email: audrey.tan@capitaland.com CapitaMall Trust Management Limited (http://www.capitamall.com) 39 Robinson Road, #20-01