Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — SPH REIT — Q1 FY2016 Earnings Presentation
23 slides from Singapore Exchange's earnings presentation, Jan 5, 2016
Slide 1: 1Q FY16 Financial Results
1Q FY16 Financial Results 5 January 2016
Slide 2: Disclaimer
Disclaimer This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in SPH REIT (“Units”). The value of Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guarantee
Slide 3: Contents
Contents Results Slide 3 Balance sheet Slide 7 Operational performance Slide 11 Growth strategy and market outlook Slide 16 Distribution details and timetable Slide 21 2
Slide 4: Key Highlights
Keyhighlights Key Highlights Net property income for 1Q FY16 up 5.9% year-on-year 1Q FY16 DPU was 1.33 cents Distribution yield was 5.78% (based on closing price of $0.925 per unit on 30 November 2015) Two asset enhancement projects underway Strong balance sheet, with low gearing of 25.7%
Slide 5: Resilient performance
Resilient performance 1Q FY16 1Q FY15 Change S$’000 S$’000 % Gross revenue 52,095 50,635 2.9% Property expenses (11,991) (12,762) 6.0% Net property income (NPI) 40,104 37,873 5.9% Income available for distribution 35,308 34,031 3.8% Distribution to Unitholders(a) 33,696 33,489 0.6% Distribution per
Slide 6: Higher gross revenue and NPI
Higher gross revenue and NPI S$m Gross Revenue Net Property Income 60.0 52.1 50.6 50.0 42.3 40.8 40.1 40.0 37.9 33.1 31.0 30.0 20.0 9.8 9.8 10.0 7.0 6.9 – Portfolio Paragon The Clementi Portfolio Paragon The Clementi Mall Mall 1Q FY16 1Q FY15 5
Slide 7: Stable and regular DPU
Stable and regular DPU Cents 1.60 1.40 1.39 1.33 1.35 1.33 1.20 0.80 0.40 - 1Q FY15 2Q FY15 3Q FY15 4Q FY15 1QFY16 6
Slide 8: Balance sheet
Unsaved Document / 23/04/2013 / 09:00 7 Balance sheet
Slide 9: Financial position
Financial position As at As at 30 November 2015 31 August 2015 S$’000 S$’000 Total assets 3,303,794 3,309,621 Total liabilities 910,395 911,811 Net assets 2,393,399 2,397,810 Net asset value per unit S$0.94 S$0.95 Gearing (a) 25.7% 25.7% (a) Gearing is computed based on total debt/ total assets 8 8
Slide 10: Low gearing and 85% of debt fixed
Low gearing and 85% of debt fixed Proactive capital management with 84.7% of the S$850m debt facility on a fixed rate basis Average cost of debt: 2.84% Weighted average term to maturity: 2.7 years Debt maturity profile (S$m) 130 320 280 120 - 2016 2017 2018 2019 2020 Fixed Floating 9 9
Slide 11: Market value of properties
Market value of properties Valuation as at 31 August (a) Capitalisation Rate As at 31 August 2015 2014 2015 and 2014 S$m S$m Paragon 2,641.0 2,588.0 4.85% - Retail 4.25% - Medical Suite/Office The Clementi Mall (b) 571.5 571.0 5.00% SPH REIT Portfolio 3,212.5 3,159.0 Notes (a) Valuations as at 31 Au
Slide 12: Operational performance
Unsaved Document / 23/04/2013 / 09:00 11 Operational performance
Slide 13: Resilient operating performance
Resilient operating performance • Paragon’s occupancy was 99.8% as at 30 November 2015. The marginal dip from full occupancy was due to timing of amalgamation of space to create a contiguous unit. • The relatively moderate rental uplift at Paragon of 3.2% for new or renewed leases in 1Q 2016, was ma
Slide 14: Rental reversion up 3.2% for the portfolio
Rental reversion up 3.2% for the portfolio NLA Number of As a % Change compared renewed / new renewals / of properties' to preceding (a) leases (sqft) (c) new leases NLA rental rates Paragon 39 88,492 12.4% 3.2% The Clementi Mall 1 441 0.2% 5.4% (b) SPH REIT Portfolio 40 88,933 9.8% 3.2% Notes: (a)
Slide 15: Staggered portfolio lease renewal
Staggered portfolio lease renewal Weighted Average Lease Expiry (WALE) as at 30 November 2015 By NLA 2.2 years By Gross Rental Income 2.4 years Lease expiry as at 30 November 2015 FY2020 and FY2016 FY2017 FY2018 FY2019 beyond Expiries as a % of total 3.1% 36.0% 33.8% 17.3% 9.8% NLA Expiries as a % o
Slide 16: Paragon: Staggered lease expiry
Paragon: Staggered lease expiry Expiry by Gross Rental Income Expiry by NLA 43.3% 41.5% 22.9% 18.8% 16.4% 17.7% 19.5% 12.5% 3.8% 3.6% FY2016 FY2017 FY2018 FY2019 FY2020 & FY2016 FY2017 FY2018 FY2019 FY2020 & beyond beyond The Clementi Mall (a) : tenant retention rate of more than 90% for first renew
Slide 17: Growth strategy and market outlook
Unsaved Document / 23/04/2013 / 09:00 16 Growth strategy and market outlook
Slide 18: Multi-pronged growth strategy to ensure growth
Multi-pronged growth strategy to ensure growth Ensure that interests of all stakeholders, including tenants, shoppers and unitholders are protected while keeping its properties at the forefront of evolving retail mall trends and Proactive asset relevant to changing demands of consumers management
Slide 19: Strategy to revitalise tenant mix
Strategy to revitalise tenant mix Strategy to continually revitalise tenant mix to strengthen various clusters, keep the properties relevant and elevate the properties’ positioning. 18
Slide 20: Continual asset enhancement
Continual asset enhancement The Clementi Mall’s (“TCM”) reconfiguration project • Create a more efficient layout and increase the range and depth of merchandise to drive higher sales. • Create value and strengthen the long-term sustainability of the property. • More details will be announced in due
Slide 21: Market outlook
Market outlook • Outlook for Singapore economy remains modest - Based on advance estimates of the Ministry of Trade and Industry (MTI), the Singapore economy grew by 2.1% in 2015. - MTI forecast GDP to grow between 1.0% and 3.0% in 2016. - Growth in labour-intensive segments such as retail and food
Slide 22: Distribution details and timetable
Distribution details and timetable Distribution period 1Q FY16 (1 September 2015 – 30 November 2015) Distribution per unit 1.33 cents per unit Ex-date 11 January 2016 Record date 13 January 2016 Payment date 15 February 2016 21
Slide 23: Thank You
Thank You Please visit www.sphreit.com.sg for more information. 22