Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaMall Trust — Q3 2013 Earnings Presentation
40 slides from Singapore Exchange's earnings presentation, Oct 23, 2013
Slide 1: CapitaMall Trust Third Quarter 2013 Financial Results
Photo Credit: Kwek Swee Seng, Singapore Photo Credit: Kwek Swee Seng, Singapore CAPITAMALL TRUST Singapore’s First & Largest REIT Third Quarter 2013 Financial Results 23 October 2013
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 3Q 2013 Key Financial Highlights Portfolio Updates Asset Enhancements Looking Forward 3 CapitaMall Trust Third Quarter 2013 Financial Results *October 2013*
Slide 4: Review of 3Q 2013
Review of 3Q 2013 • Steady operational performance – 528 new leases/renewals achieved with 6.3% positive rental reversion – 99.5% portfolio occupancy rate as at end Sep 2013 – Tenants’ sales increased by 2.8% year on year – Shopper traffic increased by 4.0% year on year • Update on asset enhancement
Slide 5: Key Financial Highlights
Key Financial Highlights CapitaMall Trust Third Quarter 2013 Financial Results *October 2013* 5 Bugis+
Slide 6: 3Q 2013 Distributable Income Up 9.7% Y-o-Y
3Q 2013 Distributable Income Up 9.7% Y-o-Y CMT Remains Committed to Distribute 100% of its Taxable Income for FY 2013 3Q 2013 3Q 2012 Actual Actual Chg Distributable income S$88.8m(1,2) S$80.9m(3) 9.7% Estimated distribution/unit (DPU) 2.56¢(4) 2.42¢ 5.8% Annualised DPU 10.16¢(4) 9.63¢ 5.5% Annualis
Slide 7: YTD Sep 2013 Distributable Income Up 10.4% Y-o-Y
YTD Sep 2013 Distributable Income Up 10.4% Y-o-Y CMT Remains Committed to Distribute 100% of its Taxable Income for FY 2013 YTD 2013 YTD 2012 Actual Actual Chg Distributable income S$261.8m(1,2) S$237.1m(3) 10.4% Estimated distribution/unit (DPU) 7.55¢(4) 7.10¢ 6.3% Annualised DPU 10.09¢(4) 9.48¢ 6.
Slide 8: Attractive Yield versus Other Investments
Attractive Yield versus Other Investments As at 30 September 2013 Net Yield for: Individual: 5.1% (0% tax) Corporate Overseas: 4.6% (10% tax) 6 Corporate Local: 4.2% (17% tax) 5.1 4 3.5 270 bps yield spread 3.3 Yield % 2.4 2.5 2 0.9 0.3 0 CMT YTD Sep 10-yr Govt Bond 5-yr Govt Bond CPF Ordinary 12-mt
Slide 9: Distribution Statement (3Q 2013 vs 3Q 2012)
Distribution Statement (3Q 2013 vs 3Q 2012) 3Q 2013 3Q 2012 Chg S$’000 S$’000 (%) Gross revenue 182,435 167,197 9.1 Less property operating expenses (55,950) (55,146) 1.5 Net property income 126,485 112,051 12.9 Interest and other income 877 1,953 (55.1) Administrative expenses (11,948) (12,343) (3.
Slide 10: Distribution Statement (YTD Sep 2013 vs YTD Sep 2012)
Distribution Statement (YTD Sep 2013 vs YTD Sep 2012) YTD Sep 2013 YTD Sep 2012 Chg S$’000 S$’000 (%) Gross revenue 543,446 487,918 11.4 Less property operating expenses (166,203) (155,581) 6.8 Net property income 377,243 332,337 13.5 Interest and other income 5,114 4,413 15.9 Administrative expense
Slide 11: YTD Sep 2013 Gross Revenue Increased by 11.4%
YTD Sep 2013 Gross Revenue Increased by 11.4% versus YTD Sep 2012 On Comparable Mall Basis(1), YTD Sep 2013 Gross Revenue Up 4.0% Y-o-Y CMT Portfolio 543.4 487.9 Tampines Mall 55.1 51.8 41.4 Junction 8 40.1 24.9 11.4% Funan DigitaLife Mall 23.8 56.2 IMM Building 57.2 Plaza Singapura 62.2 61.3 54.4 B
Slide 12: YTD Sep 2013 Operating Expenses Increased by 6.8%
YTD Sep 2013 Operating Expenses Increased by 6.8% versus YTD Sep 2012 On Comparable Mall Basis(1), YTD Sep 2013 OPEX Up 2.7% Y-o-Y CMT Portfolio 166.2 155.6 Tampines Mall 14.6 14.1 Junction 8 12.1 11.5 Funan DigitaLife Mall 8.3 6.8% 7.6 19.5 IMM Building 18.7 Plaza Singapura 15.7 16.2 Bugis Junction
Slide 13: YTD Sep 2013 Net Property Income Increased by 13.5%
YTD Sep 2013 Net Property Income Increased by 13.5% versus YTD Sep 2012 On Comparable Mall Basis(1), YTD Sep 2013 NPI Up 4.6% Y-o-Y CMT Portfolio 377.2 332.3 40.5 Tampines Mall 37.7 Junction 8 29.3 13.5% 28.6 Funan DigitaLife Mall 16.6 16.2 IMM Building 36.7 38.5 Plaza Singapura 46.5 45.1 Bugis Junc
Slide 14: Proactive Capital Management - 2013 Refinancing Completed
Proactive Capital Management - 2013 Refinancing Completed 799.5 800 700 642.8 600 500.0 242.8(3) 242.8 500 S$ million (2) 699.5 150.0 400 80.0(4) 80.0 300 (6) 505.2 200 (1) 350.0 320.0(5) 320.0 250.0 100 (7) 190.1 (8) 157.6 140.0 (9) 150.0 100.0 0 2014 2015 2016 2017 2018 2019 2022 2023 2024 CBs due
Slide 15: Key Financial Indicators
Key Financial Indicators As at As at 30 September 2013 30 June 2013 Unencumbered Assets as % of Total Assets (1) 83.6% 76.6% Gearing Ratio (2) 34.8% 34.9% Net Debt / EBITDA (3) 6.1 x 6.2 x Interest Coverage (4) 4.3 x 4.2 x Average Term to Maturity (years) 3.6 3.8 Average Cost of Debt (5) 3.4% 3.4% C
Slide 16: Healthy Balance Sheet
Healthy Balance Sheet As at 30 September 2013 S$’000 Non-current Assets 8,987,025 Net Asset Value/Unit S$1.71 (as at 30 September 2013) Current Assets 679,404 Adjusted Net Asset Value/Unit Total Assets 9,666,429 S$1.68 (excluding distributable income) Current Liabilities 719,032 Non-current Liabilit
Slide 17: Distribution Details
Distribution Details Distribution Period 1 July to 30 September 2013 Sub-point Estimated Distribution Per Unit(1) 2.56 cents Notice of Books Closure Date 23 October 2013 Last Day of Trading on “cum” Basis 28 October 2013, 5.00 pm Ex-Date 29 October 2013, 9.00 am Books Closure Date 31 October 2013 Di
Slide 18: Portfolio Updates
Chang York Hiang’, CapitaLand “Building People” Photography Competition 2012 Portfolio Updates CapitaMall Trust Third Quarter 2013 Financial Results *October 2013* Junction 8
Slide 19: Shopper Traffic for YTD Sep 2013
Shopper Traffic for YTD Sep 2013 YTD Sep 2013 Shopper Traffic(1) Increased by 4.0% Y-o-Y 150,000 Shopper Traffic (‘000) 140,000 130,000 120,000 110,000 100,000 YTD Sep 2013 YTD Sep 2012 Source: CMTML (1) For comparable basis, the chart includes the entire CMT portfolio of malls, except JCube, Bugis+
Slide 20: Portfolio Tenants' Sales for YTD Sep 2013
Portfolio Tenants’ Sales for YTD Sep 2013 YTD Sep 2013 Tenants’ Sales(1) Increased by 2.8% Y-o-Y 90 Tenants’ Sales ($ psf/mth) 80 70 60 50 40 Source: CMTML YTD Sep 2013 YTD Sep 2012 (1) For comparable basis, the chart includes the entire CMT portfolio of malls, except JCube, Bugis+, The Atrium@Orcha
Slide 21: Tenants' Sales by Trade Categories in YTD Sep 2013
Tenants’ Sales by Trade Categories in YTD Sep 2013 Stronger Sales Performance for Most Trade Categories 25% Tenants’ Sales $ psf Variance Y-o-Y 20% 19.0% 15% 13.3% 12.5% 9.4% 10% 6.2% 6.1% 5.6% 4.7% 3.5% 5% 2.8% 1.0% 0% -0.5% -1.0% -1.2% -5% -5.9% -6.1% -10% -7.4% -15% -14.0% -20% (1) Services Super
Slide 22: Positive Rental Reversions
Positive Rental Reversions From 1 January to 30 September 2013 (Excluding Newly Created and Reconfigured Units) Net Lettable Area Increase in Current Rental Rates vs No. of Retention Preceding Rental Property Renewals / Area Percentage Rate Rates New Leases (sq ft) of Mall (typically committed 3 yea
Slide 23: Positive Renewals Achieved Year-on-Year
Positive Renewals Achieved Year-on-Year Net Lettable Area Increase in Current Rental Rates vs No. of CMT Portfolio Preceding Rental Renewals / (Year)(1) Area % of Total Forecast Rental Rates New Leases (sq ft) NLA Rates (2) (typically committed 3 years ago) YTD Sep 2013 528 735,474 20.1% N.A.(3) 6.3
Slide 24: Portfolio Lease Expiry Profile as at September 2013
Portfolio Lease Expiry Profile as at 30 September 2013(1) Gross Rental Income per Month(2) Number of Leases S$’000 % of Total (3) 2013 148 2,981 5.7 2014 706 12,300 23.5 2015 1,021 18,682 35.6 2016 764 13,397 25.5 2017 & Beyond 61 5,106 9.7 Total 2,700 52,466 100.0 (1) Includes CMT’s 40.0% stake in
Slide 25: 2013 Portfolio Lease Expiry Profile by Property
2013 Portfolio Lease Expiry Profile by Property No. of Net Lettable Area Gross Rental Income per Month As at 30 September 2013 Leases sq ft ('000) % of Mall NLA(1) S$'000 % of Mall Income(2) Tampines Mall 18 101.8 31.1% 1,176 23.3% Junction 8 6 25.2 8.3% 168 4.2% Funan DigitaLife Mall 11 20.6 7.0% 1
Slide 26: 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 Sep As at 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Tampines Mall 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Junction 8 99.8% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0
Slide 27: Asset Enhancements (AEIs)
Asset Enhancements (AEIs) CapitaMall Trust Third Quarter 2013 Financial Results *October 2013* JCube
Slide 28: Tampines Mall
Mark Anthony Sicat, CapitaLand “Building People” Photography Competition 2011 Tampines Mall CapitaMall Trust Third Quarter 2013 Financial Results *October 2013* Tampines Mall
Slide 29: Proposed Asset Enhancement Initiative
Proposed Asset Enhancement Initiative The proposed AEI for Tampines Mall includes: • Converting Level 5 roof area into new leasable space to house enrichment schools and educational tenants • Reconfiguration of retail units at levels 2 & 3 to enhance the fashion offering • Rejuvenation works includi
Slide 30: Tampines Mall: Level 5
Tampines Mall: Level 5 Reconfiguration on Level 5 to create additional leasable space L5 BEFORE Existing roof holds Reconfigured into L5 AFTER M&E Equipment leasable space 30 CapitaMall Trust Third Quarter 2013 Financial Results *October 2013*
Slide 31: Tampines Mall: Proposed AEI Plans
Tampines Mall: Proposed AEI Plans BEFORE AFTER Modern Facade(1) Additional leasable space on Level 5(1) Upgraded Covered Walkway from MRT station(1) 31 (1) Artist’s impression. CapitaMall Trust Third Quarter 2013 Financial Results *October 2013*
Slide 32: Value Creation
Value Creation Projected Return on Investment of 8.0% Estimated Capital Expenditure Target Start Date Target Completion Date S$36.00 mil(1) 1Q 2014 4Q 2015 Projections(2) S$ million Incremental Gross Revenue per annum 3.39 Incremental Net Property Income 2.88 Return On Investment 8.0% Capital Value
Slide 33: Bugis Junction
Bugis Junction Bugis Junction Jimmy Chan, CapitaLand “Building People” Photography Competition 2012
Slide 34: Updates on AEI
Updates on AEI Newly converted space recovered from BHG on levels 2 and 3 to feature specialty shops Handover of units to specialty tenants Perforated ceiling 34 CapitaMall Trust Third Quarter 2013 Financial Results *October 2013*
Slide 35: Updates on AEI
Updates on AEI Phase One is more than 95% committed; on track to open in 4Q 2013 35 CapitaMall Trust Third Quarter 2013 Financial Results *October 2013*
Slide 36: Junction 8
Junction 8 Junction 8
Slide 37: Completion of AEI
Completion of AEI New MRT link way at Basement 1 opened New link way to Bishan MRT station Increased F&B variety 37 CapitaMall Trust Third Quarter 2013 Financial Results *October 2013*
Slide 38: Looking Forward
Wong Chek Poh, CapitaLand “Building People” Photography Competition 2012 Looking Forward CapitaMall Trust Third Quarter 2013 Financial Results *October 2013* Clarke Quay
Slide 39: Looking Forward
Looking Forward Healthy Underlying Property Fundamentals • Leasing activities on track for rest of the year • Asset Enhancement and Westgate greenfield project – Asset enhancement works for Bugis Junction on track to open in 4Q 2013 Phase 2 of asset enhancement works to commence and target complet
Slide 40: 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) 6826 5307 Email: audrey.tan@capitaland.com CapitaMall Trust Management Limited (http://www.capitamall.com) 39 Robinson Road, #18-01