Sasseur Real Estate Investment Trust · SGX:CRPU

Sasseur Real Estate Investment Trust — Q1 2019 Earnings Presentation

32 slides from Sasseur Real Estate Investment Trust's earnings presentation, May 13, 2019

  1. Slide 1: Sasseur REIT Financial Results for 1Q 2019

    SASSEUR REIT First Listed Outlet REIT in Asia Financial Results for 1Q 2019 13 May 2019

  2. Slide 2: Disclaimer

    Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN OR THE PEOPLE’S REPUBLIC OF CHINA. This presentation shall be read in conjunction with Sasseur REIT’s financial results announcement dated 13 May 2019 published on SGX Net. This presentation is for in

  3. Slide 3: Contents

    Contents Section 1 1Q 2019 Key Highlights Section 2 Financial Results Section 3 Capital Management Section 4 Portfolio Update Section 5 Investment Merits 3

  4. Slide 4: 1Q 2019 Key Highlights

    1Q 2019 Key Highlights SASSEUR (KUNMING) OUTLETS

  5. Slide 5: 1Q 2019 Results exceed Projection

    1Q 2019 Results exceed Projection 1Q 2019 * SGD’000 Actual 1 Projection 2 Change EMA rental income (exclude straight-line 30,874 30,151 +2.4% adjustment) Income available for distribution 19,684 18,015 +9.3% Distribution per Unit (DPU) 1.656 1.515 +9.3% Singapore cents 1Q 2019 Annualised Distributio

  6. Slide 6: Strong Operating Performance

    Strong Operating Performance Key Portfolio Metrics NAV per unit High Occupancy Rate1 S$0.8897 96.1% 11.2% as at IPO Aggregate Leverage Weighted Average Debt 29.2% Maturity from 36.0% as at IPO 3.75 years (1) 1Q 2019 6

  7. Slide 7: Financial Results

    Financial Results SASSEUR (CHONGQING) OUTLETS 7

  8. Slide 8: EMA Rental Income and Distribution

    EMA Rental Income and Distribution 1Q 2019 Actual Projection Variance Fixed Component 98.5 98.5 - (RMB mil) Variable Component 54.8 50.1 9.4% (RMB mil) EMA Rental Income1 153.3 148.6 +3.2% (RMB mil) Exchange Rate 4.9665 4.930 +0.7% (RMB/S$) EMA Rental Income1 30.9 30.2 +2.4% (S$ mil) Distributable I

  9. Slide 9: Balance Sheet

    Balance Sheet Actual Actual S$ mil 31 March 2019 31 Dec 2018 Investment properties 1,553.3 1,539.5 Cash and short-term deposits 163.2 203.6 Other assets 33.8 25.6 Total Assets 1,750.3 1,768.7 Loans and borrowings 493.7 493.3 Other liabilities 196.4 201.4 Total Liabilities 690.1 694.7 Net Assets 1,06

  10. Slide 10: Quarterly EMA Rental Income exceeds Projection

    Quarterly EMA Rental Income exceeds Projection 200 180 156.8 153.3 160 151.3 148.6 142.0 145.8 142.3 139.6 140 61.1 55.6 54.8 50.1 RMB ‘millions 120 42.2 39.8 50.1 46.6 100 80 60 99.8 99.8 95.7 95.7 95.7 95.7 98.5 98.5 40 20 0 2Q18 2Q18 3Q18 3Q18 4Q18 4Q18 1Q19 1Q19 Actual Projection Actual Projecti

  11. Slide 11: Distribution Details

    Distribution Details Distribution Period 1 January to 31 March 2019 Distribution Per Unit1 1.656 Singapore cents Distribution Timetable Notice of Books Closure Date 13 May 2019 Ex-dividend Date 27 May 2019 Books Closure Date 28 May 2019 Distribution Payment Date 27 June 2019 Dividend pay-out is chan

  12. Slide 12: Capital Management

    Capital Management SASSEUR (HEFEI) OUTLETS 12

  13. Slide 13: Capital Management

    Capital Management Onshore Offshore Total Facilities Facility Debt Facilities Currency RMB SGD - (SGD million) SGD 125 ~SGD 387 million ~SGD 512 million million1 Quantum (RMB 1.92 (~RMB 2.54 (~RMB 0.62 billion) billion) Debt Headroom billion) 276 Proportion 75.6% 24.4% 100% 4.5 years Tenure 5 years

  14. Slide 14: Debt Maturity Profile

    Debt Maturity Profile Weighted average debt maturity is 3.75 years with no major re-financing until 2021 S$ million Debt Maturity 359 133 4 8 8 2019 2020 2021 2022 2023 14

  15. Slide 15: Portfolio Update

    Portfolio Update SASSEUR (HEFEI) OUTLETS

  16. Slide 16: Portfolio Summary

    Portfolio Summary Portfolio Valuation* : RMB 7,707 mil Hefei Outlet Mall Valuation : RMB 2,521 mil Chongqing Outlet Mall Bishan Outlet Mall Kunming Outlet Mall Valuation : RMB 2,901 mil Valuation : RMB 790 mil Valuation : RMB 1,495 mil * Based on independent valuation as at 31 Dec 18 by Savills (wit

  17. Slide 17: 1Q 2019 Outlets Summary

    1Q 2019 Outlets Summary 1Q 2019 NLA Occupancy 1Q 2019 vs 1Q 2018 Outlets Sales (sqm) (%) Change (%) (RMB’mil) Chongqing 50,885 98.9 609.1 +15.2 Bishan 47,308 90.5 124.8 +32.3 Hefei 138,449 97.0 243.0 +25.4 Kunming 70,067 97.2 229.2 +47.1 Portfolio 306,709 96.1 1,206.1 +24.0 17

  18. Slide 18: Portfolio Occupancy (1Q 2019 vs 4Q 2018)

    Portfolio Occupancy (1Q 2019 vs 4Q 2018) 98.9% 99.8% 96.1% 97.0% 97.6% 97.2% 95.2% 94.2% 90.5% 87.9% 1Q19 4Q18 1Q19 4Q18 1Q19 4Q18 1Q19 4Q18 1Q19 4Q18 重庆 ChongQing 璧山 Bishan 合肥 Hefei 昆明 Kunming 项目组合 Portfolio 18

  19. Slide 19: Weighted Average Lease Expiry (WALE)

    Weighted Average Lease Expiry (WALE) Lease Expiry by NLA & Property Income WALE by : 70.0% NLA 2.85 years 60.0% 57.6% Property Income 1.14 years 50.0% 45.4% 40.0% 30.0% 26.5% 22.5% 20.4% 20.0% 10.0% 8.1% 7.5% 5.8% 3.5% 2.6% 0.0% 2019 2020 2021 2022 2023 & beyond by NLA by Property Income As at 31 Ma

  20. Slide 20: VIP Members' Growth by Outlets

    VIP Members’ Growth by Outlets 1000.0 15.8% 948.8 900.0 819.2 800.0 700.0 600.0 Members in '0000 500.0 400.0 341.1 300.0 249.2 200.0 181.5 177.0 100.0 0.0 Chongqing Bishan Hefei Kunming Total 2017 2018 1Q2019 GRAND TOTAL around 948,800 members 20

  21. Slide 21: Well Diversified Portfolio Tenants' Mix

    Well Diversified Portfolio Tenants’ Mix Breakdown of NLA1 by Trade Sector Breakdown of Revenue2 by Trade Sector Ad-hoc Outlet, Others Lifestyle F & B Ad-hoc Outlet Kids Amusement 0.3% 2.9% 3.7% 0.3% 2.6% F & B, 6.2% Park Lifestyle, 2.0% 0.4% Others, 2.9% Anchor Tenants Kids Amusement 1.5% Park, 2.8%

  22. Slide 22: Chongqing Outlets

    Chongqing Outlets 重庆 Sales and Occupancy RMB 'Mil Chongqing 700 120.0% 98.9% 609 600 100.0% 500 80.0% 400 60.0% 300 40.0% 200 100 20.0% - 0.0% 1Q 2Q 3Q 4Q Year Commenced Operations Sep 2008 2017 2018 2019 Occupancy GFA (sqm) 73,373 Outlet Members NLA (sqm) 50,885 (‘000) Occupancy Rate (%, 31 Mar 19)

  23. Slide 23: Bishan Outlets

    Bishan Outlets Sales and Occupancy RMB 'Mil Bishan 140 125 100.0% 90.5% 120 80.0% 100 80 60.0% 60 40.0% 40 20.0% 20 - 0.0% 1Q 2Q 3Q 4Q Year Commenced Operations Oct 2014 2017 2018 2019 Occupancy GFA (sqm) 68,791 Outlet Members NLA (sqm) 47,308 (‘000) Occupancy Rate (%, 31 Mar 19) 90.5 200 181.51 155

  24. Slide 24: Hefei Outlets

    Hefei Outlets Sales and Occupancy RMB 'Mil Hefei 400 120.0% 350 97.0% 100.0% 300 243 80.0% 250 200 60.0% 150 40.0% 100 20.0% 50 - 0.0% 1Q 2Q 3Q 4Q Year Commenced Operations May 2016 2017 2018 2019 Occupancy GFA (sqm) 141,182 Outlet Members NLA (sqm) 138,449 (‘000) Occupancy Rate (%, 31 Mar 19) 97.0

  25. Slide 25: Kunming Outlets

    Kunming Outlets Sales and Occupancy RMB 'Mil Kunming 250 229 120.0% 97.2% 200 100.0% 80.0% 150 60.0% 100 40.0% 50 20.0% - 0.0% 1Q 2Q 3Q 4Q Year Commenced Operations Dec 2016 2017 2018 2019 Occupancy GFA (sqm) 88,257 Outlet Members NLA (sqm) 70,067 (‘000) Occupancy Rate (%, 31 Mar 19) 97.2 200 177.1

  26. Slide 26: Exciting Events to Drive Shoppers' Traffic

    Exciting Events to Drive Shoppers’ Traffic Lunar VIP Spring Jan Day Feb New Mar Festival Year

  27. Slide 27: Exciting Events to Drive Shoppers' Traffic

    Exciting Events to Drive Shoppers’ Traffic Strong Turnout of Shoppers to Outlets’ Various Promotional Events 27

  28. Slide 28: Potential Pipelines

    Potential Pipelines • All acquisitions must be yield accretive • First China, then the World Changchun • Pipeline Properties increased from 3 to 7 ROFR Properties Lanzhou Xi’an Guiyang Xi’an Yangzhou Nanjing Hangzhou Opening Date Sep 2017 Dec 2017 Changsha Guiyang GFA (sqm) 141,708 193,520 Shenzhen

  29. Slide 29: Investment Merits

    Investment Merits 29 SASSEUR (KUNMING) OUTLETS

  30. Slide 30: Investment Merits

    Investment Merits Market Leadership: Sasseur Group is largest operator of outlet malls in 1 China, with 10 malls and over 10 years of operating experience. Well- positioned to ride on the growth of the rising spending power of the Chinese middle class. 2 Unique Art-Commerce Business Model: Aligns in

  31. Slide 31: Awards and Achievement

    Awards and Achievement “Best REIT Deal in Southeast Asia 2018” Award by Alpha Southeast Asia in February 2019 31

  32. Slide 32: Thank You

    Thank You

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