Altus Holdings Limited · HKEX:8149
Altus — Saizen REIT — FY2014 Earnings Presentation
21 slides from Altus's earnings presentation, August 2014
Slide 1: FY2014 Results Presentation
www.saizenreit.com.sg FY2014 Results Presentation August 2014
Slide 2: Disclaimer
Disclaimer • The value of units (the “Units”) in Saizen Real Estate Investment Trust (“Saizen REIT”) and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits in, or guaranteed by, Japan Residential Assets Manager Limited as manager of Saizen REIT (the “Manag
Slide 3: Saizen REIT in Brief
Saizen REIT in Brief Listed on SGX Mainboard in November 2007 Only Singapore-listed REIT to offer access exclusively to Japanese residential properties Properties targeted at mass market tenants in 14 cities Size of portfolio: JPY 42.1 billion (S$518 million1) Saizen REIT has a corporate f
Slide 4: Well-diversified Portfolio
Well-diversified Portfolio Portfolio Total number of properties: 137 Region City distribution by revenue (%) Kumamoto 16.9 Kitakyushu 10.4 Fukuoka 5.9 Kyushu Kagoshima 3.4 Oita 0.9 37.5 Sapporo 24.3 Hokkaido Hakodate 0.7 25.0 Sendai 10.9 Koriyama 2.7 Tohoku Morioka 1.5 15.1 Hiroshima 14.4 Chugoku Ku
Slide 5: Distributions
Distributions Distribution per Unit 3.10 Singapore cents Distribution period 1 January 2014 to 30 June 2014 Date payable 26 September 2014 Singapore cents Distribution per Unit (DPU) JPY 3.50 3.50 3.00 3.00 2.50 2.50 2.00 2.00 Actual DPU 1.50 1.50 (Singapore cents) 1.00 1.00 DPU in JPY‐terms 0.50 0.
Slide 6: Distributions
Distributions For 2H FY2014, the use of capital cash resources to offset loan principal repayment contributed to 1.46 cents out of the DPU of 3.10 cents At present, loan principal amortisation amounts to approximately JPY 648 million annually Going forward, the ability to offset such loan prin
Slide 7: Hedging of Distribution Payments
Hedging of Distribution Payments Saizen REIT’s upcoming distribution for the six-month financial period ended 30 June 2014 is expected to be paid in September 2014 Distributions have been hedged as follows: Distribution period 6-month period ended 6-month period ending 30 June 2014 31 December 2
Slide 8: FY2014 Overview
FY2014 Overview Growth in revenue and net property income were driven by property acquisitions Y-o-Y revenue and net property income increased by 3.4% and 2.6% in FY2014 Net income from operations increased by 15.8% due mainly to the non-recurrence of one-off refinancing-related costs incurred
Slide 9: FY2014 Overview
FY2014 Overview 1 property was divested Saumur Meinohama II was divested at a premium of 19.0% over its valuation Debt profile was strengthened The tenure of the existing loan from the Tokyo Star Bank Ltd was extended by a further 5 years to February 2023 (from February 2018 previously) 4
Slide 10: FY2014 Overview
FY2014 Overview The weakening of the JPY against the S$ has weighed on Saizen REIT’s net asset value and income in S$-terms As Saizen REIT’s distributable income from operations is generated in JPY, its S$- denominated distributions are dependent on the JPY-S$ cross rates The Management Team m
Slide 11: Strategic Review
Strategic Review Strategy adopted following completion of strategic review: To focus on Saizen REIT’s capital structure, in particular, its cash management and levels of leverage To seek opportunities to expand property portfolio 30-year loan of JPY 450.0 million (S$5.5 million) from the Hir
Slide 12: Financial Performance
Financial Performance 4,500 4,269 4,133 Gross revenue (JPY'mln) 3,868 3,824 3,954 4,000 3,578 3,485 3,500 Net property income 3,000 2,914 2,782 (JPY'mln) 2,657 2,727 2,487 2,536 2,339 2,500 Distributable income 2,000 1,697 generated during the year 1,375 1,390 1,439 (JPY'mln) 1,500 1,043 1,000 800 5
Slide 13: Occupancy Rates
80% 85% 90% 95% 100% Jun-08 Jun 08 Sep -08 Dec-08 Mar-09 Jun-09 Sep -09 Dec-09 Mar-10 Occupancy Rates Jun-10 Sep -10 Dec-10 Mar-11 Jun-11 Sep -11 Dec-11 Mar-12 Jun-12 Sep -12 Dec-12 Mar-13 Jun-13 Sep -13 Dec-13 Mar-14 Average occupancy rates remained stable above 90% since Jun-14 13
Slide 14: Stable Rental Rates
Stable Rental Rates Average rental rates maintained above JPY 1,500 / sqm (approx. S$19 / sqm) since Jun 08 2,000 Average rental rates of residential units (JPY / sqm) 1,500 1,000 500 0 Sep-08 Dec-08 Sep-09 Dec-09 Sep-10 Dec-10 Sep-11 Dec-11 Sep-12 Dec-12 Sep-13 Dec-13 Mar-09 Mar-10 Mar-11 Mar-12
Slide 15: Debt Profile of TK Operators
Debt Profile of TK Operators Prevailing Loan Property Annual loan TK operator Source of Debt Maturity Guarantor Loan-to- Interest Amount Value amortisation Date Fee (%) value (%) Rate (%) (JPY’mln) (JPY’mln) (JPY’mln) GK Choan Unencumbered 721.0 GK Gyotatsu Unencumbered 1,384.0 YK Shinzan Bank of Fu
Slide 16: Debt Profile of TK Operators
Debt Profile of TK Operators All loans are: non-recourse to Saizen REIT not cross-collateralised long-term in nature (7 to 30-year loans) secured only by specific properties of the TK operator(s) Interest rates for 88% of loans outstanding are fixed 16
Slide 17: Debt Profile of TK Operators
Debt Profile of TK Operators 6.00% 10 9 5.00% 8 7 4.00% 6 WA loan int erest 3.00% 5 rate 4 2.00% 3 Loan 2 duration 1.00% 1 (years) 0.00% 0 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 After FY2023 FY2023 Nearest loan maturity is in FY2022 March 20
Slide 18: Property Valuations
Property Valuations 50,000 Total valuation (JPY'mln) 49,062 Valuation of consistent portfolio of 45,000 43,774 127 properties (JPY'mln) 42,734 40,495 41,178 40,382 42,056 40,000 36,443 35,000 36,200 32,995 35,599 34,242 34,482 33,769 32,837 33,101 30,000 25,000 Jun‐08 Jun‐09 Jun‐10 Jun‐11 Jun‐12 Jun
Slide 19: Upcoming plans
Upcoming plans Continued implementation of capital management and portfolio expansion, in line with the strategy adopted following the Strategic Review Renewal of Unit buy-back mandate and to continue with Unit buy- back activities when opportunities arise Buying back Units in times of Unit pr
Slide 20: Key Financial Information
Key Financial Information Number of Units in issue as at 25 August 2014 283,611,720 NAV attributable to Unitholders as at 30 June 2014 1 S$346 million NAV per Unit as at 30 June 2014 1 S$1.22 Market capitalisation as at 30 June 2014 2 S$267 million 4Q FY2014 interest cover ratio 6.2 times Gearing 3
Slide 21: Thank You
SaizenREIT )r Thank You 21