Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Starhill Global REIT — 1H FY2023/24 Earnings Presentation
44 slides from Singapore Exchange's earnings presentation, Jan 29, 2024
Slide 1: First Half FY 2023/24 Financial Results
First Half FY 2023/24 Financial Results 29 January 2024 Singapore Australia Malaysia Japan China
Slide 2: Contents
Contents ➔ Overview and Key Highlights ➔ Financial Performance ➔ Portfolio Updates ➔ Strategy and Market Outlook ➔ Appendix 2
Slide 3: Overview and Key Highlights
Overview and Key Highlights Ngee Ann City Singapore
Slide 4: Overview of Starhill Global REIT
Overview of Starhill Global REIT Prime retail portfolio in Asia Pacific cities Quality Assets Strategic Locations Diversified Portfolio ➔ Portfolio of ~S$2.8 ➔ Landmark assets at ➔ Core markets: billion prime locations Singapore, Australia, ➔ 9 mid- to high-end ➔ Excellent connectivity Malaysia pred
Slide 5: Key Highlights for 1H FY23/24
Key Highlights for 1H FY23/24 Financial Resilient Prudent Performance Operational Performance Capital Management Committed Gross Revenue Gearing Portfolio Occupancy S$94.6 million 98.7%(1) 36.8% -0.1% y-o-y as at 31 Dec 2023 as at 31 Dec 2023 Fixed/hedged debt Net Property Income Long WALE 78% S$74.
Slide 6: Key Highlights for 1H FY23/24
Key Highlights for 1H FY23/24 Financial Highlights ➔ Net property income for 1H FY23/24 rose 0.3% y-o-y, mainly attributed to Singapore Properties and Myer Centre Adelaide Retail, partially offset by depreciation of foreign currencies and loss of income from Japan divestment ➔ DPU was lower by 2.2%
Slide 7: Key Highlights for 1H FY23/24
Key Highlights for 1H FY23/24 Capital Management ➔ Gearing remained stable at 36.8% ➔ About 78% of SGREIT’s borrowings were fixed/hedged as at 31 December 2023 ➔ SGREIT has sufficient undrawn long-term committed RCF lines to cover remaining debts maturing till June 2025 ➔ Entered into a facility agr
Slide 8: Financial Performance
Financial Performance Wisma Atria Singapore
Slide 9: 1H FY23/24 Financial Highlights
1H FY23/24 Financial Highlights 6 months ended 6 months ended % Period: 1 Jul – 31 Dec 31 Dec 2023 31 Dec 2022 Change (1H FY23/24) (1H FY22/23) Gross Revenue $94.6 mil $94.7 mil (0.1%) Net Property Income $74.5 mil $74.3 mil 0.3% Income Available for Distribution $41.9 mil $43.6 mil (3.8%) Income to
Slide 10: 1H FY23/24 Financial Results
1H FY23/24 Financial Results $’000 1H FY23/24 1H FY22/23 % Change Note: Gross Revenue 94,633 94,729 (0.1%) 1. Includes certain finance costs, sinking fund Less: Property Expenses (20,159) (20,448) (1.4%) provisions, straight-line rent adjustment, Net Property Income 74,474 74,281 0.3% accretion of s
Slide 11: 1H FY23/24 Financial Results
1H FY23/24 Financial Results Revenue Net Property Income $’000 1H FY23/24 1H FY22/23 % Change $’000 1H FY23/24 1H FY22/23 % Change Wisma Atria Wisma Atria Retail 20,734 20,462 1.3% Retail 15,846 15,683 1.0% Office (1) 5,484 5,205 5.4% Office(1) 4,025 3,874 3.9% Ngee Ann City Ngee Ann City Retail 25,
Slide 12: Stable Balance Sheet
Stable Balance Sheet NAV As at 31 December 2023 $’000 statistics Non Current Assets 2,782,621 $0.72 NAV Per Unit (as at 31 December 2023)(2) Current Assets 66,615 Adjusted NAV Per Unit (net of distribution) $0.70 Total Assets 2,849,236 Non Current Liabilities 988,891 Closing price as at 31 December
Slide 13: Staggered Debt Maturity Profile Averaging 3.0 years
Staggered Debt Maturity Profile Averaging 3.0 years as at 31 December 2023 $ million Debt maturity profile Financial Ratios 31 Dec 2023 300 As at 31 December 2023 Total debt $1,047 million Gearing 36.8% * 4 * Peak maturity 24% Interest cover(2) 3.2x 250 of total debt and 9% of total assets Adjusted
Slide 14: Interest Rate and Foreign Exchange Exposures
Interest Rate and Foreign Exchange Exposures BORROWINGS Interest rate exposure AS AT 31 DECEMBER 2023 ➔ Borrowings as at 31 December 2023 were about 78% fixed/hedged Unhedged ➔ The borrowings were hedged by a 21.6% combination of fixed rate debt and interest Borrowings rate swaps fixed/hedged via in
Slide 15: Unit Price Performance
Unit Price Performance SGREIT Unit Price and Trading Volume Liquidity statistics 1 Jan 2023 to 31 Dec 2023 0.600 Average daily traded 70,000 1.6 mil 0.570 volume for 1H FY23/24 0.525 0.515 0.560 (units)(1) 0.485 60,000 0.500 0.520 0.515 0.525 0.510 Estimated free float(2) ~62% 0.485 0.485 0.445 50,0
Slide 16: Distribution Timetable
Distribution Timetable Distribution Period 1 July 2023 to 31 December 2023 Distribution Amount 1.78 cents per unit Distribution Timetable Notice of Record Date 29 January 2024 Last Day of Trading on “Cum” Basis 2 February 2024 Ex-Date 5 February 2024 Record Date 6 February 2024, 5.00 pm Announcement
Slide 17: Portfolio Updates
Portfolio Updates The Starhill Kuala Lumpur, Malaysia
Slide 18: Balance of Master / Anchor Leases and Actively-managed Leases
Balance of Master / Anchor Leases and Actively-managed Leases Includes the following: ➔ Master leases and anchor leases, incorporating periodic rental reviews, represent approximately 51.9% of gross rent as at 31 December 2023 Ngee Ann City Property (Singapore) ➔ Provide income and occupancy stabili
Slide 19: Diversified Portfolio across Geography and Sector
Diversified Portfolio across Geography and Sector ASSET VALUE 1H FY23/24 GROSS REVENUE 1H FY23/24 GROSS REVENUE BY COUNTRY AS AT 31 DEC 2023 BY COUNTRY RETAIL/OFFICE Others* Others* 1.6% Australia 2.1% Malaysia Office 13.2% 14.6% 15.1% Malaysia 14.0% Australia 21.8% Singapore 62.0% Singapore Retail
Slide 20: Prime Assets in Strategic Locations with Excellent Connectivity
Prime Assets in Strategic Locations with Excellent Connectivity Stable portfolio occupancy of 98.7% SGREIT Portfolio Occupancy(1) As at 30 Jun 19 30 Jun 20 30 Jun 21 30 Jun 22 30 Jun 23 31 Dec 23 Singapore Retail 99.4% 99.5% 99.3% 98.6% 100.0% 100.0% Singapore Office 93.9% 90.4% 91.5% 96.9% 100.0% 1
Slide 21: Top 10 Tenants contribute 59.8% of Portfolio Gross Rent
Top 10 Tenants contribute 59.8% of Portfolio Gross Rent Tenant Name Property % of Portfolio Gross Rent(1)(2) Toshin Development Singapore Pte Ltd Ngee Ann City, Singapore 23.3% Ngee Ann City & Wisma Atria, Singapore YTL Group(3) 14.8% The Starhill & Lot 10, Malaysia Myer Pty Ltd (“Myer”) Myer Centre
Slide 22: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile Long WALE of 7.9 years by NLA Weighted average lease term expiry of 7.9(1)(2) and 8.3(1)(2) years (by NLA and gross rent respectively) Portfolio lease expiry (as at 31 December 2023)(1)(2) 90% By NLA By Gross rent 80% (3) 70.8% 70% (3) 59.8% 60% 50% 40% 30% 20% 12.7% 1
Slide 23: Portfolio Lease Expiry Profile by Category
Portfolio Lease Expiry Profile by Category Well distributed lease maturity profile Retail Lease Expiry Profile by Gross Rent Office Lease Expiry Profile By Gross Rent (as at 31 December 2023)(1)(2) (as at 31 December 2023)(1)(2)(4) 80% 50% (3) 68.7% 70% 40% 60% 50% 28.9% 28.8% 30% 40% 20% 18.7% 30%
Slide 24: Singapore Retail
Singapore Retail Achieved full committed occupancy for Singapore portfolio Lease expiry schedule (by gross rent) (1)(2) as at 31 December 2023 100% Wisma Atria Property Ngee Ann City Property (3) 88.2% 80% 60% 40% 25.5% 24.0% 25.1% 20% 15.5% 9.9% 4.6% 4.5% 1.1% 1.6% 0% FY23/24 FY24/25 FY25/26 FY26/2
Slide 25: Tenant Sales and Shopper Traffic - Wisma Atria Property
Tenant Sales and Shopper Traffic - Wisma Atria Property Monthly Tenant Sales and Shopper Traffic (Oct 2022 – Dec 2023) ($) 25 2.5 Millions Millions Completion of interior Commencement upgrading works of basement (excluding basement) renovations 20 2.0 15 1.5 10 1.0 5 0.5 0 0.0 Oct-22 Nov-22 Dec-22 J
Slide 26: New and Upcoming Tenants
New and Upcoming Tenants Tiong Bahru Bakery, Wisma Atria Sourbombe Artisan Bakery, Wisma Atria Koi The Express, Wisma Atria Embassy 1967, Wisma Atria Monoloq, Wisma Atria Lumine, Wisma Atria MMM Café by Lesim, Lot 10 Sushi Gin, David Jones Building Nespresso, Plaza Arcade 26
Slide 27: New and Upcoming Tenants
New and Upcoming Tenants The Starhill David Jones Building Myer Centre Adelaide Wisma Atria Lot 10 27
Slide 28: Maximising Reach through Marketing Activities
Maximising Reach through Marketing Activities ‘A Spellbinding Aquatic Wonderland’ Christmas Promotion ➔ Wisma Atria collaborated with students from the Faculty of Design at LASALLE College of the Arts to create our Christmas décor ➔ Beautiful illuminated pieces such as outdoor and indoor set pieces,
Slide 29: Next Phase of Wisma Atria Rejuvenation Works in the Basement
Next Phase of Wisma Atria Rejuvenation Works in the Basement ➔ Basement interior upgrading works for Wisma Atria commenced in August 2023 and are scheduled for completion by March 2024 – Includes modernising the interior, widening of MRT entrance portal, reconfiguration of central space with the int
Slide 30: Renewal of Toshin Master Lease
Renewal of Toshin Master Lease ➔ SGREIT successfully renewed its current master lease (“Renewed Master Lease”) with Toshin ahead of its expiry in June 2025 ➔ The new lease will commence from 8 June 2025. The new base rent (“Annual Fixed Rent”) for the first 3 years of the Renewed Master Lease shall
Slide 31: Renewal of Toshin Master Lease
Renewal of Toshin Master Lease Summary of Key Terms of the Renewed Master Lease with Toshin Initial Term 12 years from 8 June 2025 – 7 June 2037 (i) 6 years to 7 June 2043 (Option: SGREIT or Toshin) Option to Renew (ii) 3 years to 7 June 2046 (Option: Toshin) New base rent shall be the higher of: (i
Slide 32: Singapore Offices
Singapore Offices Achieved full committed occupancy for Singapore portfolio Lease expiry schedule (by gross rent) as at 31 December 2023 (1) 50% Wisma Atria Property Ngee Ann City Property 40% 34.5% 34.4% 30.4% 30% 27.5% 25.0% 18.7% 20% 14.9% 8.9% 10% 4.5% 1.2% 0% FY23/24 FY24/25 FY25/26 FY26/27 Bey
Slide 33: Australia Properties
Australia Properties Anchor leases with David Jones and Myer Lease expiry schedule (by gross rent) as at 31 December 2023(1)(2) ➔ Committed occupancy of 100% Perth Properties Myer Centre Adelaide Australia’s retail portfolio 76.4%(4) stood at 97.6%(1) as at 31 80% 74.9%(3) December 2023, while its 6
Slide 34: Façade Rejuvenation at Myer Centre Adelaide
Façade Rejuvenation at Myer Centre Adelaide ➔ Ongoing façade upgrading works to improve aesthetics and safety ➔ Phase 2 of façade upgrading works, which includes a facelift to modernise South façade, is estimated to be completed in February 2024 Phase 2 – Old Façade Design (Central Entrance along Ru
Slide 35: Strategy and Market Outlook
Strategy and Market Outlook Myer Centre Adelaide Adelaide, Australia
Slide 36: Securing Portfolio Value to Achieve Sustainable Growth
Securing Portfolio Value to Achieve Sustainable Growth Sustaining Asset Values and Ensuring Income Stability • Balance of master and anchor leases coupled with actively managed tenancies for income stability with potential rental upside • Proactive leasing and cost management strategies Active Asset
Slide 37: Market Outlook
Market Outlook Global ➔ According to International Monetary Fund, global economic growth is projected to slow from an estimated 3.0% in 2023 to 2.9% in 2024(1). Despite economic resilience in early 2023, factors such as the long-term consequences of the pandemic, increasing geoeconomic fragmentation
Slide 38: Market Outlook
Market Outlook Australia ➔ Australia’s GDP grew 0.2% in September 2023 quarter(1), driven largely by increased government consumption and capital investment during the quarter. The GDP is forecasted to grow around 2.0% and 1.75% respectively in 2023 and 2024 as cost-of-living pressures and higher in
Slide 39: Appendix
Appendix Lot 10 Kuala Lumpur, Malaysia
Slide 40: Singapore – Wisma Atria Property
Singapore – Wisma Atria Property Diversified tenant base WA retail trade mix – by % gross rent WA office trade mix – by % gross rent (as at 31 December 2023) (as at 31 December 2023) Beauty/ Information General Trade Government Health Technology Aerospace Health & 5.4% Related 3.6% 2.6% 2.4% Beauty
Slide 41: Singapore – Ngee Ann City Property
Singapore – Ngee Ann City Property Stable of quality tenants NAC retail trade mix – by % gross rent NAC office trade mix – by % gross rent (as at 31 December 2023) (as at 31 December 2023) Medical Information Services General Trade Technology Trading Petroleum 3.1% 2.5% 0.5% 1.6% 0.7% Related 3.5% H
Slide 42: References used in this presentation, where applicable
References used in this presentation, where applicable 1Q, 2Q, 3Q, 4Q means where applicable, the periods from 1 July to 30 September; 1 October to 31 December; 1 January to 31 March and 1 April to 30 June 1H, 2H means where applicable, the periods from 1 July to 31 December; and 1 January to 30 Jun
Slide 43: Disclaimer
Disclaimer The value of units in Starhill Global REIT (“Units”) and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager, HSBC Institutional Trust Services (Singapore) Limited (in its capacity as trustee of Starhill Global RE
Slide 44: YTL Starhill Global REIT Management Limited
YTL Starhill Global REIT Management Limited CRN 200502123C Manager of Starhill Global REIT 391B Orchard Road, #24-03 Ngee Ann City Tower B Singapore 238874 Tel: +65 6835 8633 Fax: +65 6835 8644 www.starhillglobalreit.com
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