Oue Real Estate Investment Trust · SGX:TS0U

Oue Real Estate Investment Trust — OUE Commercial REIT — Q3 2014 Earnings Presentation

33 slides from Oue Real Estate Investment Trust's earnings presentation, Oct 31, 2014

  1. Slide 1: Financial Results for the 3rd Quarter and Period Ended 30 September 2014

    FinancialR esultsforthe3rd Q uarterand P eriod Ended 30 S eptem ber2014 31 O ctober2014

  2. Slide 2: Important Notice

    Im portantN otice S tandard Chartered S ecurities(S ingapore)P te.L im ited,CIM B BankBerhad,S ingapore Branch and O versea-Chinese Banking Corporation L im itedw erethejointglobalcoordinatorsandissuem anagersfortheinitialpublicofferingofO U ECom m ercialR EIT. T heIssueM anagersassum enoresponsibil

  3. Slide 3: Agenda

    A genda  Key Highlights  FinancialP erform anceand CapitalM anagem ent  P ortfolioP erform ance  O utlook  Appendices 3

  4. Slide 4: Key Highlights

    Key Highlights FinancialHighlights  Grossrevenuein3Q 2014 ofS $19.5 m illionw as1.8% ahead ofForecast1  N etproperty incom ein3Q 2014 ofS $14.9 m illionexceededForecastby 6.3%  3Q 2014 am ount available fordistribution ofS $12.2 m illion w as3.2% ahead of Forecastw hileDP U w as1.40 cents,2.9% ab

  5. Slide 5: Key Highlights: Capital Management

    Key Highlights CapitalM anagem ent  Asat 30 S eptem ber2014,aggregate leverage w as39.8% w ith average term of debtof3.18years  Average cost ofdebt w asstable at 2.57% perannum ,w ith 56.8% ofborrow ings hedgedintofixed ratesforthenext3.39 years  P ost 3Q 2014,O U E C-R EIT increased itsproportio

  6. Slide 6: Financial Performance & Capital Management

    FinancialP erform ance& CapitalM anagem ent

  7. Slide 7: Actual vs Forecast 3Q 2014

    A ctualvsForecast 3Q 2014 Actual Forecast1 Change GrossR evenue(S $m ) 19.5 19.1 +1.8% N etP roperty Incom e(S $m ) 14.9 14.0 +6.3% A m ountAvailableforDistribution(S $m ) 12.2 11.8 +3.2% DP U (cents) 1.40 1.36 +2.9% •Grossrevenuew as1.8% higherthanForecastduetobetteroccupancy and rental reversionst

  8. Slide 8: Actual vs Forecast 3Q 2014

    A ctualvsForecast 3Q 2014 1 S $'000 A ctual Forecast Change(% ) Grossrevenue 19, 493 19,145 1.8 P roperty operatingexpenses (4,633) (5,164) (10.3) N etproperty incom e 14, 860 13,981 6.3 O therincom e 1, 639 2, 084 (21.4) A m ortisationofintangibleasset (1,650) (1,650) 0.0 2 M anager'sm anagem entfe

  9. Slide 9: Actual vs Forecast for the period 27 Jan 2014 to 30 Sep 2014

    A ctualvsForecast Fortheperiod 27 Jan20141 to30 S ep2014 Actual Forecast2 Change GrossR evenue(S $m ) 52.0 51.6 +0.8% N etP roperty Incom e(S $m ) 39.5 37.8 +4.4% A m ountAvailableforDistribution(S $m ) 33.3 32.0 +4.2% DP U (cents) 3.83 3.68 +4.1% •GrossrevenueofS $52.0 m illion w asinlinew ithForec

  10. Slide 10: Actual vs Forecast for the period 27 Jan 2014 to 30 Sep 2014

    A ctualvsForecast Fortheperiod 27 Jan20141 to30 S ep2014 2 S $'000 A ctual Forecast Change(% ) Grossrevenue 51,982 51, 566 0.8 P roperty operatingexpenses (12,513) (13, 746) (9.0) N etproperty incom e 39,469 37, 820 4.4 O therincom e 5,288 5, 466 (3.3) A m ortisationofintangibleasset (4,489) (4,489)

  11. Slide 11: Balance Sheet as at 30 Sep 2014

    BalanceS heetasat30 S ep2014 S $'000 Investm entproperties 1,584, 388 N on-currentassets 29, 137 Currentassets 37, 419 T otalA ssets 1,650, 944 Interest-bearingborrow ings 644, 167 N on-currentliabilities 55, 233 Currentliabilities 33, 372 T otalL iabilities 732, 772 N etA ssets 918, 172 U nitsiniss

  12. Slide 12: Capital Management as at 30 Sep 2014

    CapitalM anagem entasat30 S ep2014 A sat30 Jun2014 A sat30 S ep2014 A ggregateL everage 39.5% 39.8% S $644m 1 com prising S $657m 2 com prising T otaldebt -S $583m -S $594m -R M B305m -R M B305m Averagecostofdebt3 2.59% p.a. 2.57% p.a. Averageterm ofdebt 3.45 years 3.18 years % fixed ratedebt 57.6%

  13. Slide 13: Capital Management: Debt Maturity Profile

    CapitalM anagem entasat30 S ep2014 DebtM aturity P rofile N orefinancingrequirem entuntil2017 1Based onS GD:CN Y exchangerateof1:4.845 13

  14. Slide 14: Portfolio Performance

    COMMERCIAL . REIT Portfolio Performance

  15. Slide 15: Portfolio Composition

    P ortfolioCom position By A ssetValue1 By GrossR entalIncom e2 By S egm entR evenue2 1 Based onexchangerateof1:4.845 2 For3Q 2014 and based onS GD:CN Y exchange rateof1:4.919 15

  16. Slide 16: Steady Portfolio Occupancy

    S teady P ortfolioO ccupancy 30 S ep2013 31 Dec2013 31 M ar2014 30 Jun2014 30 S ep2014 O U EBayfront 96.1% 100.0% 100.0% 100.0% 100.0% L ippoP laza 88.2% 91.3% 96.5% 93.6% 94.4% P ortfolio 92.0% 95.6% 98.2% 96.8% 97.2% 16

  17. Slide 17: Positive Rental Reversions for Office Leases

    P ositiveR entalR eversionsforO fficeL eases 3Q 2014 YT D 3Q 2014 3Q 2014 AverageP assing R entalR eversions1 Com m itted R ents2 R ent O U EBayfront 37.0% 3 10.2% S $12.50 – S $15.50psf/m th S $10.68 psf/m th L ippoP laza 6.8% 5.6% R M B8.97 – R M B10.50 psm /day R M B9.13 psm /day 1 R enew alrenta

  18. Slide 18: Lease Expiry Profile: OUE Bayfront

    L easeExpiry P rofileasat30 S ep2014 O U EBayfront W A L E1 of 3.7yearsby N L A 2 and GrossR entalIncom e 1W AL E:W eighted averageleaseterm toexpiry 2N L A:N etl ettable area 18

  19. Slide 19: Lease Expiry Profile: Lippo Plaza

    L easeExpiry P rofileasat30 S ep2014 L ippoP laza W A L Eof1.8yearsby N L A and GrossR entalIncom e 19

  20. Slide 20: Lease Expiry Profile: Portfolio

    L easeExpiry P rofileasat30 S ep2014 P ortfolio W A L Eof 2.8yearsby N L A and 3.1 yearsby GrossR entalIncom e 20

  21. Slide 21: Top 10 Tenants

    T op10 T enants T op10 tenantsoftheportfoliocontributeapproxim ately 49.8% ofGrossR entalIncom e1 W A L Eby N L A 4.2 years 1 Forthem onthofS eptem ber2014. 21

  22. Slide 22: Diversified Tenant Base

    Diversified T enantBase GrossR entalIncom eby T radeS ector1 N L A by T radeS ector1 1 Forthem onthofS eptem ber2014.“ O thers ” include advertising/publishing,fashion/beauty,logistics,and naturalresources 22

  23. Slide 23: Outlook

    COMMERCIAL

  24. Slide 24: Outlook and Prospects

    O utlookand P rospects • S ingapore’s3Q 2014 GDP grow th rem ained stable at 2.4% 1,based on advance estim atesby the M inistry ofT radeand Industry. T heofficial2014 GDP grow th forecastw astightened to arangeof 2.5% to3.5% ,from 2.0% to4.0% previously • Grade A office rentsin S ingapore rose by 3.

  25. Slide 25: Appendices

    A ppendices  O verview ofO U EC-R EIT  O U EC-R EIT ’sP ortfolio  S ingaporeO fficeM arket  S hanghaiO fficeM arket

  26. Slide 26: Overview of OUE C-REIT

    O verview ofO U EC-R EIT  O U EC-R EIT isaS ingaporerealestateinvestm enttrustlisted ontheM ainboard ofS ingaporeExchangeS ecuritiesT radingL im ited w iththeprincipalinvestm ent strategy ofinvesting,directly orindirectly,inaportfolioofincom e-producing A boutO U EC-R EIT realestatew hichisused pri

  27. Slide 27: Premium Portfolio of Assets: OUE Bayfront

    P rem ium P ortfolioofA ssets OUE Bayfront O U EBayfront GFA (sqm ) 46, 774.6 O ffice:35,551.7 N L A (sqm ) R etail:1, 830.1 O verall:37,381.8 O ffice:100.0% Com m ittedO ccupancy asat R etail:100.0% 30 S ep2014 O verall:100.0% N um berofCarP arkL ots 245 Valuation(asat30 S ep2013) S $1, 135m O U EB

  28. Slide 28: Vantage Position in Singapore's CBD

    VantageP ositioninS ingapore’sCBD L ocationw ithintheS ingaporeCBD L andm arkcom m ercialproperty  O neofthelatestprem ium officebuildingslocated at CollyerQ uay betw eenthenew M arinaBay dow ntow n and R afflesP lace  Excellentconnectivity and convenientaccesstom ajor transportationnetw ork – Con

  29. Slide 29: Premium Portfolio of Assets: Lippo Plaza

    P rem ium P ortfolioofA ssets Lippo Plaza L ippoP laza GFA (sqm ) 58, 521.5 O ffice:33,538.6 N L A (sqm ) R etail:5,693.4 O verall:39,232.0 O ffice:94.2% Com m ittedO ccupancy asat R etail:95.1% 30 S ep2014 O verall:94.4% N um berofCarP arkL ots 168 R M B2, 337m /R M B39, 934 psm Valuation(asat30 S

  30. Slide 30: Grade A Building in Prime Commercial District

    GradeA BuildinginP rim eCom m ercial District T heHuangpu District L ocated W ithinS hanghai’sEstablished CoreCBD  Grade-A com m ercial building located in Huangpu, Central S hanghai,oneofthem aincom m ercialdistrictsinP uxi  T he HuaihaiR oad precinct,in w hich the L ippo P lazaP roperty is situa

  31. Slide 31: Singapore Office Market

    S ingaporeO fficeM arket  CoreCBD occupancy increased 0.8 percentagepointsto96.6% asat3Q 2014  GradeA officerentsrosetoS $10.95 psf/m th,up3.3% Q oQ from S $10.60 psf/m thin 2Q 2014 S ource:CBR E 31

  32. Slide 32: Shanghai Office Market

    S hanghaiO fficeM arket  Asat3Q 2014,CBD GradeA officeoccupancy inS hanghaideclined m oderately to 92.2% ,w ithaveragem arketrentsincreasingby 0.6% Q oQ toR M B9.2 psm /day  IntheP uxisubm arket,CBD GradeA occupancy is89.0% and averagem arketrentsare aboutR M B8.8 psm /day S ource:ColliersInternat

  33. Slide 33: Thank you

    COMMERCIAL

OUE Commercial REIT — Q3 2014 Earnings Presentation on 6ix