CapitaLand Integrated Commercial Trust · SGX:C38U

CapitaLand Integrated Commercial Trust — CapitaCommercial Trust — Q3 2008 Earnings Presentation

35 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Oct 23, 2008

  1. Slide 1: 3Q 2008 Financial Results

    CapitaCommercial p Trust 3Q 2008 Financial Results 23 October 2008

  2. Slide 2: Important Notice

    Important Notice This presentation shall be read in conjunction with CCT’s 2008 Third Quarter Unaudited Financial Statement and Distribution Announcement. The past performance of CCT is not indicative of the future performance of CCT. Similarly, the past performance of CapitaCommercial Trust Managem

  3. Slide 3: Content

    Content ‹ Solid Financial Results ‹ Proactive Capital Management ‹ Robust Portfolio Growth ‹ Office Market Outlook ‹ Summary 3

  4. Slide 4: Solid Financial Results

    Solid Financial Results Cap/taCommercial ie Trust

  5. Slide 5: 3Q 08 DPU Up 44.9% Y-O-Y and 4% Against Forecast

    3Q 08 DPU Up 44.9% Y-O-Y and 4% Against Forecast Actual Forecast (1) 3Q 08 3Q 07 Change 3Q 08 S$'000 S$'000 % S$'000 Gross Revenue 92,536 60,650 52.6 90,854 Net Property Income 66,712 43,207 54.4 65,753 Distributable Income 43,165 29,554 46.1 41,572 Distribution Per Unit 3.10¢ 2.14¢ 44.9 2.98¢ Annua

  6. Slide 6: YTD Sep 08 DPU Up 30.1% Y-O-Y and 4% Against Forecast

    YTD Sep 08 DPU Up 30.1% Y-O-Y and 4% Against Forecast Actual Forecast(1) YTD YTD Change YTD Sep 08 Sep 07 Sep 08 S$'000 S$'000 % S$'000 Gross Revenue 238,121 178,050 33.7 234,976 p y Income Net Property 167,862 , 129,595 , 29.5 165,458 , Distributable Income 115,083 88,080 30.7 88,184 Di t ib ti Per

  7. Slide 7: Delivering Higher DPU Year-on-Year

    Delivering Higher DPU Year-on-Year Distribution yield based on 2009 16.3% Projected DPU and closing price per unit on 22 October 2008 of S$1.02: 10.9% 22.0% 12.34¢ (2) 18.7% 10.61¢ 7.6% 7.8% 8.70¢ 7 33¢ 7.33¢ 8 29¢ 8.29¢ 6.81¢ - YTD 6.32¢ Actual DPU 15 May to 31 FY 2005 FY 2006 FY 2007 Forecast FY P

  8. Slide 8: Total Assets at S$7.0B, Adj. NAV at S$3.11

    Total Assets at S$7.0B, Adj. NAV at S$3.11 30 S Sep 08 31 D Dec 07 Remarks S$'000 S$'000 Increase mainly due to acquisition of 1 George Non-current assets 6,928,088 5,238,359 Street of S$1,165 mil and increase in fair value of i investment t t properties ti off S$445.6 S$445 6 milil Current assets 8

  9. Slide 9: Proactive Capital Management

    Proactive Capital Management

  10. Slide 10: Raised S$1.36 billion of Debt in 2008 Under Tough Market Conditions

    Raised S$1.36 billion of Debt in 2008 Under U de Tough oug Market a et Conditions Co d t o s Date Amt Tenure and Rates Type of Remarks Raised Borrowings Jan 2008 S$100 mil 3 yrs @ 3.15% Medium Term For Wilkie Edge Notes Mar 2008 S$150 $ mil 2 yrs @ 3.05% Medium Term For 1 George St Notes acquisition

  11. Slide 11: Healthy Financial Ratios and Prudent Gearing

    Healthy Financial Ratios and Prudent Gearing As at As at As at 30 Sep 08 30 Jun 08 31 Dec 07 Total debt (S$'mil) 2,543.8 1,837.2 1,261.7 Gearing ratio(1) 36.3% 29.1% 23.9% Interest te est se service ce co coverage at o(2) e age ratio 3.1 times 3.5 3 5 ttimes es 3.3 3 3 ttimes es Average cost of debt

  12. Slide 12: Debt Maturity Profile

    Debt Maturity Profile Refinancing will be finalised well ahead of maturity 35% 26% 25% S$13 m RCS - S$650m short term CCT - loan (0.5%) CCT - 2-year C Convertible tibl committed Bonds S$580m secured (14%) CCT - CMBS term loan1 S$520m CCT - short (23%) RCS - CMBS (26%) term loan (3%) (20%) S$235m S$3

  13. Slide 13: No Risk of Interest Rate Exposure as 100% is Fixed for 2008

    No Risk of Interest Rate Exposure as 100% is Fixed for 2008 Objective is to keep at least 80% of interest cost fixed Fixed interest cost will increase 100% to 89% when interest for the S$650 mil term loan is re-fixed in Jan 2009. 89% 66% 54% 29% 29% 2008 2009 2010 2011 2012 13

  14. Slide 14: Robust Portfolio Growth

    Robust Portfolio Growth Cap/taCommercial i Trust

  15. Slide 15: Increase in Office Component Income Contribution to 69% from 63%

    Increase in Office Component Income Contribution to 69% from 63% CCT’s focus is owning and investing in real estate and real estate-related assets, which are income-producing and used, or predominantly used, for commercial purposes Major usage mix for CCT properties By Monthly Gross Rental Income (f

  16. Slide 16: Portfolio Diversification with Focus on Quality

    Portfolio Diversification with Focus on Quality (1) About 80% of Net Property Income contribution from Grade A assets and Raffles City Golden Shoe Car Market Street Car Park, 3.5% Park, 1.4% Bugis Village, 3.5% Robinson ob so Point, o t, 2.9% (2) Starhub Centre, Raffles City, 36.4% 4.4% HSBC Buildin

  17. Slide 17: Diverse Business Constituents in CCT's Portfolio

    Diverse Business Constituents(¹) in CCT’s CCT s Portfolio Car Park Income, 2.6% Department Store, 2.1% Education, 1.6% Legal, 3.7% Real Estate & Property Services, 4.2% Government & Government Linked Banking, Insurance & Office, 5.5% Financial Services, 35.3% Fashion, 7.1% Food & Beverage, 6.5% (2)

  18. Slide 18: 53% of Gross Rental Income Contributed by Top Ten Blue-Chip Tenants

    53% of Gross Rental Income Contributed by Top Ten Blue-Chip Tenants(1) Weighted Average Lease Term to Expiry (by Floor Area) for Top 10 Tenants = 6.7 6 7 years 12.5% 11.5% 9.9% 4.8% 3.7% 2.6% 2.7% 2.0% 2.0% 1.4% RC Hotels (Pte) Standard JPMorgan Chase Government of Nomura Singapore CapitaLand Group

  19. Slide 19: Committed Occupancy Consistently Above Market

    Committed Occupancy Consistently Above Market CCT's Committed Occupancy p y Since Inception p 120.00% 98.9% 100 00% 100.00% 92.2% 80.00% 60 00% 60.00% CCT Occupancy Rate 40.00% URA Occupancy Index(1) 20.00% 0.00% 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2004 2005 2006 2007 2008 Note: (1

  20. Slide 20: Balanced Portfolio Lease Expiries

    Balanced Portfolio Lease Expiries Leases up for Renewal (by Gross Rental Income) as at 30 Sep 2008 19.0% 19.1% 18 0% 18.0% 12.5% 11.2% 10% 8.0% 6.7% 2.9% 2.2% 0.6% 1.3% 0.8% 2008 2009 2010 2011 2012 and Beyond (1) (2) ( ) (3) Office Retail Hotels and Convention Centre Leases Renewed from 1 Jan to 30

  21. Slide 21: Most of 2008's Office Expiries Have Been Renewed

    Most of 2008’s Office Expiries Have Been Renewed Office Leases up for Renewal(1) (by Gross Rental Income) as at 30 Sep 2008 26.3% 27.7% 27.8% 16.3% 14% 1.9% 2008 008 2009 009 2010 0 0 2011 0 2012 0 a and d Beyond Leases Renewed from 1 Jan to 30 Sep 2008 Note: (1) Inclusive of 1 George Street 21

  22. Slide 22: CCT's Office Properties Are Significantly Under-rented Compared to Market Rents

    CCT’s Office Properties Are Significantly Under-rented Compared p to Market Rents 3 S$ psf pm 20.00 20 00 18.80 18.00 18.65 18.80 16.00 16.00 16.10 16 10 16.10 14.00 12.00 CCT Office Portfolio(1) 10 00 10.00 (2) 8.00 Prime Office Rent 7.20 6.00 Grade A Office Rent(2) 6.75 4.00 5 98 5.98 2.00 0.00 1Q

  23. Slide 23: Upside Potential from Contracted Rental Rate

    Upside Potential from Contracted Rental Rate Average Gross Rental Rate of Expiring Leases(1) vs. Current Micro-Market Rent(2) Capital Tower 6 Battery Road 60% $20.00 $20.00 Micro-Market Rent: S$11.00 psf pm Micro-Market Rent: S$18.30 psf pm 45% 60% $16 00 $16.00 $ $16.00 40% $12.00 40% $11.76 $12.00

  24. Slide 24: About 70% of 2009's Forecast Gross Rental Have Been Committed

    About 70% of 2009’s Forecast Gross (1) Rental Have Been Committed 100% 100% 80% 74% 60% 40% 20% 0% 2008 2009 Note: (1) Based on the Forecast Gross Rental Income for the enlarged portfolio, published in CCT’s circular to unitholders 24 dated 9 June 2008

  25. Slide 25: Office Market Outlook

    Office Market Outlook Cap/taCommercial

  26. Slide 26: Singapore Has Only 6.7 mil sq ft of Grade A Office

    Singapore Has Only 6.7 mil sq ft of Grade A Office Outside of Central Region Grade A 2.2 Fringe Area Office, 4% 11.1 6.7 mil 20% sq ft f Downtown Core Non‐ Area in sq ft (mil) 27.5 Grade A 49% Office, Rest of 20.8 mil Central Area sq ft f 10.9 19% Orchard Rd 4.3 8% • Singapore’s g p Total Office Sto

  27. Slide 27: Average Annual Supply of 2 mil sq ft (2008-2012) is Lower Than Historical Average

    Average Annual Supply of 2 mil sq ft (2008 – 2012)) is Lower Than Historical Average g Singapore Private Office Space (Central Area) -- Demand & Supply Remaking of Singapore as global city Office Space (mil sq ft) Ave annual supply = Ave annual supply = 2.4 mil sq ft 2 mil sq ft Ave annual demand du

  28. Slide 28: About 61% of MBFC (Ph 1 & 2) pre-committed 2 years ahead of completion

    About 61% of MBFC (Ph 1 & 2) pre-committed 2 years ahead of buildings’ buildings completion Key Financial Institutions in Marina Bay Financial Centre Company NLA (sqft) Comments Standard Chartered 508,298 85% or 24 floors in Tower 1 Natixis 65,000 3 floors in Tower 1 Wellington Inv Mgt 21 000 1 floo

  29. Slide 29: Office Rents Remained Stable in Q3 2008

    Office Rents Remained Stable in Q3 2008 Q3 2008 Grade G d A vacancy is i about b t 1.2% 1 2% 20.00 18.00 16 00 16.00 14.00 per month) 12.00 18.80 10 00 10.00 (S$ per sq ft p 17.15 16.10 15.00 8.00 6.00 8.73 81 71 50 4 00 4.00 7.8 7.7 6.43 3 7.5 6.30 0 5.70 5.35 5.20 5.00 4.62 4.55 4.40 4.00 2.00 0.0

  30. Slide 30: Summary

    Summary Cap/taCommercial 30 —~ Trust

  31. Slide 31: Summary

    Summary 5 Delivered solid YTD 2008 DPU of 8.29 cents 5 Higher gross rental income from rental reversions and addition of 1 George Street underpin 3Q 2008 net property income 5 DPU yield off 10.9% % based on 2009 forecast f DPU is 810 basis points above current 10-year government bond yield of 2.8% 5

  32. Slide 32: CapitaCommercial Trust Management Limited

    CapitaCommercial C it C i lT Trustt M Managementt Li Limited it d 39 Robinson Road #18-01 Robinson Point Singapore 068911 Tel: (65) 6536 1188 Fax: (65) 6533 6133 http://www cct com sg http://www.cct.com.sg For enquiries, please contact: Ms Ho Mei Peng Head, Investor Relations & Communications Direct

  33. Slide 33: Supplementary Slides

    33 Supplementary Slides Cap/taCommercial P Trust

  34. Slide 34: 3Q 08 Gross Revenue - By Asset

    3Q 08 Gross Revenue - By Asset Actual Forecast (1) 3Q 08 3Q 07 Change 3Q 08 S$'000 S$ 000 S$'000 S$ 000 % S$'000 S$ 000 Capital Tower 12,309 10,968 12.2 12,191 6 Battery Road 20,429 9,712 110.3 19,994 HSBC Building 2,254 2,184 3.2 2,254 Starhub Centre 4,532 3,358 35.0 4,514 Robinson Point 3,313 1,81

  35. Slide 35: 3Q 08 Net Property Income - By Asset

    3Q 08 Net Property Income - By Asset Actual Forecast (1) 3Q 08 3Q 07 Change 3Q 08 S$'000 S$ 000 S$'000 S$ 000 % S$'000 S$ 000 Capital Tower 7,146 7,071 1.1 7,065 6 Battery Road 15,750 6,808 131.3 15,679 HSBC Building 2,233 2,169 3.0 2,232 Starhub Centre 3,016 2,522 19.6 2,981 Robinson Point 2,419 1,

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