Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Starhill Global REIT — 3Q FY15/16 Earnings Presentation
51 slides from Singapore Exchange's earnings presentation, Apr 22, 2016
Slide 1: Third Quarter FY2015/16 Financial Results
Third Quarter FY2015/16 Financial Results 22 April 2016 Singapore Australia Malaysia China Japan 1
Slide 2: Financial Highlights
1 Financial Highlights Wisma Atria Singapore
Slide 3: Key highlights
Key highlights DPU of 1.26 cents in 3Q FY15/16 – Annualised yield of 6.50% based on closing price of S$0.780 on 31 March 2016 Group Revenue rose by 12.0% and Group NPI up 7.0% y-o-y in 3Q FY15/16 – Australia portfolio’s NPI up 121.8% y-o-y on contribution from Myer Centre Adelaide Updates on m
Slide 4: 3Q FY15/16 financial highlights
3Q FY15/16 financial highlights 3 months ended 3 months ended Period: 1 Jan – 31 Mar 31 Mar 2016 31 Mar 2015 % Change (3Q FY15/16) (5Q FY14/15) Gross Revenue $53.6 mil $47.9 mil 12.0% Net Property Income $41.6 mil $38.9 mil 7.0% Income Available for Distribution $28.0 mil $28.4 mil (1.5%) (1) Income
Slide 5: YTD FY15/16 financial highlights
YTD FY15/16 financial highlights 9 months ended 9 months ended Period: 1 Jul – 31 Mar 31 Mar 2016 31 Mar 2015 % Change (YTD FY15/16) (YTD FY14/15) Gross Revenue $166.0 mil $145.4 mil 14.2% Net Property Income $128.9 mil $118.1 mil 9.2% Income Available for Distribution $88.1 mil $86.0 mil 2.4% (1) I
Slide 6: DPU performance
DPU performance cents FY 2014/15 7.60 8.00 7.00 1.29 6.00 1.26 5.00 1.29 6Q 4.00 5Q 1.27 1.26 4Q 3.00 5.00 3Q 4.12 4.39 2.00 3.80 3.90 1.25 1.32 2Q 3.58 3.10 1Q 1.00 2.90 1.24 1.31 - FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014/15 YTD FY15/16 Notes: 1. DPU from 1Q 2006 to
Slide 7: 3Q FY15/16 financial results
3Q FY15/16 financial results $’000 3Q FY15/16 5Q FY14/15 % Change Gross Revenue 53,635 47,878 12.0% Less: Property Expenses (12,046) (8,998) 33.9% Net Property Income 41,589 38,880 7.0% Less: Fair Value Adjustment (1) (97) (165) (41.2%) Notes: Borrowing Costs (10,043) (7,523) 33.5% 1. Being accretio
Slide 8: YTD FY15/16 financial results
YTD FY15/16 financial results YTD YTD $’000 % Change FY15/16 FY14/15 Gross Revenue 166,033 145,366 14.2% Less: Property Expenses (37,102) (27,313) 35.8% Net Property Income 128,931 118,053 9.2% Notes: Less: Fair Value Adjustment (1) (480) (273) 75.8% 1. Being accretion of tenancy deposit stated at a
Slide 9: 3Q FY15/16 financial results
3Q FY15/16 financial results Revenue Net Property Income $’000 3Q FY15/16 5Q FY14/15 % Change $’000 3Q FY15/16 5Q FY14/15 % Change Wisma Atria Wisma Atria Retail (1) 14,128 14,684 (3.8%) Retail (1) 11,116 11,681 (4.8%) Office 2,935 2,849 3.0% Office 2,184 2,092 4.4% Ngee Ann City Ngee Ann City Retai
Slide 10: YTD FY15/16 financial results
YTD FY15/16 financial results Revenue Net Property Income YTD YTD YTD YTD $’000 % Change $’000 % Change FY15/16 FY14/15 FY15/16 FY14/15 Wisma Atria Wisma Atria Retail 44,025 43,262 1.8% Retail 34,419 34,023 1.2% Office (1) 8,923 8,455 5.5% Office (1) 6,657 6,328 5.2% Ngee Ann City Ngee Ann City Reta
Slide 11: Attractive trading yield versus other investment instruments
Attractive trading yield versus other investment instruments 7.00% 6.50% 6.00% 5.00% 6.15% 4.00% 4.66% 3.00% 2.50% 2.00% 1.84% 1.45% 1.00% 0.35% 0.00% SGREIT Annualised CPF Ordinary 10-Year Singapore 5-Year Singapore 12-month Bank Fixed 3Q FY15/16 Yield Account Government Bond Government Bond Deposi
Slide 12: Unit price performance
Unit price performance Starhill Global REIT’s Unit Price Movement and Liquidity statistics Daily Traded Volume (1 April 2015 to 31 March 2016) Average daily traded 1.7 mil $0.90 20,000 volume for 3Q FY15/16 $0.88 18,000 (units)1 $0.86 16,000 Estimated free float2 54% $0.84 14,000 Trading Volume (‘00
Slide 13: Distribution timetable
Distribution timetable Distribution Period 1 January 2016 to 31 March 2016 Distribution Amount 1.26 cents per unit Distribution Timetable Notice of Books Closure Date 22 April 2016 Last Day of Trading on “Cum” Basis 27 April 2016, 5.00 pm Ex-Date 28 April 2016, 9.00 am Book Closure Date 3 May 2016,
Slide 14: Staggered debt maturity profile averaging 3.3 years
Staggered debt maturity profile averaging 3.3 years No significant debt refinancing requirement until year 2018 Debt maturity profile $ million As at 31 March 2016 Total debt $1,124 million 400 * Gearing 35.4% 350 Interest cover(2) 4.3x Average interest rate p.a.(3) 3.15% (1) 300 Unencumbered assets
Slide 15: Interest rates and foreign exchange exposures
Interest rates and foreign exchange exposures BORROWINGS Interest Rates exposure AS AT 31 MARCH 2016 Borrowings Borrowings as at 31 March 2016 are fully hedged by Borrowingshedged via a combination of: interest hedged via rate caps 26% interest rate caps 87% fixed rate debt and interest rate swaps
Slide 16: Healthy balance sheet with total assets of approximately $3.2 billion
Healthy balance sheet with total assets of approximately $3.2 billion NAV As at 31 March 2016 $’000 statistics Non Current Assets 3,093,846 NAV Per Unit (as at 31 March 2016) (1) $0.90 Current Assets 77,333 Adjusted NAV Per Unit (net of distribution) $0.89 Total Assets 3,171,179 Current Liabilities
Slide 17: Portfolio Performance Update
2 Portfolio Performance Update Starhill Gallery Kuala Lumpur, Malaysia 17
Slide 18: Defensive portfolio with upside potential: Balance of long term and short term leases
Defensive portfolio with upside potential: Balance of long term and short term leases Master leases and long-term leases, incorporating periodic rent reviews, represent 43.6% of gross rent as at 31 March 2016 Ngee Ann City Property Retail (Singapore) Expires 2025 with the next rent review due Mast
Slide 19: Maintained high occupancies through economic cycles
Maintained high occupancies through economic cycles As at 31 Dec 05 31 Dec 06 31 Dec 07 31 Dec 08 31 Dec 09 31 Dec 10 31 Dec 11 31 Dec 12 31 Dec 13 30 Jun 15 31 Mar 16 SG Retail 100.0% 100.0% 100.0% 98.3% 100.0% 99.1% 98.3% 99.8% 99.9% 99.4% 98.9% SG Office 92.8% 97.8% 98.7% 92.4% 87.2% 92.5% 95.3%
Slide 20: Well-staggered portfolio lease expiry profile
Well-staggered portfolio lease expiry profile Weighted average lease term of 7.3 and 5.1 years (by NLA and gross rent respectively) Portfolio Lease Expiry (as at 31 March 2016) (1)(2) 50.0% By NLA By Gross Rent 45.0% 43.2% (4) 40.0% 35.1% (3) 34.7% (4) 35.0% 30.0% 28.2% (3) 25.0% 20.0% 18.8% 14.5% 1
Slide 21: Well-staggered portfolio lease expiry profile by category
Well-staggered portfolio lease expiry profile by category Retail Lease Expiry Profile by Gross Rents Office Lease Expiry Profile By Gross Rents (as at 31 March 2016) (1) (as at 31 Mar 2016) (2) 40.0% 50% 36.4% 39.6% (4) 40% 30.0% 27.8% 29.2% (3) 22.2% 30% 20.0% 20% 17.4% 10.8% 10.0% 8.2% 10% 5.4% 3.
Slide 22: Maintained full occupancy at Ngee Ann City Property
Singapore Retail Maintained full occupancy at Ngee Ann City Property Lease expiry schedule (by gross rent) as at 31 Mar 2016 Includes Toshin master lease at Ngee Ann City 100% Wisma Atria Property Ngee Ann City Property Property 86.0% (1) 80% Ngee Ann City’s rent review for the 60% Toshin master l
Slide 23: Singapore – Wisma Atria Property (Retail)
Singapore – Wisma Atria Property (Retail) Tenant sales rose 1.7% y-o-y S$ million Million 50.00 7.50 Traffic Count at Primary Entrances 3Q FY15/16 revenue declined 3.8% y-o-y Retail Sales Turnover 45.00 7.00 while NPI declined 4.8% y-o-y on the back of 40.00 6.50 lower occupancy 35.00 6.00 Occup
Slide 24: Mall of choice along Orchard Road
Singapore – Ngee Ann City Property (Retail) Mall of choice along Orchard Road 3Q FY15/16 revenue up 1.0% and NPI up 0.2% over the previous corresponding period Ngee Ann City Property (Retail) maintained full occupancy as at 31 March 2016 Rent review for Ngee Ann City Property’s master tenant d
Slide 25: Driven by limited new supply
Singapore offices Driven by limited new supply Key office tenants 3Q FY15/16 revenue up 2.3% and NPI up 2.6% over the previous corresponding period Limited new supply for office space in Orchard Road continues to support leasing demand Full occupancies were maintained for both Wisma Atria Prop
Slide 26: Fully committed occupancies and positive rental reversions
Singapore Office Fully committed occupancies and positive rental reversions Lease expiry schedule (by gross rent) as at 31 Mar 2016 50% Wisma Atria Property Ngee Ann City Property 44.0% Full occupancies were maintained 38.3% 40% for both Wisma Atria Property and Ngee Ann City Property 30% 25.4% 24
Slide 27: Contribution from Myer Centre Adelaide
Australia – Myer Centre Adelaide, David Jones Building & Plaza Arcade Contribution from Myer Centre Adelaide 3Q FY15/16 revenue and NPI up 170.3% and 121.8% respectively over the previous corresponding period mainly due to contribution from Myer Centre Adelaide acquired in May 2015, partially offs
Slide 28: Stability from long-term leases
Australia Stability from long-term leases Lease expiry schedule (by gross rent) as at 31 Mar 2016 80% Perth Properties Myer Centre Adelaide 69.4% (1) 63.2% (2) 60% 40% David Jones’ lease comprises 58.1% of revenue for Perth 20% 10.6% 9.6% 9.0% 9.3% 10.0% Properties in 3Q FY15/16 8.2% 5.8% 4.9% 0%
Slide 29: Remains a destination for luxury retailers in Kuala Lumpur
Malaysia – Starhill Gallery and Lot 10 Property Remains a destination for luxury retailers in Kuala Lumpur Malaysia Properties’ 3Q FY15/16 revenue and NPI declined 8.7% and 8.8% respectively over the previous corresponding period, largely due to depreciation of the Malaysian ringgit against the Si
Slide 30: China – Renhe Spring Zongbei Property
China – Renhe Spring Zongbei Property The China portfolio contributed 2.2% of the Group’s revenue in 3Q FY15/16 In SGD terms, NPI in 3Q FY15/16 decreased 41.3% y-o-y. The decline was largely attributed to lower revenue as the high-end luxury retail segment continues to be impacted by the austeri
Slide 31: Full occupancies maintained
Japan Properties Full occupancies maintained The Japan portfolio contributed 1.5% of the Group’s revenue in 3Q FY15/16 In SGD terms, NPI in 3Q FY15/16 declined 33.8% y-o-y largely attributable to loss of income contribution due to divestment of one Japanese asset in January 2016, partially offse
Slide 32: Outlook
4 Outlook David Jones Building & Plaza Arcade Perth, Australia
Slide 33: Outlook
Outlook Focus on prime locations •Orchard Road – Singapore’s iconic shopping strip •Rundle Mall – Adelaide’s premier retail precinct •Hay Street Mall & Murray Street Mall – Perth’s CBD •Bukit Bintang – Kuala Lumpur’s premier shopping and entertainment district Optimising capital and delivering value
Slide 34: Looking ahead
Looking ahead Completion Steady organic growth from rental reversion Toshin: Master lease for Ngee Ann City Retail Toshin master lease for Ngee Ann City Retail Next rent review in June 2016 Wisma Atria: Limited new supply of prime retail space along Orchard Road which is sought after by internationa
Slide 35: Summary – Well positioned for growth
Summary – Well positioned for growth 12 mid to high-end retail properties in five countries Quality Assets: - Singapore makes up ~67% of total assets with Australia and Malaysia ~29% of total assets as Prime Locations core markets. China and Japan account for the balance of the portfolio Quality
Slide 36: Appendices
5 Appendices Lot 10 Property Kuala Lumpur, Malaysia
Slide 37: 67% of total asset value attributed to Singapore
67% of total asset value attributed to Singapore ASSET VALUE 3Q FY15/16 GROSS REVENUE 3Q FY15/16 GROSS REVENUE BY COUNTRY AS AT 31 MAR 2016 BY COUNTRY BY RETAIL/OFFICE China Japan China Japan 2.1% 2.0% 2.2% 1.5% Office 13.7% Malaysia Malaysia 12.1% 12.4% Australia Australia 16.2% 22.5% Singapore Sin
Slide 38: Diversified tenant base
Singapore – Wisma Atria Property Diversified tenant base WA retail trade mix – by % gross rent WA office trade mix – by % gross rent (as at 31 March 2016) (as at 31 March 2016) Government related Banking and Financial General Trade Information Technology Aerospace 2.4% Services 3.6% 1.6% 2.8% 2.5% H
Slide 39: Stable of luxury tenants
Singapore – Ngee Ann City Property Stable of luxury tenants NAC retail trade mix – by % gross rent NAC office trade mix – by % gross rent (as at 31 March 2016) (as at 31 March 2016) Services Others Aerospace General Trade 2.7% 4.3% 4.1% Beauty & 0.5% Banking and Wellness Financial 10.9% Services 4.9
Slide 40: Top 10 tenants contribute 55.0% of portfolio gross rents
Top 10 tenants contribute 55.0% of portfolio gross rents Tenant Name Property % of Portfolio Gross Rent (1) (2) Toshin Development Singapore Pte Ltd Ngee Ann City, Singapore 19.7% Ngee Ann City & Wisma Atria, Singapore YTL Group(3) 14.1% Starhill Gallery & Lot 10, Malaysia Myer Pty Ltd Myer Centre A
Slide 41: Singapore – Wisma Atria Property
Singapore – Wisma Atria Property Address 435 Orchard Road, Singapore 238877 Wisma Atria comprises a podium block with four levels and one basement level of retail, three levels of car parking space and 13 levels of office space in the office block. Description Starhill Global REIT's interest in Wism
Slide 42: Singapore – Ngee Ann City Property
Singapore – Ngee Ann City Property Address 391/391B Orchard Road, Singapore 238874 Ngee Ann City is a commercial complex with 18 levels of office space in the twin office tower blocks (Tower A and B) and a seven-storey podium with three basement levels comprising retail and car parking space. Descri
Slide 43: Adelaide, Australia – Myer Centre Adelaide
Adelaide, Australia – Myer Centre Adelaide Address 14-38 Rundle Mall, Adelaide SA 5000, Australia Myer Centre Adelaide comprises a retail centre, three office buildings and four basement levels with approximately 467 car parking lots. The retail centre is spread across eight Description floors and a
Slide 44: Perth, Australia – David Jones Building & Plaza Arcade
Perth, Australia – David Jones Building & Plaza Arcade David Jones Building Address 622-648 Hay Street Mall, Perth, Western Australia A four-storey property, which includes a heritage-listed building constructed circa 1910 that was formerly the Savoy Description hotel. The property is anchored by th
Slide 45: Kuala Lumpur, Malaysia – Starhill Gallery
Kuala Lumpur, Malaysia – Starhill Gallery Address 181 Jalan Bukit Bintang, 55100 Kuala Lumpur, Malaysia Starhill Gallery is a shopping centre comprising part of a Description seven-storey building with five basements and a 12-storey annex building with three basements. Net lettable area 306,113 sq f
Slide 46: Kuala Lumpur, Malaysia – Lot 10 Property
Kuala Lumpur, Malaysia – Lot 10 Property Address 50 Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia 137 parcels and 2 accessory parcels of retail and office spaces held under separate strata titles within a shopping centre known as Lot 10 Shopping Centre which consists of Description an 8-storey b
Slide 47: Chengdu, China – Renhe Spring Zongbei Property
Chengdu, China – Renhe Spring Zongbei Property Address No.19, Renminnan Road, Chengdu, China A four-storey plus mezzanine level retail department store Description completed in 2003. Part of a mixed-use commercial complex comprising retail and office. Gross floor area 100,854 sq ft Number of tenants
Slide 48: Japan Properties
Japan Properties – Properties are within five minutes’ walk from nearest subway stations Harajyuku: 1) Harajyuku Secondo No. of Properties 4(1) Total Net 32,678 sq ft (1) Lettable Area Total No. of 17(2) tenants Ebisu: Title Freehold 1) Daikanyama Bldg 2) Ebisu Fort Total Valuation S$55.1 million(1)
Slide 49: References used in this presentation
References used in this presentation 1Q, 2Q, 3Q, 4Q means the periods between 1 July to 30 September; 1 October to 31 December; 1 January to 31 March and 1 April to 30 June 3Q FY15/16 means the period of 3 months from 1 January 2016 to 31 March 2016 5Q FY14/15 means the period of 3 months from 1 Jan
Slide 50: Disclaimer
Disclaimer This presentation has been prepared by YTL Starhill Global REIT Management Limited (the “Manager”), solely in its capacity as Manager of Starhill Global Real Estate Investment Trust (“Starhill Global REIT”). A press release, together with Starhill Global REIT’s unaudited financial stateme
Slide 51: YTL Starhill Global REIT Management Limited
YTL Starhill Global REIT Management Limited CRN 200502123C Manager of Starhill Global REIT 391B Orchard Road, #21-08 Ngee Ann City Tower B Singapore 238874 Tel: +65 6835 8633 Fax: +65 6835 8644 www.starhillglobalreit.com 51
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