CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaMall Trust — Q3 2006 Earnings Presentation
54 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Oct 19, 2006
Slide 1: Third Quarter 2006 Financial Results Presentation
THIRD QUARTER 2006 FINANCIAL RESULTS PRESENTATION 19 October 2006
Slide 2: Disclaimers
Disclaimers This presentation is focused on comparing actual results versus forecasts stated in the CMT OIS to Unitholders dated 29 August 2006. This shall be read in conjunction with paragraph 9 of CMT 2006 Third Quarter Unaudited Financial Statement and Distribution Announcement. This presentation
Slide 3: Financial Highlights
Cap/taMall P Trust Financial Highlights
Slide 4: Financial Results: 3Q 2006 (1 Jul – 30 Sept 2006)
Financial Results : 3Q 2006 (1 Jul – 30 Sept 2006) 1 Jul to 31 Aug 2006 : Distribution Per Unit of 1.92 cents Exceeds Forecast1 by 2.0%. 1 Sept to 30 Sept 2006 : Distribution Per Unit of 0.93 cents Exceeds Forecast1 by 2.2%. 1 Jul to 31 Aug 06 1 Sept to 30 Sept 06 Actual Forecast1 Variance Actual Fo
Slide 5: Financial Results: DPU Comparison
Financial Results : DPU Comparison 3Q 20061 Distribution Per Unit Increased by 11.8% over 3Q 20052 Actual 3Q 20061 3Q 20052 Variance Change% Annualised distribution per unit 11.31¢ 10.12¢ + 1.19¢ + 11.8 Annualised distribution yield 4.40% 3.94% + 0.46% + 11.8 (Based on unit price of S$2.57 on 18 Oct
Slide 6: Strong Renewals Achieved for 3Q 2006
Strong Renewals Achieved for 3Q 2006 Summary of renewals/new leases1: (1 January – 30 September 2006) Achieved vs preceding rental rates + 8.7% Achieved vs forecast rental rates2 + 5.2% 1. Only renewal of retail units not budgeted to be affected by asset enhancement works were taken into account
Slide 7: Distribution Details
Distribution Details Distribution Period 1 July to 30 September 2006 2.85 cents per unit Distribution Rate (CapitaMall) (For the period 1 Jul to 30 Sept 2006) 0.93 cents per unit Distribution Rate (CapitaMall A) (For the period 1 Sept to 30 Sept 2006) Distribution Timetable Notice of Book Closure Da
Slide 8: CMT Performance from Jan 2006 to Sept 2006
CMT Performance from 1 Jan 2006 to 30 Sept 2006 9 13% Unit Price Appreciation 9 28% Growth In Market Cap 9 17% Total Return 9 Outperformed STI 35 % change in unit price/index value 30 1 Jan 06 to 30 Sept 06 CMT + 13.3% 25 STI + 9.4% SESPROP + 32.2% SESPROP 20 15 CMT 10 STI 5 0 Jan-06 Jun-06 Jul-06 D
Slide 9: CMT Performance since IPO (Jul 2002) to Sep 2006
CMT Performance since IPO (Jul 2002) to 30 Sep 2006 9 165% Unit Price Appreciation 9 378% Growth in Total Asset Size 9 206% Total Return 9 460% Growth In Market Cap 9 67% Growth in Annualised DPU (3Q 20061 actual vs IPO 2002 forecast) 9 Outperformed STI & Property Stocks % change in unit price/index
Slide 10: Financial Results
Cap/taMall P Trust Financial Results
Slide 11: Distribution Statement: 3Q 2006 (1 Jul – 30 Sept 2006)
Distribution Statement : 3Q 2006 (1 Jul – 30 Sept 2006) Actual1 Forecast Variance 1 Jul to 30 Sept 2006 S$’000 S$’000 (%) Gross Revenue 82,070 77,839 5.4 Less property operating expenses (28,904) (27,085) (6.7) Net property income 53,166 50,754 4.8 Interest Income 264 - N.M Administrative expenses (
Slide 12: Property Gross Revenue: 1 Jul – 30 Sept 2006
Property Gross Revenue : 1 Jul – 30 Sept 2006 Gross Revenue Exceeded Forecast1 Across The Portfolio 1 Jul – 30 Sept 2006 CMT Portfolio 82.1 5.4% 77.8 Tampines Mall 13.9 12.7 Junction 8 10.4 10.3 Funan 6.1 DigitaLife Mall 5.9 12.9 IMM Building 11.9 Plaza Singapura 15.8 14.7 Bugis Junction 13.4 12.9 O
Slide 13: Property Operating Expenses: 1 Jul – 30 Sept 2006
Property Operating Expenses : 1 Jul – 30 Sept 2006 1 Jul – 30 Sept 2006 28.9 CMT Portfolio 27.0 6.7% Tampines Mall 4.3 3.8 Junction 8 3.1 3.2 Funan 2.6 DigitaLife Mall 2.5 IMM Building 6.2 5.5 Plaza Singapura 5.3 4.7 Bugis Junction 4.3 4.2 Other Assets2 1.8 1.8 1 3Q Actual 3Q Forecast 40% interest 1
Slide 14: Net Property Income: 1 Jul – 30 Sept 2006
Net Property Income : 1 Jul – 30 Sept 2006 Net Property Income Exceeded Forecast1 Across The Portfolio 1 Jul – 30 Sept 2006 CMT Portfolio 53.2 50.8 4.8% Tampines Mall 9.6 8.9 Junction 8 7.3 7.1 Funan 3.5 DigitaLife Mall 3.4 IMM Building 6.7 6.4 Plaza Singapura 10.5 10.0 Bugis Junction 9.1 8.7 Other
Slide 15: Gross Revenue: YTD Sept 2006 vs YTD Sept 2005
Gross Revenue : YTD Sept 2006 vs YTD Sept 2005 Gross Revenue Registered Growth of 4.6 % 1 177.0 CMT Portfolio 4.6% 169.2 40.5 Tampines Mall 37.6 31.3 Junction 8 29.9 Funan 18.0 DigitaLife Mall 16.7 39.6 IMM Building 39.3 47.6 Plaza Singapura 45.7 YTD Sept 06 YTD Sept 05 0 10 20 30 40 50 60 70 80 90
Slide 16: Property Operating Expenses: YTD Sept 2006 vs YTD Sept 2005
Property Operating Expenses : YTD Sept 2006 vs YTD Sept 2005 Operating Cost Well Contained By Cost Control Measures 1 61.8 CMT Portfolio 61.7 12.2 Tampines Mall 11.6 10.1 Junction 8 10.4 Funan 7.0 DigitaLife Mall 6.4 18.3 IMM Building 20.2 14.2 Plaza Singapura 13.1 YTD Sept 06 YTD Sept 05 0 10 20 30
Slide 17: Net Property Income: YTD Sept 2006 vs YTD Sept 2005
Net Property Income : YTD Sept 2006 vs YTD Sept 2005 Robust Net Property Income Growth of 7.2 % 1 115.2 7.2% CMT Portfolio 107.5 28.3 Tampines Mall 26.0 21.2 Junction 8 19.5 Funan 11.0 DigitaLife Mall 10.3 21.3 IMM Building 19.1 33.4 Plaza Singapura 32.6 YTD Sept 06 YTD Sept 05 0 10 20 30 40 50 60 7
Slide 18: Steady DPU Growth Strategy Since Listing
Steady DPU Growth Strategy Since Listing Multi-Pronged Strategy Delivers Continuous DPU Growth 14 +1.5% 12 +10.6% 11.31 11.48 +7.9% 10.23 10 +18.1% 9.48 8.03 8 7.34 +9.4% FY2007 FY2006 Projected Annualised FY2005 DPU3 DPU2 6 FY2004 Actual FY2003 Actual DPU FY2002 Actual 4 DPU Actual DPU DPU1 2 0 200
Slide 19: Debt Capital Information as at Sept 2006
Debt Capital Information as at 30 Sept 2006 (including 40% share in RCS Trust) Debt Maturity Profile Key Statistics of CMT 450 Existing 433.0 Gearing Ratio 36.1% CMBS to part finance 400 2 the Raffles City acquisition 346.4 Interest Cover 5.2 times 350 335.0 Bridge Loan 300 Drawn Down Loan Average C
Slide 20: Balance Sheet
Balance Sheet 1 As at 30 Sept 2006 S$’000 Non Current Assets 4,377,180 Net Asset Value per unit S$1.74 Current Assets 52,850 (as at 30 Sept 2006) Total Assets 4,430,030 Adjusted Net Asset Value per unit S$1.72 (excluding distributable income) Current Liabilities 238,519 Non Current Liabilities 1,472
Slide 21: Portfolio Update
Cap/taMall P Trust Portfolio Update
Slide 22: Summary of Renewals / New Leases
Summary of Renewals / New Leases Rental Improvements through Proactive Asset Planning & Leasing Strategy From 1 January to 30 September 2006 (Excluding Newly Created Units) No. of Increase/(Decrease) in Net Lettable Area Renewals/ Current Rental Rates VS. Property New % Total % Forecast % Preceding
Slide 23: Gross Turnover Rent & Step-Up Leases
Gross Turnover Rent & Step-Up Leases % of Total Portfolio of Tenants No. of Tenants in Portfolio 100% 1200 1 1136 1 77.3% 80% 76.2% 73.8% 1000 8641 1 58.8% 60% 800 744 721 600 40% 400 20% 200 0% 0 Tenants with Step- Tenants Paying Tenats with Step-Up Tenants Paying GTO Up Rental GTO Rent Rental Rent
Slide 24: Portfolio Lease Expiry Profile By Year
Portfolio Lease Expiry Profile By Year As at 30 Sept 2006 Gross Rental Income Including Raffles City Retail and Office No. of Leases S$’000 % of total1 2006 203 2,810 9.5% 2007 733 10,116 34.2% 2008 448 6,823 23.1% 2009 470 8,686 29.4% Weighted Average Lease Term to Expiry by Rental & NLA CMT Portfo
Slide 25: Portfolio Lease Expiry Profile for 2006 By Property
Portfolio Lease Expiry Profile for 2006 By Property Gross Rental Income As at 30 Sept 2006 No. of Leases S$’000 % of total1 Tampines Mall 5 143 3.6% Junction 8 16 122 4.0% Funan 68 3.8% 4 DigitaLife Mall IMM Building 88 505 11.6% Plaza Singapura 19 949 20.0% Bugis Junction 4 40 1.0% Others2 42 276 2
Slide 26: High Committed Occupancy Rates at All Malls
High Committed Occupancy Rates at All Malls Occupancy Rates Close to 100% as at 30 Sept 2006 As at As at As at As at As at As at 30 Jun 05 30 Sept 05 31 Dec 05 31 Mar 06 30 Jun 06 30 Sept 06 Tampines Mall 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Junction 8 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Slide 27: Breakdown of DPU Growth Since IPO (Jul 2002)
Breakdown of DPU Growth Since IPO (Jul 2002) Acquisitions, Asset Enhancements & Active Leasing form Core Components of Growth 11.31 ¢2 CRS Investment Asset 3% Enhancement/ Reconfiguration 18% Upfront Payment of IMM Land Premium 7% Acquisitions 56% Active Leasing 16% 6.78 ¢1 1. Annualised forecast ba
Slide 28: Raffles City
Cap/taMall P Trust Raffles City
Slide 29: RCS Trust – Performance
RCS Trust – Performance 1 Sep 2006 to 30 Sep 2006 CMT's 40% Interest RCS Trust 1 Actual Forecast Var. Actual S$'000 S$'000 % S$'000 Gross Revenue 4,871 4,867 0.1% 12,176 2 - Retail 2,008 2,052 (2.1%) 5,021 - Office 787 767 2.5% 1,967 - Hotel 1,894 1,883 0.5% 4,733 - Others 182 165 10.5% 455 Net Prop
Slide 30: Lease Expiry Profile – Raffles City Shopping Centre
Lease Expiry Profile – Raffles City Shopping Centre Retail Leases up for Renewal as a percentage of Gross Rent as at 30 Sep 2006 37.5% 29.1% 26.2% 5.1% 2.1% 2006 2007 2008 2009 2010 and Beyond Weighted Average Expiry (By Gross Rent) 1.5 years Retail Committed Occupancy 97.2% 30
Slide 31: Lease Expiry Profile – Raffles City Tower
Lease Expiry Profile – Raffles City Tower Office Leases up for Renewal as a percentage of Gross Rent as at 30 Sep 2006 37.9% 29.4% 22.9% 9.8% 2006 2007 2008 2009 Weighted Average Expiry (By Gross Rent) 1.5 years Office Committed Occupancy 99.8% 31
Slide 32: CapitaRetail Singapore Update
CapitaRetail Singapore Update
Slide 33: Summary of Renewals / New Leases
Summary of Renewals / New Leases CRS is on Target to Deliver 8.5% Coupon Rate From Acquisition to 30 September 2006 (Excluding Newly Created Units) Increase/(Decrease) in No. of Net Lettable Area Current Rental Rates VS. Renewals/ Property New % Total Forecast Preceding Leases Area (sq ft) 1 NLA Ren
Slide 34: AEIs Update
Cap/taMall P Trust AEls Update
Slide 35: IMM Building
Cap/taMall P Trust IMM Building
Slide 36: IMM Building
IMM Building Before AEI Works Key AEI works include: • New two storey extension annex with an event area and garden on the roof__ • Reconfiguration of existing retail areas___ • Conversion of Level 5 warehouse area to covered car park and an After AEI Works addition of coil ramp connecting Level 1 t
Slide 37: Commercial GFA Increased from 26.8% to 40.0%
Commercial GFA Increased from 26.8% to 40.0% Differential Premium will be paid to regularise the commercial GFA by way of increasing the commercial quantum of the building from 26.8% to 40.0% Additional costs will be recovered through the following sources of revenue: a. Additional Rental Revenu
Slide 38: IMM Building – Planned AEI Works (Level 1)
IMM Building – Planned AEI Works (Level 1) Approximately additional 36,300 sq ft of prime retail NLA created from the decanted secondary corridor retail space on L2, L3 & L5 New Retail Area 38
Slide 39: IMM Building – Planned AEI Works (Level 2)
IMM Building – Planned AEI Works (Level 2) DECANTED AREA Approximately 28,500 sq ft of prime retail NLA created from decanting the secondary corridor retail space New Retail Area Secondary Retail Area to be Decanted and Converted to Warehouse/Ancillary Area 39
Slide 40: IMM Building – Planned AEI Works (Level 3)
IMM Building – Planned AEI Works (Level 3) NEW RETAIL NEW RETAIL NEW RETAIL NEW RETAIL NEW RETAIL NEW RETAIL NEW RETAIL FOOD COURT NEW RETAIL New Extension/Open Terrace (non GFA) New Retail Area Secondary Retail Area to be Decanted and Converted to Warehouse/Ancillary Area 40
Slide 41: IMM Building – Planned AEI Works (Level 5)
IMM Building – Planned AEI Works (Level 5) Secondary Retail Area to be Decanted and Converted to Warehouse/Ancillary Area 41
Slide 42: Leasing Progress of AEI Works
Leasing Progress of AEI Works The average rental achieved is 6.13% higher than projected rental. Average Rent S$ psf pm Leasing Before AEI After AEI1 Variance Status2 + 20.4% 96.8% Level 1 S$ 10.16 S$ 12.23 (+ S$9.5 mil p.a) committed + 33.0% 73.1% Level 2 S$ 6.60 S$ 8.78 (+ S$2.8 mil p.a) committed
Slide 43: Increase in Rental Revenue
Increase in Rental Revenue S$9.8 million has been committed out of the S$11.4 million increase in rental revenue per annum on a stabilised basis 43
Slide 44: Indicative AEI Timeline
Indicative AEI Timeline Target Completed on Activity Completion Date Schedule Commencement of AEI Works 1st Qt 2006 Relocation of Open-air Carpark to 1st Qtr 2006 Level 5 Circular Carpark Ramp & Carpark 3rd Qtr 2006 Guidance System Level 1 of Extension Block 3rd Qtr 2006 Level 2 of Extension Block 4
Slide 45: Value Creation of Planned Initiatives
Value Creation of Planned Initiatives Capital Expenditure Start Date Completion Date S$92.5 mil 1st Qtr 2006 1st Qtr 2008 AEI Budget1 Gross Revenue S$ 12.1 mil (net of rental loss from decanted retail space) Net Property Income S$ 9.3 mil Capital Expenditure (includes Differential Premium) S$ 92.5 m
Slide 46: Bugis Junction
Cap/taMall P Trust Bugis Junction
Slide 47: Proposed AEI works for Bugis Junction
Proposed AEI works for Bugis Junction Key AEI works include: Extension of the lease line on Level 1 Relocation of Basement 1 food court to Level 3 Reconfiguration of Basement 1 for new specialty shops and new food concept outlets Creation of new balconies at Level 2 of the restaurant block a
Slide 48: Bugis Junction – Planned AEI Works (Level 1)
Bugis Junction – Planned AEI Works (Level 1) New Retail Area Approximately 4,750 sq ft of prime retail NLA created on L1 Level 1 Current After AEI1 Average Rental psf per month S$25.37 S$25.59 Rental Revenue per annum S$8.75 mil S$10.28 mil NLA of affected units 28,729 sq ft 33,478 sq ft 1. Based on
Slide 49: Bugis Junction – Planned AEI Works (Level 3)
Bugis Junction – Planned AEI Works (Level 3) Before AEI After AEI Reconfigured Retail Area Approximately 6,380 sq ft of prime retail NLA created on L3 Level 1 Current After AEI1 Average Rental psf per month S$12.19 S$12.00 Rental Revenue per annum S$1.57 mil S$2.46 mil NLA of affected units 10,721 s
Slide 50: Bugis Junction – Planned AEI Works (Basement 1)
Bugis Junction – Planned AEI Works (Basement 1) Before AEI After AEI Reconfigured Retail Area Current After AEI1 Average Rental psf per month S$10.84 S$15.92 Rental Revenue per annum S$8.22 mil S$11.53 mil NLA of affected units 63,204 sq ft 60,353 sq ft 1. Based on Manager’s estimates 50
Slide 51: New Façade along Hylam & Malay Streets
New Façade along Hylam & Malay Streets Create Open Concept for restaurant block through: Creation of balconies on Level 2 Converting opaque shop fronts on Level 3 to glass parapets Before After 51
Slide 52: Indicative Timeline
Indicative Timeline Activity Target Completion Date Commencement of AEI works NA 4th Quarter 2006 Extension of the leaseline at L1 2nd Quarter 2007 New Foodcourt at L3 3rd Quarter 2007 Reconfiguration of B1 Phase 1 : 4th Quarter 2007 Phase 2 : 2nd Quarter 2008 New balconies at L2 of the 3rd Quarter
Slide 53: Value Creation of Planned Initiatives
Value Creation of Planned Initiatives AEI Budget Gross Revenue S$ 5.4 mil Net Property Income S$ 4.0 mil Capital Expenditure $ 31.4 mil Return on Investment 12.8% Capital Value of AEI $ 73.3 mil (assumed at 5.5% capitalisation rate) Increase in Value (net of investment costs) $ 41.8 mil 53
Slide 54: The End
The End Cap/taMall P Trust