Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Starhill Global REIT — Q4 2009 Earnings Presentation
44 slides from Singapore Exchange's earnings presentation, Jan 28, 2010
Slide 1: Fourth Quarter 2009 Financial Results
Fourth Quarter 2009 Financial Results 28 JJanuary 2010
Slide 2: Agenda
Agenda Î Financial Highlights Î Portfolio P tf li Performance P f Update U d t – Singapore – Tokyo – Chengdu Î Growth Drivers 28 Jan 2010 Starhill Global REIT 2
Slide 3: Key highlights
Key highlights 4Q 2009: 2009 Income to be distributed up 5.6% 6% 4Q 2009 income to be distributed of $18.8 million represents a 5.6% increase over 4Q 2008 Acquisition of David Jones Building in Perth completed in January 2010 28 Jan 2010 Starhill Global REIT 3
Slide 4: 4Q 2009 financial highlights
4Q 2009 financial highlights DPU off 0 0.97 9 cents exceeded 4Q 2008 ((post-rights)) by 5.4% 4% Period: 1 Oct – 31 Dec 2009 4Q 2009 4Q 2008 % Change Gross Revenue $34.3 mil $33.8 mil 1.5% Net Property Income $26.8 mil $26.0 mil 3.2% Income Available for Distribution $19.1 mil (1) $18.1 mil 5.5% Inco
Slide 5: FY 2009 financial summary
FY 2009 financial summary FY 2009 DPU 6.1% 6 1% higher than FY 2008 (post-rights) Period: 1 Jan – 31 Dec 2009 FY 2009 FY 2008 % Change Gross Revenue $134.6 mil $127.0 mil 6.0% Net Property Income $106.9 mil $95.9 mil 11.5% Income Available for Distribution $75.5 mil (1) $69.4 mil 8.7% Income to be D
Slide 6: DPU performance
DPU performance Compounding average growth rate of 10.3% 10 3% since 1Q 2007 C t Cents 1.00 0.97 0.95 0.95 0.95 0.93 0.92 0.90 0.89 0.89 0.88 0.85 0.84 0.80 0 77 0.77 0.75 0.75 0.74 0.70 0 65 0.65 1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 28 Jan 2010 Starhill Global REI
Slide 7: 4Q 2009 financial results
4Q 2009 financial results $’000 $ 4Q Q 2009 4Q Q 2008 % Change g Gross Revenue 34,328 33,835 1.5% Less: Property Expenses (7,524) (7,863) (4.3%) Net Property Income 26,804 25,972 3.2% Less: Fair Value Adjustment (1) (93) (106) (12.3%) Borrowing Costs (5,895) (6,278) (6.1%) Finance income 302 5 n/m N
Slide 8: FY 2009 financial results
FY 2009 financial results $’000 FY 2009 FY 2008 % Change Gross Revenue 134,621 127,042 6.0% Less: Property Expenses (27,672) (31,158) (11.2%) Net Property Income 106,949 95,884 11.5% Less: Fair Value Adjustment (1) (666) (28) n/m Borrowing Costs (23,690) (22,146) 7.0% Finance income 431 87 395.4% No
Slide 9: 4Q 2009 financial results
4Q 2009 financial results Revenue Net Property Income $’000 4Q 2009 4Q 2008 % Change $’000 4Q 2009 4Q 2008 % Change Wisma Atria Wisma Atria Retail (1) (2) 11,465 10,281 11.5% Retail 8,523 7,239 17.7% Office (1) 2,329 2,498 (6.8%) Office 1,860 2,209 (15.8%) Ngee Ann City Ngee Ann City Retail (1) 9,95
Slide 10: FY 2009 financial results
FY 2009 financial results Revenue Net Property Income $’000 FY 2009 FY 2008 % Change $’000 FY 2009 FY 2008 % Change Wisma Atria Wisma Atria Retail (1) (2) 45,389 44,238 2.6% Retail 35,515 31,534 12.6% Office (1) (2) 10,151 9,078 11.8% Office 8,085 6,957 16.2% Ngee Ann City Ngee Ann City Retail (1) (
Slide 11: Trading yield
Trading yield Attractive trading yield compared to other investment instruments 8 7.33% 7.33 7 5 74% 5.74% 6 5.74 5 4.67% 6.88% 4 3 2.66% 2.66 2.50% 2.50 2 1.28% 1.28 1 0.45% 0 45 0.45 - Starhill Global Average S-Reit 10-Year Spore CPF Ordinary 5-Year Spore Bank Fixed REIT FY2009 yield (2) Govt Bond
Slide 12: Unit price performance
Unit price performance Liquidity statistics Last 3 months average 3.5 mil daily trading volume (units) Estimated free float 71.1% Market cap (31 Dec 09) 1 $1,015 mil Source: Bloomberg Note: 1. By reference to Starhill Global REIT’s closing price of $0.525 as at 31 Dec 2009 28 Jan 2010 Starhill Globa
Slide 13: Distribution timetable
Distribution timetable Distribution Period 1 October to 31 December 2009 Distribution Amount 0.97 cents per unit Distribution Timetable Notice of Books Closure Date 28 January 2010 Last Day of Trading on “Cum” Basis 1 February 2010, 5.00 pm Ex-Date 2 February 2010, 9.00 am Books Closure Date 4 Febru
Slide 14: Debt profile
Debt profile As at 31 Dec 2009 $’000 Term loan (CMBS equivalent) 380,000 Term loan (Secured) 190,000 Revolving Credit Facilities - Japan Bond 47,098 Chinese Loan 4,874 Total Debt 621,972 Fixed Rate Debt (up to Sept 2010)1 96.0% Gearing Ratio2 26.9% Interest Cover 4.5x Weighted Average Effective Inte
Slide 15: Debt profile
Debt profile Active discussion with relationship banks to refinance f debt maturing in September S 2010 Debt maturity profile Weighted average effective interest rate is S$ million 700 2.98% p.a. 600 1 96.0% of borrowings is fixed (including 500 190 derivatives) until September 2010 400 300 $3
Slide 16: Balance sheet
Balance sheet As at 31 Dec 2009 $’000 $ 000 NAV statistics Non Current Assets 2,011,038 NAV Per Unit (as at 31 Dec 2009) (1) $0.82 Current Assets (2) 301,307 Adjusted j NAV Per Unit (1) T t l Assets Total A t 2 312 345 2,312,345 $0 81 $0.81 (net of distribution) Current Liabilities (3) (599,148) Clo
Slide 17: Valuation of Investment Properties
Valuation of Investment Properties 1.4% increase in valuation of Starhill Global REIT’s investment properties from June 2009 Description 15-Jun-09 Capex Revaluation FX 31-Dec-09 Change Change S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 % Wisma Atria Property 797,510 264 14,056 - 811,830 14,320 1.8% Ng
Slide 18: Agenda
Agenda Î Financial Highlights Î Portfolio Performance Update – Singapore – Tokyo – Chengdu Î Growth Drivers 28 Jan 2010 Starhill Global REIT 18
Slide 19: Portfolio summary
Portfolio Portfolio summaryy Di Diversified ifi d portfolio tf li comprising i i SiSingapore, J Japan and d Chi China assets t Gross Revenue by Retail and Office Gross Revenue by Property Gross Revenue by Country (4Q 09) (4Q 09) (4Q 09) Renhe Japanese Japan Office Spring Properties 7% 17% Zongbei 7%
Slide 20: Portfolio lease expiry
Portfolio Portfolio lease expiry Weighted average lease term off 2 2.16 16 and 2 2.01 01 years ((by NLA and gross rent respectively)) Portfolio Lease Expiry (as at 31 Dec 2009) 60% Office Retail By NLA By Gross Rent 52.8% Japan Total 50% 47.0% sq ft WA NAC WA NAC 40% 2010 23,928 62,054 41,068 2,928
Slide 21: Portfolio lease expiry profile by year
Portfolio Portfolio lease expiry profile by year 141 out off 1921 leases expire by 2011, 2011 accounting for f 53% 3% off gross rental income 1 Year Office Leases Retail Leases Gross Rental Income per month Weighted Weighted 2 No. of leases average rent No. of leases average rent Office S$'000 Retai
Slide 22: Portfolio top tenants
Portfolio Portfolio top 10 tenants T 10 ttenants Top t contributed t ib t d 47% off th the portfolio tf li gross rentt Leased Area % of Portfolio % of Portfolio Tenant Name Property Lease Expiry (sq ft) Gross Rent 1 Leased Area Toshin Development Co Ltd NAC 225,969 Jun 2013 29.8% 35.4% May 2010, May
Slide 23: Office portfolio lease expiry profile and passing rents
Portfolio Office portfolio lease expiry profile and passing rents Portfolio Office Lease Expiry and Average Gross Passing Rents Sq ft S$ psf pm 100,000 10 10.10 ÎIn 4Q 2009, asking office rent was S$10.00 psf 90,000 10 80,000 pm while leases were committed at between 10 70,000 S$7.00 psf pm and S$9.
Slide 24: Retail passing rents
Portfolio Retail passing rents Wisma Atria’s average passing rents are below market average Average Passing Rents for Wisma Atria & Ngee Ann City Retail S$ psf pm 40 36.40 36.53 ÎNgee Ann City’s average retail rents are lower given 34.50 33.53 35 33.00 the master lease with Toshin that accounts for
Slide 25: Occupancy costs
Portfolio Occupancy costs Average retail occupancy costs Average retail occupancy costs Î The higher occupancy cost at Wisma Atria is Average Occupancy Costs for Wisma Atria & Renhe attributed to the higher proportion of fashion Spring Zongbei tenants given the centre centre’ss positioning as a fema
Slide 26: Wisma Atria Property - Overview
Wisma Atria Wisma Atria Property - Overview Lease Expiry Schedule (by NLA) as at 31 Dec 2009 Î Weighted average lease term of 1.40 years (by NLA) Retail Office – Retail: 1.52 years; Office: 1.19 years 60% 50.0% 50% 41.5% Î Committed occupancy (90.2% by NLA) 40% – Retail: 100.0%; Office: 77.5% 32.1%
Slide 27: Wisma Atria Property - Overview
Wisma Atria Wisma Atria Property - Overview Wisma Atria Wi At i Retail R t il Expiring E ii Leases L Wisma Atria Office Expiring Leases and their Average Passing Rents and their Average Passing Rents S$ psf Sq ft Sq ft S$ psf pm pm 50,000 70,000 37.50 40 14 45,000 12.00 60,000 35 40,000 11.30 12 35,
Slide 28: Wisma Atria Property - Diversified tenant base
Wisma Atria Wisma Atria Property - Diversified tenant base WA Retail Trade Mix – by % NLA WA Office Trade Mix – by % NLA (as at 31 Dec 2009) (as at 31 Dec 2009) WA Retail Trade Mix - By % NLA WA Office Trade Mix - By % NLA Health & Services Jewellery & Investments Beauty 1.1% 1.6% Travel/Leisure Wat
Slide 29: Wisma Atria Property – Traffic and centre sales
Wisma Atria Wisma Atria Property – Traffic and centre sales Shopper traffic surpasses pre-linkway closure levels Million Wisma Atria Traffic Count at Primary Wisma Atria Property Retail Sales Turnover Entrances 3.5 S$ Million Year 2006 Year 2008 Year 2009 24 2007 Sales TurnOver 2008 Sales TurnOver 3
Slide 30: Wisma Atria Property – Basement traffic count
Wisma Atria Wisma Atria Property – Basement traffic count O Overall ll centre t traffic t ffi iis now b back k tto 2006 llevels l bbefore f closure l off th the b basementt MRT linkway li k Basement Entrances Weekly Traffic Count from 1 Jun 2009 - 3 Jan 2010 Week 1: Linkway Week 8: ION opened Week 2
Slide 31: Wisma Atria Property – New lettable area at Basement and Level 1
Wisma Atria Wisma Atria Property p y– New lettable area at Basement and Level 1 New lettable retail space arising from removal of escalators in operation since October 2009 Before After Orchard Rd street level Basement level Î More than 1,000 sq ft of net lettable retail space was created arising fr
Slide 32: Ngee Ann City Property - Overview
Ngee Ann City Ngee Ann City Property - Overview Lease Expiry Schedule (by NLA) as at 31 Dec 2009 100% Retail Office 92.1% 90% Î Weighted average lease term of 2.5 years (by 80% NLA) 70% – Retail: 3.23 years; Office 1.13 years 60% 47.6% 50% 41.0% 40% Î Close to full committed occupancy (97.9% by NLA)
Slide 33: Ngee Ann City Property - Overview
Ngee Ann City Ngee Ann City Property - Overview Ngee Ann City Retail Expiring Leases Ngee Ann City Office Expiring Leases and their Passing Average Rents and their Passing Average Rents Sq ft Sq ft S$ psf S$ psf 250,000 17 60 17.60 234 892 234,892 18 70,000 16.90 62,054 14 17 60,000 200,000 16 12 50
Slide 34: Ngee Ann City - Diversified tenant base
Ngee Ann City Ngee Ann City - Diversified tenant base NAC Retail Trade mix – by % NLA NAC Office Trade Mix – by % NLA (as at 31 Dec 2009) (as at 31 Dec 2009) NAC Office Trade Mix - By % NLA Services Travel/Leisure 1.9% General Trade Fashion Retail Beauty & 0.4% Beauty/ Health 2.6% 2.6% Wellness 3.5%
Slide 35: Japan Properties - Overview
Japan Properties Japan Properties - Overview Î Weighted average lease term by NLA is 2.47 years Î Total Japan portfolio occupancy is 90.4% Î 1 vacant unit (1,331 sq ft) at Ebisu Fort, 1 vacant unit (934 sq ft ) at Daikanyama and 1 vacant unit (3,254 sq ft) at Holon L Î Savills Japan actively sourcin
Slide 36: Renhe Spring Zongbei Property - Overview
Renhe Spring Zongbei Renhe Spring Zongbei Property - Overview Quality high-growth asset in Chengdu, China Î Full occupancy as at end Dec 2009 Î 4Q 2009 gross sales were 18.6% higher than 4Q 2008 Î Construction of new subway station outside Renhe Spring Zongbei Property to complete by end 2010 Î NPI
Slide 37: Agenda
Agenda Î Financial Highlights Î Portfolio Performance Update – Singapore – Tokyo Î Growth Drivers & Contributors 28 Jan 2010 Starhill Global REIT 37
Slide 38: Drivers of visitorship to S'pore downtown malls
Drivers of visitorship to S’pore downtown malls Macro drivers Micro drivers Signs of improving global economy: Integrated resorts will up the ante on S’pore MICE, retail and • Improvement in credit environment entertainment scene: • Marina Bay Sands will attract the business crowd; Resorts Signs of
Slide 39: Acquisition of David Jones Building completed
Acquisition of David Jones Building completed Perth p property p y to contribute to FY 2010 revenue and Net Property p y Income (NPI) ( ) Murray Street view Location Perth CBD, Western Australia Description David Jones Building – anchored by a 4-storey DJ (up- market Australian departmental stor
Slide 40: Proposed acquisition of Malaysia properties
Proposed acquisition of Malaysia properties Starhill Gallery - NLA: 297,354 sqft • Landmark properties in Kuala Lumpur Prime Retail Assets in • Strategically located in Jalan Bukit Bintang, one of KL’s main tourist hubs Strategic Location • High occupancy levels at 96.4% and 86.5% for Starhill Galle
Slide 41: Estimated geographical revenue contribution post transactions
Estimated geographical revenue contribution post transactions C Country t concentration t ti risks i k will ill b be reduced d d postt acquisitions i iti Gross Revenue by Country Estimated Gross Revenue by Country (4Q 09) (post Australian acquisition) Japan Japan 7% Australia 6% China 9% 14% China 1
Slide 42: References used in this presentation
References used in this presentation 1Q, 2Q, 3Q, 4Q means the periods between 1 January to 31 March; 1 April to 30 June; 1 July to 30 September; and 1 October to 31 December respectively CMBS means Commercial Mortgage Backed Securities DPU means distribution per unit FY means financial year for the
Slide 43: Disclaimer
Disclaimer This presentation has been prepared by YTL Pacific Star REIT Management Limited (the “Manager”), solely in its capacity as Manager of Starhill Global Real Estate Investment Trust (“Starhill Global REIT”). A press release has been made by the Manager and posted on SGXNET on 28 October 2009
Slide 44: Investor, Analyst and Media Contact
Investor, Analyst and Media Contact: Ms Mok Lai Siong Tel : +65 6835 8633 Email : info@starhillglobalreit.com 28 Jan 2010