Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — CapitaLand Mall Trust — H1 2018 Earnings Presentation
37 slides from Singapore Exchange's earnings presentation, Jul 20, 2018
Slide 1: CapitaLand Mall Trust First Half 2018 Financial Results
CAPITALAND MALL TRUST Singapore’s First & Largest Retail REIT First Half 2018 Financial Results 20 July 2018
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumpti
Slide 3: Contents
Contents ▪ Review of 1H 2018 ▪ Key Financial Highlights ▪ Portfolio Updates ▪ Asset Enhancement Initiative - Westgate ▪ Striving for Excellence ▪ Looking Forward 3 CapitaLand Mall Trust 1st Half 2018 Financial Results *July 2018*
Slide 4: Review of 1H 2018
Review of 1H 2018 Operational Performance , , , , 0.8% 98.0% . 2.4% . 0.2% 5 as at end-June 2018 Y-o-Y Y-o-Y . . . Rental reversion Portfolio Shopper traffic Tenants’ sales occupancy rate per square foot 1 1 Asset Updates Proactive Capital Management 1 Issued 5.5-year S$130.0 million fixed rate note
Slide 5: Key Financial Highlights
Key Financial Highlights Junction 8
Slide 6: 2Q 2018 Distributable Income Up 2.9% Y-o-Y
2Q 2018 Distributable Income Up 2.9% Y-o-Y Distributable Income Distribution Per Unit (DPU) (1) (2) S$100.0 2.81 (1) million cents 2.9% Y-o-Y 2.2% Y-o-Y Annualised DPU Annualised Distribution Yield 11.27 5.27 cents % (Based on closing unit price of S$2.14 2.2% Y-o-Y on 19 July 2018) (1) For 2Q 2018,
Slide 7: 1H 2018 Distributable Income Up 2.5% Y-o-Y
1H 2018 Distributable Income Up 2.5% Y-o-Y Distributable Income Distribution Per Unit (DPU) (1) (2) S$199.0 5.59 (1) million cents 2.5% Y-o-Y 2.0% Y-o-Y Annualised DPU Annualised Distribution Yield 11.27 5.27 cents % (Based on closing unit price of S$2.14 2.0% Y-o-Y on 19 July 2018) (1) For 1H 2018,
Slide 8: Attractive Yield versus Other Investments
Attractive Yield versus Other Investments As at 30 June 2018 Net Yield for: Individual: 5.4% (0% tax) 6 Corporate Overseas: 4.9% (10% tax) 5.4 Corporate Local: 4.5% (17% tax) 4.5 4.0 4 290 bps yield spread Yield % 2.5 2.5 2.3 2 0.4 0 CMT 10Y Govt Bond 5Y Govt Bond CPF Ordinary 12-mth (S$) Straits Ti
Slide 9: 2Q 2018 Financial Performance
2Q 2018 Financial Performance Gross Revenue Net Property Income Distributable Income S$171.4 S$120.8 S$100.0 (1) million million million 1.6% Y-o-Y 2.8% Y-o-Y 2.9% Y-o-Y S$ million (1) (2) (1) For 2Q 2018, CMT had retained S$4.6 million of its taxable income available for distribution to Unitholders
Slide 10: 1H 2018 Financial Performance
1H 2018 Financial Performance Gross Revenue Net Property Income Distributable Income S$346.5 S$246.4 S$199.0 (1) million million million 1.7% Y-o-Y 3.7% Y-o-Y 2.5% Y-o-Y S$ million (1) (2) (1) For 1H 2018, CMT had retained S$13.7 million of its taxable income available for distribution to Unitholder
Slide 11: 1H 2018 Gross Revenue increased by 1.7% versus 1H 2017
1H 2018 Gross Revenue increased by 1.7% versus 1H 2017 On Comparable Mall Basis(1), 1H 2018 Gross Revenue Up 1.9% Y-o-Y 1.7% Mainly due to higher gross rental income (2) (1) Excludes Funan which was closed in July 2016 for redevelopment and Sembawang Shopping Centre which was sold in June 2018. (2)
Slide 12: 1H 2018 Operating Expenses decreased by 2.9% versus 1H 2017
1H 2018 Operating Expenses decreased by 2.9% versus 1H 2017 On Comparable Mall Basis(1), 1H 2018 OPEX Down 0.3% Y-o-Y CMT Portfolio 100.1 103.0 2.0% Tampines Mall 10.4 2.9% 10.6 Junction 8 8.0 8.3 12.5 IMM Building 12.9 11.4 Plaza Singapura 11.5 Bugis Junction 11.8 Mainly due to lower marketing and
Slide 13: 1H 2018 Net Property Income increased by 3.7% versus 1H 2017
1H 2018 Net Property Income increased by 3.7% versus 1H 2017 On Comparable Mall Basis(1), 1H 2018 NPI Up 2.8% Y-o-Y CMT Portfolio 246.4 237.6 30.1 3.7% Tampines Mall 29.2 22.1 Junction 8 21.4 30.2 IMM Building 28.8 34.5 Plaza Singapura 33.1 Bugis Junction 30.9 30.3 15.7 Lot One Shoppers' Mall 15.7 1
Slide 14: 1H 2018 Performance of Joint Ventures
1H 2018 Performance of Joint Ventures (1) 1H 2018 Net Property Income Up 0.5% Y-o-Y Gross Revenue (S$ million) Total 56.7 56.6 46.3 Total Raffles City Singapore 46.0 0.2% Westgate 10.4 10.6 Operating Expenses (S$ million) Total 14.1 Total 14.2 0.8% Raffles City Singapore 11.2 11.1 Westgate 2.9 3.1 N
Slide 15: Debt Maturity Profile as at June 2018
Debt Maturity Profile (1) as at 30 June 2018 700 - 600 590.0 (2) (2) 120.0 500 484.0 442.0 (2) 450.0 419.6 (2) 72.0 48.0 130.0 400 S$ million (2) 100.0 100.0 218.2 292.8 300 (2) 100.0 300.0 (3) 4.4 162.0 (5) 350.0 218.3 100.0 126.0 (8) 199.0 200 100.0 (2) (11) 110.0 99.0 (7) (12) 190.1 192.8 100 (4)
Slide 16: Key Financial Indicators
Key Financial Indicators As at As at 30 June 2018 31 March 2018 Unencumbered Assets as % of Total Assets 100.0% 100.0% Aggregate Leverage(1) 31.5% 33.5% Net Debt / EBITDA(2) 5.3x 5.8x Interest Coverage(3) 5.7x 5.4x Average Term to Maturity (years) 5.2 5.2 Average Cost of Debt(4) 3.1% 3.2% CMT’s Issu
Slide 17: Valuations and Valuation Cap Rates
Valuations and Valuation Cap Rates Valuation Valuation Variance Valuation Valuation Cap Rate as at 30 Jun 18 as at 31 Dec 17 as at 30 Jun 18 as at 30 Jun 18 as at 31 Dec 17 S$ million S$ million S$ million S$ per sq ft NLA % % Tampines Mall 1,051.0 1,045.0 6.0 2,950 4.70 4.85 Junction 8 Shopping Cen
Slide 18: Healthy Balance Sheet
Healthy Balance Sheet As at 30 June 2018 S$’000 Non-current Assets 9,976,546 Net Asset Value/Unit S$2.01 (as at 30 June 2018) Current Assets 373,599 Adjusted Net Asset Value/Unit Total Assets 10,350,145 S$1.99 (excluding distributable income) Current Liabilities 198,489 Non-current Liabilities 3,002
Slide 19: Distribution Details
Distribution Details Distribution Period 1 April to 30 June 2018 Sub-point Distribution Per Unit 2.81 cents Notice of Books Closure Date 20 July 2018 Last Day of Trading on ‘cum’ Basis 25 July 2018, 5.00 pm Ex-Date 26 July 2018, 9.00 am Books Closure Date 30 July 2018 Distribution Payment Date 29 Au
Slide 20: Portfolio Updates
Portfolio Updates Bugis Junction
Slide 21: Shopper Traffic
(1) Shopper Traffic 1H 2018 decreased by 2.4% Y-o-Y 200 Shopper Traffic (million) 150 100 50 0 1H 2018 1H 2017 (1) For comparable basis, CMT portfolio excludes Funan which was closed in July 2016 for redevelopment and Sembawang Shopping Centre which was sold in June 2018. 21 CapitaLand Mall Trust 1s
Slide 22: Tenants' Sales Psf Per Month
(1) Tenants’ Sales Psf Per Month 1H 2018 decreased by 0.2% Y-o-Y 100 Tenants’ Sales ($ psf/mth) 75 50 1H 2018 1H 2017 (1) For comparable basis, CMT portfolio excludes Funan which was closed in July 2016 for redevelopment and Sembawang Shopping Centre which was sold in June 2018. 22 CapitaLand Mall T
Slide 23: Tenants' Sales by Trade Categories in 1H 2018
Tenants’ Sales by Trade Categories in 1H 2018 Cautious Consumer Sentiment 20 14.2 15 11.9 Y-o-Y Variance of Tenants’ Sales $ psf/mth (%) 9.3 8.7 10 5.0 4.0 5 3.3 2.5 1.7 0.7 0.6 0.1 0 -5 (0.6) (0.7) -10 (7.9) -15 (11.4) -20 -25 (20.6) (1) (2) IT & Telecommunications Jewellery & Watches Toys & Hobbie
Slide 24: Rental Reversions
Rental Reversions From 1 January to 30 June 2018 (Excluding Newly Created and Reconfigured Units) Net Lettable Area Increase/(decrease) in Current Rental Number of Retention Rates vs Preceding Percentage Property Renewals / Rate Area Rental Rates of Property New Leases (%) (sq ft) (typically committ
Slide 25: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile(1) as at 30 June 2018 Weighted Average Expiry by Gross Rental Income 1.9 Years Gross Rental Income per Month(2) Number of Leases S$’000 % of Total (3) 2018 403 5,998 10.6 2019 948 17,860 31.6 2020 794 14,806 26.2 2021 566 12,401 22.0 2022 55 4,643 8.2 2023 and beyond 1
Slide 26: Portfolio Lease Expiry Profile for 2018
Portfolio Lease Expiry Profile for 2018 (1) Net Lettable Area Gross Rental Income Number of As at 30 June 2018 Leases % of Property NLA(2) % of Property Income(3) Tampines Mall 15 3.4 6.6 Junction 8 15 5.1 7.7 IMM Building(4) 143 20.6 30.9 Plaza Singapura 41 12.3 14.1 Bugis Junction 13 4.3 5.2 Raffl
Slide 27: High Occupancy Maintained
High Occupancy Maintained 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 30 Jun (%, As at) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tampines Mall 100.0 100.0 100.0 100.0 100.0 99.5 100.0 99.2 100.0 100.0 Junction 8 100.0 100.0 100.0 99.6 99.4 100.0 100.0 99.9 100.0 99.9 (1)
Slide 28: Asset Enhancement Initiative - Westgate
Asset Enhancement Initiative - Westgate Westgate
Slide 29: Enhancing Shopper Experience
Enhancing Shopper Experience Enclosure of Selected Alfresco F&B Outlets with Air-conditioning Before After (Artist’s impression) 29 CapitaLand Mall Trust 1st Half 2018 Financial Results *July 2018*
Slide 30: Enhancing Shopper Experience
Enhancing Shopper Experience Improving Shopper Accessibility into the Mall and from Level 1 to Level 2 After: Install New Escalator Connecting L1 and L2 * Before * Artist’s impression After: Create New Entrance Point from Taxi Stand to Mall * 30 CapitaLand Mall Trust 1st Half 2018 Financial Results
Slide 31: Striving for Excellence
Striving for Excellence 31 Jurassic World: Fallen Kingdom Adventure at Plaza Singapura
Slide 32: Fulfilling Shoppers' Aspirations
Fulfilling Shoppers’ Aspirations Staying Ahead of Retail Trends with New Offerings Tsui Wah at NY Night Market at Clarke Quay Westgate BuyBye Valiram Fashion Outlet at Isaac Toast at IMM Building Plaza Singapura 32 CapitaLand Mall Trust 1st Half 2018 Financial Results *July 2018*
Slide 33: Innovate Retail Experience
Innovate Retail Experience Engaging Shoppers with a Variety of Marketing Events Market on Wheels at Happy Rainbow at Bugis Junction and Bugis+ Tampines Mall Spring / Summer 2018 Fashion KouKou at Show at Bugis+ Plaza Singapura 33 CapitaLand Mall Trust 1st Half 2018 Financial Results *July 2018*
Slide 34: Awards & Accolades Achieved in 1H 2018
Awards & Accolades Achieved in 1H 2018 January 2018 May 2018 GoldPLUS (Funan) Patron of Heritage Awards 2017 Green Mark Certification (Raffles City Shopping Centre) BCA Awards National Heritage Board Platinum (Westgate) Green Mark Certification BCA Awards July 2018 Silver Award Most Honoured Compani
Slide 35: Looking Forward
Looking Forward Bugis Junction and Bugis+
Slide 36: Looking Forward
Looking Forward • The Singapore economy grew 3.8%(1) year-on-year in 2Q 2018, moderating from the 4.3% growth in the previous quarter. • Focus on active asset management ✓ Manage 403 leases due for renewal in 2018 ✓ Pursue operational excellence • Engage shoppers ✓ Build shopper loyalty through cust
Slide 37: Thank you
Thank you For enquiries, please contact: Ms Audrey Tan, Investor Relations, Direct: (65) 6713 1507 Email: audrey.tan@capitaland.com CapitaLand Mall Trust Management Limited (http://www.cmt.com.sg) 168 Robinson Road, #30-01 Capital Tower, Singapore 068912 Tel: (65) 6713 2888; Fax: (65) 6713 2999
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