CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaLand Mall Trust — H1 2015 Earnings Presentation
38 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Jul 22, 2015
Slide 1: CapitaLand Mall Trust First Half 2015 Financial Results
Photo Credit: Kwek Swee Seng, Singapore Photo Credit: Kwek Swee Seng, Singapore CAPITALAND MALL TRUST Singapore’s First & Largest REIT First Half 2015 Financial Results 22 July 2015
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 2Q 2015 Key Financial Highlights Portfolio Updates Asset Enhancement Initiatives (‘AEIs’) Looking Forward 3 CapitaLand Mall Trust 1st Half 2015 Financial Results *July 2015*
Slide 4: Review of 2Q 2015
Review of 2Q 2015 • Operational performance (year-to-date) – 355 new leases/renewals achieved with 4.6% positive rental reversion – Shopper traffic increased by 3.4% year on year – Tenants’ sales per square foot (‘psf’) increased by 2.9% year on year – 96.4% portfolio occupancy rate as at end-June 2
Slide 5: Key Financial Highlights
Key Financial Highlights CapitaLand Mall Trust 1st Half 2015 Financial Results *July 2015* Bugis Junction
Slide 6: 2Q 2015 Distributable Income Up 0.7% Y-o-Y
2Q 2015 Distributable Income Up 0.7% Y-o-Y Distributable Income (S$ mil) Distributable Income Distribution Per Unit (DPU) 94.0 93.4 (1) S$94.0 2.71 million cents 0.7% Y-o-Y 0.7% Y-o-Y 2Q 2015 2Q 2014 DPU (cents) Annualised DPU Annualised Distribution 2.71 2.69 Yield 10.87 4.99 cents % (Based on clos
Slide 7: 1H 2015 Distributable Income Up 2.4% Y-o-Y
1H 2015 Distributable Income Up 2.4% Y-o-Y (1) Distributable Income (S$ mil) Distributable Income Distribution Per Unit (DPU) 186.9 (1) 182.5 (2) S$186.9 5.39 million cents 2.4% Y-o-Y 2.5% Y-o-Y 1H 2015 1H 2014 DPU (cents) Annualised DPU Annualised Distribution 5.39 5.26 Yield 10.87 4.99 cents % (Ba
Slide 8: Attractive Yield versus Other Investments
Attractive Yield versus Other Investments As at 30 June 2015 Net Yield for: Individual: 5.1% (0% tax) Corporate Overseas: 4.6% (10% tax) 6 Corporate Local: 4.2% (17% tax) 5.1 3.9 4 240 bps yield spread 3.4 Yield % 2.7 2.5 2.0 2 0.3 0 CMT 1H 2015 10-yr Govt Bond 5-yr Govt Bond CPF Ordinary 12-mth Fix
Slide 9: 5-Year Historical Yield versus Singapore Government Bonds
5-Year Historical Yield versus Singapore Government Bonds 7 6 5 CMT DPU Yield 4 Yield (%) 10Y Govt Bond Yield 3 2 1 5Y Govt Bond Yield 0 2010 2011 2012 2013 2014 2015 Sources: Bloomberg, Monetary Authority of Singapore 9 CapitaLand Mall Trust 1st Half 2015 Financial Results *July 2015*
Slide 10: 2Q 2015 Financial Performance
2Q 2015 Financial Performance Gross Revenue Net Property Income Distributable Income S$159.6 S$109.5 S$94.0 million million million 2.9% Y-o-Y 4.0% Y-o-Y 0.7% Y-o-Y S$ million 2Q 2015 2Q 2014 159.6 164.3 109.5 114.0 (1) 94.0 93.4 Gross Revenue Net Property Income Distributable Income (1) For 2Q 2014
Slide 11: 1H 2015 Financial Performance
1H 2015 Financial Performance Gross Revenue Net Property Income Distributable Income S$326.9 S$227.2 S$186.9 (1) million million million 0.6% Y-o-Y 0.5% Y-o-Y 2.4% Y-o-Y S$ million 1H 2015 1H 2014 326.9 329.0 227.2 228.3 (1) (2) 186.9 182.5 Gross Revenue Net Property Income Distributable Income (1)
Slide 12: 1H 2015 Gross Revenue decreased by 0.6% versus 1H 2014
1H 2015 Gross Revenue (1) decreased by 0.6% versus 1H 2014 On Comparable Mall Basis (2), 1H 2015 Gross Revenue Down 1.2% Y-o-Y CMT Portfolio 326.9 37.7 329.0 Tampines Mall 37.2 0.6% Junction 8 28.9 28.2 Funan DigitaLife Mall 16.9 16.6 36.4 IMM Building 39.2 Plaza Singapura 45.8 44.4 Mainly due to: 4
Slide 13: 1H 2015 Operating Expenses decreased by 0.9% versus 1H 2014
1H 2015 Operating Expenses (1) decreased by 0.9% versus 1H 2014 On Comparable Mall Basis (2), 1H 2015 OPEX Up 1.6% Y-o-Y CMT Portfolio 99.7 100.7 0.9% Tampines Mall 10.1 9.9 Junction 8 8.1 7.8 Funan DigitaLife Mall 5.6 5.5 13.1 IMM Building 13.3 Mainly due to lower utilities expenses offset by Plaza
Slide 14: 1H 2015 Net Property Income decreased by 0.5% versus 1H 2014
1H 2015 Net Property Income (1) decreased by 0.5% versus 1H 2014 On Comparable Mall Basis (2), 1H 2015 NPI Down 2.3% Y-o-Y CMT Portfolio 227.2 27.6 228.3 Tampines Mall 27.3 0.5% Junction 8 20.8 20.4 Funan DigitaLife Mall 11.3 11.1 23.3 IMM Building 25.9 Plaza Singapura 34.3 32.8 Bugis Junction 31.2
Slide 15: 1H 2015 Performance of Joint Ventures
(1) 1H 2015 Performance of Joint Ventures 1H 2015 Net Property Income Up 6.7% Y-o-Y Gross Revenue (S$ million) 59.6 Total 57.1 Total 47.3 4.3% Raffles City Singapore 46.4 12.3 Westgate 10.7 Operating Expenses (S$ million) Total 16.0 16.2 Total 1.6% Raffles City Singapore 12.4 12.4 Westgate 3.6 3.8 N
Slide 16: Debt Maturity Profile as at June 2015
(1) Debt Maturity Profile as at 30 June 2015 600 500 450.0 414.0 (3) 412.0 400 14.0 (2) 80.0 (4) S$ million 300 286.9 300.0 250.0 (6) 240.0 505.2 350.0 100.0 200 (12) (5) 100.0 100.0 320.0 (8) 100 (2) 126.0 (11) (15) 185.6 185.6 (7) 190.1 (13) 192.8 157.6 140.0 150.0 (9) (10) 150.0 108.3 (14) 60.9 6
Slide 17: Key Financial Indicators
Key Financial Indicators As at As at 30 June 2015 31 March 2015 Unencumbered Assets as % of Total Assets 100.0% 100.0% Aggregate Leverage (1,2) 33.7% 33.8% Net Debt / EBITDA (3) 5.5x 5.2x Interest Coverage (4) 4.6x 4.5x Average Term to Maturity (years) 6.1 5.1 Average Cost of Debt (5) 3.3% 3.4% CMT’
Slide 18: Valuations and Valuation Cap Rates
Valuations and Valuation Cap Rates Valuation Valuation Valuation Valuation Valuation Variance Cap Rate Cap Rate as at 30 Jun 15 as at 31 Dec 14 as at 30 Jun 15 as at 30 Jun 15 as at 31 Dec 14 S$ million S$ million S$ million S$ per sq ft NLA % % Tampines Mall 953.0 922.0 31.0 2,682 5.35 5.35 Junctio
Slide 19: Healthy Balance Sheet
Healthy Balance Sheet As at 30 June 2015 S$’000 Non-current Assets 8,847,857 Net Asset Value/Unit S$1.84 (as at 30 June 2015) Current Assets 659,395 Adjusted Net Asset Value/Unit Total Assets 9,507,252 S$1.81 (excluding distributable income) Current Liabilities 206,971 Non-current Liabilities 2,932,
Slide 20: Distribution Details
Distribution Details Distribution Period 1 April to 30 June 2015 Sub-point Distribution Per Unit 2.71 cents Notice of Books Closure Date 22 July 2015 Last Day of Trading on ‘cum’ Basis 27 July 2015, 5.00 pm Ex-Date 28 July 2015, 9.00 am Books Closure Date 30 July 2015 Distribution Payment Date 28 Au
Slide 21: Portfolio Updates
Portfolio Updates CapitaLand Mall Trust 1st Half 2015 Financial Results *July 2015* Bugis+
Slide 22: Shopper Traffic
(1) Shopper Traffic 1H 2015 Increased by 3.4% Y-o-Y 150,000 140,000 Shopper Traffic (‘000) 130,000 120,000 110,000 100,000 90,000 80,000 1H 2015 1H 2014 Source: CapitaLand Mall Trust Management Limited (CMTML) (1) For comparable basis, this includes the entire CMT portfolio of malls, except Bugis Ju
Slide 23: Tenants' Sales per sq ft per month
(1) Portfolio Tenants’ Sales psf per month 1H 2015 Increased by 2.9% Y-o-Y 90 Tenants’ Sales ($ psf/mth) 80 70 60 50 40 1H 2015 1H 2014 Source: CMTML (1) For comparable basis, this includes the entire CMT portfolio of malls, except Bugis Junction which underwent phase two AEI from March 2014 to Sept
Slide 24: Tenants' Sales by Trade Categories in 1H 2015
Tenants’ Sales by Trade Categories in 1H 2015 Improved Consumer Spending Y-o-Y Variance of Tenants’ Sales $ psf/mth (%) 15 10.7 10.4 10 8.1 6.8 5.7 4.1 3.4 3.1 5 1.9 1.5 1.2 0.2 0 (0.3) (1.4) (1.4) -5 (4.3) (4.4) -10 -15 -20 -25 (24.3) (1) -30 Supermarket Services Telecommunications Beauty & Health
Slide 25: Rental Reversions
Rental Reversions From 1 January to 30 June 2015 (Excluding Newly Created and Reconfigured Units) Net Lettable Area Increase in Current Rental Rates vs Preceding Rental No. of Retention Percentage Rates Property Renewals / Rate Area of Mall (typically New Leases (%) (sq ft) (%) committed three years
Slide 26: Renewals Achieved for CMT Portfolio
(1) Renewals Achieved for CMT Portfolio Net Lettable Area Increase in Current Rental Rates vs Preceding Rental No. of Rates Year (2) Renewals / Forecast Rental Area % of Total (typically New Leases Rates (3) (sq ft) NLA committed (%) three years ago) (%) 1H 2015 355 504,168 12.4 N.A.(4) 4.6 2014 490
Slide 27: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile (1) as at 30 June 2015 Weighted Average Expiry by Gross Rental Income 2.2 Years Gross Rental Income per Month (2) Number of Leases S$’000 % of Total (3) 2015 446 6,604 11.8 2016 943 15,612 28.0 2017 864 14,932 26.7 2018 575 11,340 20.3 2019 & Beyond 90 7,376 13.2 Total
Slide 28: Portfolio Lease Expiry Profile for 2015
Portfolio Lease Expiry Profile for 2015 (1) Net Lettable Area Gross Rental Income No. of As at 30 June 2015 Leases Sq Ft ('000) % of Mall NLA (2) S$'000 % of Mall Income (3) Tampines Mall 15 46.3 13.0 566 9.9 Junction 8 17 15.9 5.2 354 8.4 Funan DigitaLife Mall 27 33.2 11.5 309 12.7 IMM Building (4)
Slide 29: 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) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Tampines Mall 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 99.5 100.0 Junction 8 100.0 100.0 100.0 100.0 100.0 100.0 99.6 99.4 100.0 100.0 F
Slide 30: Asset Enhancement Initiative – Clarke Quay
Clarke Quay Asset Enhancement Initiative – Clarke Quay Lim King Chuan, CapitaLand ‘Building People’ Photography Competition 2014
Slide 31: Clarke Quay: Reconfiguration of Block C
Clarke Quay: Reconfiguration of Block C More Entertainment and F&B Offerings • In March 2015, LifeBrandz ceased operations for its six outlets at Clarke Quay. • With the exit of LifeBrandz, about 57,000 sq ft of space is being reconfigured to house new entertainment and F&B tenants. New entertainmen
Slide 32: Clarke Quay: Reconfiguration of Block C
Clarke Quay: Reconfiguration of Block C Reconfiguration of Space to House More Entertainment and F&B Concepts Before (Occupied by single tenant) After (Reconfigured into multiple units) (1) Level 1 Level 1 Level 2 Level 2 (1) The plans are subject to change. 32 CapitaLand Mall Trust 1st Half 2015 Fi
Slide 33: Asset Enhancement Initiative – Rejuvenation of Plaza Singapura
Asset Enhancement Initiative – Rejuvenation of Plaza Singapura Joseph Don Tormes, CapitaLand ‘Building People’ Photography Competition 2013 Plaza Singapura
Slide 34: Proposed Rejuvenation of Plaza Singapura
Proposed Rejuvenation of Plaza Singapura Plaza Singapura will undergo an approximately S$38.0 million rejuvenation of its interior from 3Q 2015 to 4Q 2016. The works include: • Upgrading of floor finishes, railings/atrium void edges, ceilings, corridor lighting and design treatment of escalators • U
Slide 35: Proposed Rejuvenation of Plaza Singapura
Proposed Rejuvenation of Plaza Singapura Upgrading Amenities and Enhancing Shoppers’ Experience Rejuvenation of its interior (1) Rejuvenation of its interior (1) Upgrading of toilets (1) Providing more nursing rooms (1) (1) Artist’s impression. 35
Slide 36: Looking Forward
Looking Forward JCube Jhon Tolentino, CapitaLand ‘Building People’ Photography Competition 2014
Slide 37: Looking Forward
Looking Forward 1. Refresh. Rejuvenate. Reinforce • Reinforce Clarke Quay’s position as a premier nightspot destination • Strengthen IMM Building’s position as Singapore’s largest outlet mall • Enhance shoppers’ experience at Plaza Singapura IMM Building • Rejuvenate through enhancement works at Buk
Slide 38: Thank you
Photo Credit: Kwek Swee Seng, Singapore Photo Credit: Kwek Swee Seng, Singapore 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-
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