CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — Q3 2021 Earnings Presentation
58 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Oct 22, 2021
Slide 1: 3Q 2021 Business Update
3Q 2021 Business Update 22 October 2021
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. 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 assumptions. Representative examples of these factors incl
Slide 3: Table of Content
Table of Content 04 31 Highlights Creating Value 10 38 Capital Strategy and Management Outlook 13 42 Portfolio Market Performance Information 16 55 Performance Additional By Asset Type Information Funan, Singapore C a p i t a L a n d I n t e g r a t e d C o m m e r c i a l Tr u s t 3
Slide 4: Highlights
Highlights CapitaGreen, Singapore
Slide 5: Resilient Performance in 3Q 2021
Resilient Performance in 3Q 2021 Gross 3Q 2021 3Q2020 Net Property 3Q 2021 3Q 2020 Revenue S$329.0M S$150.3M Income S$242.6M S$104.5M Retail Asset Performance Office Asset Performance(1) Integrated Development (S$ m) (S$ m) Performance(2) (S$ m) 136.6 109.9 97.7 97.3 95.1 74.3 74.7 70.2 40.4 30.2 Gr
Slide 6: Enlarged Portfolio and 100% Contribution from RCS Boosted Financial Performance for YTD Sep 2021
Enlarged Portfolio and 100% Contribution from RCS Boosted Financial Performance for YTD Sep 2021 Gross YTD Sep 2021 YTD Sep 2020 Net Property YTD Sep 2021 YTD Sep 2020 Revenue S$974.7M S$468.7M Income S$714.8M S$320.8M Retail Asset Performance Office Asset Performance(1) Integrated Development (S$ m
Slide 7: Key Operational Highlights
Key Operational Highlights Recovery level (1) 83.8% vs FY 2019 Average Retail Tenants’ Sustainability Portfolio Committed Sales psf (2) Occupancy (average monthly 101.0% Rated by Global ESG vs YTD Sep 2020 (as at 30 Sep 2021) 94.4% of YTD Sep 2021) Average Benchmark for Real Estate Assets 2021: • GR
Slide 8: CapitaSpring Achieves TOP for Office Component; On Track for Full Completion by end-2021
CapitaSpring Achieves TOP for Office Component; On Track for Full Completion by end-2021 • Achieved a committed occupancy of 83.1%(1), with another 7.2% under advanced negotiation • Committed leases to contribute income progressively from 1H 2022 Concierge Leasing Breakdown by Sectors based on commi
Slide 9: Raffles City Singapore: Asset Enhancement to Rejuvenate Offerings and Enhance Retail Experience
Raffles City Singapore: Asset Enhancement to Rejuvenate Offerings and Enhance Retail Experience Exciting opportunity to sharpen the retail tenancy mix and provide a well-curated mix of the finest homegrown and premium international brands through: • Reconfiguration of Levels 1 to 3 space to create s
Slide 10: Capital Management
Capital Management Tampines Mall, Singapore
Slide 11: CICT Debt Maturity Profile as at 30 September 2021
CICT Debt Maturity Profile as at 30 September 2021 Facilities in place to refinance debt maturing in 2021 and 2022(1) S$ million 1,800 17% 17% 1,608 1,583 1,600 14% 1,400 1,347 12% 12% 1,178 1,200 1,111 11% 870 900 1,004 1,000 265 418 832 299 800 6% 187 290 580 600 501 4% 400 215 738 683 460 2% 518
Slide 12: Proactive Capital Management
Proactive Capital Management As at As at 30 September 2021 30 June 2021 Total Borrowings (S$ billion) 9.5 9.4 Aggregate Leverage(1) 40.9% 40.5% % of Borrowings that are Green/Sustainability-linked 17% 15% % of Borrowings on Fixed Interest Rate 84% 85% % of Total Assets that are Unencumbered 95.7% 95
Slide 13: Portfolio Performance
Portfolio Performance Six Battery Road, Singapore
Slide 14: Portfolio WALE Stable at 3.0 years
Portfolio WALE(1)(2) Stable at 3.0 years 20.7% 14.2% 14.6% 9.9% 9.9% 7.5% 5.5% 4.7% (3) 3.2% 2.9% 2.2% 2.0% (3) 2.7% (3) 2021 2022 2023 2024 2025 2026 and beyond Retail Office Hospitality Notes: (1) Weighted average lease expiry (WALE) based on monthly gross rental income as at 30 September 2021 and
Slide 15: No Single Tenant Contributes More Than 5% of CICT's Total Gross Rental Income
No Single Tenant Contributes More Than 5% of CICT’s Total Gross Rental Income(1) % of Total Ranking Top 10 Tenants for September 2021 Trade Sector Gross Rent 1 RC Hotel (Pte) Ltd 4.8 Hotel 2 WeWork Singapore Pte. Ltd.(2) 2.7 Real Estate and Property Services 3 Commerzbank A.G.(3) 2.2 Banking Superma
Slide 16: Performance by Asset Type
Performance by Asset Type Note: The retail and office asset information included the respective retail and office Plaza Singapura, Singapore components of integrated developments unless stated otherwise, in order to show the operating metrics and trends.
Slide 17: Retail Performance Overview
Retail Performance Overview Compared Against FY 2019 Compared Against YTD Sep 2020 3Q 2021 New Retail Offerings and Expansion Monthly Average Monthly Average by NLA Retail YTD Sep 2021 Tenants’ Sales psf New to Market / New to Portfolio, Expansion, Occupancy(1) 65.5% 34.5% Recovered to Recovered to
Slide 18: Driving Occupancy Through Active Asset Management and Proactive Leasing Strategy
Driving Occupancy Through Active Asset Management and Proactive Leasing Strategy Retail portfolio occupancy(1) of 96.4% above URA’s Singapore retail occupancy rate of 91.9%(2) Occupancy (%) 99.9 100 100 100 97.3 96.8 99.9 99.8 97.9 98.1 99.1 98.7 99.7 99.7 96.9 94.1 98.0 97.3 98.0 98.9 97.3 97.3 92.
Slide 19: Continual Easing of Rental Reversion Decline Rate
Continual Easing of Rental Reversion Decline Rate From 1 January to 30 September 2021 (Excluding Newly Created and Reconfigured Units)(1) Net Lettable Area Change in Incoming Year 1 Rents vs No. of Renewals / Retention Rate Properties Percentage of Outgoing Final Rents (typically New Leases (%) Area
Slide 20: Proactive Leasing Strategy to Manage Tenant Mix and Mall Positioning
Proactive Leasing Strategy to Manage Tenant Mix and Mall Positioning Retail Portfolio WALE(1) : 1.9 years 36.0% 7.5% 24.7% 25.4% 25.0% 5.4% 4.7% 3.8% 2021 2022 2023 2024 2025 2026 and beyond Completed Under Negotiation Gross Rental Income Note: (1) Based on gross rental income of committed leases in
Slide 21: YTD Sep 2021 Average Monthly Tenants' Sales psf and Shopper Traffic On Par with 2020 Level
YTD Sep 2021 Average Monthly Tenants’ Sales psf(1) and Shopper Traffic On Par with 2020 Level Recovery levels for tenants’ sales and shopper traffic Recovery Progress at CICT retail portfolio vs average for 2019 150% Periods of Comparison: Suburban Start of Circuit Breaker Start of Phase 3 End of Ph
Slide 22: YTD Sep 2021 Tenants' Sales Improved Y-o-Y on Low Base Effect
YTD Sep 2021 Tenants’ Sales Improved Y-o-Y on Low Base Effect YTD Sep 2021 Tenants’ Sales(1) Y-o-Y Performance by Trade Categories 30.5% 15.6% 12.2% 10.8% 7.2% 5.2% 4.4% 3.8% 0.7% -2.3% -5.6% -9.6% -9.8% -14.7% Services (2) -32.0% (3) Food & Beverages Education IT & Telecommunications Beauty & Healt
Slide 23: Office Performance Overview
Office Performance Overview Singapore and Germany office assets Increase in leasing enquiries for expansion, consolidation and new set-up space Q-o-Q(5) Office Total New and Renewal Leases (sq ft) Occupancy(1) 7% 171,860 6% 23% 92.6% 3Q 2021 21% as at 30 Sep 2021 (New leases: 47.6%(2)) 18% 38% Singa
Slide 24: Occupancy Rate of Office Portfolio at 92.6%
Occupancy Rate of Office Portfolio at 92.6% Occupancy for Singapore: Occupancy for Germany: CICT’s office portfolio: 91.7% CICT’s portfolio: 95.8% (5) CBRE SG Core CBD: 92.1% Frankfurt Market: 93.2% Occupancy (%) 96.8 97.2 100.0 100.0 96.9 96.9 100.0 100.0 100.0 100.0 100.0 100.0 96.0 95.1 95.6 92.5
Slide 25: Office Rents Committed Above Market Levels
Office Rents Committed Above Market Levels Market Rents of Average Committed Comparative Sub-Market (S$ psf) Building Expired Rents Rents in 3Q 2021 Sub-Market Cushman & (2) (S$ psf) (S$ psf) (1) Knight Frank Wakefield CapitaGreen 12.50 11.00 – 12.50 Grade A Six Battery Road 10.81 9.00 – 13.20 9.57
Slide 26: Proactively Engaged with Tenants to Manage Their Requirements
Proactively Engaged with Tenants to Manage Their Requirements Office Portfolio WALE(1): 2.6 years 28.1% 0.8% 0.7% 26.3% 19.7% 19.2% 19.4% 21.4% 14.5% 12.1% 18.4% 15.7% 26.3% 26.9% 7.8% 8.4% 5.4% 5.3% (2) (4) 2021 2022 2023 2024 2025 2026 and beyond Completed Under Negotiation Monthly Gross Rental In
Slide 27: Addressing Tenant Space and Leasing Requirements With Flexibility and Optionality
Addressing Tenant Space and Leasing Requirements With Flexibility and Optionality 3Q 2021 Grade A office market rent at S$10.65 psf per month(1) 2022 (2) Period 1H 2022 2H 2022 Average rent of leases expiring is S$9.24 psf 20% Rental Rates Rental Rates % of % of of Expiring of Expiring Building Expi
Slide 28: Continue to Proactively Manage Major Leases and Backfill Space
Continue to Proactively Manage Major Leases and Backfill Space 2023 2024 (1) (1) Average rent of leases expiring is S$11.09 psf Average rent of leases expiring is S$10.37 psf 20% 20% 11.95 11.14 11.34 11.49 15% 10.75 15% 10.79 8.52 8.77 10% 10% 4.2% 4.1% 4.5% 4.2% 5% 5% 4.0% 2.2% 1.9% 0.2% 0% 0% Asi
Slide 29: Occupancy Rate of Integrated Developments at 96.2%
Occupancy Rate of Integrated Developments at 96.2% Occupancy (%) 98.4 98.1 97.9 97.7 93.6 93.4 Retail: 92.3 Retail: 91.5 Retail: 97.3 Retail: 96.8 Retail: 97.1 Retail: 96.8 Office: 95.1 Office: 95.6 Office: 100 Office: 100 Office: 100 Office: 100 Raffles City Singapore Funan Plaza Singapura & The At
Slide 30: Hospitality Tenant Contributed to Long WALE
Hospitality Tenant Contributed to Long WALE Integrated Development Portfolio WALE(1) : 5.0 years 25.1% 3.7% 16.8% 13.5% 11.3% 8.6% 5.5% 3.3% 7.1% 3.7% 3.0% 3.7%4.4% Retail 0.3% 0.8% Office 2021 2022 2023 2024 2025 2026 and beyond Retail Office Hospitality Under Negotiation Note: (1) Based on gross r
Slide 31: Creating Value
Creating Value Raffles City Singapore, Singapore
Slide 32: Completion of Lot One AEI
Completion of Lot One AEI Cinema opened on 24 September 2021 while library will open on 28 October 2021 C a p i t a L a n d I n t e g r a t e d C o m m e r c i a l Tr u s t 32
Slide 33: AEI for Six Battery Road on Track to Complete in end-2021
AEI for Six Battery Road on Track to Complete in end-2021 SIX BATTERY ROAD ✓ Leasing of office space in tandem with phased works ✓ Through-block link is flanked by ✓ New retail banking hall opened the new banking hall with ATMs on on 22 June 2021 in through-block ✓ New retailers include: one side an
Slide 34: Bringing a Mix of New Retail and Dining Options to Shoppers in 3Q 2021
Bringing a Mix of New Retail and Dining Options to Shoppers in 3Q 2021 C a p i t a L a n d I n t e g r a t e d C o m m e r c i a l Tr u s t 34
Slide 35: Strengthening our Omnichannel Retail Ecosystem through Phygital Engagements with Capitastar
Strengthening our Omnichannel Retail Ecosystem through Phygital Engagements with Capitastar 1 Acquiring and retaining shoppers with continuous stream of CAPITASTAR LIVE: rewards through omnichannel activations 247 • Good results from CapitaStar Live 247, • >1.1 .Million CapitaLand’s biggest annual O
Slide 36: Supporting Tenants through eCapitaMall & Capita3Eats
Supporting Tenants through eCapitaMall & Capita3Eats More than 600 brands onboard since launch in June 2020 • eCapitaMall & Capita3Eats reported growth in Gross Merchandise Value (GMV) by 2X and 1.5X respectively in 3Q 2021 • Online ordering platforms serve as drivers for offline traffic to boost in
Slide 37: Engaging our Community and Volunteering
Engaging our Community and Volunteering Supporting the nationwide mask Sustainability Interpreted at Funan PALADIN Exhibition by collection exercise Students of Temasek Polytechnic partnered with TheFinalBosses at Plaza Singapura Collection of Temasek Foundation’s N95 respirator Bernina Creative Stu
Slide 38: Strategy and Outlook
Strategy and Outlook Gallileo, Frankfurt, Germany
Slide 39: CICT's Value Creation Strategy
CICT’s Value Creation Strategy To deliver stable distributions and sustainable returns to unitholders • Investing through property market cycles in Singapore, Germany and • Undertaking appropriate divestment of other developed markets assets that have reached their optimal life cycle Portfolio • Gui
Slide 40: Positioning CICT for the Future
Positioning CICT for the Future Outlook Singapore Economy • 3Q 2021 GDP growth was 6.5% year-on-year based on advance estimates(1) • 2021 GDP growth projected between 4.0% and 6.0%(1) • Overall unemployment rate dipped slightly, from the 2.8% in Jul 2021 to 2.7% in Aug 2021(2) Singapore Retail and O
Slide 41: CICT's Investment Merits
CICT’s Investment Merits Largest proxy for Singapore’s commercial real estate market with proven track record Well-diversified quality portfolio in strategic locations that offers resilience and stability through market cycles Ability to tap on opportunities in Singapore and other developed markets
Slide 42: Market Information
Market Information Bedok Mall, Singapore
Slide 43: CICT Market Share
CICT Market Share Largest owner of private retail stock in Singapore(1) CICT, 9.2% Frasers Centrepoint Trust, 4.4% Mercatus, 4.3% Far East Organization, 3.3% Lendlease, 3.0% Mapletree Commercial Trust, 2.4% City Developments Limited, 2.2% Others/Unknown, 65.3% Changi Airport Group, 2.0% United Indus
Slide 44: Limited Retail Supply Between 2021 and 2024
Limited Retail Supply Between 2021 and 2024 Total retail supply in Singapore averages approximately 0.4 million sq ft (2021 - 2024), significantly lower than: ― Last 3-year historical annual average supply (2018 - 2020) of 0.86 million sq ft ― Last 5-year historical annual average supply (2016 - 202
Slide 45: Known Future Retail Supply in Singapore (2021 – 2024)
Known Future Retail Supply in Singapore (2021 – 2024) None of the seven new projects with more than 100,000 sq ft NLA are in Downtown Expected Completion Proposed Retail Projects Location NLA (sq ft) 2021 Grantral Mall @ Macpherson (Citimac A&A) Macpherson Road 67,500 2021 I12 Katong (A/A) East Coas
Slide 46: Suburban Rents Rose by 0.5% While Orchard Rents Declined by 1% Q-o-Q in 3Q 2021
Suburban Rents Rose by 0.5% While Orchard Rents Declined by 1% Q-o-Q in 3Q 2021 15.0% $40.00 $35.00 10.0% $30.00 5.0% $25.00 0.0% $20.00 Q1 2021(1) Q3 2021(2) Q4 2010 Q3 2016 Q3 2018 Q1 2010 Q2 2010 Q3 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 20
Slide 47: Singapore Retail Sales Performance
Singapore Retail Sales Performance Phase 2 (Heightened Alert) measures prompted more to shop online from May 2021 to August 2021 (S$ billion) 4.0 30.0% 26.2% 3.5 3.5 3.6 25.0% 3.0 3.1 3.2 2.8 2.9 2.8 2.9 2.8 2.8 2.9 2.9 20.0% 2.5 2.8 21.0% 2.8 2.7 2.6 20.0% 2.7 16.4% 16.3% 2.0 2.3 18.4% 15.0% 16.2%
Slide 48: Singapore Office Stock as at end-2Q 2021
Singapore Office Stock as at end-2Q 2021 Island-wide office stock Singapore Stock % of Grade A office (sq ft) total Core CBD Decentralised, Core CBD, 23.4% stock 50.7% Core CBD 31.4 mil 50.7% 14.1 mil sq ft (45.1% of Core CBD stock) Fringe CBD 16.1 mil 26.0% Decentralised 14.5 mil 23.4% Fringe CBD,
Slide 49: Annual New Supply Averages 0.8 Mil Sq Ft Over 4 Years; CBD Core Occupancy at 92.1%
Annual New Supply Averages 0.8 Mil Sq Ft Over 4 Years; CBD Core Occupancy at 92.1% as at end-Sep 2021 Singapore Private Office Space (Central Area)(1) – Net Demand & Supply 2.5 2.2 Forecast average annual gross new supply 1.9 1.9 (2022 to 2025): 0.8 mil sq ft 2.0 1.8 1.6 1.6 1.7 1.5 1.4 1.3 sq ft mi
Slide 50: Known Future Office Supply in Central Area (2022 – 2024)
Known Future Office Supply in Central Area (2022 – 2024) No commercial sites(1) on Government Land Sales Confirmed List (10 Jun 2021); Two white sites(2) on reserve list, namely Kampong Bugis and Woodlands Ave 2 (Fringe Area) Expected Completion Proposed Office Projects Location NLA (sq ft) 2022 Hub
Slide 51: Grade A Office Rent Rose for Two Consecutive Quarters
Grade A Office Rent Rose for Two Consecutive Quarters 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 Mthly rent (S$ / sq ft ) 11.15 11.30 11.45 11.55 11.50 11.15 10.70 10.40 10.40 10.50 10.65 Q-o-Q Change 3.2% 1.3% 1.3% 0.9% -0.4% -3.0% -4.0% -2.8% 0% 1.0% 1.4% S$18.80 20 18 Month
Slide 52: Information on Frankfurt Office and Two Submarkets
Information on Frankfurt Office and Two Submarkets (‘000 sq m) ('000 sq m) Frankfurt Office (%) 800.0 16.0 600.0 12.0 6.8 400.0 8.0 200.0 4.0 0.0 0.0 2015 2016 2017 2018 2019 2020 YTD September 2021 Demand ('000 sqm) New Supply ('000 sqm) Vacancy rate (%) (‘000 (‘000sq sq m) m) (%) (‘000 sq m) (%) B
Slide 53: Rental Range in Frankfurt
Rental Range in Frankfurt Rental range by submarket Frankfurt (€ / square metre / month) West City CBD C Westend B 45.0 45.0 Gallileo D 27.0 38.83 Banking District 23.30 19.88 A5 B43 Niederrad 18.0 22.0 South 7.0 Frankfurt Frankfurt MAC A3 Airport Office Banking Frankfurt Total District District A (
Slide 54: The End
The End For enquiries, please contact: Ms Ho Mei Peng, Head, Investor Relations Direct: (65) 6713 3668 | Email :ho.meipeng@capitaland.com CapitaLand Integrated Commercial Trust Management Limited (http://www.cict.com.sg) 168 Robinson Road, #25-00 Capital Tower, Singapore 068912 Tel: (65) 6713 2888 |
Slide 55: Additional Information
Additional Information Funan, Singapore Funan, Singapore
Slide 56: Well-located Properties Across Singapore
Well-located Properties Across Singapore Integrated Developments Office 1 CapitaSpring 1 Asia Square Tower 2 2 Funan 2 CapitaGreen 3 Raffles City Singapore 3 Capital Tower 4 Plaza Singapura 4 One George Street 5 The Atrium@Orchard 5 Six Battery Road 6 21 Collyer Quay Retail 1 Bedok Mall 2 Bugis+ 3 B
Slide 57: Exposure to Germany's Office Market with Strategically Located Properties in Frankfurt
Exposure to Germany’s Office Market with 2 Strategically Located Properties in Frankfurt Airport Office District and Banking District Excellent connectivity between Frankfurt airport and Frankfurt city centre via a comprehensive transportation infrastructure network Close proximity between Frankfurt
Slide 58: CapitaSpring – Development for Future Growth
CapitaSpring – Development for Future Growth CapitaSpring has drawn down S$34.0 million(1) in 3Q 2021 – CICT’s 45.0% share amounts to S$15.3 million CICT’s 45% interest in Glory Drawdown Balance Office Trust and as at Sep 2021 Glory SR Trust Debt at Glory Office Trust and Glory SR Trust (2) S$531.0m
CapitaLand Integrated Commercial Trust — Q3 2021 Earnings Presentation on 6ix