CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaCommercial Trust — H1 2009 Earnings Presentation
42 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Jul 22, 2009
Slide 1: CapitaCommercial Trust 2009 First Half Results
CapitaCommercial C it C i l Trust T t 2009 First Half Results 22 July 2009
Slide 2: Important Notice
Important Notice This presentation shall be read in conjunction with CCT’s 2009 Second Quarter Unaudited Financial Statement Announcement. The past performance of CCT is not indicative of the future performance of CCT. Similarly, the past performance of CapitaCommercial Trust Management Limited, the
Slide 3: Contents
Contents • First Half 2009 Highlights • Robust Financial Results • Stable Portfolio • Market Outlook • Focus on Fundamentals • Supplementary Information 3 CapitaCommercial Trust Presentation *July 2009*
Slide 4: First Half 2009 Highlights
First Half 2009 Highlights 4 CapitaCommercial Trust Presentation *July 2009*
Slide 5: 1H 2009 DPU Up 29.1%
1H 2009 DPU Up 29.1% Actual 1H 09 1H 08 Ch Change S$'000 S$'000 % Gross Revenue 197 435 197,435 145 585 145,585 35 6 35.6 Net Property Income 143,153 101,150 41.5 Distributable Income 93,423 93, 3 71,918 ,9 8 29.9 99 Estimated Distribution Per Unit (1) 3.33¢(2) 2.58¢ 29.1 Annualised DPU 6.72¢ 5.19¢
Slide 6: Signed new leases and renewals with positive rental reversion
Signed new leases and renewals with positive rental reversion p • Signed new leases and renewals for an aggregate area of 139 139,380 380 square feet (about 4 4.1% 1% of portfolio NLA) in the months of May and June 2009 – Tenants include CISCO Systems y ((USA)) Pte. Ltd., The Hokuriku Bank, Ltd, EIM
Slide 7: Successfully Completed Rights Issue
Successfully Completed Rights Issue • Raised gross proceeds of approximately S$828.3 million Rights Issue • Rights ratio: 1 1-for-1 for 1 • 135.4% subscribed • Rights units listed and traded on 3 July 2009 Rights Issue • S$0.59 per Rights Unit Price • Committed to use 85% to 95% of rights proceeds t
Slide 8: Robust Financial Results
Robust Financial Results 8 CapitaCommercial Trust Presentation *July 2009*
Slide 9: 1H 2009 gross revenue up by 36%; distributable income up by 30%
1H 2009 gross revenue up by 36%; distributable income up p by y 30% % S$’000 250,000 35.6% 1H 2008 1H 2009 (Actual) 197,435 200,000 41.5% 145,585 150,000 143,153 29.9% 101,150 100,000 93 423 93,423 71,918 50,000 0 Gross Revenue Net Property Income Distributable Income Contribution from Improved oper
Slide 10: 1H 2009 distributable income above forecast by 18%
1H 2009 distributable income above forecast byy 18% S$’000 (1) 1H 2009 (Forecast) 1H 2009 (Actual) 250,000 1.3% 194,945197,435 4.3% 200,000 150,000 137,190 143,153 17 6% 17.6% 100 000 100,000 93,423 79,445 50,000 0 Gross Revenue Net Property y Income Distributable Income Higher income Improved opera
Slide 11: 2Q 2009 distributable income above 1Q 2009 by 5.8%
2Q 2009 distributable income above 1Q 2009 byy 5.8% S$’000 2.6% 120 000 120,000 1Q Q 2009 2Q Q 2009 97,461 99,974 4.9% 100,000 5.8% 80,000 69,870 73,283 60,000 45 404 45,404 , 48,019 40,000 20,000 , 0 Gross Revenue Net Property Income Distributable Income Higher income Improved operating Lower avera
Slide 12: Distribution Details
Distribution Details CapitaComm Di t ib ti Distribution Period P i d F From 1J Jan 2009 tto 30 JJune 2009 Estimated DPU1 Taxable - 3.33 cents Distribution Timetable Trading on "Ex" Ex Basis 29 July 2009 Books Closure Date 31 July 2009 Distribution Payment Date 28 August 2009 Note : (1) The DPU is co
Slide 13: Total Assets at S$6.2B, Adj. NAV after Rights Issue at S$1.50
Total Assets at S$6.2B, Adj. NAV after Rights Issue at S$1.50 30 Jun 09 30-Jun-09 31 Dec 08 31-Dec-08 S$'000 S$'000 Non-current assets1 6,110,806 6,785,965 Current assets2 128,694 85,426 Total assets 6,239,500 6,871,391 Current liabilities3 901 376 901,376 793 555 793,555 Non-current liabilities4 1,
Slide 14: No major refinancing till 2011
No major refinancing till 2011 (1) 1,200 1 000 1,000 $370m CCT - CB S$32 m RCS - Put option secured term in May 800 loan due Sep (19%) S$ million (2%) $580m 600 CCT - CCT - 3-year secured term loan 3-year due in Jun (7%) $520m secured CCT- MTN term loan $150m due in Mar RCS 400 - CMBS due in Mar $85
Slide 15: Enhanced financial flexibility
Enhanced financial flexibility • Total number of unsecured assets : 8 out of 11 • Value of unsecured assets : S$3.0 billion (50.4% of total value of investment properties) • S$665.0 million untapped balance from S$1.0 billion multicurrency medium term note programme Six Battery Road One George Stree
Slide 16: Gearing at low end of target range
Gearing at low end of target range As at As at 3 July 2009 30 June 2009 Total Gross Debt : S$1,979.0 million S$2,643.0 million Gearing(1) : 31.0% 42.3% Interest Service Coverage 2.9 times 2.9 times Ratio(2) : Average Cost of Debt: 3.7% 3.3% Average Fixed Rate Term to 2.7 years 2.2 years Expiry(3) :
Slide 17: Stable Portfolio
Stable Portfolio 17 CapitaCommercial Trust Presentation *July 2009*
Slide 18: Gross rental income predominantly contributed by Grade A Offices
Gross rental income (1) predominantly contributed by Grade A Offices CCT’s Focus is Owning g and Investing g in Real Estate and Real Estate-related Assets, which are Income-producing and used, or Predominantly used, for Commercial Purposes. Major M j usage mixi for f CCT properties ti By Gross Renta
Slide 19: Portfolio diversification with focus on quality
Portfolio diversification with focus on quality About 80% of 1H 2009 Net Property Income from Grade A offices and Raffles City Golden Shoe Car Market Street Car Park 2.8% Park, 2 8% Park 0.7% Park, 0 7% Wilkie Edge, 0.7% Bugis Village, 2.8% HSBC Building, 3.2% Raffles City (1), 28.2% Robinson Point,
Slide 20: Diverse tenant mix in CCT's portfolio
Diverse tenant mix (1) in CCT’s portfolio Car Park, 2.2% Department Store, 2.1% Legal, 2.4% Education, 1.7% Retail Services, 2.4% Banking, Insurance & Real Estate & Property Financial Services, 36.1% Services, 4.3% Others (2) , 5.9% Oth 5 9% Standard Chartered Bank JPMorgan Chase Food & Beverage, 5.
Slide 21: Top ten blue-chip tenants contribute about 45% of monthly gross rental income
Top ten blue-chip tenants (1) contribute about 45% of monthly gross rental income Weighted g Average g Lease Term to Expiry y (by ( y Floor Area)) for Top 10 Tenants as at 30 Jun 2009 = 6.2 years 10.9% 10 5% 10.5% 4.6% 4.5% 3.5% 2.7% 2.6% 3% 2.3% 1 9% 1.9% 1 9% 1.9% Standard RC Hotels (Pte) Governme
Slide 22: Committed occupancy consistently above market levels
Committed occupancy consistently above market levels CCT 2Q 2009 Occupancy level 2Q Industry Statistics – Occupancy level Grade A office: 97.4% Grade A offices: 96.4% Portfolio: 96.2% Core CBD: 91.5% CCT's Committed Occupancy Since Inception 100% 99.6% 99.6% 96.2% 99.1% 96.2% 95 2% 95.2% 90.0% 92.7%
Slide 23: More than half of the leases expiring in 2009 have already been renewed
More than half of the leases expiring in 2009 have already been renewed (1) Leases up for renewal (by Monthly Gross Rental Income ) as at 30 June 2009 1.5% 19.7% 19.3% 6.7% 17.7% 2.8% 9.0% 7.4% 2.6% 9.7% 5.4% 3.4% 6.0% 1.8% 0.6% 2009 2010 2011 2012 2013 and Beyond Office Retail Hotels and Convention
Slide 24: Proactive management of leasing risk by forward renewing leases
Proactive management of leasing risk by forward renewing leases Office leases expiring as a percentage of Monthly Office Gross Rental Income as at 30 June 2009 2.1% 9.2% 24.5% 27.2% 26.6% 3.9% 13 4% 13.4% 8.3% 2009 2010 2011 2012 2013 and Beyond Renewed Leases for 2009 Renewed Forward Leases 24 Capi
Slide 25: Potential rental upside from lease renewals in 2009
Potential rental upside from lease renewals in 2009 2Q 2009 Industry Statistics(1) – Grade A Office Average Market Rent: S$10.15 psf Prime Office Average Market Rent: S$8.60 psf 2H 2009 60% $11.00 $9 00 $9.00 40% $8.29 $7.70 $7.50 $7.00 20% $5 84 $5.84 $5.00 0.1% 2.2% 1.4% 1.5% 0% $3.00 $ Capital To
Slide 26: Future leasing risk mitigated by proactive forward lease renewals
Future leasing risk mitigated by proactive forward lease renewals and potential cost savings 2010 2011 60% $20.00 60% $20.00 $16.00 $16.20 $16.00 40% 40% $13.42 $12.41 $12.00 $12.50 $12.00 $10.40 $7.11 $8.00 $8.00 20% $6.46 20% 13.2% 8.3% $4.00 $4.46 4.4% 4.9% 5.8% $4.00 3 8% 3.8% 2 1% 2.1% 0.8% 0%
Slide 27: Average CCT office portfolio rent still lower than market rents
Average CCT office portfolio rent still lower than market rents 3 $18.80 $18.80 $15.00 $12.30 3 $10.15 $16.10 $16.10 $12.90 $10.50 $8.60 $8.14 $7.44 $7.73 $6.75 $7.20 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 (1) (2) (2) CCT Office Portfolio Prime Office Average Rent Grade A Office Average Rent Notes:
Slide 28: Market Outlook
Market Outlook 28 CapitaCommercial Trust Presentation *July 2009*
Slide 29: Market outlook – positive signs
Market outlook – positive signs Singapore Business Confidence Improved • (July 2009) Singapore Ministry of Trade & Industry has revised its forecast for Singapore economy to contract by 4.0 to 6.0 per cent in 2009, an upward revision from the contraction of 6.0 to 9.0 per cent that it had forecast o
Slide 30: About 2.2 million sq ft of future supply already pre-committed
About 2.2 million sq ft (approx. 28%) of future supply have already been pre-committed pre committed Singapore Private Office Space (Central Area) -- Demand & Supply Ave annual supply = 2.4 mil sq ft Remaking of Singapore Ave annual demand during previous as global city 4.0 growth phase('93-'97)=2.1
Slide 31: Rate of rental decline has eased
Rate of rental decline has eased S$psf 20.00 48% decline from peak 15 00 15.00 10.00 Steep decline Moderate decline (28.1%) (11.6%) 5.00 0.00 Grade A of f ice rental Source: Jones Lang LaSalle (July 09) 31 CapitaCommercial Trust Presentation *July 2009*
Slide 32: Focus On Fundamentals
Focus On Fundamentals 32 CapitaCommercial Trust Presentation *July 2009*
Slide 33: Strategy for Driving DPU Growth
Strategy for Driving DPU Growth Distribution Per Unit Portfolio growth Acquisitions / -Rental rate Development Projects Asset Enhancement -Occupancy – Singapore - Cost savings & overseas Proactive and prudent capital management 33 CapitaCommercial Trust Presentation *July 2009*
Slide 34: 92% of 2009's forecast gross rental income locked-in with committed leases
92% of 2009’s forecast gross rental income (1) locked-in with committed leases 3 Note: (1) Based on the Forecast Gross Rental Income for the “enlarged portfolio”, published in CCT’s circular to unitholders dated 9 June 2008 CapitaCommercial Trust Presentation *July 2009*
Slide 35: Supplementary Slides
Supplementary Slides 35 CapitaCommercial Trust Presentation *July 2009*
Slide 36: 1H 2009 Gross Revenue – By Asset
1H 2009 Gross Revenue (1) – By Asset S$ ‘000 200,000 35.6.0% 197,435 180 000 180,000 1H 08 1H 09 Due to the proposed 160,000 redevelopment of MSCP announced in early 2008 145,585 140 000 140,000 which has since been aborted in January 2009 120,000 100,000 0.7% 20.9% 80,000 10.9% 60,000 , 58.1% 63.2%
Slide 37: 1H 09 Net Property Income – By Asset
1H 09 Net Property Income (1) - By Asset S$ ‘000 000 41.5% 150,000 143,153 130,000 , 1H 08 1H 09 Due to higher utilities expense 110,000 101,150 90,000 Due to the proposed redevelopment of MSCP announced in early 2008 -0.8% 70,000 and which has since been 28 9% 28.9% aborted in January 2009 50,000 2
Slide 38: Occupancy Rates Above Market Levels
Occupancy Rates Above Market Levels 2004 2005 2006 2007 2008 1Q 2009 2Q 2009 Capital Tower 94.5 100.0 100.0 100.0 99.9 99.9 99.7 Six Battery Road 97.5 99.5 100.0 99.9 98.6 97.6 97.6 Starhub Centre 98.1 100.0 100.0 99.0 93.1 93.1 93.1 Robinson Point 85.2 99.1 100.0 100.0 90.9 95.9 100.0 Bugis Village
Slide 39: Details of Forecast Office Supply for 2009
Details of Forecast Office Supply for 2009 Expected Net Floor Total Net Floor Completion Development Location Area (sf) Area (sf) 60 Robinson Road (space addition to former Q2 Overseas Union Bank Building ) Robinson Road 29,753 EFG Bank Building ( 67 High Street - former Q2 Satnam House) High Street
Slide 40: Details of Forecast Office Supply for 2010
Details of Forecast Office Supply for 2010 Expected Net Floor Total Net Floor Completion Development Location Area (sf) Area (sf) Tokio Marine Centre (formerly Asia Chambers Q1 redevelopment) McCallum St 133,000 Q1 Twenty Anson Anson Road 209,000 Marina Bay Financial Centre (Phase 1) – Q2 65.6% pre-
Slide 41: Details of Forecast Office Supply for 2011-2013
Details of Forecast Office Supply for 0 - 2013 2011 0 3 Expected Net Floor Total Net Floor Completion Development Location Area (sf) Area (sf) Q1 2011 Ocean Financial Centre Collyer Quay 850,000 2011 1 Raffles Place (OUB Centre Tower 2) Raffles Place 350,000 Hotel / Office at Upper Pickering Street
Slide 42: CapitaCommercial Trust Management Limited contact details
CapitaCommercial C it C i l Trust T t Management M t Limited Li it d 39 Robinson Road #18-01 Robinson Point Singapore 068911 Tel: (65) 6536 1188 Fax: (65) 6533 6133 http://www cct com sg http://www.cct.com.sg For enquiries, please contact: Ms Ho Mei Peng Head, Investor Relations & Communications Dir
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