CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — Q3 2022 Earnings Presentation
48 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Oct 21, 2022
Slide 1: 3Q 2022 Business Update
CapitaLand Integrated Commercial Trust 3Q 2022 Business Update 21 October 2022
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 20 Highlights Performance By Asset Type 11 31 Financials & Focus & Capital Management Outlook 16 34 Portfolio Market Performance 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 66 Goulburn Street, Sydney, Australia
Slide 5: Executive Summary + CICT's Revenue Drivers - Rising Cost
Executive Summary + CICT’s Revenue Drivers ‒ Rising Cost 1. Positive rent reversion trend for retail and office portfolio 1. Inflationary cost pressure 2. YTD Sep 2022 tenant sales psf surpassed 2019 level 2. Increasing energy rate 3. Downtown malls saw quicker rebound with border relaxation and 3.
Slide 6: Improving Operational Metrics
Improving Operational Metrics(1) Portfolio occupancy rose to 95.1%; tenants’ sales surpassed 2019 level and 3Q 2022 signing rents on positive trend Portfolio Committed Portfolio 11.9 Portfolio 3.8 Portfolio Property S$24.2 Occupancy 95.1% NLA(2) million sq ft WALE(3) years Value(4) billion Retail Po
Slide 7: CQ @ Clarke Quay Asset Enhancement Initiative Work
CQ @ Clarke Quay Asset Enhancement Initiative Work Commenced; To be done in Phases till 3Q 2023 Upgrading of outdoor refreshment area at Block E Restoration of Block B’s façade works and thermal comfort improvement works in progress Other works in progress include: • Chillers and air-conditioning an
Slide 8: Enhanced Six Battery Road to Offer Flexible Space and More Amenities
Enhanced Six Battery Road to Offer Flexible Space and More Amenities Six Battery Road’s committed occupancy at 91.2% as at 30 Sep 2022 Flex space option managed by The Work Project (TWP) F&B Offerings at through block link Partnering TWP to offer flex Three floors of managed flex Offering amenities
Slide 9: WeWork's Flagship at Collyer Quay Officially Opened
WeWork’s Flagship at 21 Collyer Quay Officially Opened on 6 September 2022 14th location in Singapore and largest WeWork location in the Pacific region designed for flexibility, functionality and well-being Spaces Features Amenities • Designed to support enterprises and • Fully furnished shared and
Slide 10: Awards and Accolades
Awards and Accolades GRESB 2022 SIAS Investors Choice Singapore Corporate Singapore Governance Asia, Diversified – Office / Retail, Awards 2022 Listed category Awards 2022 and Transparency Index REITs and Business Trusts category REITs and Business Trusts category 2022 Maintained 5-Star Rating Winne
Slide 11: Financials & Capital Management
Financials & Capital Management Bugis Junction, Singapore
Slide 12: CICT 3Q 2022 Financial Performance
CICT 3Q 2022 Financial Performance Y-o-Y increase in 3Q 2022 NPI contributed by new acquisitions and higher revenue on gross turnover, partially offset by rise in utilities expenses Gross 3Q 2022 Y-o-Y 3Q 2022 Y-o-Y Net Property Revenue S$374.1M ▲ 13.7% Income S$273.3M ▲ 12.7% Retail Asset Performan
Slide 13: CICT YTD Sep 2022 Financial Performance
CICT YTD Sep 2022 Financial Performance Y-o-Y increase in YTD Sep 2022 NPI contributed by new acquisitions and higher revenue on gross turnover, partially offset by higher utilities cost Gross YTD Sep 2022 Y-o-Y YTD Sep 2022 Y-o-Y Net Property Revenue S$1,061.7M ▲ 8.9% Income S$775.0M ▲ 8.4% Retail
Slide 14: Well-diversified Funding Sources with Long Maturity Profile
Well-diversified Funding Sources with Long Maturity Profile Debt Maturity Profile(1) Exclude share of joint ventures’ borrowings S$ million 17% 1,800 1,698 Funding sources as at 30 Sep 2022 14% 1,600 14% 12% 13% 1,468 Secured S$2.7 billion of sustainability- MTN 51% 1,400 1,382 12% linked/green bond
Slide 15: Proactive Capital Management
Proactive Capital Management As at As at 30 September 2022 30 June 2022 Aggregate Leverage(1) 41.2% 40.6% Total Borrowings (S$ billion) 9.9 9.7 % of Borrowings on Fixed Interest Rate 80% 81% % of Total Assets that are Unencumbered 93.1% 93.0% Interest Coverage(2) 3.9x 4.1x Average Term to Maturity (
Slide 16: Portfolio Performance
Portfolio Performance CapitaSpring, Singapore
Slide 17: Portfolio Committed Occupancy Increased to 95.1%
Portfolio Committed Occupancy Increased to 95.1% as at 30 Sep 2022 96.5% 96.8% (1,2,3) (3) 97.4% 97.5%(2) 95.1% 91.9% 94.1% 93.8% 30 Jun 2022 30 Sep 2022 30 Jun 2022 30 Sep 2022 30 Jun 2022 30 Sep 2022 30 Jun 2022 30 Sep 2022 Retail Office Integrated Development Portfolio Notes: (1) Excluding Clarke
Slide 18: Portfolio WALE Stable at 3.8 Years
Portfolio WALE(1) Stable at 3.8 Years as at 30 Sep 2022 Retail Portfolio WALE(2) 2.2 years Office Portfolio WALE(3) 4.0 years Integrated Development Portfolio WALE 5.4 years 18.1% 13.4% 13.9% 13.2% 8.6% 5.6% 6.3% 5.7% 4.7% 3.9% 4.0% 1.8% 0.8% 2022 2023 2024(4) 2025 2026 2027 and beyond Retail Office
Slide 19: No Single Tenant Contributes More Than 5.1% of Gross Rental Income
No Single Tenant Contributes More Than 5.1% of CICT’s Total Gross Rental Income(1) % of Total Ranking Top 10 Tenants for September 2022 Trade Sector Gross Rent 1 RC Hotel (Pte) Ltd 5.1 Hotel 2 WeWork Singapore Pte. Ltd.(2) 2.6 Real Estate and Property Services Supermarket / Beauty & Health / Service
Slide 20: Performance by Asset Type
Performance by Asset Type Note: The retail and office asset information comprises the respective retail and office components of integrated Plaza Singapura, Singapore developments unless stated otherwise, in order to show the operating metrics and trends.
Slide 21: Retail Performance Overview
Retail Performance Overview Compared Against YTD Sep 2021 Monthly Average 3Q 2022 New Retail Offerings and Expansion by NLA Retail YTD Sep 2022 Tenants’ Sales psf Occupancy(1) ▲21.3% Y-o-Y (3) Others 96.8% Fashion 9% as at 30 Sep 2022 6% YTD Sep 2022 Shopper Traffic Shoes & Bags 6% New to market or
Slide 22: Overall Rent Reversion Positive on Average Rent Basis
Overall Rent Reversion Positive on Average Rent Basis 3Q 2022 saw positive rent reversion trend across the portfolio Renewed and New Retail Leases(1) in YTD Sep 2022 Rent Reversion(1,2) for YTD Sep 2022 Net Lettable Area No. of Retention Percentage Incoming Year 1 Rents Average Incoming Rents Renewa
Slide 23: YTD Sep 2022 Shopper Traffic and Tenants' Sales Up Y-o-Y
YTD Sep 2022 Shopper Traffic and Tenants’ Sales Up Y-o-Y Shopper traffic is on a recovery trajectory and overall tenants' sales psf has surpassed that of 2019 level Retail Portfolio Tenants’ Sales and Shopper Traffic Performance Relaxation on Mask-wearing no majority measures longer required in Star
Slide 24: Y-o-Y Improvement Seen for Most Trade Categories
Y-o-Y Improvement Seen for Most Trade Categories in YTD Sep 2022 YTD Sep 2022 Tenants’ Sales(1) Y-o-Y Performance by Trade Categories 124.4% 70.3% 45.1% 34.6% 28.9% 27.7% 20.2% 11.1% 9.9% 7.9% 4.3% 2.3% 1.9% 0.6% -3.0% (2) Fashion Home Furnishing Sporting Goods Leisure & Entertainment Shoes & Bags D
Slide 25: Curating Retail Offerings and Activities for Varied Experiences at our Malls
Curating Retail Offerings and Activities for Varied Experiences at our Malls Engaging shoppers with new experiences in 3Q 2022 New retail concepts and offerings in 3Q 2022 IT & Telecommunications F&B F&B Outdoor movie screening on Funan’s outdoor Roof Garden on level 7 New-to-market popular grill re
Slide 26: Refreshing Retail Experience at Raffles City Singapore
Refreshing Retail Experience at Raffles City Singapore Delivering unique experiences via a mix of beauty, fashion and lifestyle offerings Beauty Fashion & Lifestyle CHANEL's newly-renovated boutique with makeup, fragrance, skincare and eyewear GINLEE's new flagship boutique with the _/\/\/\ake by GI
Slide 27: Understanding and Knowing Stakeholders' Needs
Understanding and Knowing Stakeholders’ Needs to Strengthen Partnerships and Business Execution Shopper engagement conducted through survey to identify current shopper trends and motivations Topics engaged include Conducted 1,500 online understanding mall behaviour and Enable CICT to identify and su
Slide 28: Office Performance Overview
Office Performance Overview Singapore, Germany and Australia Office Assets Office Occupancy(1) Total New and Renewed Leases (sq ft) 804,650 94.1% 290,500 307,400 New leases: as at 30 Sep 2022 59.8%(2) 1Q 2022 2Q 2022 3Q 2022 Singapore Office Occupancy(1) Average YTD Sep 2022 YTD Sep 2022 Leasing Enq
Slide 29: Office Portfolio Occupancy by Geography
Office Portfolio Occupancy by Geography CICT Office Portfolio: 94.1% as at 30 Sep 2022 (1) 92.9% 96.0% 95.8% 95.0%(2) (3) 80.9% 81.2% Singapore Portfolio Germany Portfolio Australia Portfolio As at 30 June 2022 As at 30 Sep 2022 Notes: (1) CBRE’s Singapore Core CBD market occupancy as at 3Q 2022 was
Slide 30: Timing Gap between NPI and Distributable Income Contribution
Timing Gap between NPI and Distributable Income Contribution; Expected to Narrow by 2Q 2023 As at 30 Sep 2022 Actual Occupancy Committed Occupancy Asia Square Tower 2 83.8% 99.5% Six Battery Road 74.0% 91.2% (1) CapitaSpring 84.8% 99.9% Capital Tower 76.8% 90.7% • Actual occupancies are lower than t
Slide 31: Focus & Outlook
Focus & Outlook Asia Square Tower 2, Singapore
Slide 32: Macroeconomic Outlook in CICT's Key Markets
Macroeconomic Outlook in CICT’s Key Markets Outlook in Singapore(1) Outlook in Australia(2) Apr to Jun 2022 Aug 2022 Aug 2022 2022 GDP Annual CPI Inflation Average 3Q 2022 GDP Overall Unemployment Core Inflation Forecast as at Jun 2022 Unemployment +4.4% Y-o-Y 1.9% +5.1% Y-o-Y +3.25% Y-o-Y 3.8% +6.1
Slide 33: Continual Focus on Value Creation to Deliver Sustainable Value
Continual Focus on Value Creation to Deliver Sustainable Value Going Ahead Remain agile and proactive in managing costs, including interest cost Complete ongoing AEIs at ✓ Hedged energy cost for 2022, expecting higher energy rates in 2023 Raffles City Singapore and ✓ Mitigate rising costs through pr
Slide 34: Market Information
Market Information 100 Arthur Street, North Sydney, Australia
Slide 35: Limited Retail Supply Between 2022 and 2025
Limited Retail Supply Between 2022 and 2025 Total retail supply in Singapore averages approximately 0.4 million sq ft (2022 - 2025), lower than: ― Last 3-year historical annual average supply (2019 - 2021) of 0.5 million sq ft ― Last 5-year historical annual average supply (2017 - 2021) of 0.8 milli
Slide 36: Known Future Retail Supply in Singapore (2022 – 2025)
Known Future Retail Supply in Singapore (2022 – 2025) Expected Completion Proposed Retail Projects Location NLA (sq ft) 2022 8 Club Street Club Street 33,300 2022 Grantral Mall @ Macpherson (Citimac A&A) Macpherson Road 67,500 2022 iMall Marine Parade Central 60,000 2022 Sengkang Grand Mall Sengkang
Slide 37: Retail Suburban Rent Grew 1.0% Q-o-Q While Orchard Rent Turned Positive
Retail Suburban Rent Grew 1.0% Q-o-Q While Orchard Rent Turned Positive with 0.7% Q-o-Q Growth in 3Q 2022 15.0% $40.00 $35.00 10.0% $30.00 5.0% $25.00 0.0% $20.00 Q1 2021 (1) Q1 2011 Q4 2015 Q3 2020 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 20
Slide 38: Singapore Retail Sales Performance
Singapore Retail Sales Performance Year-on-year increase in Aug 2022 retail sales was mainly attributed to larger growth in industries such as Wearing Apparel & Footwear, Food & Alcohol and Department Stores (S$ billion) 4.5 30% 4.0 26.3% 3.9 25% 3.5 3.7 3.5 3.6 3.5 3.3 3.3 3.3 3.3 3.4 3.4 3.0 3.2 1
Slide 39: Recovery in Tourism on the Back of Singapore's Reopening
Recovery in Tourism on the Back of Singapore's Reopening Singapore Tourism Board expects 4 to 6 million international visitor arrivals for 2022 as tourism recovery gains momentum Singapore Tourist Arrival and Hotel Occupancy (1) From 1 April, borders reopened to vaccinated travellers and from 26 Apr
Slide 40: Singapore Office Stock
Singapore Office Stock Islandwide office stock Singapore Stock % of Grade A office Decentralised, (sq ft) total Core CBD 23.7% stock Core CBD 32.0 mil 51.5% 14.8 mil sq ft (46.2% of Core Core CBD, CBD stock) 51.8% Fringe CBD 15.7 mil 25.3% Decentralised 14.5 mil 23.2% Fringe CBD, Total 62.2 mil (23.
Slide 41: Annual New Supply Averages 0.9 Mil sq ft Over 4 Years
Annual New Supply Averages 0.9 Mil sq ft Over 4 Years; CBD Core Occupancy at 94.8% as at end-3Q 2022 Singapore Private Office Space (Central Area)(1) – Net Demand & Supply 2.5 Forecast average annual gross 2.2 new supply 1.9 2.0 1.8 1.9 (2022 to 2025): 0.9 mil sq ft 1.6 1.6 1.7 1.5 1.4 1.3 sq ft mil
Slide 42: Known Future Office Supply in Central Area (2022 – 2025)
Known Future Office Supply in Central Area (2022 – 2025) Only a white site at Woodlands Ave 2 (Fringe Area) on Government Land Sales reserve list(1) Expected Completion Proposed Office Projects Location NLA (sq ft) 2022 Hub Synergy Point Redevelopment Tanjong Pagar 117,000 2022 Guoco Midtown(2) Beac
Slide 43: 3Q 2022 Grade A Office Rent Surpassed 4Q 2019 Peak Rent
3Q 2022 Grade A Office Rent Surpassed 4Q 2019 Peak Rent 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 Mthly rent (S$ / sq ft ) 11.15 10.70 10.40 10.40 10.50 10.65 10.80 10.95 11.30 11.60 Q-o-Q Change -3.0% -4.0% -2.8% 0% 1.0% 1.4% 0.5% 1.4% 3.2% 2.7% S$18.80 20 18 Monthly gross rent by
Slide 44: Demand and Supply in Frankfurt Office and its Two Submarkets
Demand and Supply in Frankfurt Office and its Two Submarkets (‘000 sq m) Frankfurt Office (%) 800 15 600 10 400 7.9 5 200 0 0 2015 2016 2017 2018 2019 2020 2021 YTD Sep 2022 New Supply ('000 sqm) Demand ('000 sqm) Vacancy rate (%) (%) (%) (‘000 sq m) Banking District (‘000 sq m) Airport Office Distr
Slide 45: Rental Range in Frankfurt
Rental Range in Frankfurt Rental range by submarket (€ / square metre / month) Frankfurt West City CBD C B 45.50 45.50 Westend Gallileo D Banking 32.14 District 25.00 22.48 22.00 19.90 A5 (%) 18.00 B43 Niederrad South 7.00 MAC A3 Frankfurt Total Banking District Airport District Region D Region A A
Slide 46: Sydney CBD: Improving Market and Demand Sentiment
Sydney CBD: Improving Market and Demand Sentiment Net Supply/Net Absorption ('000 sq m) Net Effective Rent (A$/sq m/annum) Vacancy 120 10% 100 9.3% 9% 1,000 80 8% 900 60 7% 800 40 700 6% 20 600 5% 0 500 4% -20 400 3% -40 300 -60 2% 200 -80 1% 100 -100 0% 0 2022F 2023F 2024F 1Q 2017 2Q 2017 3Q 2017 4
Slide 47: North Sydney CBD: New Supply to Rejuvenate CBD and Demand to Pick Up
North Sydney CBD: New Supply to Rejuvenate CBD and Demand to Pick Up Net Supply/Net Absorption ('000 sq m) Net Effective Rent (A$/sq m/annum) Vacancy 120 18% 100 16.6% 16% 700 80 14% 600 60 12% 500 40 10% 400 20 8% 300 0 6% 200 -20 4% -40 2% 100 -60 0% 0 2022F 2023F 2024F 1Q 2017 2Q 2017 3Q 2017 4Q
Slide 48: 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 |
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