CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaMall Trust — FY2014 Earnings Presentation
39 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Jan 23, 2015
Slide 1: CapitaMall Trust Full Year 2014 Financial Results
Photo Credit: Kwek Swee Seng, Singapore Photo Credit: Kwek Swee Seng, Singapore CAPITAMALL TRUST Singapore’s First & Largest REIT Full Year 2014 Financial Results 23 January 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 Year in Review Key Financial Highlights Portfolio Updates Asset Enhancement Initiatives Looking Forward 3 CapitaMall Trust Full Year 2014 Financial Results *January 2015*
Slide 4: Year in Review
Year in Review • Operational performance – 490 new leases/renewals achieved with 6.1% positive rental reversion – Shopper traffic decreased by 0.9% year on year – Tenants’ sales per square foot (“psf”) per month decreased by 1.9% year on year – 98.8% portfolio occupancy rate as at end-December 2014
Slide 5: Key Financial Highlights
Key Financial Highlights Paul Chew, CapitaLand “Building People” Photography Competition 2012 CapitaMall Trust Third Quarter 2014 Financial Results *October 2014* Clarke Quay
Slide 6: 4Q 2014 Distributable Income Up 5.0% Y-o-Y
4Q 2014 Distributable Income Up 5.0% Y-o-Y Distributable Income (S$ mil) Distributable Income Distribution Per Unit (DPU) 99.1 (1) (2) 94.4 (1) S$99.1 2.86 million cents 5.0% Y-o-Y 5.1% Y-o-Y 4Q 2014 4Q 2013 DPU (cents) (3) Annualised DPU Annualised Distribution 2.86 2.72 Yield 11.35 5.14 cents % (B
Slide 7: FY 2014 Distributable Income Up 5.4% Y-o-Y
FY 2014 Distributable Income Up 5.4% Y-o-Y Distributable Income (S$ mil) (1) Distributable Income Distribution Per Unit (DPU) 375.3 (1) 356.2 (2) S$375.3 10.84 million cents 5.4% Y-o-Y 5.6% Y-o-Y FY 2014 FY 2013 DPU (cents) 10.84 (3) Annualised DPU Annualised Distribution 10.27 Yield 10.84 4.90 cent
Slide 8: Attractive Yield versus Other Investments
Attractive Yield versus Other Investments As at 31 December 2014 Net Yield for: Individual: 5.3% (0% tax) Corporate Overseas: 4.8% (10% tax) 6 Corporate Local: 4.4% (17% tax) 5.3 4.0 4 300 bps yield spread 3.3 Yield % 2.5 2.3 2 1.6 0.3 0 CMT FY 2014 10-yr Govt Bond 5-yr Govt Bond CPF Ordinary 12-mth
Slide 9: Historical DPU Yield versus Singapore Government Bond Yields
Historical DPU Yield versus Singapore Government Bond Yields 10 9 8 7 CMT DPU Yield 6 Yield (%) 5 4 10Y Govt Bond Yield 3 2 1 5Y Govt Bond Yield 0 2009 2010 2011 2012 2013 2014 Sources: Bloomberg, Monetary Authority of Singapore 9 CapitaMall Trust Full Year 2014 Financial Results *January 2015*
Slide 10: Steady Distributable Income Growth
Steady Distributable Income Growth S$ million 400 375.3 356.2 316.9 294.8 301.6 300 282.0 238.4 211.2 200 169.4 126.8 98.1 100 64.9 0 2003 2008 2004 2005 2006 2007 2009 2010 2011 2012 2013 2014 (1) Based on compounded annual growth rate (“CAGR”). 10 CapitaMall Trust Full Year 2014 Financial Results
Slide 11: 4Q 2014 Financial Performance
4Q 2014 Financial Performance Gross Revenue Net Property Income Distributable Income S$165.2 S$106.0 S$99.1 (1) million million million 2.2% Y-o-Y 4.1% Y-o-Y 5.0% Y-o-Y S$ million (3) 4Q 2014 4Q 2013 165.2 161.6 (3) 106.0 110.5 99.1(1) 94.4(2) Gross Revenue Net Property Income Distributable Income (
Slide 12: FY 2014 Financial Performance
FY 2014 Financial Performance Gross Revenue Net Property Income Distributable Income S$658.9 S$448.4 S$375.3 (1) million million million 3.3% Y-o-Y 2.2% Y-o-Y 5.4% Y-o-Y S$ million FY 2014 FY 2013 658.9 637.6 (3) (3) 448.4 438.7 (1) 375.3 356.2 (2) Gross Revenue Net Property Income Distributable Inc
Slide 13: FY 2014 Gross Revenue Increased by 3.3% versus FY 2013
FY 2014 Gross Revenue Increased by 3.3% versus FY 2013 On Comparable Mall Basis(1), FY 2014 Gross Revenue Up 2.9% Y-o-Y (2) CMT Portfolio 658.9 74.8 637.6 Tampines Mall 73.4 3.3% Junction 8 57.2 55.4 33.5 Funan DigitaLife Mall 33.3 76.7 IMM Building 75.4 88.9 Mainly due to: Plaza Singapura 84.0 • Hi
Slide 14: FY 2014 Operating Expenses Increased by 5.8% versus FY 2013
FY 2014 Operating Expenses Increased by 5.8% versus FY 2013 On Comparable Mall Basis(1), FY 2014 OPEX Up 7.2% Y-o-Y (2) CMT Portfolio 210.5 19.8 198.9 Tampines Mall 19.6 16.5 5.8% Junction 8 16.0 11.8 Funan DigitaLife Mall 11.2 26.4 IMM Building 25.4 22.3 Plaza Singapura 20.8 • Mainly due to higher
Slide 15: FY 2014 Net Property Income Increased by 2.2% versus FY 2013
FY 2014 Net Property Income Increased by 2.2% versus FY 2013 On Comparable Mall Basis(1), FY 2014 NPI Up 1.0% Y-o-Y (2) CMT Portfolio 448.4 438.7 55.0 2.2% Tampines Mall 53.8 40.7 Junction 8 39.4 21.7 Funan DigitaLife Mall 22.1 50.3 IMM Building 50.0 66.6 Plaza Singapura 63.2 Bugis Junction 53.9 47.
Slide 16: FY 2014 Performance of Joint Ventures
FY 2014 Performance of Joint Ventures (1) FY 2014 NPI Up 27.7% Y-o-Y Gross Revenue (S$ million) 115.3 Total 91.6 93.0 Total Raffles City Singapore 90.3 25.9% 22.3 Westgate 1.3 Operating Expenses (S$ million) 33.6 Total 27.6 Total 24.9 Raffles City Singapore 21.6% 23.9 8.7 Westgate 3.7 Net Property I
Slide 17: Debt Maturity Profile as at December 2014
Debt Maturity Profile as at 31 December 2014 (1) 1000 985.1(2) 100.0 900 Funding 800 partially 408.3 raised for 700 refinancing 600 S$ million 699.5 500 412.0 450.0 412.0 400 80.0(5) 12.0 (4) 80.0 (6) 300 (7) 226.0 300.0 505.2 200 350.0 320.0 (6) 100.0 250.0 (11) 100 185.6 (3) 157.6 (8) 190.1 (12) 1
Slide 18: Key Financial Indicators
(1) Key Financial Indicators As at As at 31 December 2014 30 September 2014 Unencumbered Assets as % of Total Assets 100.0% 100.0% Gearing Ratio (2,3) 33.8% 34.1% Net Debt / EBITDA (4,6) 5.1x 5.0x Interest Coverage (5,6) 4.5x 4.6x Average Term to Maturity (years) 4.7 4.7 Average Cost of Debt (7) 3.5
Slide 19: Valuations and Valuation Cap Rates
Valuations and Valuation Cap Rates Valuation Valuation Variance Valuation as at Valuation as at 31 Dec 14 as at 30 Jun 14 31 Dec 14 Cap Rate as at 31 Dec 14 and 30 Jun 14 S$ million S$ million S$ million S$ per sq ft NLA % Tampines Mall 922.0 889.0 33.0 2,593 5.35 Junction 8 662.0 654.0 8.0 2,620 5.
Slide 20: Healthy Balance Sheet
Healthy Balance Sheet As at 31 December 2014 S$’000 Non-current Assets 8,703,657 Net Asset Value/Unit S$1.81 (as at 31 December 2014) Current Assets 1,154,650 Adjusted Net Asset Value/Unit Total Assets 9,858,307 S$1.79 (excluding distributable income) Current Liabilities 1,015,527 Non-current Liabil
Slide 21: Distribution Details
Distribution Details Distribution Period 1 October to 31 December 2014 Sub-point Distribution Per Unit 2.86 cents Notice of Books Closure Date 23 January 2015 Last Day of Trading on “cum” Basis 28 January 2015, 5.00 pm Ex-Date 29 January 2015, 9.00 am Books Closure Date 2 February 2015 Distribution
Slide 22: Portfolio Updates
Portfolio Updates Credit to Benoy Ltd CapitaMall Trust Full Year 2014 Financial Results *January 2014* The Atrium@Orchard
Slide 23: Shopper Traffic for FY 2014
Shopper Traffic for FY 2014 FY 2014 Shopper Traffic(1) Decreased by 0.9% Y-o-Y 260,000 250,000 Shopper Traffic (‘000) 240,000 230,000 220,000 210,000 200,000 FY 2014 FY 2013 Source: CapitaMall Trust Management Limited (CMTML) (1) For comparable basis, the chart includes the entire portfolio, except
Slide 24: Portfolio Tenants' Sales for FY 2014
Portfolio Tenants’ Sales for FY 2014 FY 2014 Tenants’ Sales psf per month(1) Decreased by 1.9% Y-o-Y 90 80 Tenants’ Sales ($ psf/mth) 70 60 50 40 FY 2014 FY 2013 Source: CMTML (1) For comparable basis, the chart includes the entire portfolio, except Bugis Junction (which underwent Phase 1 AEI from A
Slide 25: Tenants' Sales by Trade Categories in FY 2014
Tenants’ Sales by Trade Categories in FY 2014 Cautious Consumer Spending 25% Y-o-Y Variance of Tenants’ Sales $ psf/mth 20% 14.7% 15% 10% 7.1% 5% 1.9% 1.7% 0.9% 0.8% 0% -5% (0.7%) (0.8%) (1.3%) (1.9%) (3.2%) (3.6%) (4.1%) -10% (6.0%) (7.5%) (10.1%) (11.6%) -15% (15.5%) -20% -25% (1) Telecommunicatio
Slide 26: Healthy Occupancy Cost
Healthy Occupancy Cost Average Occupancy Cost 18.8% 17.1% 17.6% 15.1% 15.8% (3,4) (3,5) CFS Retail Property Westfield Corp Scentre Group CMT (2013) CMT (2014) (2) Trust Group (US & Europe) (Australia & New (Australia) (1) Zealand) (2) Sources: Companies reports, CMTML (1) As at 30 June 2014. From 3
Slide 27: Rental Reversions
Rental Reversions From 1 January to 31 December 2014 (Excluding Newly Created and Reconfigured Units) Net Lettable Area Increase in Current Rental Rates vs No. of Retention Preceding Rental Property Renewals / Percentage Rate Area (sq ft) Rates New Leases of Mall (typically committed three years ago
Slide 28: Renewals Achieved Year-on-Year
Renewals Achieved Year-on-Year Net Lettable Area Increase in Current Rental Rates vs No. of Preceding Rental CMT Portfolio (Year) (1) Renewals / Rates Area % of Total Forecast Rental New Leases (typically (sq ft) NLA Rates (2) committed three years ago) 2014 490 898,826 22.2% N.A.(3) 6.1% 2013 629 9
Slide 29: 2015 Lease Expiry Profile by Property
2015 Lease Expiry Profile by Property As at 31 December 2014 Net Lettable Area Gross Rental Income No. of Leases Sq Ft ('000) % of Mall NLA(1) S$'000 % of Mall Income(2) Tampines Mall 53 69.7 19.9% 1,215 22.0% Junction 8 42 90.2 28.8% 804 18.9% Funan DigitaLife Mall 66 84.4 28.9% 740 30.2% IMM Build
Slide 30: High Occupancy Maintained
High Occupancy Maintained As at 31 December 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Tampines Mall 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 99.5% Junction 8 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 99.6% 99.4% 100.0% Funan DigitaLife Mall 99.4% 99.6% 99.7% 99.8
Slide 31: Asset Enhancement Initiative – Sembawang Shopping Centre
Asset Enhancement Initiative (AEI) – Sembawang Shopping Centre Kenny Teo Seng Chye, CapitaLand “Building People” Photography Competition 2012 CapitaMall Trust Third Quarter 2014 Financial Results *October 2014* 31 Sembawang Shopping Centre
Slide 32: Sembawang Shopping Centre: New Childcare Centre to Serve the Community
Sembawang Shopping Centre: Level 2 New Childcare Centre to Serve the Community Level 2 Learning resources and toys for different age groups Child-friendly infrastructure 32 CapitaMall Trust Full Year 2014 Financial Results *January 2015*
Slide 33: Tapping on Community/Sports Facilities Scheme for Childcare Centre
Sembawang Shopping Centre: Level 2 Tapping on Community/Sports Facilities Scheme (“CSFS”) to Create Space for Childcare Centre Before After Level 5 Level 5 Level 4 Level 4 Level 3 Level 3 Slab over Level 2 double volume Current Double Volume (New Childcare Centre) space to create Current SpaceGarden
Slide 34: Update on Bukit Panjang Plaza
Update on Bukit Panjang Plaza Artist’s Impression CapitaMall Trust Third Quarter 2014 Financial Results *October 2014* Bukit Panjang Plaza
Slide 35: Bukit Panjang Plaza: Completion of Food and Beverage Block
Bukit Panjang Plaza Completion of Food and Beverage Block Level 2 35 CapitaMall Trust Full Year 2014 Financial Results *January 2015*
Slide 36: Bukit Panjang Plaza AEI works
Bukit Panjang Plaza AEI works Continued AEI works at Bukit Panjang Plaza include: • Reconfiguration of space at Level 3 and the main entrance at Level 2. • Relocation of roof garden from Level 2 to Level 4 beside expanded library and new childcare centre. • Rejuvenation works including a fresh facad
Slide 37: Looking Forward
Looking Forward Liew Tong Leng, CapitaLand “Building People” Photography Competition 2013 CapitaMall Trust Third Quarter 2014 Financial Results *October 2014* Funan DigitaLife Mall
Slide 38: Looking Forward
Looking Forward Healthy Underlying Property Fundamentals • Focus on ongoing asset enhancement works – IMM Building – Tampines Mall – Bukit Panjang Plaza – Clarke Quay • Active lease management Artist’s Impression of Facade of Tampines Mall – Focus on the 1,012 leases up for renewal in 2015 • Explore
Slide 39: 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 CapitaMall Trust Management Limited (http://www.capitamall.com) 168 Robinson Road, #30-0