Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Suntec REIT — Shareholder Meeting (June 2020)
38 slides from Singapore Exchange's shareholder meeting presentation, Jun 16, 2020
Slide 1: Suntec REIT Annual General Meeting
SUNTEC REIT ANNUAL GENERAL MEETING 16 June 2020
Slide 2: Agenda
Agenda 03 22 FY19 Highlights Convention Performance 06 24 Financial Highlights Australia Portfolio Performance 10 29 Capital Management Project Under Development 12 31 Singapore Office Portfolio Performance Looking Ahead 18 Singapore Retail Portfolio Performance 2
Slide 3: FY19 Highlights
FY19 Highlights Distributable Income: S$262.7 million Distributable income from Assets Under Management: S$10.4 billion Capital distribution: operations: S$26.0 million Singapore: Australia: S$236.7 million, +3.9% YOY S$9,057 million, S$1,350 million, +2.2% YOY +30.7% YOY Distribution Per Unit (DPU)
Slide 4: 55 Currie Street, Adelaide
55 Currie Street, Adelaide FIRST FORAY INTO ADELAIDE Acquisition of 100% interest (NLA 282,000 sq ft) for A$148.3 mil Completed in Sep‘19 FREEHOLD GRADE A OFFICE BUILDING 91.7% committed occupancy Key Tenants: Commonwealth Government, South Australian Government, Allianz and Data Action INITIAL 8.0%
Slide 5: 21 Harris Street, Pyrmont, Sydney
21 Harris Street, Pyrmont, Sydney DEEPENED PRESENCE IN SYDNEY Acquisition of 100% interest (NLA 203,000 sq ft) for A$295.0 mil Completed in Apr ‘20 FREEHOLD GRADE A OFFICE BUILDING 66.2% committed occupancy and 2.3% with Heads of Agreement (as at 31 Mar 20) Anchored by Publicis Groupe - Global commu
Slide 6: Financial Highlights
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Slide 7: FY19 Financial Performance
FY 19 Financial Performance S$ mil Gross Revenue 0.9% higher y-o-y Mainly due to + Stronger performance of Suntec City and initial contribution 363.5 366.7 by 55 Currie Street Partially offset by - Suntec Convention and 177 Pacific Highway FY18 FY19 S$ mil Net Property Income 2.0% lower y-o-y Mainly
Slide 8: Achieved FY19 Distributable Income of S$262.7 mil
Achieved FY19 Distributable Income of S$262.7 mil Distributable Income Distribution Per Unit 266.8 262.7 9.988 9.507 39.0 26.0 1.459 0.937 227.8 236.7 8.570 8.529 From Operations FY18 FY19 FY18 FY19 From Capital Distributable Income Distribution Per Unit S$262.7 million, -1.5% y-o-y 9.507 cents, -4.
Slide 9: Diversified Portfolio across Sector and Geography
Diversified Portfolio across Sector and Geography Suntec Singapore, 9% One Raffles Quay, 7% Office, 68% Suntec City, 51% MBFC Properties, 17% FY 19 FY 19 NPI & Income Contribution NPI & Income Contribution 177 Pacific Retail, 28% Highway, 10% Southgate Complex, 5% 55 Currie Street, Convention, 4% 1%
Slide 10: Capital Management
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Slide 11: Proactive Capital Management
Proactive Capital Management Debt and Interest Maturity Profile Key Financial As at S$ 'mil Indicators 31 Dec ‘19 1,600 Aggregate 37.7% Leverage Ratio1 Weighted 1,200 Average Debt 3.06 years 300 Maturity 800 900 Completed All-in Financing refinancing in 3.05% p.a. 466.9 Cost 1Q 2020 86.5 600 Interes
Slide 12: SG Office Portfolio Performance
SG OFFICE PORTFOLIO PERFORMANCE
Slide 13: Singapore Office Committed Occupancy
Singapore Office Committed Occupancy 100.0% 99.1% 97.8% 98.5% 96.7% Overall CBD Occupancy 95.9%1 Suntec City Office One Raffles Quay MBFC Towers 1 & 2 9 Penang Road Singapore Overall Committed Occupancy Outperformed Market Note: 1. Source: JLL 13
Slide 14: Suntec City Office
Suntec City Office Achieved 100% Committed Occupancy <14% of Leases Due to Expire in 2020 (of which 43% has been completed as at 31 Mar 20) 7 Consecutive Quarters of Positive Rent Reversion Completed Asset Enhancement Works for Tower 5 14
Slide 15: Suntec City Office Upgrading Works
Suntec City Office Upgrading Works Tower 5 revitalised and modernised Works for Towers One to Four to Complete by 2021 15
Slide 16: One Raffles Quay & MBFC Properties
One Raffles Quay & MBFC Properties High Committed Occupancy ORQ: 97.8% MBFC Properties1: 98.4% Lease Expiries in FY 2020 ORQ: 25.0% • Of which 15% is from space to be vacated by UBS in Dec 2020 • 18% of UBS’s space has been pre-committed at ORQ MBFC Properties1: 5.6% Strong Positive Rent Reversions
Slide 17: 9 Penang Road
9 Penang Road Office Component 100% leased to UBS Occupy both office towers (NLA ~381,000 sq ft) Obtained TOP in Oct ‘19 Retail Trade Mix pre-dominantly F&B 17
Slide 18: SG Retail Portfolio Performance
SG RETAIL PORTFOLIO PERFORMANCE 18
Slide 19: Singapore Retail Portfolio Committed Occupancy
Singapore Retail Portfolio Committed Occupancy 99.6% 97.7% 99.5% Secondary market occupancy 98.21 Suntec City Mall Marina Bay Link Mall Overall Committed Occupancy Outperformed Market Note: 1. Source: JLL 19
Slide 20: Suntec City Mall – Improved Operational Performance
Suntec City Mall – Improved Operational Performance Committed Occupancy Rent Reversions Positive Rent Reversions (as at 31 Dec 2019) (FY 2019) 10 consecutive quarters 99.6% +5.1% Footfall Tenant Sales Tenants Sales psf YOY Growth (FY 2019) (FY 2019) (FY 2019) 55 +3.9% 53 YOY +0.7% 4.8% Tenants’ Sale
Slide 21: Suntec City Mall Asset Enhancement
Suntec City Mall Asset Enhancement Works at Basement 1 of approx. 15,000 sq ft Completed in June ’19 Return On Investment of approx. 50% Increased F&B Offerings from 5 to 16 New Tenants: High Return On Investment 21
Slide 22: Convention Performance
CONVENTION PERFORMANCE 22
Slide 23: Suntec Convention Performance
Suntec Convention Performance No. of Events 1,837 1,609 FY 2018 FY 2019 Strong Line-up of Trade Shows, Conferences and Consumer Shows HR FESTIVAL 2019 26TH INTELLIGENT TRANSPORT SYSTEMS WORLD CONGRESS 2019 COMEX IT SHOW 2019 23
Slide 24: Australia Portfolio Performance
AUSTRALIA PORTFOLIO PERFORMANCE
Slide 25: Australia Committed Occupancy
Australia Committed Occupancy 100.0% 100.0% 97.8% Nationwide 91.7% 92.8% CBD Occupancy 91.7%1 177 Pacific Highway Southgate Office 55 Currie Street Australia Office Overall Southgate Retail Strong Committed Occupancy Note: 1. Source: JLL 25
Slide 26: 177 Pacific Highway, Sydney
177 Pacific Highway, Sydney 100% Committed Occupancy No Leases Due to Expire Till 2023 New End-of-Trip Facility Completed 26
Slide 27: Southgate Complex, Melbourne
Southgate Complex, Melbourne High Committed Occupancy Office: 100% Retail: 92.8% 7.2% of Leases Due to Expire in 2020 Strong Rent Reversions Achieved in FY 2019 27
Slide 28: Southgate Office Lobby Asset Enhancement
Southgate Office Lobby Asset Enhancement IBM Tower: Refurbishment of lobbies and foyer Works for HWT Towers to Complete by 2020 28
Slide 29: Project Under Development
PROJECT UNDER DEVELOPMENT Artist’s impression
Slide 30: Project Under Development: Olderfleet, Collins Street
Project Under Development Olderfleet, 477 Collins Street, Australia ADDITIONAL INCOME CONTRIBUTION IN 2H 2020 Base building has been completed Integrated fit-out in progress On schedule to complete by end June 2020 FREEHOLD PREMIUM GRADE OFFICE BUILDING 93.7% pre-committed occupancy and 3.5% with He
Slide 31: Looking Ahead
LOOKING AHEAD
Slide 32: Looking Ahead – Singapore Office Portfolio
Looking Ahead – Singapore Office Portfolio • Singapore office portfolio remains resilient because of the properties’ diverse tenant bases • Office demand will be impacted due to deferment of relocation and expansion plans by corporates Outlook • Some companies may continue to adopt split-team operat
Slide 33: Looking Ahead – Suntec City Mall
Looking Ahead – Suntec City Mall • Strong headwinds for the rest of the year • Significant drop in shopper traffic due to COVID-19 Outlook • Gradual recovery from 3Q 20 as COVID-19 situation improves and safe distancing measures are eased • Weak tourist arrivals will continue to impact retail sales
Slide 34: Looking Ahead – Suntec Convention
Looking Ahead – Suntec Convention • Challenges faced by MICE industry in Singapore are unprecedented • International and large-scale trade fairs impacted by travel restrictions • Smaller-scale meetings and events affected by safe distancing measures • Recovery likely led by smaller-scale events, mee
Slide 35: Looking Ahead – Australia Portfolio
Looking Ahead – Australia Portfolio • Occupancy in Sydney and Melbourne office markets are currently above 10-year averages • New supply on stream in 2020 and weaker economic activity will weigh on occupancy • Adelaide CBD office market expected to remain stable with limited new supply in 2020 Outlo
Slide 36: Weathering Through Challenging Times
Weathering Through Challenging Times 1 Proactively Manage Risks to Strengthen Resiliency of Properties Disciplined Approach in Reducing Costs and Discretionary 2 Capital Expenditure 3 Prudent Capital Management Achieve Balance between Reasonable Returns to Unitholders, 4 Build Cash Reserve and Assis
Slide 37: Thank You
Real Estate Investment Trust © SUNTEC THANK YOU 9 Penang Road MBEC Properties ‘One Rattles Suntec City 17 Pacific Oldereet, 477 Southgate Complex 55 Curie Street 21 Hanis Street Quay Highway Collins Street
Slide 38: Disclaimer
Disclaimer The information included in this release does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for units in Suntec REIT (“Units”) in Singapore or any other jurisdiction. This presentation may contain forward-looking state