Suntec Real Estate Investment Trust · SGX:T82U
Suntec Real Estate Investment Trust — Suntec REIT — FY2021 Earnings Presentation
51 slides from Suntec Real Estate Investment Trust's earnings presentation, Jan 26, 2022
Slide 1: Suntec REIT Financial Results 2H and FY 2021
SUNTEC REIT FINANCIAL RESULTS For the 2H and Financial Year ended 31 December 2021 26 January 2022
Slide 2: Agenda
Agenda 03 21 FY 21 Highlights Singapore Office Portfolio Performance 04 28 Financial Highlights Singapore Retail Portfolio Performance 18 34 Capital Management Australia & UK Portfolio Performance 39 Looking Ahead 2
Slide 3: FY 21 Highlights
FY 21 Highlights DISTRIBUTABLE INCOME FROM OPERATIONS S$247.2 million, +18.2% y-o-y DISTRIBUTION PER UNIT TO UNITHOLDERS 8.666 cents, +17.1% y-o-y ACTIVE PORTFOLIO MANAGEMENT AUM increased 4.3% to S$12.2 billion • Divestments: 9 Penang Road (16 Jun 2021) and Suntec City Office Strata Units (21 Sep 2
Slide 4: Financial Highlights
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Slide 5: 2H 21 Financial Performance
2H 21 Financial Performance Gross Revenue (S$ mil) Net Property Income (S$ mil) JV Income1 (S$ mil) 15.3% 30.3% 9.2% 191.3 142.0 165.9 109.0 56.9 52.1 2H 20 2H 21 2H 20 2H 21 2H 20 2H 21 Note: 1. Excludes share of profits relating to gain/(loss) on fair value adjustments of $18.5 mil for the half ye
Slide 6: 2H 21 Gross Revenue increased 15.3% y-o-y
2H 21 Gross Revenue increased 15.3% y-o-y S$ mil TOTAL Total 191.3 15.3% 165.9 Suntec City Office 65.7 - Divestment of strata units; lower occupancy 68.6 + Lower rent assistance; higher occupancy; higher GTO rent; 51.2 higher marcom revenue Suntec City Mall 46.1 - Lower fixed rent Suntec Convention
Slide 7: 2H 21 NPI & JV Income
2H 21 NPI & JV Income S$ mil Office OFFICE NPINPI Total TOTAL 106.3 20.9% 87.9 Suntec City Office 51.1 - Divestment of strata units 51.7 + Lower sinking fund 19.2 177 Pacific Highway 17.4 + Higher revenue 21 Harris Street 7.3 4.7 + Higher revenue 5.7 - Fit-out incentives granted to tenant 55 Currie
Slide 8: 2H 21 NPI & JV Income
2H 21 NPI & JV Income S$ mil RETAIL TOTAL 35.2 54.4% 22.8 + Higher revenue; lower expenses due to 35.5 lower sinking fund, lower provision and Suntec City Mall 23.1 recovery of doubtful debts - Absence of property tax rebate in 2H 21 Marina Bay Link Mall 0.8 - Lower occupancy & rent 1.0 Southgate Re
Slide 9: 2H 21 Distribution Income to Unitholders
2H 21 Distribution Income to Unitholders Distributable Income from Operations DPU to Unitholders (S$ mil) (SG cents) 21.6% 9.8% 0.363 129.0 106.1 4.512 3.746 Distribution retained in 1H 20 2H 20 2H 21 2H 20 2H 21 Distributable Income from Operations DPU to Unitholders S$129.0 million,+21.6% y-o-y 4.
Slide 10: Diversified Portfolio across Sector and Geography
Diversified Portfolio across Sector and Geography Minster Building 6% Nova Properties Office, 7% 82.2% 477 Collins Suntec City Retail, 6% 41% 17.7% 55 Currie Street 3% Southgate Complex S$198.9 million 3% 21 Harris S$198.9 million NPI & JV Income 4% NPI & JV Income 2H 21 2H 21 Convention, 0.1% 177 P
Slide 11: FY 21 Financial Performance
FY 21 Financial Performance S$ mil Gross Revenue increased S$42.7 million y-o-y mainly due to: 13.5% + New contribution from The Minster - Lower revenue from Suntec Building Convention + Increased contributions from 477 Collins - Suntec City Office: Divestment of 358.1 Street and 21 Harris Street st
Slide 12: FY 21 Distribution Income to Unitholders
FY 21 Distribution Income to Unitholders Distributable Income from Operations DPU to Unitholders (S$ mil) (SG cents) 18.2% 17.1% 247.2 8.666 209.2 7.402 FY 20 FY 21 FY 20 FY 21 Distributable Income from Operations DPU to Unitholders S$247.2 million,+18.2% y-o-y 8.666 cents, +17.1% y-o-y + New contri
Slide 13: Portfolio Valuation
Portfolio Valuation Investment Properties 31 Dec ‘21 31 Dec ‘21 31 Dec ‘20 YoY YoY Variation Variation Singapore Suntec City Office 1 S$2,415.8 psf S$2,975.0M S$3,098.0M -S$123.0M -4.0% Suntec City Retail 2 S$2,482.2 psf S$2,262.0M S$2,225.4M S$36.6M 1.6% Suntec Convention S$462.3 psf S$198.9M S$179
Slide 14: Portfolio Valuation
Portfolio Valuation Investment Properties 31 Dec ‘21 31 Dec ‘21 31 Dec ‘20 YoY YoY Variation Variation Australia 177 Pacific Highway A$17,985.2 psm A$720.0M A$645.0M A$75.0M 11.6% 21 Harris Street A$16,469.1 psm A$307.0M A$300.0M A$7.0M 2.3% 477 Collins Street (50%) A$16,196.2 psm A$474.5M A$445.0M
Slide 15: Portfolio Valuation
Portfolio Valuation Investment Properties 31 Dec ‘21 31 Dec ‘21 31 Dec ‘20 YoY YoY Variation Variation United Kingdom Nova Properties (50%) £1,608.8 psf £449.8M 1 £436.0M £13.8M 3.2% The Minster Building 2 £1,173.6 psf £348.4M 3 nil nil nil £798.2M £436.0M Total S$1,452.1M 4 S$786.4M 4 Grand Total (
Slide 16: Assets Under Management of S$12.2 billion
Assets Under Management of S$12.2 billion Office, 78% Singapore, 71% Australia, 17% AUM breakdown AUM breakdown by Segment by Country Retail, 20% UK, 12% Convention, 2% 16
Slide 17: Distribution Timetable
Distribution Timetable Distribution Payment Distribution Period 1 October – 31 December 2021 Amount (cents/unit) 2.2801 Ex-date 4 Feb 2022 Record date 7 Feb 2022 Payment date 28 Feb 2022 Note: 1. 2.232 cents had been paid on 29 Nov 2021. Total of 4.512 cents for 2H 2021. 17
Slide 18: Capital Management
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Slide 19: Key Financial Indicators
Key Financial Indicators As at 31 Dec ‘21 As at 31 Dec ‘20 NAV Per Unit1 S$2.110 S$2.055 Total Debt Outstanding S$4,944 mil S$4,855 mil Aggregate Leverage Ratio2 43.7% 44.3% Weighted Average Debt Maturity 2.92 years 3.01 years All-in Financing Cost 2.35% p.a. 2.53% p.a. Adjusted ICR3 2.6X 2.6X Weigh
Slide 20: Proactive Capital Management
Proactive Capital Management Debt Maturity Profile Perpetual Securities (First Reset) 1,600 1,200 1,440 1,400 221 1,000 1,200 1,019 800 1,000 900 885 280 1219 800 600 500 221 600 200 400 300 100 900 400 739 200 200 200 400 364 200 150 200 0 0 FY2025 FY2026 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 R
Slide 21: Singapore Office Portfolio Performance
SINGAPORE OFFICE PORTFOLIO PERFORMANCE
Slide 22: Singapore Office Committed Occupancy
Singapore Office Committed Occupancy 97.2% 98.5% 97.3% 97.5% Core CBD Occupancy 93.3%3 Suntec City Office One Raffles Quay MBFC Towers 1 & 2 Singapore Overall Committed Occupancy Strengthened to 97.5% Notes: 1. Combined occupancy for One Raffles Quay office and ancillary retail was 98.5%. 2. Committ
Slide 23: Singapore Office Leasing Activity
Singapore Office Leasing Activity Portfolio Work Done1 FY 21: 719,600 sq ft (61% are renewal leases) New2 2 280,900 sq ft Renew 438,700 sq ft FY 21 Rent Reversion2 2 +3.2% New Tenants by Sector FY 21 (sq ft) Technology, media and telecommunications 31% Banking, Insurance and Financial Services 20% M
Slide 24: Singapore Office Lease Expiry
Singapore Office Lease Expiry % of Total NLA1 Q-o-Q Comparison 25.6% 24.7% 25.7% 24.5% 18.7% 16.6% 11.5% 9.2% 9.2% 8.6% 8.6% 8.4% 3.9% 2.0% 2.8% 2021 2022 2023 2024 2025 2026 2027 & Beyond Vacant NLA Expiries as at 3Q 21 Expiries as at 4Q 21 WALE 2.67 Years FY2027 & FY2022 FY2023 FY2024 FY2025 FY202
Slide 25: Suntec City Office – Leasing Activity
Suntec City Office – Leasing Activity Work Done1 FY 21: 449,800 sq ft (63% are renewal leases) Rent Reversion2 New2 167,100 sq ft FY 21 +2.2% 2 Renew 1Q 21 2Q 21 3Q 21 4Q 21 282,700 sq ft -0.9% +2.1% +7.3% +0.2% New Tenants by Sector FY 21 (sq ft) Technology, media and telecommunications 31% Banking
Slide 26: Suntec City Office - Committed Occupancy and Average Gross Rent
Suntec City Office - Committed Occupancy and Average Gross Rent psf pm 110% $9.25 $9.50 $9.09 $9.08 $8.77 $8.78 $8.84 $8.91 $8.68 $8.50 100% $7.80 98.7% 98.1% 97.0% 96.0% 97.2% 95.6% 95.5% $7.50 90% 93.4% 93.3% $6.50 80% $5.50 70% $4.50 60% $3.50 50% $2.50 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4
Slide 27: Suntec City Office – Lease Expiry & Expiry Rent
Suntec City Office – Lease Expiry & Expiry Rent psf pm 100.0% $10.5 90.0% $10.10 $10.0 80.0% $9.5 $9.31 $9.31 $9.25 70.0% $9.15 $9.0 $8.91 60.0% $8.5 50.0% $8.0 40.0% $7.5 30.0% $7.0 20.0% 37.7% 27.3% 10.0% $6.5 14.0% 7.3% 5.0% 5.6% $6.0 2022 2023 2024 2025 2026 2027 & Beyond Expiry Rent Expiring Sp
Slide 28: Singapore Retail Portfolio Performance
SINGAPORE RETAIL PORTFOLIO PERFORMANCE 28
Slide 29: Suntec City Mall & MBLM – Occupancy & Work Done
Suntec City Mall & MBLM – Occupancy & Work Done Committed Occupancy Portfolio Work Done2 FY 21: 236,900 sq ft (60% are renewal leases) Secondary market occupancy 94.0%1 New 95,700 sq ft 94.7% 92.2% 94.6% Renewal 141,200 sq ft Suntec City Mall Marina Bay Link Mall Overall Committed Occupancy Strength
Slide 30: Suntec City Mall & MBLM Lease Expiry
Suntec City Mall & MBLM Lease Expiry % of Total NLA1 Q-o-Q Comparison 24.9% 25.4% 22.6% 23.3% 22.6% 22.4% 14.1% 14.1% 7.2% 7.8% 5.1% 5.4% 1.6% 1.3% 2.2% 2021 2022 2023 2024 2025 2026 2027 & Beyond Vacant NLA Expiries as at 3Q 21 Expiries as at 4Q 21 WALE 2.28 Years FY2027 & FY2022 FY2023 FY2024 FY20
Slide 31: Suntec City Mall – Leasing Activity
Suntec City Mall – Leasing Activity Trade Category by NLA 26% F&B Rent Reversion 28% 29% Activity-based FY 21 –14.4%1 31% 1Q 21 2Q 21 3Q 21 4Q 21 Essential Services 8% 7% -26.1% -7.2% -11.2% -11.8% Others2 37% Others2 34% 31-Dec-20 31-Dec-21 • Rejuvenated retail and dining offerings with 32 new-to-m
Slide 32: Suntec City Mall – Footfall and Tenant Sales
Suntec City Mall – Footfall and Tenant Sales Shopper Traffic and Tenant Sales psf (Against 2019) 120% Start of Circuit Start of Start of Preparatory Transition Breaker Phase 3 Phase 2HA Phase Phase 100% 2019 Average Start of Stabilisation Phases 1 Phase 80% and 2 60% 40% 20% 0% Shopper Traffic Tenan
Slide 33: Suntec City Mall – Tenant Sales by Product Category
Suntec City Mall – Tenant Sales by Product Category Tenant Sales1 (Whole Mall) psf YoY Growth Kids' fashion, Toys and Kids' specialty 66% Services and Others 53% Wellness 42% Optical 34% Sporting Goods and Apparel 20% Hair and Beauty 17% Fashion and Accessories 16% Shoes & Bags 16% Jewellery and Wat
Slide 34: Australia & UK Portfolio Performance
AUSTRALIA & UK PORTFOLIO PERFORMANCE
Slide 35: Australia Committed Occupancy
Australia Committed Occupancy Nationwide CBD Office Occupancy 85.9%1 95.7% 98.3% 93.8% 91.0% 91.7% 94.2% 85.6% 177 Pacific 21 Harris Southgate Office 55 Currie 477 Collins Australia Office Southgate Retail Highway Street 2 Street Street 2 Overall Healthy Occupancy Across Australia Office Portfolio N
Slide 36: Australia Portfolio Lease Expiry
Australia Portfolio Lease Expiry % of Total NLA1 Q-o-Q Comparison 46.0% 47.2% 24.7% 24.8% 7.4% 6.1% 6.5% 6.5% 4.8% 4.8% 5.3% 5.4% 2.3% 2.7% 2.5% 2.5% 0.5% 2021 2022 2023 2024 2025 2026 2027 2028 & Beyond Vacant NLA Expiries as at 3Q 21 Expiries as at 4Q 21 WALE 5.60 Years FY2028 & FY2022 FY2023 FY20
Slide 37: UK Portfolio Summary
UK Portfolio Summary Committed Occupancy Lease Expiry % of Total NLA3 Q-o-Q Comparison 94.1% 94.1% Central London Office Occupancy 92.0%1 100.0% 96.7% 98.3% 3.9% 3.9% 1.7% 1.7% 0.3% 0.3% Nova Minster Building 2 UK Overall 2022 2024 -2026 2028 & 2023 2027 Properties Beyond Vacant NLA2 Expiries as at
Slide 38: Active Portfolio Management
Active Portfolio Management Acquire Higher Yielding Asset Active Capital Management to Strengthen Balance Sheet Strengthen & Divestment of Lower Balance Sheet Yielding Assets June 2021: June 2021: Deepen presence in London with Issued S$150 million acquisition of 100% perpetual securities interest i
Slide 39: Looking Ahead
LOOKING AHEAD
Slide 40: Singapore Office Portfolio
Singapore Office Portfolio • More businesses setting up and strengthening their presence because of Singapore’s attractiveness as a technological and financial hub • Business outlook improves in tandem with economic recovery • Demand continues to be driven by TMT and financial services sectors Outlo
Slide 41: Suntec City Mall
Suntec City Mall • Footfall and tenant sales unaffected by Vaccination-Differentiated Safe Management Measures (VDS) – Dec 21 footfall and tenant sales higher than Dec 20 • Cautious optimism on continued recovery of footfall and tenant sales • Recovery driven by high vaccination rates, return of off
Slide 42: Suntec Convention
Suntec Convention • Recovery continues to be slow due to weak international business and leisure travel • More Vaccinated Travel Lanes (VTLs), especially in Asia, required to boost recovery • Domestic market key driver for recovery – highly dependent on further easing of restrictions Outlook • Pent-
Slide 43: Australia Portfolio
Australia Portfolio • Economic conditions and employment rates expected to improve after recent COVID- 19 wave passes given high national vaccination rates and easing of border restrictions • Leasing demand to remain subdued in the short term • Nationwide CBD office vacancy of 14.1%1 expected to red
Slide 44: United Kingdom
United Kingdom • UK GDP recorded positive growth since 2Q 211, economic recovery expected to continue in 2022 • Leasing activity continues to improve driven by TMT, professional services, banking & finance sectors • Active demand in West End and City of London recovered to pre-pandemic levels • Vaca
Slide 45: Positioning For Recovery
Positioning For Recovery 1 Proactive Lease Management to Enhance Resilience of Properties Strengthen Balance Sheet through Active Capital 2 Management Further Enhance Suntec REIT’s Income Stability by Sourcing for 3 Good Quality Assets that are Accretive 4 Deliver Sustainable Returns and Long Term V
Slide 46: Thank You
Real Estate Investment Trust © SUNTEC THANK YOU MBEC One Ratfles Suntec City 17 Pacific Olderfteet, 477 Southgate Complex 55 Cure Street 21 Harts Street Nova Properties The Minster Building Properties Quay Highway Collins Street
Slide 47: Contact
Contact Melissa Chow Manager, Investor Relations melissachow@ara-group.com 5 Temasek Boulevard, Tel: +65 6835 9232 www.suntecreit.com #12-01, Suntec Tower 5 Fax: +65 6835 9672 www.ara-group.com Singapore 038985 47
Slide 48: About Suntec REIT
About Suntec REIT Singapore’s first composite REIT S$4.3 Billion1 Market Capitalisation London S$12.2 Billion2 Assets Under Management • Listed on 9 Dec 2004 on the SGX-ST • High quality office assets, complemented by retail and Singapore convention components • 10 properties – 3 in Singapore, 2 in
Slide 49: Portfolio Snapshot
Portfolio Snapshot Suntec City One Raffles MBFC The Minster Nova Properties Suntec City – Suntec Convention Quay Properties Building Office & Retail Description Integrated World-class Two premium Two premium Two Grade A Grade A Office commercial convention and Grade A office Grade A office Office bu
Slide 50: Portfolio Snapshot
Portfolio Snapshot 177 Southgate Olderfleet 477 55 Currie Street 21 Harris Street Pacific Highway Complex Collins Street Description 31-storey Grade A Integrated Premium Grade, Twelve-storey, Nine-storey, Grade office building development 40- level state- of- Grade A office A office building compris
Slide 51: Disclaimer
Disclaimer This presentation is focused on the comparison of actual results for the half year and financial year ended 31 December 2021 versus results achieved for the half year and financial year ended 31 December 2020. The information included in this release does not constitute an offer or invita