CapitaLand Integrated Commercial Trust · SGX:C38U
CapitaLand Integrated Commercial Trust — CapitaCommercial Trust — Q1 2008 Earnings Presentation
29 slides from CapitaLand Integrated Commercial Trust's earnings presentation, Apr 25, 2008
Slide 1: CapitaCommercial Trust 1Q 2008 Financial Results
CapitaCommercial p Trust 1Q 2008 Financial Results 25 April 2008
Slide 2: Important Notice
Important Notice The past performance of CapitaCommercial Trust (“CCT”) is not indicative of the future performance of CCT. Similarly, the past performance of CapitaCommercial Trust Management Limited, as manager of CCT (the “CCT Manager”) is not indicative of the future performance of the CCT Manag
Slide 3: 1Q 2008 Financial Results
1Q 2008 Financial Results Cap/taCommercial P Trust
Slide 4: 1Q 2008 – DPU Up by 22.7% Q-on-Q
1Q 2008 – DPU Up by 22.7% Q-on-Q Actual 1Q 08 1Q 07 Change S$'000 S$'000 % Gross Revenue 71,195 57,964 22.8 Net Property Income 49 626 49,626 42 933 42,933 15 6 15.6 Distributable Income 35,858 29,248 22.6 Di t ib ti Distribution Per P Unit U it 2 59¢ 2.59¢ 2 11¢ 2.11¢ 22 7 22.7 Annualised DPU 10.42
Slide 5: 1Q 2008 – Surpasses Forecast by 12.1%
1Q 2008 – Surpasses Forecast by 12.1% 1 Jan 2008 to 31 Mar 2008 Actual Forecast1 Change C S$'000 S$'000 % Gross Revenue 71,195 66,616 6.9 Net Property Income 49 626 49,626 45 616 45,616 88 8.8 Distributable Income 35,858 32,013 12.0 Di t ib ti Distribution Per P Unit U it 2 59¢ 2.59¢ 2 31¢ 2.31¢ 12
Slide 6: Constantly Delivering Higher DPU
Constantly Delivering Higher DPU 19 8% 19.8% 11.00 10.42 18.7% 10 04 10.04 10.00 9.29 cents) 7.6% 9.00 7.8% 8.55 8.70 DPU (c 8.00 7.33 6.81 7.02 7.00 6.32 6.31 5.68 6.00 5.00 15 M May tto 31 1J Jan tto 31 1J Jan tto 31 1J Jan tto 31 1JJan tto 31 FY 2008 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Mar 2008 F
Slide 7: Total Assets at S$5.5B, Adj. NAV at S$2.79
Total Assets at S$5.5B, Adj. NAV at S$2.79 31 Mar 08 31 Dec 07 S$'000 S$'000 Non-current assets 5,269,559 5,238,359 1 Current assets 184,996 40,374 Total assets 5,454,555 5,278,733 2 Current liabilities 179,387 220,725 3 Non-current liabilities 1,371,506 1,120,386 Net assets 3,903,662 3,937,622 Unit
Slide 8: Strong Financial Ratios
Strong Financial Ratios As at As at 31 Mar 08 31 Dec 07 T t l debt Total d bt (S$'mil) (S$' il) 1 466 0 1,466.0 1 261 7 1,261.7 Gearing ratio 26.9% 23.9% Interest service coverage ratio1 3.6 times 3.3 times Average cost of debt 3.7% 3.9% Average fixed rate term to expiry 3.1 years 3.3 years Corporat
Slide 9: Debt Maturity Profile & Interest Rate Exposure
Debt Maturity Profile & Interest Rate Exposure 43% S$mil 40% 8 Debt Maturity Profile 520 580 10% Well spread out maturity 7% 108 150 100 2008 2009 2010 2011 RCS - Short term loan RCS - CMBS CCT - CMBS CCT MTN CCT - Short term loan 91% 79% Interest Rate Exposure 69% Between 91% to 69% fixed 25% 25% u
Slide 10: Growth Opportunities within Portfolio
Growth G th Opportunities within Portfolio
Slide 11: Strong Occupancy Rates Across Portfolio
Strong Occupancy Rates Across Portfolio Committed Occupancy as at 31 Mar 2008 31 Dec 2007 31 Mar 2008 Property p y (%) (%) Capital Tower 100.0 100.0 6 Battery Road 99.9 99.9 Starhub Centre 99.0 99.0 Robinson Point 100.0 98.5 Bugis Village 99 1 99.1 98 5 98.5 Golden Shoe Car Park 96.4 1 97.0 Market S
Slide 12: Significantly Higher Rent Reversions
Significantly Higher Rent Reversions 1 Renewals and New Leases Committed (1 Jan to 31 Mar 2008) Committed Leases as a 250% % of Portfolio NLA Renewals 4.8% 195.1% 200% New Leases 0.5% 158 8% 158.8% 150% 100% 50% 39.2% 31.0% 0% Office Rentals Committed Retail Rentals Committed 2 Forecast Rents Preced
Slide 13: Continued Uptrend in Rental Rates
Continued Uptrend in Rental Rates Highest Rental Rates Estimated Average C Committed itt d ¹ Mi Micro-Market M k tR Rentt 2 (S$ psf pm) 4Q 2007 1Q 2008 4Q 2007 1Q 2008 3 4 Capital Tower 7.04 - 10.30 10.90 6 Battery Road 18.50 20.50 16.30 17.20 Raffles City Tower 15.90 16.50 10.60 10.90 Robinson Poin
Slide 14: Healthy Office Absorption Expected
Healthy Office Absorption Expected Singapore private office space (Central Area) – demand and supply Remakingg of Singapore g p as Ave annual supply = 2.4 2 4 mil sq ft global city Ave annual demand Ave annual supply =1.7 mil sq ft during previous growth Post‐Asian financial crisis and Projected ann
Slide 15: Firm Lease Commitments for MBFC 3 years ahead of building completion
Firm Lease Commitments for MBFC 3 years ahead of bldg completion Key Financial Institutions in Marina Bay Financial Centre Company NFA (sqft) Phase Comments Standard Chartered 508,298 1 85% or 24 floors in Tower 1 N ti i Natixis 65 000 65,000 1 3 flfloors iin T Tower 1 Wellington Inv Mgt 21,000 1 1
Slide 16: Prime Office Rent Surpasses 1996 Market Peak
Prime Office Rent Surpasses 1996 Market Peak - S$9.90; Exceeded 1990 Market Peak - S$11.50 $ 1Q 2008 Vs 1Q 2007 Vs 4Q 2007 Prime $16 00 psf pm $16.00 Up 86 86.0% 0% Up 6 6.7% 7% Grade A $18.65 psf pm Up 75.9% Up 8.7% Average Prime Office Rents (Singapore Market) $17.00 $16.00 Average Grade A $16.00
Slide 17: Office Lease Expiries Offer Rent Upside
Office Lease Expiries Offer Rent Upside Leases up for Renewal (By Gross Rental Income) as at 31 Mar 2008 29.4% in 2008/2009 33.1% 26.3% 17.5% 1 11.9% 11.2% 2008 2009 2010 2011 2012 and Beyond Note: 1. Excludes a lease expiring beyond 2012 (representing 15.5% of the office gross rental income) which
Slide 18: Upside Potential with Current Average Rent
Upside Potential with Current Average Rent 1 2 Average Gross Rental Rate of Expiring Leases vs. Micro-Market Rent Capital Tower 6 Battery Road 80% $12.00 $ $20 00 $20.00 Mi M k R Micro-Market Rent: S$10 90 S$10.90 Mi Micro-Market M k tR Rent: t S$17 S$17.20 20 $10.00 60% 60% $16.00 $8.00 40% $10.86
Slide 19: Balanced Lease Expiry
Balanced Lease Expiry Leases up for Renewal (By Gross Rental Income) as at 31 Mar 2008 20.2% 16.0% 16.2% 10.7% 9.7% 7 2% 7.2% 7.9% 1 6.8% 2.5% 2.4% 0.4% 2008 2009 2010 2011 2012 and Beyond 3 Of f ice Retail 2 Hotels and Convention Centre Notes: 1. Excludes a lease expiring beyond 2012 (representing
Slide 20: 83% NPI Contribution from Grade A Office Assets and Raffles City
1 83% NPI Contribution from Grade A Office Assets and Raffles City Robinson Point 2.5% Market Street Car B i Vill Bugis Village 3.9% Park 1.6% Golden Shoe Car Park 4 0% 4.0% Starhub Centre 4.2% HSBC Building Raf f les City 2 4.3% 41.3% Capital Tower 14 4% 14.4% 6 Battery Road 23.8% Notes: 1. Based o
Slide 21: Diverse Office Trade Mix
Diverse Office Trade Mix¹ Legal Education 2.6% 2.3% Telecommunications Ancillary Food & Beverage 2.8% 1.2% Business Management/Consultancy Services/Business Activities 3.1% Car Park Income 4.9% Real Estate & Property Services Banking, g 5 5% 5.5% Insurance & IT Services & Financial Services Consulta
Slide 22: Summary
Summary 1Q 2008 DPU increases by 22.7% from 1Q 2007 Driven by higher rental income from high quality buildings and proactive capital management Well positioned to benefit from rental growth within current portfolio About 30% of office leases up for renewal over 2008 and d 2009 (b (by gross r
Slide 23: Summary (cont'd)
Summary (cont’d) Strong g financial ratios with low g gearing g of 26.9% and average cost of debt of 3.7% Option O ti to t purchase h 1GGeorge Street St t for f S$1.165 S$1 165 billion with yield protection of 4.25% p.a. of purchase price till 2013, 2013 subject to unitholders’ unitholders appro
Slide 24: Additional Information
Additional Information Cap/taCommercial P Trust
Slide 25: Focus on Office/Commercial Assets
Focus on Office/Commercial Assets CCT’s focus is owning and investing in real estate and real estate-related assets, which are income-producing and used, or predominantly used, for commercial purposes Major usage mix for CCT properties By Monthly Gross Rental Income (for the month of Mar 2008) Offic
Slide 26: Top 10 Tenants – Portfolio
Top 10 Tenants¹ – Portfolio % of Gross Tenants Lease Expiry Dates Rental Income Oct 2009, 2009 Dec 2009 2009, Feb 2010 2010, Standard Chartered Bank Oct 2010, Jan 2011, Jan 2020 15.2% Jul 2008, Jul 2010, Jun 2010, RC Hotels (Pte) Ltd Dec 2010, Nov 2016 12.1% Government of Singapore Investment Corpor
Slide 27: Gross Revenue - By Asset
Gross Revenue - By Asset 1 Jan 08 to 31 Mar 08 Actual vs Forecast Actual Forecast 1 Change S$'000 S$'000 % Capital Tower 12,178 12,077 0.8 6 Battery y Road 16,459 , 13,738 , 19.8 HSBC Building 2,184 2,184 - Starhub Centre 3,347 3,253 2.9 Robinson Point 2 012 2,012 1 957 1,957 28 2.8 Bugis Village 2,
Slide 28: Net Property Income - By Asset
Net Property Income - By Asset 1 Jan 08 to 31 Mar 08 Actual vs Forecast Actual Forecast 1 Change S$'000 $ S$'000 % Capital Tower 7,137 6,713 6.3 6 Battery atte y Road oad 11,826 ,8 6 9,555 23.8 HSBC Building 2,146 2,135 0.5 Starhub Centre 2,054 1,992 3.1 Robinson Point 1,239 1,226 1.1 Bugis Village
Slide 29: CapitaCommercial Trust Management Limited contact details
CapitaCommercial C it C i lT Trustt M Managementt Li Limited 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 Direct
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