Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Saizen REIT — FY2013 Earnings Presentation
23 slides from Singapore Exchange's earnings presentation, August 2013
Slide 1: FY2013 Results Presentation
FY2013 Results Presentation August 2013 www.saizenreit.com.sg
Slide 2: Disclaimer
Disclaimer • The value of units (the “Units”) in Saizen Real Estate Investment Trust (“Saizen REIT”) and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits in, or guaranteed by, Japan Residential Assets Manager Limited as manager of Saizen REIT (the “Manag
Slide 3: Saizen REIT in Brief
Saizen REIT in Brief Listed on SGX Mainboard in November 2007 Only Singapore-listed REIT to offer access exclusively to Japanese residential properties Properties targeted at mass market tenants in 14 cities Size of portfolio: JPY 41.2 billion (S$526 million1) Saizen REIT has a corporate f
Slide 4: Well-diversified Portfolio
Well-diversified Portfolio Portfolio Total number of properties: 139 Region City distribution by revenue (%) Kumamoto 17.0 Kitakyushu 10.5 Fukuoka 5.9 Kyushu Kagoshima 3.3 Oita 0.8 37.5 Sapporo 24.2 Hokkaido Hakodate 0.7 24.9 Sendai 11.4 Koriyama 2.7 Tohoku Morioka 1.5 15.6 Hiroshima 14.2 Chugoku Ku
Slide 5: Distributions
Distributions Recent distribution: Distribution per Unit 0.63 Singapore cents Distribution period 1 January 2013 to 30 June 2013 Date payable 24 September 2013 Singapore cents Distribution per Unit (DPU) JPY 0.70 0.70 0.60 0.60 0.50 0.50 0.40 0.40 0.30 0.30 Actual DPU (Singapore cents) 0.20 0.20 DPU
Slide 6: Distributions
Distributions It is Saizen REIT’s intention to utilise, when possible, undeployed capital cash resources such as proceeds from new borrowings and/or warrant proceeds to offset loan amortisation, thereby effectively making available cash from operations for distributions Going forward, the abilit
Slide 7: FY2013 Overview
FY2013 Overview Growth in revenue and net property income were driven by property acquisitions Revenue and net property income increased by 9.7% and 13.6% in FY2013 as compared to FY2012 Net income from operations affected by one-off loan refinancing costs which comprised primarily loan commis
Slide 8: FY2013 Overview
FY2013 Overview Acquired 7 properties and divested 2 properties Obtained 4 loans 2 loans of JPY140 million and JPY 200 million were obtained by GK Gyokou and GK Chogen respectively in December 2012 Raised approximately JPY 3.8 billion in new loan proceeds from the refinancing of 4 loans with
Slide 9: FY2013 Overview
FY2013 Overview The weakening of the JPY against the S$ has weighed on Saizen REIT’s net asset value and income in S$-terms As Saizen REIT’s distributable income from operations is generated in JPY, its S$- denominated distributions are dependent on the JPY-S$ cross rates Distribution payment
Slide 10: Financial Performance
Financial Performance Gross revenue (JPY'mln) 4,500 4,269 4,133 Net property income (JPY'mln) 3,868 3,824 4,000 Distributable income generated 3,578 3,485 during the year (JPY'mln) 3,500 3,000 2,914 2,782 2,657 2,487 2,536 2,500 2,339 2,000 1,697 1,500 1,375 1,390 1,043 1,000 800 500 176 0 FY2008 FY
Slide 11: Occupancy Rates
80% 85% 90% 95% 100% Jun-08 Jun 08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Occupancy Rates Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Average occupancy rates remained stable above 90% since 11
Slide 12: Stable Rental Rates
Stable Rental Rates Average rental rates maintained above JPY 1,500 / sqm (approx. S$20 / sqm) since Jun 08 2,000 Average rental rates of residential units (JPY / sqm) 1,500 1,000 500 0 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Sep-08 Dec-08 Sep-09 Dec-09 Sep-10 Dec-10 Sep-11 Dec-11 Sep-12 Dec-12
Slide 13: Debt Profile
Debt Profile Prevailing Loan Property Annual loan Company Source of Debt Maturity Guarantor Loan-to- Interest Amount Value amortisation Date Fee (%) value (%) Rate (%) (JPY’mln) (JPY’mln) (JPY’mln) GK Gyotatsu Unencumbered 1,347.0 GK Gyosei Unencumbered 671.0 GK Chosei 643.0 YK JOF 1,982.0 YK Keizan
Slide 14: Debt Profile
Debt Profile 6.00% 8 5.00% 7 6 4.00% 5 3.00% 4 2.00% 3 2 1.00% 1 WA loan 0.00% 0 interest rate Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Loan duration (years) After FY2023 FY2022 to FY2023 Nearest loan maturity is in February 2018 FY2020 to FY2021 FY2018 to
Slide 15: Property Valuations
Property Valuations 50,000 Total valuation (JPY'mln) 49,062 Valuation of consistent portfolio of 45,000 43,774 42,734 128 properties (JPY'mln) 40,562 41,178 40,382 40,000 36,443 35,000 36,263 32,995 35,653 34,295 33,820 32,888 33,151 30,000 25,000 Jun‐08 Jun‐09 Jun‐10 Jun‐11 Jun‐12 Jun‐13 The tota
Slide 16: Acquisitions in FY2013
Acquisitions in FY2013 Rise Cosmo Reveur Rise Shinoe Clair Court Yotsugibashi Sangenjaya Roka Koen Location Kumamoto Tokyo Kumamoto Tokyo Date acquired Aug 2012 Aug 2012 Nov 2012 Feb 2013 Year built 2012 1989 2003 1998 Purchase price (JPY’mil) 428.0 590.0 285.0 712.5 Valuation (JPY’mil) 420.0 593.0
Slide 17: Acquisitions in FY2013
Acquisitions in FY2013 Cosmos Kokura AS Residence Grand Polestone Eki Mae Hakataeki- Tsurumi II minami Location Kitakyushu Fukuoka Hiroshima Date acquired Mar 2013 May 2013 Jun 2013 Year built 2006 2006 2008 Purchase price (JPY’mil) 753.9 599.7 670.0 Valuation (JPY’mil) 762.0 585.0 671.0 NPI yield (
Slide 18: Property Acquisition vs Unit Buy-Back
Property Acquisition vs Unit Buy-Back Generally, the positive effects on DPU from Unit buy-backs are greater than those from the acquisition of properties when the price of Saizen REIT Units is lower Factors affecting the acquisition vs buy-back decision include: Economic conditions and Unit p
Slide 19: Unit Buy-Back Activity
Unit Buy-Back Activity Unit buy-back activity between 25 September 2012 and 13 June 2013 Number of Units bought back 6,325,000 Highest price paid per Unit S$0.175 Lowest price paid per Unit S$0.164 Total consideration (incl. brokerage, GST etc.) S$1,069,849.96 19
Slide 20: Upcoming Plans
Upcoming Plans Explore opportunities to raise funds with existing and new lenders via the use of unencumbered properties (valued at approximately JPY 2 billion) as collateral Property acquisitions financed by re- Potential reported as Achieved as at 21 leveraging and other internal funds at 31 Mar
Slide 21: Upcoming Plans: 5-to-1 Unit Consolidation
Upcoming Plans: 5-to-1 Unit Consolidation Purpose: To reduce the magnitude of a single tick move on Saizen REIT’s Unit trading price Magnitude: Once the Units trade at S$0.20 and above (as they did in April and May of 2013), the price movement per tick of 0.5 cents will amount to as much as 2.5%
Slide 22: Key Financial Information
Key Financial Information Number of Units in Issue as at 21 August 2013 1,418,058,795 NAV attributable to Unitholders as at 30 June 2013 1 S$351 million NAV per Unit as at 30 June 2013 1 S$0.25 Market capitalisation as at 30 June 2013 2 S$261 million 4Q FY2013 interest cover ratio 6.0 times Gearing
Slide 23: Thank You
SaizenREIT )r Thank You 23