Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Sasseur REIT — FY2019 Earnings Presentation
39 slides from Singapore Exchange's earnings presentation, Feb 20, 2020
Slide 1: Sasseur REIT Financial Results FY 2019
SASSEUR REIT First Listed Outlet REIT in Asia Financial Results for FY 2019 20 February 2020
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, JAPAN OR THE PEOPLE’S REPUBLIC OF CHINA This presentation shall be read in conjunction with Sasseur REIT’s financial results announcement dated 20 February 2020 published on SGX Net. This presentation is fo
Slide 3: Contents
Contents Section 1 Key Highlights Section 2 Financial Results Section 3 Capital Management Section 4 Portfolio Update Section 5 COVID-19 Update Section 6 Investment Merits 3
Slide 4: Key Highlights
Key Highlights SASSEUR (KUNMING) OUTLETS
Slide 5: FY 2019 Key Highlights
FY 2019 Key Highlights FY 2019 DPU 8.2%2, well above projection of 7.8% EMA Rental Distributable Distribution NAV Income1 Income Per Unit2 Per Unit S$122.1 S$77.9 6.533 89.20 million million S Cents S Cents 1.6% vs 4.7% vs 4.7% vs 11.5% as at Projection Projection Projection IPO 1. Excluding straigh
Slide 6: 4Q 2019 Key Highlights
4Q 2019 Key Highlights EMA Rental Distributable Distribution NAV Income1 Income Per Unit2 Per Unit S$31.5 S$19.5 1.629 89.20 million million S Cents S Cents 0.9% y-o-y 17.4% y-o-y 18.5% y-o-y 11.5% as at IPO 1. Excluding straight-line accounting adjustment 6 2. Mainly due to utilisation of available
Slide 7: Financial Results
Financial Results SASSEUR (CHONGQING) OUTLETS 7
Slide 8: FY 2019 DPU Exceeded Projection By 4.7%
FY 2019 DPU Exceeded Projection By 4.7% 4Q 2019 FY 2019 Change Change Actual Projection Actual Projection % % Fixed Component 99.4 98.5 +0.9 396.3 394.1 +0.6 (RMB mil) Variable Component 63.1 65.6 -3.8 221.3 217.3 +1.9 (RMB mil) EMA Rental Income1 162.5 164.1 -1.0 617.6 611.4 +1.0 (RMB mil) Exchange
Slide 9: 4Q 2019 EMA Rental Income Increase 0.9% y-o-y
4Q 2019 EMA Rental Income Increase 0.9% y-o-y Change 4Q 2019 4Q 2018 % Fixed Component 99.4 95.7 +3.9 (RMB mil) Variable Component 63.1 61.1 +3.1 (RMB mil) EMA Rental Income1 162.5 156.8 +3.6 (RMB mil) Exchange Rate 2 5.1675 5.033 +2.7 (RMB/S$) EMA Rental Income1 31.5 31.2 +0.9 (S$ mil) Distributabl
Slide 10: Healthy Balance Sheet
Healthy Balance Sheet Actual Actual S$ mil 31 Dec 2019 31 Dec 2018 Investment properties 1,587.2 1,539.5 Cash and short-term deposits 154.7 203.6 Other assets 28.5 25.5 Total Assets 1,770.4 1,768.7 Loans and borrowings 478.6 493.3 Other liabilities 222.7 201.4 Total Liabilities 701.3 694.7 Net Asset
Slide 11: Portfolio Valuation
Portfolio Valuation Valuation Valuation Change as at as at RMB million (%) 31 Dec 2019 31 Dec 2018 Chongqing 2,973 2,901 +2.48 Bishan 824 790 +4.30 Hefei 2,795 2,521 +10.87 Kunming 1,620 1,495 +8.36 Total Portfolio 8,212 7,707 +6.55 11
Slide 12: EMA Rental Income vs Forecast By Quarter
EMA Rental Income vs Forecast By Quarter 200 180 162.5 164.1 156.9 153.3 155.8 154.5 160 151.3 148.6 142.0 139.6 145.8 142.3 146.0 144.1 140 56.0 56.0 63.1 65.6 61.2 55.6 54.8 50.1 RMB ‘ millions 120 42.2 39.8 50.1 46.7 47.5 45.6 100 80 60 99.8 99.8 95.7 95.6 95.7 95.7 98.5 98.5 98.5 98.5 99.8* 98.5
Slide 13: Distribution Details
Distribution Details Distribution Period 1 1 October to 31 December 2019 Distribution Per Unit1 1.629 Singapore cents 1. Based on 100% distribution pay-out ratio Distribution Timetable Notice of Books Closure Date 20 February 2020 Ex-dividend Date 5 March 2020 Books Closure Date 6 March 2020 Distrib
Slide 14: Sasseur REIT has highest yield vs other asset classes
Sasseur REIT has highest yield vs other asset classes 1 Sasseur REIT Distribution Yield 8.2% 2 Average of the 44 S-REITs and Property Trust 6.2% 2 STI Index 4.0% CPF Ordinary Account Interest Rate 2.5% 3 MAS Benchmark Govt Bond 10 Year 1.7% 4 Singapore Fixed Deposit Rate 0.6% Notes: 1. FY 2019 distr
Slide 15: Capital Management
Capital Management SASSEUR (HEFEI) OUTLETS 15
Slide 16: Prudent Capital Management
Prudent Capital Management Onshore Facility Offshore Facility TOTAL Currency RMB SGD - ~SGD 367 million SGD 125 million1 ~SGD 492 million Quantum (RMB 1.90 billion) (~RMB 0.65 billion) (~RMB 2.55 billion) Proportion 74.6% 25.4% 100% 4.5 years Tenure (since IPO) 5 years 3 years (weighted average) Int
Slide 17: Prudent Capital Management
Prudent Capital Management Debt Facilities (SGD million) 4Q 2019 3Q 2019 Debt Headroom1 Debt Headroom1 305 274 Offshore Debts2 Offshore Debts2 125 Limit of 125 Limit of 45% 45% Aggregate Aggregate Leverage Leverage 27.8% Onshore Debts 29.0% Onshore Debts 367 370 As at 31 December 2019 As at 30 Septe
Slide 18: Debt Maturity Profile
Debt Maturity Profile Weighted average debt maturity is 2.73 years with no major re-financing until 2021 S$ million Debt Maturity 345 133 - 8 8 2019 2020 2021 2022 2023 18
Slide 19: Portfolio Update
Portfolio Update SASSEUR (HEFEI) OUTLETS
Slide 20: Portfolio Summary
Portfolio Summary Portfolio Valuation* : 8,212 mil NLA : 312,844 sqm Occupancy ^ : 96.0% Hefei Outlet Mall Valuation : 2,795 mil NLA : 144,583 sqm Occupancy : 96.3% Chongqing Outlet Mall Bishan Outlet Mall Kunming Outlet Mall Valuation : 2,973 mil Valuation : 824 mil Valuation : 1,620 mil **Based on
Slide 21: Q4 2019 Outlets Summary
Q4 2019 Outlets Summary FY 2019 Total Outlet Sales Increased 12.1% Q4 20191 Q4 2019 vs Q4 FY 20193 FY 2019 vs NLA Occupancy Outlets Sales 20182 Change Sales FY 20184 (sqm) (%) (RMB’mil) (%) (RMB’mil) Change (%) Chongqing 50,885 100.0 673.4 +5.9 2,342.5 +4.6 Bishan 47,308 92.5 126.8 -4.1 459.1 +15.1
Slide 22: Portfolio Occupancy (4Q 2019 vs 3Q 2019)
Portfolio Occupancy (4Q 2019 vs 3Q 2019) 4 Outlets Malls enjoy high stable occupancy 100.0% 100.0% 96.0% 96.3% 95.0% 94.9% 94.8% 95.4% 92.5% 91.9% 4Q19 3Q19 4Q19 3Q19 4Q19 3Q19 4Q19 3Q19 4Q19 3Q19 重庆 ChongQing 璧山 Bishan 合肥 Hefei 昆明 Kunming 项目组合 Portfolio 4Q 2019 vs 3Q 2019 22
Slide 23: Weighted Average Lease Expiry (WALE)
Weighted Average Lease Expiry (WALE) Deliberate short lease to optimise tenant mix Lease Expiry by NLA & Property Income WALE by : 80.0% 73.6% NLA 3.0 years 70.0% Property Income 1.1 years 60.0% 51.6% 50.0% 40.0% 30.0% 25.2% 20.0% 15.1% 14.4% 10.0% 7.5% 5.3% 2.8% 1.4% 3.1% 0.0% 2019 2020 2021 2022 2
Slide 24: VIP Members - Growth by Outlets
VIP Members - Growth by Outlets Total VIP members increased 93% from end of 2018 to reach 1.585 million 2017 2018 YTD 2019 1,800 1,585 1,600 1,400 Members in '000 1,200 1,000 819 800 600 514 440 374 400 256 200 0 Chongqing Bishan Hefei Kunming Total 24
Slide 25: Well Diversified Trade Mix
Well Diversified Trade Mix Breakdown of NLA1 by Trade Mix Breakdown of Revenue2 by Trade Sector Kids Lifestyle 3.5% Ad-hoc Outlet Anchor Tenants 1.6% Lifestyle 0.8% Kids Amusement 2.9% Ad-hoc Outlet 1.7% Amusement Park 4.3% Park 0.6% F&B 4.1% Children 4.3% Shoe Wear 4.3% Shoe Wear 4.7% Miscellaneous
Slide 26: Chongqing Outlets
Chongqing Outlets Sales RMB 'Mil Chongqing 800 673 700 609 580 600 480 500 400 300 200 100 - 1Q 2Q 3Q 4Q 2017 2018 2019 Year Commenced Operations Sep 2008 Outlet Members (‘000) GFA (sqm) 73,373 550 514.2 485.9 NLA (sqm) 50,885 500 28.3 450 406.5 79.4 Occupancy Rate (%, 31 Dec 19) 100 400 341.2 65.3
Slide 27: Bishan Outlets
Bishan Outlets Sales RMB 'Mil 140 125 127 120 114 100 93 80 60 40 20 - 1Q 2Q 3Q 4Q 2017 2018 2019 Year Commenced Operations Oct 2014 Outlet Members GFA (sqm) 68,791 (‘000) 300 NLA (sqm) 47,308 256.3 250 230.9 25.4 204.5 26.4 Occupancy Rate (%, 31 Dec 19) 92.5 200 181.5 22.9 155.0 26.5 No. of Tenants
Slide 28: Hefei Outlets
Hefei Outlets Sales RMB 'Mil 400 338 350 300 273 286 243 250 200 150 100 50 - 1Q 2Q 3Q 4Q Year Commenced Operations May 2016 2017 2018 2019 Outlet Members GFA (sqm) 147,316 (‘000) NLA (sqm) 144,583 500 440.4 450 400 352.3 88.1 Occupancy Rate (%, 31 Dec 19) 96.3 350 291.3 61.0 300 249.2 No. of Tenant
Slide 29: Kunming Outlets
Kunming Outlets Sales RMB 'Mil 250 229 238 237 200 180 150 100 50 - 1Q 2Q 3Q 4Q 2017 2018 2019 Year Commenced Operations Outlet Members Dec 2016 (‘000) GFA (sqm) 88,257 400 374.1 350 322.1 52.0 NLA (sqm) 70,067 300 242.1 80.0 Occupancy Rate (%, 31 Dec 19) 94.9 250 200 177.0 65.0 159.0 322.1 18.0 No.
Slide 30: Proactive Asset Management Strategies
Proactive Asset Management Strategies Chongqing Bishan • Major asset enhancement • Introduction of new tenants mix initiative (AEI) to rejuvenate the e.g. Watsons, children’s outlet enrichment centres and • Reposition as a lifestyle and bookstores etc. shopping destination for both locals & tourists
Slide 31: Exciting Events to Drive Shoppers' Traffic
Exciting Events to Drive Shoppers’ Traffic 31
Slide 32: COVID-19 Update
COVID-19 Update SASSEUR (HEFEI) OUTLETS
Slide 33: COVID-19 Situation Update
COVID-19 Situation Update Proactive precautionary measures to protect staff and customers Precautionary Measures at Sasseur Outlets • Temperature-taking of all employees everyday • All employees and salespersons are equipped with medical masks and distributed anti-viral drugs • Disinfect public area
Slide 34: COVID-19 Situation Update
COVID-19 Situation Update Generating sales through E-commerce Portal 34
Slide 35: Potential Pipelines
Potential Pipelines • All acquisitions must be yield accretive • Reduce concentration risk, explore other parts of the World Changchun • Pipeline Properties increased from 3 to 9 ROFR Properties Lanzhou Xi’an Yangzhou Xi’an Guiyang Shanghai Nanjing Changsha Hangzhou Opening Date Sep 2017 Dec 2017 Gu
Slide 36: Investment Merits
Investment Merits 36 SASSEUR (KUNMING) OUTLETS
Slide 37: 2019 Key Milestone and Award
2019 Key Milestone and Award Outperformed IPO forecast and projections of EMA Rent (in 1 RMB) and DPU for the periods in FY2018 and FY2019 2 FTSE EPRA NAREIT Global Emerging Market Index inclusion Vito Xu, Chairman of Sasseur Group and SAMPL, awarded 2019 Asia’s 3 Top Entrepreneur by Fortune Times 4
Slide 38: Investment Merits
Investment Merits Market Leadership: Sasseur Group is the one of the largest operator of outlet 1 malls in China, with 11 malls and over 11 years of operating experience Unique Art-Commerce Business Model: Aligns interests of tenants, 2 unitholders and entrusted managers, with potential to share ups
Slide 39: Thank You
Thank You For enquiries, please contact: Ms Wong Siew Lu, CFA, CA (Singapore) Head, Investor Relations and Corporate Affairs Email: wongsl@sasseurreit.com Tel: +65 6360 0290 Address: 7 Temasek Boulevard, #06-05, Suntec Tower One, 39 Singapore 038987