CapitaLand China Trust · SGX:AU8U
CapitaLand China Trust — FY2022 Earnings Presentation
53 slides from CapitaLand China Trust's earnings presentation, Feb 3, 2023
Slide 1: Financial Results for FY 2022
CapitaLand China Trust Financial Results for FY 2022 3 February 2023 CapitaMall Xizhimen, Beijing, China Financial Results for FY 2022 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors incl
Slide 3: Table of Contents
Table of Contents 01 05 Key Highlights New Economy Portfolio 02 06 Financial Results & Looking Ahead Capital Management 03 07 Portfolio Overview Appendix 04 Retail Portfolio Ascendas Innovation Towers, Xi’an, China CapitaLan d China Tr us t Financial Results for FY 2022 3
Slide 4: Key Highlights
Key Highlights Singapore-Hangzhou Science & Technology Park Phase II, Hangzhou, China Financial Results for FY 2022 4
Slide 5: Future-Ready and Resilient Portfolio
Future-Ready and Resilient Portfolio First and Largest China-Focused S-REIT Number of Assets Located in Gross Floor Area Occupancy Retail: 95.4% 1 11 5 4 12 ~2 Business Park: 91.4% Retail Business Logistics cities mil sq m Park Park Logistics Park: 96.4% Diversified Portfolio in Retail, Business Par
Slide 6: FY 2022 Financial Highlights
FY 2022 Financial Highlights 1,851.5 1,228.4 8.73 (RMB million) 7.50 (RMB million) 1,826.1 1,209.9 +1.4% +1.5% (14.1%) (S cents) Gross Net Property Distribution Revenue Income per Unit FY 2021 FY 2022 FY 2021 FY 2022 FY 2021 FY 2022 Gross Revenue and Net Property Income Boosted by Full Contributions
Slide 7: Strategically Navigating Headwinds While Preparing for China's Reopening
Strategically Navigating Headwinds While Preparing for China’s Reopening Rejuvenated Portfolio Well-Positioned for Headwinds faced in FY 2022 China’s Reopening in 2023 Challenging operating environment Proactively managed assets by due to stringent pandemic controls embarking on AEIs and unit and re
Slide 8: Portfolio Valuation Increased 2.0% YoY
Portfolio Valuation Increased 2.0% YoY Timely Pivot to Diversify into Business Parks and Logistics Parks Retail: RMB 18,059 million (-0.6% YoY) +2.0% YoY • Cap rate assumptions remained stable with China’s continued urbanisation to drive long-term development Portfolio Valuation • Most market rents
Slide 9: FY 2022 Sustainability Highlights
FY 2022 Sustainability Highlights Maintained an “A” for Established annual green building Attained LEED Gold Implemented green GRESB Public certification targets tied to certification for leasing across retail and Disclosure 2022 remuneration of key CapitaMall Wangjing business park assets managemen
Slide 10: Financial Results & Capital Management
Financial Results & Capital Management Shanghai Fengxian Logistics Park, Shanghai, China Financial Results for FY 2022 10
Slide 11: FY 2022 NPI Up 1.5% YoY
FY 2022 NPI Up 1.5% YoY 2H 20221,2 2H 20211,2 Change (%) FY 20221,2 FY 20212 Change (%) Gross Revenue (S$’000) 183,876 201,075 (8.6) 383,171 377,967 1.4 Net Property Income (S$’000) 114,684 130,085 (11.8) 254,216 250,427 1.5 Amount Available for Distribution 53,298 71,445 (25.4) 125,615 135,516 (7.3
Slide 12: Balance Sheet
Balance Sheet As at 31 December 2022 S$’000 Non-Current Assets 4,955,119 1.38 Current Assets 270,987 Net Asset Value Total Assets 5,226,106 (NAV) per Unit (S$) Current Liabilities 517,441 Non-Current Liabilities 2,025,623 Total Liabilities 2,543,064 Unitholders' Funds 2,306,231 1.34 Perpetual Securi
Slide 13: Healthy Financial Position
Healthy Financial Position1 31 Dec 30 Sep 2022 2022 Total Debt: S$1,950.9 million Gearing2 39.6% 39.3% Offshore Loans Fixed Rate7 Average Cost of Debt3 2.97% 2.81% SGD 79% 71% Interest Funding Onshore Loans Rates Sources Interest Coverage Floating Rate RMB 13% 3.8x 4.4x 29% Ratio (ICR)4 MTN 8% Adjus
Slide 14: Well-Staggered Maturity Profile
Well-Staggered Maturity Profile Sufficient Credit Facilities In Place to Refinance Loans Due in 2023 S$ million Increased Sustainability- 400.0 Linked Loans to 13% of 350.0 6.2 1.2 Total Debt 42.4 32.1 300.0 Debt Maturity Profile 42.7 (31 December 2022) 150.0 250.0 13% 33.2 200.0 150.0 300.0 300.0 O
Slide 15: Distribution Details
Distribution Details Distribution Period 1 July 2022 to 31 December 2022 Distribution per Unit 3.40 S cents Last Day of Trading on “cum” Basis 9 February 2023, 5.00 pm Ex-Date 10 February 2023, 9.00 am Record Date 13 February 2023, 5.00 pm Distribution Payment Date 30 March 2023 CapitaLan d China Tr
Slide 16: Portfolio Overview
Portfolio Overview Kunshan Bacheng Logistics Park, Kunshan, China Financial Results for FY 2022 16
Slide 17: Income Diversification by Asset Class and Geography
Income Diversification by Asset Class and Geography Asset Class Diversification Geographical Diversification Retail, 76.4% Beijing, 38.2% New Economy – Guangzhou, 14.4% Asset class Business Park, 16.4% Cities by AUM1 by AUM1 Yangtze Delta2, 15.6% New Economy – Logistics Park, 7.2% Other Tier 2 and P
Slide 18: Strength in Portfolio Diversification and Quality
Strength in Portfolio Diversification and Quality Well-Diversified Exposure with More than Half of the Tenants from Essential and High Growth Sectors1 Retail 68.6% Business Park 26.1% Food & Beverages 22.0% Electronics 5.3% Fashion 13.1% Engineering 3.6% Supermarket 4.9% Information & Communications
Slide 19: Portfolio Rental Reversion
Portfolio Rental Reversion Proactive Leasing Strategy for 2022: Focus on Securing Quality Leases in Resilient and High Growth Sectors Contributed to Positive Reversions New Tenants: New Tenants: +2.7% +6.4% Retail1 New Economy • Achieved first positive reversion since the • Positive rental reversion
Slide 20: Portfolio Lease Expiry Profile
Portfolio Lease Expiry Profile Well-Staggered Lease Expiry Profile1 WALE (years) Retail Business Park Logistics Park Portfolio By Gross Rental Income2 2.2 1.7 1.1 2.0 % of total Gross Rental Income2 By Net Lettable Area 3.3 1.7 1.1 2.1 24.3% 19.7% 9.8% 10.1% 8.5% 4.9% 5.5% 5.7% 4.5% 3.4% 1.9% 0.4% 0
Slide 21: Retail Portfolio
Retail Portfolio Rock Square Square, Guangzhou, China Financial Results for FY 2022 21
Slide 22: Retail Portfolio Overview
Retail Portfolio Overview Total Valuation RMB 18.0 billion1 Harbin, No. of Assets 11 12.3% Located in 7 cities across 5 core city clusters Hohhot, 5.7% Beijing, 50.1% Chengdu, Shanghai, 8.5% 0.1% Changsha, Guangzhou, 4.4% 18.9% Note: 1. Based on valuation on a 100% basis as at 31 December 2022. Capi
Slide 23: Portfolio Shopper Traffic and Tenant Sales
Portfolio Shopper Traffic and Tenant Sales1 Impacted by Long Periods of COVID-19 Lockdown and Restrictions in 2022 FY YoY Shopper Traffic (million) Quarterly Shopper Traffic (million) Full Mall Closures and Restrictions Impact in FY 2022 (by no. of days) -20.1% YoY2 30 120 ~4x compared to FY 2021 80
Slide 24: Portfolio Shopper Traffic – Oct 2022 to Mid-Jan 2023
Portfolio Shopper Traffic – Oct 2022 to Mid-Jan 2023 Expect Positive Retail Trajectory in 2023 Initial indicators point towards Oct and Nov 2022 Daily Shopper Traffic (million) recovery in consumption spending Traffic and Sales impacted by government-mandated closures Dec 2022 Easing of COVID-19 res
Slide 25: Retail Occupancy of 95.4%
Retail Occupancy of 95.4%1 Investment Property 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 CapitaMall Xizhimen 99.9% 100.0% 99.8% 99.2% 98.7% Rock Square 97.0% 96.3% 97.1% 97.6% 93.9% CapitaMall Wangjing 96.7%2 94.0%2 97.2%2 96.1% 93.4% CapitaMall Grand Canyon 94.0% 94.9% 97.3% 94.6% 93.4% Cap
Slide 26: Retail Portfolio Lease Expiry Profile
Retail Portfolio Lease Expiry Profile Lease Expiry Profile for 20231 % of Total % of Total Investment Property No. of Leases Gross Rental Income2,3 Net Lettable Area4 CapitaMall Xizhimen 132 36.6% 23.5% Rock Square 92 28.9% 21.8% CapitaMall Wangjing 103 28.9% 16.1% CapitaMall Grand Canyon 64 23.9% 1
Slide 27: Retail Portfolio Lease Expiry Profile
Retail Portfolio Lease Expiry Profile Lease Expiry Profile by Year1 % of Total Gross % of Total Year No. of Leases Rental Income2,3 Net Lettable Area4 Weighted Average 2023 1,074 35.3% 23.9% Lease Expiry (years) 2024 535 28.7% 26.9% 2.2 2025 216 14.7% 11.9% By Gross Rental Income2 2026 97 8.0% 9.3%
Slide 28: Curating Immersive Shopping Experiences
Curating Immersive Shopping Experiences Tropical Rainforest New Year Eve F&B Exhibition Countdown Party campaign Organised a tropical rainforest exhibition at Hosted a New Year Eve Countdown Organised an F&B campaign at CapitaMall Yuhuating featuring more Party at CapitaMall Xinnan that CapitaMall X
Slide 29: New Economy Portfolio
New Economy Portfolio Ascendas Xinsu Portfolio, Suzhou, China Financial Results for FY 2022 29
Slide 30: Business Park Portfolio Overview
Business Park Portfolio Total Valuation RMB 5.5 billion1 Overview No. of Assets 5 Located in 3 cities Xi’an 22.9% Suzhou, 42.4% Hangzhou, 34.7% Note: 1. Based on valuation on a 100% basis as at 31 December 2022. CapitaLan d China Tr us t Financial Results for FY 2022 30
Slide 31: Business Park Occupancy of 91.4%
Business Park Occupancy of 91.4%1 Investment Property 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 Ascendas Xinsu Portfolio 97.4% 96.2% 97.8% 97.7% 96.6% Ascendas Innovation Towers 98.9% 97.5% 93.6% 90.1% 87.8% Ascendas Innovation Hub 98.1% 93.6% 91.8% 94.3% 95.1% Singapore-Hangzhou Science 89.
Slide 32: Business Park Portfolio Lease Expiry Profile
Business Park Portfolio Lease Expiry Profile Lease Expiry Profile for 20231 % of total % of total Investment Property No. of Leases Gross Rental Income2 Net Lettable Area3 Ascendas Xinsu Portfolio 137 36.4% 36.0% Ascendas Innovation Towers 47 38.9% 39.0% Ascendas Innovation Hub 27 51.7% 53.1% Singap
Slide 33: Nurturing our Business Park Community
Nurturing our Business Park Community Annual Fun Ecology Nostalgic Food Run Exploration Camp Festival Hosted an annual fun run for the Organised a children ecological Held a food festival at Ascendas parents and chlidren at exploration activity at Singapore- Xinsu Portfolio to bring back Ascendas Xi
Slide 34: Logistics Park Portfolio Overview
Logistics Park Portfolio Overview Total Valuation RMB1.7 billion1 No. of Assets 4 Wuhan, 22.5% Located in 4 cities Kunshan, 19.6% Shanghai, Chengdu, 36.9% 21.0% Note: 1. Based on valuation on a 100% basis as at 31 December 2022. CapitaLan d China Tr us t Financial Results for FY 2022 34
Slide 35: Logistics Park Occupancy of 96.4%
Logistics Park Occupancy of 96.4%1 Investment Property 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 Shanghai Fengxian Logistics Park 98.6% 98.6% 98.6% 98.6% 98.6% Kunshan Bacheng Logistics Park 99.4% 99.4% 99.4% 99.2% 99.2% Wuhan Yangluo Logistics Park 99.4% 99.7% 99.7% 99.7% 99.7% Chengdu Shua
Slide 36: Logistics Park Portfolio Lease Expiry Profile
Logistics Park Portfolio Lease Expiry Profile Lease Expiry Profile By Year1 % of Total Gross % of Total Weighted Average Year No. of Leases Rental Income2 Net Lettable Area3 Lease Expiry (years) 2023 21 85.1% 84.3% 2024 10 7.0% 7.3% 1.1 By Gross Rental Income 2 2025 7 3.0% 3.3% 2026 1 4.9% 5.1% 1.1
Slide 37: Looking Ahead
Looking Ahead CapitaMall Wangjing, Beijing, China Financial Results for FY 2022 37
Slide 38: CLCT Focus in 2023
CLCT Focus in 2023 Proactive Management to Ride on China’s Reopening and Pro-Growth Policies with Worst of China’s COVID-19 Situation Behind Us • Guided by our Create, Unlock and Extract Strategy: ✓ Create: Increase diversification and resilience of revenue streams and seeking yield accretive acquis
Slide 39: Continuing Our Journey Towards a Sector-Diversified Portfolio
Continuing Our Journey Towards a Sector-Diversified Portfolio Focus on New Economy Assets in the Near-Term with the Long-Term Goal to Expand into Commercial / Integrated Developments Long-Term Growth Roadmap Near-Term Acquisition Target 30% Retail Assets that enhance portfolio quality Diversify pres
Slide 40: Optimising Portfolio to Enhance Returns: CapitaMall Yuhuating
Optimising Portfolio to Enhance Returns Ongoing: Transforming CapitaMall Yuhuating into a Lifestyle Mall for Family and Young CapitaMall Yuhuating AEI Phase II: Recovered ~8,900 sq m of anchor supermarket space to create specialty tenant space, injecting more lifestyle offerings and experiences >15%
Slide 41: Optimising Portfolio to Enhance Returns: CapitaMall Grand Canyon
Optimising Portfolio to Enhance Returns Ongoing: Reconfiguring Mini-Anchor Space in CapitaMall Grand Canyon CapitaMall Grand Canyon AEI: Recovered ~1,700 sq m of Fashion space and bringing in diversified trade mix ranging from Electric Vehicle Services to F&B, Beauty and Furniture tenants ✓ 100% of
Slide 42: Optimising Portfolio to Enhance Returns: CapitaMall Qibao
Optimising Portfolio to Enhance Returns CapitaMall Qibao – Target To Cease Operations by 1H 2023 2Q 2022 • Due to city-wide lockdown in Shanghai, CapitaMall Qibao closed for over 2-3 months 2H 2022 • Tenants ceased operations due to weak operating environment • Due to short remaining master lease te
Slide 43: Business Outlook
Business Retail Outlook ✓ Most Chinese provinces aim for economic growth of above 5% this year, targeting to focus on boosting consumption3 ✓ Well-positioned to ride recovery of domestic consumption with completed AEIs across multiple assets • COVID-19 infections appeared to have peaked nationwide i
Slide 44: Thank you
Thank you For enquiries, please contact: Ms Nicole Chen, Investor Relations Direct: (65) 6713 1648, Email: nicole.chen@capitaland.com CapitaLand China Trust Management Limited (https://www.clct.com.sg) 168 Robinson Road, #30-01 Capital Tower, Singapore 068912 Tel: (65) 6713 2888, Fax: (65) 6713 2999
Slide 45: Gross Revenue (in RMB'mil)
Gross Revenue (in RMB’mil) FY 2021 FY 2022 Portfolio1 1,345.5 1,400.0 1,257.8 2 FY 2022 1,200.0 1,851.5 1,000.0 RMB mil 800.0 1.4% YoY 600.0 507.8 467.9 400.0 FY 2021 1,826.1 200.0 85.9 12.7 RMB mil - Retail Business Parks Logistics Parks Notes: 1. Presented based on 100% interest. 2. Excluding rent
Slide 46: Net Property Income (in RMB'mil)
Net Property Income (in RMB’mil) FY 2021 FY 2022 Portfolio1 1,000.0 900.0 868.3 2 793.1 FY 2022 800.0 1,228.4 700.0 600.0 RMB mil 500.0 1.5% YoY 400.0 372.4 332.6 300.0 FY 2021 200.0 1,209.9 100.0 62.9 9.0 RMB mil - Retail Business Parks Logistics Parks Notes: 1. Presented based on 100% interest. 2.
Slide 47: Portfolio Valuation
Portfolio Valuation Valuation (RMB million) Investment Property As at As at Variance 31 Dec 2022 31 Dec 2021 (%) CapitaMall Xizhimen 3,638 3,620 0.5% Rock Square 3,410 3,422 -0.4% CapitaMall Wangjing 2,884 2,795 3.2% CapitaMall Grand Canyon 1,901 2,022 -6.0% Retail CapitaMall Xuefu 1,789 1,789 0.0%
Slide 48: Quality Retail and Business Park Tenants Across Essential and Emerging High-Growth Sectors
Quality Retail and Business Park Tenants Across Essential and Emerging High-Growth Sectors 45.5% 57.1% Essential Sectors2 High Growth Emerging Sectors2 By F&B, 32.1 % By New Electronics, 16.9% Retail Economy Supermarket, 7.2% Engineering, 11.6% GRI1 GRI1 Services, 6.2 % ICT, 9.7% Others, 54.5 % Biom
Slide 49: Portfolio at a Glance
Portfolio at a Glance1 CapitaMall CapitaMall CapitaMall Grand Rock Square Xizhimen Wangjing Canyon 乐峰广场 凯德MALL•西直门 凯德MALL•望京 凯德MALL• 大峡谷 Location Beijing Guangzhou Beijing Beijing GFA (sq m) 83,075 88,279 83,768 92,918 GRA (sq m) 83,075 83,591 68,010 69,967 NLA (sq m) 50,682 53,206 45,450 44,406 23
Slide 50: Portfolio at a Glance
Portfolio at a Glance1 CapitaMall CapitaMall CapitaMall Xuefu CapitaMall Xinnan Nuohemule Yuhuating 凯德广场•学府 凯德广场• 新南 凯德广场•诺和木勒 凯德广场•雨花亭 Location Harbin Chengdu Hohhot Changsha GFA (sq m) 123,811 91,816 100,047 75,431 GRA (sq m) 104,294 53,619 76,309 58,575 NLA (sq m) 64,223 36,969 43,899 43,093 Land
Slide 51: Portfolio at a Glance
Portfolio at a Glance1 CapitaMall Aidemengdun CapitaMall Shuangjing CapitaMall Qibao 凯德广场•埃德蒙顿 凯德MALL•双井 凯德七宝购物广场 Location Harbin Beijing Shanghai GFA (sq m) 49,040 49,463 83,986 GRA (sq m) 43,394 49,463 72,729 NLA (sq m) 28,130 49,568 50,642 Land Use Right Expiry 7 Sep 2042 10 Jul 2042 10 Mar 20433
Slide 52: Portfolio at a Glance
Portfolio at a Glance1 • Portfolio at a Xinsu Glance Ascendas Portfolio Ascendas Innovation Towers Ascendas Innovation Hub Singapore-Hangzhou Singapore-Hangzhou Science Technology Science Technology Park Phase I Park Phase II 腾飞新苏 新加坡腾飞科汇城 腾飞创新中心 新加坡杭州科技园一期 新加坡杭州科技园二期 Location Suzhou Xi’an Xi’an Han
Slide 53: Portfolio at a Glance
Portfolio at a Glance1 Shanghai Fengxian Kunshan Bacheng Wuhan Yangluo Chengdu Shuangliu Logistics Park Logistics Park Logistics Park Logistics Park 上海奉贤物流园 昆山巴城物流园 武汉阳逻物流园 成都双流物流园 Location Shanghai Kunshan Wuhan Chengdu GFA (sq m) 62,785 43,945 86,973 71,556 Land Use Right Expiry 20 July 2059 16 Ju
CapitaLand China Trust — FY2022 Earnings Presentation on 6ix