Post on 08-Sep-2020
First Quarter 2009 Financial Results 27 A il 200927 April 2009
AgendaAgenda
Financial Highlights
P tf li P f U d tPortfolio Performance Update– Singapore– Tokyo– Chengdu
Growth StrategiesGrowth Strategies– Asset Enhancements– Business Strategy
27 April 2009 Starhill Global REIT 2
Key highlightsKey highlights
1Q 2009 4%
1Q 2009 DPU of 1.87 cents achieved, 6.3% higher than 1Q 2008
1Q 2009: Income to be distributed up 7.4%
Resilient retail master lease structure at Ngee Ann City to be bolstered by expected surge in shopper traffic when Wisma Atria basement linkway to MRT station reopens
Weighted average effective interest rate remains low at 2.95% per annum after refinancing of S$35 million of Revolving Credit Facility now due March 2010
27 April 2009 Starhill Global REIT 3
1Q 2009 financial highlights1Q 2009 financial highlights
f 1 8 1Q 2008 6 3%
Period: 1 Jan – 31 Mar 2009 1Q 2009 1Q 2008 % Change
DPU of 1.87 cents exceeded 1Q 2008 by 6.3%
Gross Revenue $34.3 mil $30.4 mil 12.8%
Net Property Income $27.1 mil $23.1 mil 17.2%
Income Available for Distribution $19.1 mil $17.0 mil 12.2%
Income to be Distributed $18.0 mil (1) $16.8 mil 7.4%
DPU 1.87 cents (2) 1.76 cents 6.3%
Note: 1. The income to be distributed is based on 100% of taxable income for the current period. Approximately S$1.1 million of income available for distribution
for the first quarter ended 31 March 2009, comprising mainly overseas income, has been retained to satisfy certain legal reserve requirements and forprudency.
27 April 2009 Starhill Global REIT 4
2. The computation of DPU is based on number of units entitled to distributions comprising: (a) number of units in issue as at 31 Mar 2009 of 960,803,854units and (b) units issuable to the Manager as partial satisfaction of management fee (base fee) earned for 1Q 2009 of 2,972,852 units.
DPU performanceDPU performance
Actual DPU % increase over previous quarter
DPU growth
1Q 2009 (1 Jan – 31 Mar 2009)
FY 2008 (1 Jan – 31 Dec 2008)
4Q 2008 (1 Oct – 31 Dec 2008)
1.87 cents
7.17 cents
1.85 cents
1.1%
3.9%
3Q 2008 (1 Jul – 30 Sep 2008)
2Q 2008 (1 Apr – 30 Jun 2008)
1Q 2008 (1 Jan – 31 Mar 2008)
FY2007 (1 Jan 31 Dec 2007)
1.78 cents
1.78 cents
1.76 cents
6 19 t
0.0%
1.1%
4.8%
FY2007 (1 Jan – 31 Dec 2007)
4Q 2007 (1 Oct – 31 Dec 2007)
3Q 2007 (1 Jul – 30 Sep 2007)
2Q 2007 (1 Apr – 30 Jun 2007)
6.19 cents
1.68 cents
1.54 cents
1 50 cents
9.1%
2.7%
2 0%
27 April 2009 Starhill Global REIT 5
2Q 2007 (1 Apr 30 Jun 2007)
1Q 2007 (1 Jan – 31 Mar 2007)
1.50 cents
1.47 cents
2.0%
n.m.
1Q 2009 financial results1Q 2009 financial results
1Q 2009 gross revenue exceeded$’000 1Q09 1Q08 % Change
1Q 2009 gross revenue exceeded 1Q 2008 by 12.8% due primarily to higher rates achieved from renewals and new leases in Singapore, the rent review of the
Gross Revenue 34,325 30,418 12.8%
Less: Property Expenses
Depreciation
(7,217)
(55)
(6,901)
(428)
4.6%
(87.1%) g pmaster lease in Ngee Ann City, as well as higher revenue from the Chengdu property
Net Property Income 27,053 23,089 17.2%
Less: Fair Value Adjustment (1)
Borrowing Costs
(179)
(5,893)
(46)
(4,705)
289.1%
25.2%
Management Fees
Other Trust Expenses
(2,671)
( 834)
(2,822)
(1,020)
(5.4%)
(18.2%)
Net Income Before Tax 17,476 14,496 20.6%
Add Non Ta Ded ctibles (2) 1 603 2 515 (36 3%)Add: Non-Tax Deductibles (2) 1,603 2,515 (36.3%)
Income Available for Distribution 19,079 17,011 12.2%
Income to be Distributed 18,023 16,788 7.4%
Notes: 1. Being accretion of tenancy deposit stated at amortised
cost in accordance with Financial Reporting Standard 39. This financial adjustment has no impact on the DPU
2. Includes adding back of management fees payable in units, finance costs, depreciation, sinking fund
i i d t t f
27 April 2009 Macquarie MEAG Prime REIT 6
DPU 1.87 cents 1.76 cents 6.3%provisions and trustee fees
Starhill Global REIT
1Q 2009 financial results1Q 2009 financial results
$’000 1Q 2009 1Q 2008 % Change
Wisma Atria
$’000 1Q 2009 1Q 2008 % Change
Wisma Atria
Revenue Net Property Income
Retail (1)
Office (1) (2)
11,455
2,575
11,552
2,107
(0.8%)
22.2%
Ngee Ann City
Retail (1) (2) 9,940 8,362 18.9%
Retail
Office
9,277
2,004
8,564
1,536
8.3%
30.5%
Ngee Ann City
Retail 8,399 6,580 27.6%
Office (1) (2) 3,553 2,772 28.2%
Japan portfolio (3)
Chengdu (4)
2,646
4,156
2,253
3,372
17.4%
23.3%
Office 2,575 2,018 27.6%
Japan portfolio (3)
Chengdu (4)
2,221
2,577
2,012
2,379
10.4%
8.3%
Total 34,325 30,418 12.8% Total 27,053 23,089 17.2%
Notes: 1. Net of government property tax rebates to be passed on to tenants2 Renewal of leases at higher market rates and rent reviews
27 April 2009 Macquarie MEAG Prime REIT 7
2. Renewal of leases at higher market rates and rent reviews3. Mainly due to strengthening of Yen4. Higher sales at Chengdu property and strengthening of RMB
Starhill Global REIT
Trading yieldTrading yield
Attractive trading yield compared to other investment instrumentsAttractive trading yield compared to other investment instruments
16.53
16
18 16.66%
12.16
8
10
12
14 12.16%
16.11%14.16%
2.50 2.03 1.42
0 552
4
6
8
1.42%2.50%
0.55%2.03%
Notes: 1 B d St hill Gl b l REIT’ l i i f $0 455 it t 31 M 2009 d t l li d di t ib ti f 1Q 2009
(4)(3)(2)(1) (5)
(4)
0.55
-Starhill Global REIT FY2009
yield
Average S-Reit yield
CPF Ordinary Acount
10-Year Spore Govt Bond
5-Year Spore Govt Bond
Bank Fixed Deposit Rate (12
Month)
0.55%
27 April 2009 8
1. Based on Starhill Global REIT’s closing price of $0.455 per unit as at 31 Mar 2009 and actual annualised distribution for 1Q 20092. As at 31 Mar 2009 (Source: Bloomberg)3. Based on interest paid on Central Provident Fund (CPF) ordinary account in Mar 2009 (Source: CPF website)4. As at Mar 2009 (Source: Singapore Government Securities website)5. As at 9 Apr 2009 (Source: DBS website)
Unit price performanceUnit price performance
Liquidity statistics
Last 3 months average 1.2 mil60,000
70,000
1.20
1.40
daily trading volume (units)
Estimated free float 74.0%
Market cap (31 Mar 09) $437 mil130,000
40,000
50,000
0.60
0.80
1.00 Trading Volume ('0ni
t Pric
e (S
GD
)
0
10,000
20,000
0 00
0.20
0.40
000s)
U
Source: Bloomberg
00.00
Nov
-05
Jan-
06
Mar
-06
May
-06
Jul-0
6
Sep
-06
Nov
-06
Jan-
07
Mar
-07
May
-07
Jul-0
7
Sep
-07
Nov
-07
Jan-
08
Mar
-08
May
-08
Jul-0
8
Sep
-08
Nov
-08
Jan-
09
Mar
-09
Volume ('000s) Unit Price 200-day mvng avg
27 April 2009 Starhill Global REIT 9
Note: 1. By reference to Starhill Global REIT’s closing price of $0.455 as at 31 Mar 2009
Distribution timetableDistribution timetable
Distribution Period 1 January to 31 March 2009
Distribution Amount 1.87 cents per unit
Notice of Books Closure Date 27 April 2009
Distribution Timetable
Last Day of Trading on “Cum” Basis 30 April 2009, 5.00 pm
Ex-Date 4 May 2009, 9.00 am
Books Closure Date 6 May 2009, 5.00 pm
Distribution Payment Date 29 May 2009
27 April 2009 Starhill Global REIT 10
Debt profileDebt profile
As at 31 Mar 2009 $’000
Term loan (CMBS equivalent) 380,000
Term loan (Secured) 190,000
Revolving Credit Facilities 46,000
Japan Bond 47,920
Chinese Loan 6,219
Total Debt 670,139
Fixed Rate Debt (up to Sept 2010) 1 89.4%
Gearing Ratio 2 31.1%
Interest Cover 4.9x
Weighted Average Effective Interest Rate 1 2.95% p.a.
Starhill Global REIT corporate rating3 Baa2
Notes:
27 April 2009 Starhill Global REIT 11
1. Includes interest rate derivatives and Japanese loan2. Based on deposited property as defined in the Trust Deed3. Reaffirmed by Moody’s Investors Service in Oct 2008
Debt profileDebt profile
f S 2010No significant debt maturing until September 2010
Weighted Average Effective Interest %
700 S$ million
Debt maturity profile
Rate is 2.95% p.a.
89.4% of borrowings is fixed (including derivatives) until
500
600 617
September 2010
S$35m of RCF refinanced. Final maturity extended to March 2010200
300
400
‐ ‐ ‐ ‐ ‐-
100
2009 2010 2011 2012 2013 2014
491 1 11
27 April 2009 Starhill Global REIT 12
Term loan (CMBS equivalent) RCF (secured)
Term loan (secured) RCF (unsecured)
Japan bond Chinese loan
Balance sheetBalance sheet
As at 31 Mar 2009 $’000
Non Current Assets 2,114,367
Current Assets 40,840
NAV statistics
NAV Per Unit (as at 31 Mar 2009) (1) $1.43
Adjusted NAV Per Unit (1) $1 41Total Assets 2,155,207
Current Liabilities (109,602)
Non Current Liabilities (665,877)
Adjusted NAV Per Unit (1)
(net of distribution)
$1.41
Last traded price as at 31 Mar 09 $0.455
Total Liabilities (775,479)
Net Assets 1,379,728
Unitholders’ Funds 1,379,728
Unit Price Premium/(Discount) To:NAV Per Unit
Adjusted NAV Per Unit
(68.2%)
(67.7%)
Units (’000) 963,777
Notes:1. The number of units used for computation of NAV per unit is 963,776,706. This comprises: (a) number of units in issue as at 31 Mar 2009 of 960,803,854 units;
27 April 2009 Starhill Global REIT 13
p p , , p ( ) , , ;and (b) units to be issued to the Manager as partial satisfaction of management fee (base fee) earned for 1Q 2009 of 2,972,852 units.
AgendaAgenda
Financial HighlightsFinancial Highlights
Portfolio Performance UpdatePortfolio Performance Update– Singapore– Tokyo– Chengdu
Growth StrategiesGrowth Strategies– Asset Enhancements– Business Strategy
27 April 2009
14
Starhill Global REIT
Portfolio summary
Portfolio
Portfolio summary
f f S CDiversified portfolio comprising Singapore, Japanese and Chinese assets
Gross Revenue by Retail and Office(1Q 09)
Gross Revenue by Property(1Q 09)
Gross Revenue by Country(1Q 09)
Office18% NAC
39%
Renhe Spring Zong Bei Property
12%
Japan
China12%
WA41%
Singapore
Japan8%
Retail82%
Japanese Properties
8%
Singapore80%
27 April 2009 15Starhill Global REIT
Portfolio lease expiry
Portfolio
Portfolio lease expiry
f 2 64 2 3 ( )Weighted average lease term of 2.64 and 2.53 years (by NLA and gross rent respectively)
50%
Portfolio Lease Expiry (as at 31 March 2009)1
Office Retail
Japan Totalsq ft WA NAC WA NAC
2009 39,902 28,761 24,585 7,804 2,614 103,667
42.5%
37.5%
30%
40%
50%
By NLA By Gross Rent
2010 21,797 62,054 37,494 2,928 4,010 128,284
2011 16,254 48,597 59,563 17,201 2,782 144,397
Beyond 2011 2,680 - 2,583 225,969 47,185 278,417
15.8%
19.6%22.1%
14.9%
23.6% 24.0%
10%
20%
Notes:1.Portfolio lease expiry profile does not include Chengdu Property which
operates as a department store with many short-term concessionaire l i 3 12 th
Total 80,633 139,413 124,225 253,901 56,591 654,764 0%
FY2009 FY2010 FY2011 Beyond 20112Beyond 2011
27 April 2009 16
leases running 3-12 months2.Toshin contributes to 34.5% and 29.9% of portfolio lease expiry by
NLA and Gross Rent respectively
Starhill Global REIT
Portfolio lease expiry profile by year
Portfolio
Portfolio lease expiry profile by year
1 6 f 1891 2011 f 62 % f176 out of 1891 leases expire by 2011, accounting for 62.5% of gross rental income
Year Office Leases Retail Leases Gross Rental Income per month1
No. of leases
Weighted average rent psf
No. of leases
Weighted average rent psf
Office S$’000
Retail S$’000
% of Total 2
2009 24 7.90 29 27.40 540 959 14.9%
2010 24 9.60 45 35.40 806 1,573 23.6%
2011 16 10.50 38 21.80 681 1,736 24.0%Total 64 9.30 112 26.80 2,077 4,268 62.5%
27 April 2009 17
1. Excludes leases in Chengdu property as it operates as a department store comprising many concessionaries with short leases running 3-12 months
2. As a percentage of total gross rental income for the month of March 2009
Starhill Global REIT
Portfolio top 10 tenants
Portfolio
Portfolio top 10 tenants
T 10 t t t ib t d 44 1% f th tf li tTop 10 tenants contributed 44.1% of the portfolio gross rent
Tenant Name Property Leased Area (sq ft) Lease Expiry % of Portfolio
Gross Rent 1% of Portfolio
NLA
Toshin Development Co Ltd NAC 225,969 Jun 2013 26.3% 29.9%
Ebi F t S 2012
Future Revolution K.K. 2Ebisu Fort
NakameguroHarajyuku Secondo
Roppongi Terzo
39,505
Sep 2012,Dec 2015,Dec 2015Jan 2016
5.1% 5.2%
Bread Talk Group WA 27,104 Sep 09, Oct 09, Sep 2011 2.4% 3.6%
Nike Singapore Pte Ltd WA 8,288 Nov 2011 2.2% 1.1%
Zegna Trading (Shanghai) Co. Ltd3 Renhe Spring Zongbei 1,550 Mar 2009 1.5% 0.2%
Aspial-Lee Hwa (S) Pte Ltd WA 3,778 May 09, Aug 2010, Sep 2011, Oct 2011 1.4% 0.5%
Mar 2010 Jun 2010RSH (Singapore) Pte Ltd WA 4,061 Mar 2010, Jun 2010, Oct 2010 1.4% 0.5%
Wing Tai Retail Pte Ltd WA 4,908 May 2010, Jun 2010, Oct 2010, Nov 2010 1.3% 0.7%
FJ Benjamin Lifestyle Pte Ltd WA 7,847 Nov 2011 1.2% 1.0%Fashion Retail Pte Ltd WA 3,832 Sep 2009 1.2% 0.5%
27 April 2009 18
Notes: 1. For the month of March 20092. Future Revolution KK is the fixed rent master tenant for these four properties3. Zegna Trading (Shanghai) Co. Ltd operates as a concessionaire at the Renhe Spring Zongbei Property and pays a percentage of GTO.
Renewal negotiations are in progressStarhill Global REIT
Rental reversions:
Portfolio
Rental reversions:Office rent contribution expected to be steady in 2009
The average passing rent of leases expiring in 2009 accounting for 68 664 sq ft
Incremental contributions expected from renewal of office units in 2009
11 00 12 100,000
Portfolio Office Lease Expiry and Average Gross Passing RentsS$ psf pmSq ft
expiring in 2009 accounting for 68,664 sq ft of office NLA is still below market rents
Positive rental reversion of 111.5% for
7.90
9.60 10.50
11.00
6
8
10
50 000
60,000
70,000
80,000
90,000
office lease renewal in 1Q 2009 despite challenging market conditions
68 664 83 852 64 851 2 680
2
4
6
10,000
20,000
30,000
40,000
50,000
68,664 83,852 64,851 2,680 --
2009 2010 2011 Beyond 2011
Expiring Office Leases (by NLA)
Gross passing rents of expiring leases (S$ psf pm)
27 April 2009 19
Note: Average monthly gross rent rounded to nearest ten cents
Starhill Global REIT
Retail Passing Rents
Portfolio
Retail Passing Rents
Average Passing Rents of Wisma Atria and Ngee Ann City Vs. Prime Orchard Road Rents
Wisma Atria’s average passing rents are above market average
Ngee Ann City’s average retail rents are lower given the master lease with Toshin that accounts for 89% of retail NLA at Ngee Ann City
28.16 27.91 28.11 29.24 30.63
33.0034.50
36.40 36.53 36.53
30
35
40
S$ psf pm
Footnotes:1. 2005 average rents computed from September - December 20052. CBRE’s quoted figures are for prime Orchard Road space which is
d fi d “ i lt ” h it f 500 1 000 ft l l ith10 85 10.86 10.96 12.24 13.51 15
20
25
defined as “specialty” shop units of 500-1,000 sq ft on level with heaviest traffic
10.85
-
5
10
2005₁ 2006 2007 2008 2009
27 April 2009 20Starhill Global REIT
Wisma Atria Retail Ngee Ann City Retail CBRE
Occupancy costs
Portfolio
Occupancy costs
Average retail occupancy costsAverage retail occupancy costs
The higher occupancy cost at Wisma Atria is attributed to the higher proportion of fashion tenants given the centre’s positioning as a female
Average retail occupancy costs
30%30% tenants given the centre s positioning as a female-
centric mall
Renhe Spring Zongbei Property operates as a hi h d d t t t ith i t ti l l
25%
16% 17%20%
high-end department store with international luxury labels such as Prada, Hugo Boss, Chopard, Montblanc and Vertu which typically enjoy lower occupancy costs
0%
10%
2008 Year-to-Date 2009
Notes:
1. Year-to-date 2009 occupancy costs for Wisma Atria and Renhe Spring Zongbei is for the period Jan-Mar 2009
2. Year-to-date 2009 occupancy costs for Wisma Atria has increased primarily due to
Wisma Atria Renhe Spring Zongbei
27 April 2009 21Starhill Global REIT
lower tenants’ sales
3. Average retail occupancy costs for Ngee Ann City and the Japanese properties are not available due to master lessee arrangements
Wisma Atria Property Overview
Wisma Atria
Wisma Atria Property - Overview
Weighted average lease term of 1.5 years (by NLA) Rent Structure of Retail Leases (by NLA)
66%
81%
60%
80%
100%Dec 2005 Mar 09
g g y ( y )– Retail: 1.76 years; Office: 1.05 yearsHigh committed occupancy (95.1% by NLA) – Retail: 98.6%; Office: 90.5% Increasing proportion of retail leases structured as base rent plus % GTO
Rent Structure of Retail Leases (by NLA)
33%
19%
0%
20%
40%
Higher of Base Rent or % GTO Base Rent plus % GTO
p– Base rent plus % GTO from 33% (Dec 05) to 81%
(Mar 09)– Higher of base rent or % GTO from 66% (Dec 05) to
19% (Mar 09)
Committed Occupancy RatesLease Expiry Schedule (by NLA) as at 31 Mar 2009
47.9%49.5%50%
60% Retail Office
95% 95.3% 95.6%98.6%
86.0% 84 7%90.5%
95%
100%
Retail Office
19.8%
30.2%27.0%
20.2%20%
30%
40%
50% 86.0% 84.7%
83.2%
65%
70%
75%
80%
85%
90%
95%
27 April 2009 22Starhill Global REIT
2.1% 3.3%
0%
10%
FY2009 FY2010 FY2011 Beyond 201150%
55%
60%
30 Jun 08 30 Sep 08 31‐Dec‐08 31‐Mar‐09
Wisma Atria Property Overview
Wisma Atria
Wisma Atria Property - Overview
Wi At i R t il E i i LWisma Atria Retail Expiring Leases and their Average Passing Rents
Wisma Atria Office Expiring Leases and their Average Passing Rents
WA Retail Lease Expiry & Average Gross Rent
S$ psf pmS ft
WA Office Lease Expiry and Average Gross Passing Rents
S$ psf pmSq ft
39.10
35
40
45
35,000
40,000
45,000
50,000
S$ psf pmSq ft
12.00
12.80
11.00
10
12
14
35,000
40,000
45,000
50,000 S$ psf pm
33.30
23.70 24.30
20
25
30
15,000
20,000
25,000
30,000
8.70
6
8
10
10 000
15,000
20,000
25,000
30,000
24,585 37,494 59,563 2,58310
15
0
5,000
10,000
2009 2010 2011 Beyond 2011
Expiring retail leases (by NLA)
39,902 21,797 16,254
2,680
2
4
-
5,000
10,000
2009 2010 2011 Beyond 2011
Expiring Office Leases (by NLA)
27 April 2009 23Starhill Global REIT
Expiring retail leases (by NLA)
Gross passing rents of expiring leases (S$ psf pm)Gross passing rents of expiring leases (S$ psf pm)
Wisma Atria Property Traffic and centre sales
Wisma Atria
Wisma Atria Property – Traffic and centre sales
Quality of shopper traffic and sales to improve with reopening of basement MRT linkwayQuality of shopper traffic and sales to improve with reopening of basement MRT linkway expected in 2Q 2009
2 5
Wisma Atria Traffic Count at Primary Entrances
Year 2007 Year 2008 Year 2009Million
Wisma Atria Property Retail Sales TurnoverS$ Million
1.5
2.0
2.5 Year 2007 Year 2008 Year 2009
20
22
24
26
2007 Sales Turnover
Million
0.5
1.0
12
14
16
182008 Sales Turnover
2009 Sales Turnover
0.0
Overall footfall to Wisma Atria is expected to increase from 15.8 million p.a. (2008 full year traffic) to close to pre-MRT linkway
10
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007 Sales TurnOver 2008 Sales TurnOver 2009 Sales TurnOver
27 April 2009 24Starhill Global REIT
p p ( y ) p yclosure levels of about 25 million p.a. when the new basement and level 2 linkways to Orchard MRT open in June 2009
A knock-on effect on centre sales is expected
Wisma Atria Property Diversified tenant base
Wisma Atria
Wisma Atria Property - Diversified tenant base
WA Office Trade Mix by % NLAWA Retail Trade Mix by % NLA WA Office Trade Mix – by % NLA(as at 31 Mar 2009)
WA Retail Trade Mix – by % NLA(as at 31 Mar 2009)
Aerospace10.3%Trading
8.9%
Travel/Leisure1.0%
Jewellery & Watches
Services3.7%
Shoes & Accessories
8.4%
Consultancy / Services13.2%Government
related3.0%
Investments3.0%
Real Estate & Property Services
8.2%Fashion48.7%
General Trade2.1%
Watches6.6%
Jewellery & Watches
4.9%
Medical9.5%
Others10.0%
Petroleum Related27.9%
Health & Beauty1.7%
F&B28.7%
27 April 2009 25
Ngee Ann City Property Overview
Ngee Ann City
Ngee Ann City Property - Overview
Lease Expiry Schedule (by NLA) as at 31 Mar 2009 Weighted average lease term of 3.0 years (by NLA)– Retail: 3.89 years; Office 1.32 years
Close to full committed occupancy (99.3% by NLA) – Retail: 99.6%; Office 98.8%
89.0%
44 5%60%70%80%90%
100% Retail Office
Increasing proportion of Level 5 retail leases structured as base rent plus % GTO from 0% (Dec 05) to 83% (Mar 09) and step-up rents from 0% (Dec 05) to 72% (Mar 09)
3.1% 1.2%6.8%
20.6%
44.5%34.9%
0.0%0%
10%20%30%40%50%
Committed Occupancy Rates
FY2009 FY2010 FY2011 Beyond 2011
99.6% 99.6% 99.6% 99.6%98.2% 98.2% 98.8% 98.8%100%
Retail Office
70%
80%
90%
27 April 2009 26Starhill Global REIT
50%
60%
30 Jun 08 30 Sep 08 31-Dec-08 31-Mar-09
Ngee Ann City Property Overview
Ngee Ann City
Ngee Ann City Property - Overview
N A Cit R t il E i i LNgee Ann City Retail Expiring Leases and their Passing Average Rents
Ngee Ann City Office Expiring Leases and their Passing Average Rents
S ftSq f S$ psf
16.60 16.60
15
16
17
200,000
250,000
S$ psfSq ft
12
14
40,000
50,000
60,000 ft S$ psf
14.3013.10
12
13
14
15
100,000
150,000
6.70
8.809.70
6
8
10
20,000
30,000
,
7,804 2,928 17,201 225,96910
11
0
50,000
2009 2010 2011 Beyond 2011
28,761 62,054 48,597 2
4
-
10,000
2009 2010 2011
Expiring Office Leases (by NLA)
27 April 2009 27Starhill Global REIT
Expiring retail leases (by NLA)
Gross passing rents of expiring leases (S$ psf pm)
Expiring Office Leases (by NLA)
Gross passing rents of expiring leases (S$ psf pm)
Ngee Ann City Diversified tenant base
Ngee Ann City
Ngee Ann City - Diversified tenant base
NAC Trade mix by % NLA NAC Office Trade Mix by % NLANAC Trade mix – by % NLA(as at 31 Mar 2009)
NAC Office Trade Mix – by % NLA(as at 31 Mar 2009)
Aerospace 3.6% Banking and
Financial Services
7.4%Bea t /
Real Estate & Property Services
6 9%
Travel/Leisure 5.4%
Beauty & Wellness
Services1.9%
General Trade0.4%
Beauty/ Health 4.5%
Consultancy / Services
Others 16.6%
Petroleum Related
2.2%
6.9%Wellness8.8%
28.2%
Fashion Retail 14.2%
Jewellery & Watches 11.0%
Toshin89.0%
27 April 2009 28Starhill Global REIT
Japan Properties Overview
Japan Properties
Japan Properties - Overview
Weighted average lease term by NLA is 4.5 yearsWeighted average lease term by NLA is 4.5 years
Full occupancy except for the Daikanyama property
Four of the seven properties (69% by NLA) have fixed rent master leases expiring between 2012 and 2015 –provides stability of cashflow over an extended period
Occupancy ratesLease Structure (by NLA)
Pass through100% 100% 100% 100% 100% 100%
100%
Committed occupancy rates as at 31 March 2009
Medium Term Master Lease
34%
Pass-through Leases
31% 88%
70%75%80%85%90%95%
100%
Long term master leases expire late 2015
M di t t l i i S 2012
Long Term Master Lease
35% 50%55%60%65%
Hol
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yuku
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ondo
Rop
pong
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Rop
pong
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bisu
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t
27 April 2009
Medium term master lease expires in Sep 2012
Pass-through leases typically have 3 year terms
29Starhill Global REIT
Ha S R R
Nak
a-
Dai
ka Eb
Japan Properties Overview
Japan Properties
Japan Properties - Overview
Pro active management of Japanese assets
The issue of Future Revolution’s former parent undergoing civil rehabilitation has been lifted as 100% of the company has been divested to a non-
Pro-active management of Japanese assets
Area occupied by Future Revolution and 3rd party end tenants
100% of the company has been divested to a non-related party, Hexagon Capital Partners
Efforts are ongoing to reduce the amount of lettable area occupied directly by Future Revolution
Future Revolution
29%
area occupied directly by Future Revolution
Savills Japan K.K. has been appointed as the asset manager of Ebisu Fort, replacing Future Revolution. Savills will also assume the role of asset manager
3rd party end‐tenants
71%
Savills will also assume the role of asset manager for the rest of the Japan portfolio on 1 June 2009
The Manager is also working to replace the property manager for the Japan portfolio with the
Future Revolution is the master tenant and property manager of Starhill Global REIT’s seven Japanese properties
27 April 2009 Starhill Global REIT 30
property manager for the Japan portfolio, with the aim to further drive performance at these assets
Renhe Spring Zongbei Overview
Renhe Spring Zongbei
Q C C
Renhe Spring Zongbei - Overview
Full occupancy as at end March 2009
Renhe Spring Zongbei property is still showing resilience to weak global economic conditions
1Q 2009 sales was 14 6% higher than 1Q 2008
Quality high-growth asset in Chengdu, China
1Q 2009 sales was 14.6% higher than 1Q 2008
Chinese government announced a RMB 4 trillion economic stimulus package to be spent over 2009 and 2010
25,000
Sales (RMB'000)including VAT
Renhe Spring Zongbei Weekly Sales Performance
15,000
20,000
0
5,000
10,000
Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk
27 April 2009 31Starhill Global REIT
Wk 1
Wk 3
Wk 5
Wk 7
Wk 9
Wk 11
Wk 13
Wk 15
Wk 17
Wk 19
Wk 21
Wk 23
Wk 25
Wk 27
Wk 29
Wk 31
Wk 33
Wk 35
Wk 37
Wk 39
Wk 41
Wk 43
Wk 45
Wk 47
Wk 49
Wk 51
2007 2008 2009
AgendaAgenda
Financial Highlights
Portfolio Performance Update– Singapore– Tokyo
Growth StrategiesAsset Enhancements– Asset Enhancements
– Business Strategy
27 April 2009 32Starhill Global REIT
Ngee Ann City:Positioning strengthened by new tenants and upgraded storesPositioning strengthened by new tenants and upgraded stores
Louis Vuitton expanding into a duplex unit by 2Q 2009 adding to the list of new andLouis Vuitton expanding into a duplex unit by 2Q 2009 adding to the list of new and upgraded stores by Toshin
27 April 2009 33Starhill Global REIT
Ngee Ann City:Successful reconfiguration and branding of Level 5Successful reconfiguration and branding of Level 5
The Fifth - a level above shopping
The National Library space on Level 5 has
been reconfiguredbeen reconfigured and rebranded to
complement the Ngee Ann City shopping
experience
27 April 2009 34Starhill Global REIT
Wisma Atria:Continuing tenant remix to enhance positioningContinuing tenant remix to enhance positioning
New stores in 2008
27 April 2009 35Starhill Global REIT
Wisma Atria:Integration with ION Orchard on trackIntegration with ION Orchard on track
Seamless connectivity with Orchard MRT station and ION Orchard from June 2009
New level 2 connection
New escalators from Orchard MRT
ION ORCHARDWISMA ATRIA
MRT
New escalators will lead directly from O h d MRT t ti i th b t tOrchard MRT station in the basement to ground level directly opposite the new entrance at Wisma Atria’s west side
Wisma Atria’s level 2 traffic expected to increase significantly
27 April 2009
ORCHARD ROAD
to increase significantly
36Starhill Global REIT
Wisma Atria:Re opening of basement MRT linkway access in progressRe-opening of basement MRT linkway access in-progress
Seamless connectivity with Orchard MRT station and ION Orchard from June 2009
Re-opening of basement connection
MRTMRT Commuter traffic flow
The re-opening of Wisma Atria’s basement linkway to O h d MRT t ti ill lt i f
27 April 2009 37Starhill Global REIT
Orchard MRT station will result in a resurgence of shopper traffic, making the basement floor once again one of the busiest shopping corridors in Orchard Road
Wisma Atria:Creating lettable retail area at Basement and Level 1Creating lettable retail area at Basement and Level 1
R l f N E l t t l k l bl l tt bl h b t MRT li kRemoval of New Escalators to unlock valuable lettable area when basement MRT linkway re-opens
Removal of escalators between basement and Level 1 near GAP after re-
Basement floor
Level 1 near GAP after reopening of the MRT linkway
Escalators will be redundant after re-
i f MRT li k
To Orchard MRT Station
opening of MRT linkway allowing creation of additional lettable area
Works to commence after the Great Singapore Sale
Financial Impact of Asset Enhancement (Estimates only)Annual Rental Income 566
and complete by October 2009
Annual Expenses (assume 20% expense margin) 113
Incremental Annual NPI 453Capital value of initiative (assume 5.15% cap rate) 8,800
Less Capital Expenditure (740)
27 April 2009 Starhill Global REIT
Increase in capital value (net of investment cost) 8,060
Return on investment pa (%) 61%
Growth contributorsGrowth contributors
Rental Reversions
Growth contributors for these two years
Ngee Ann City – Toshin rent increased by 19.75% from 8 Jun 2008 for 3 yrs
Wisma Atria – Re-opening of MRT linkway – expected in June 2009
Asset Enhancements
Ngee Ann City – Level 5 reconfiguration – from Jun 2008
Wisma Atria – New lettable area at B1 and L1 – from Oct 2009
Wisma Atria – Ground level integration with ION Orchard
Wisma Atria – Rent increase from new Nike lease – from Dec 2008
27 April 2009
2009 2010
39Starhill Global REIT
Resilient in current economic climateResilient in current economic climate
Starhill Global REIT is well positioned to ride challenging economic conditions
Premium assets / resilient leases– Toshin master lease rent in Ngee Ann City (29.9% of portfolio NLA) increased 19.75% in June 2008; lease does not allow
downward revision; next rent review in 2011; lease expiry in 2013, with option to renew for a further 12 yearsp y p y– Occupancy levels for office and retail space remain healthy– Even distribution of lease expiry of Singapore portfolio mitigates any potential downward revision in rents:
• Remaining Singapore office leases expiring in 2009 (68,664 sq ft) represent 28.6 % of total office NLA• Remaining Singapore retail leases expiring in 2009 (32,389 sq ft) represent only 8.5% of total Singapore retail
NLA– Seamless connectivity between Ngee Ann City, Wisma Atria, the upcoming neighbouring mall and Orchard MRT station
will boost shopper traffic and form most compelling retail block on Orchard Road– Robust sales performance from department store in Chengdu, China (NPI up 8.3% over 1Q 2008)
Healthy debt profileHealthy debt profile – Low gearing of 31.1%– No significant refinancing due until September 2010– Average weighted average interest rate of 2.95% p.a.– 89.4% of borrowings fixed (including derivatives) until September 2010
27 April 2009 40Starhill Global REIT
Synergies with YTL CorpSynergies with YTL Corp
YTL Corp as sponsor offers synergiesYTL Corp as sponsor offers synergies
Extensive track record and expertise in developing and managing retail real estate in Asia
Source of potential pipeline acquisition opportunities
Potential synergy with Starhill REIT in Malaysia
Established relationships with international luxury retail principals including the watch fashion and jewellery industriesthe watch, fashion and jewellery industries
Wide network and relationships with banks
27 April 2009 41Starhill Global REIT
Business strategyBusiness strategy
Defensive strategies to see Starhill Global REIT through global economic downturnDefensive strategies to see Starhill Global REIT through global economic downturn
Maintain strong financial position and low gearing
Manage tenancies to ensure sustainability of distributions
Strategies to build a global REIT platform through Starhill brand
Attractive and accretive acquisition opportunities arising from current economic downturnac e a d acc e e acqu s o oppo u es a s g o cu e eco o c do u
Focus for acquisitions continues to be retail and commercial properties
Build on the Starhill brand by sourcing for potential retail management and commercial property fund management contracts
27 April 2009 42Starhill Global REIT
References used in this presentationReferences used in this presentation
1Q, 2Q, 3Q, 4Q means the periods between 1 January to 31 March; 1 April to 30 June; 1 July to 30 September; and 1 October to 31 December respectively
CMBS means Commercial Mortgage Backed Securities
DPU means distribution per unit
FY means financial year for the period from 1 January to 31 December
GTO means gross turnover
IPO means initial public offering (Starhill Global REIT was listed on the SGX-ST on 20 September 2005)
NLA means net lettable area
NPI means net property income
pm means per month
psf means per square foot
WA and NAC mean the Wisma Atria Property (74.23% of the total share value of Wisma Atria) and the Ngee Ann City Property (27.23% of the total share value of Ngee Ann City respectively).
All values are expressed in Singapore currency unless otherwise stated
27 April 2009 43Starhill Global REIT
Di l iDisclaimer
This presentation has been prepared by YTL Pacific Star REIT Management Limited (the “Manager”), solely in its capacity as Manager of Starhill Global Real Estate Investment Trust (“Starhill Global REIT”). A press release has been made by the Manager and posted on SGXNET on 27 April 2009 (the “Announcements”). This presentation is qualified in its entirety by, and should be read in conjunction with the Announcement posted on SGXNET. Terms not defined in this document adopt the same meanings in the Announcements.
The information contained in this presentation has been compiled from sources believed to be reliable. Whilst every effort has been made to ensure the accuracy of this presentation, no warranty is given or implied. This presentation has been prepared without taking into account the personal objectives, financial situation or needs of any particular party. It is for information only and does not contain investment advice or constitute an invitation or offer to acquire, purchase or subscribe for Starhill Global REIT units (“Units”). Potential investors should consult their own financial and/or other professional advisers.
This document may contain forward-looking statements that involve risks and uncertainties. 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 include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of property rental income, changes in operating expenses (including employee wages, benefits and training costs), property expenses and governmental and public policy changes. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager’s view of future events.
The past performance of Starhill Global REIT is not necessarily indicative of the future performance of Starhill Global REIT. The value of Units and the income derived from them may fall as well as rise. The Units are not obligations of deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors have no right to request that the Manager redeem their Units while the Units are listed. It is intended that unitholders of Starhill Global REIT may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.
27 April 2009 44Starhill Global REIT
27 April 2009Investor, Analyst and Media Contact: Ms Mok Lai Siong Tel : +65 6835 8633 Email : info@starhillglobalreit.com