Agenda - listed companystarhillglobalreit.listedcompany.com/newsroom/20120724... · 2013. 7. 8. ·...
Transcript of Agenda - listed companystarhillglobalreit.listedcompany.com/newsroom/20120724... · 2013. 7. 8. ·...
24/7/2012
Agenda
Financial Highlights
Portfolio Performance Update– Singapore– Kuala Lumpur– Chengdu– Perth– Tokyo
Outlook
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Highlights
NPI for 2Q 2012 up 4.4% to $37.1m over 2Q 2011– Due mainly to the stronger performance of the Singapore property portfolio
2Q 2012 DPU of 1.08 cents, translating to annualized yield of 6.53%– DPU increased 3.8% over 2Q 2011 despite ongoing redevelopment work at
Wisma Atria
Asset redevelopment progress at Wisma Atria, Singapore
– All Orchard Road fronting stores have commenced operations
– ROI based on annualized incremental NPI of approximately 12.8% exceeded initial projected ROI of 8%
Occupancy for the portfolio remains high at 99.5%
– Rental demand in quality locations remain strong
Strong capital base
– Gearing of 30.5%
– No debt refinancing until 201333
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Period: 1 Apr – 30 Jun 2012 2Q 2012 2Q 2011 % Change
Gross Revenue $46.4 mil $44.2 mil 4.8%
Net Property Income $37.1 mil $35.6 mil 4.4%
Income Available for Distribution $23.3 mil $22.8 mil 2.0%
Income to be Distributed to Unitholders $21.0 mil $20.2 mil 3.9%
Income to be Distributed to CPU holders $2.3 mil (1) $2.3 mil (1.6%)
DPU 1.08 cents (2) 1.04 cents 3.8%
2Q 2012 financial highlights
Notes: 1. CPU distribution for 2Q 2012 is based on S$ coupon of up to RM0.1322 per CPU, equivalent to a distribution rate of 5.65% per annum. Total number of
CPU units in issue as at 30 June 2012 is 173,062,575.
2. The computation of DPU for 2Q 2012 is based on number of units entitled to distributions comprising number of units in issue as at 30 June 2012 of1,943,023,078 units.
DPU of 1.08 cents, up 3.8% over 2Q 2011
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Period: 1 Jan – 30 Jun 2012 1H 2012 1H 2011 % Change
Gross Revenue $92.4 mil $90.1 mil 2.6%
Net Property Income $74.5 mil $72.6 mil 2.5%
Income Available for Distribution $46.6 mil $46.8 mil (0.4%)
Income to be Distributed to Unitholders $41.8 mil $41.0 mil 1.9%
Income to be Distributed to CPU holders $4.6 mil (1) $4.7 mil (1.0%)
DPU 2.15 cents 2.11 cents 1.9%
1H 2012 financial highlights
Note: 1. CPU distribution for the 1H 2012 is based on S$ coupon of up to RM0.1322 per CPU, equivalent to a distribution rate of 5.65% per annum. Total number
of CPU units in issue as at 30 June 2012 is 173,062,575.
DPU of 2.15 cents, up 1.9% over 1H 2011
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2.90 3.10
3.58 3.80 3.90
4.12
1.07
1.08
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 1Q 2012
Cents
2Q 2012
1Q 2012
2.15
1H 2012
6
DPU performance
DPU growth since 2005
Note: 1. DPU from 1Q 2006 to 2Q 2009 have been restated to include the 963,724,106 rights units issued in August 2009.
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2Q 2012 financial results
$’000 2Q 2012 2Q 2011 % Change
Gross Revenue 46,356 44,236 4.8%
Less: Property Expenses (9,214) (8,645) 6.6%
Net Property Income 37,142 35,591 4.4%
Less: Fair Value Adjustment (1)
Borrowing Costs
Finance Income
Management Fees
Other Trust Expenses
Tax Expenses (2)
1,867
(8,189)
135
(3,515)
(912)
(992)
183
(8,436)
171
(3,463)
(877)
(963)
920.2%
(2.9%)
(21.1%)
1.5%
4.0%
3.0%
Net Income After Tax (3) 25,536 22,206 15.0%
Add: Non-Tax Deductibles (Chargeable) (4) (2,227) 640 n.m.
Income Available for Distribution 23,309 22,846 2.0%
Income to be Distributed to Unitholders 20,985 20,207 3.9%
Income to be Distributed to CPU holders 2,286 2,324 (1.6%)
DPU (cents) 1.08 1.04 3.8%
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. Excludes deferred income tax.
3. Excludes changes in fair value of derivative instruments.
4. Includes certain finance costs, sinking fund provisions, straight-line rent and fair value adjustment and trustee fees.
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1H 2012 financial results
$’000 1H 2012 1H 2011 % Change
Gross Revenue 92,389 90,083 2.6%
Less: Property Expenses (17,903) (17,437) 2.7%
Net Property Income 74,486 72,646 2.5%
Less: Fair Value Adjustment (1)
Borrowing Costs
Finance Income
Management Fees
Other Trust Expenses
Tax Expenses (2)
1,851
(16,527)
292
(7,007)
(1,685)
(2,083)
95
(16,769)
343
(6,895)
(1,817)
(2,217)
n.m.
(1.4%)
(14.9%)
1.6%
(7.3%)
(6.0%)
Net Income After Tax (3) 49,327 45,386 8.7%
Add: Non-Tax Deductibles (Chargeable) (4) (2,697) 1,412 n.m.
Income Available for Distribution 46,630 46,798 (0.4%)
Income to be Distributed to Unitholders 41,775 40,997 1.9%
Income to be Distributed to CPU holders 4,636 4,681 (1.0%)
DPU (cents) 2.15 2.11 1.9%
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. Excludes deferred income tax.
3. Excludes changes in fair value of derivative instruments.
4. Includes certain finance costs, sinking fund provisions, straight-line rent and fair value adjustment and trustee fees.
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2Q 2012 financial results
$’000 2Q 2012 2Q 2011 % Change
Wisma Atria
Retail (1)
Office (2)
13,045
2,359
11,560
2,203
12.8%
7.1%
Ngee Ann City
Retail
Office
10,405
3,301
10,377
3,312
0.3%
(0.3%)
Japan portfolio (3)
Chengdu (4)
Australia
Malaysia
1,996
3,820
3,706
7,724
1,774
3,710
3,650
7,650
12.5%
3.0%
1.5%
1.0%
Total 46,356 44,236 4.8%
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$’000 2Q 2012 2Q 2011 % Change
Wisma Atria
Retail (1)
Office (2)
9,820
1,775
8,804
1,673
11.5%
6.1%
Ngee Ann City
Retail
Office
8,485
2,663
8,381
2,615
1.2%
1.8%
Japan portfolio (3)
Chengdu (4)
Australia
Malaysia
1,423
2,387
3,075
7,514
1,367
2,286
3,030
7,435
4.1%
4.4%
1.5%
1.1%
Total 37,142 35,591 4.4%
Revenue Net Property Income
Notes: 1. Mainly due to positive rental reversions resulting from the asset redevelopment. 2. Mainly due to higher office occupancy for Wisma Atria office.3. Mainly due to higher occupancy for Japan Properties and appreciation of JPY against
the Singapore dollar, partially offset by higher operating expenses.4. Mainly due to appreciation of RMB against the Singapore dollar.
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1H 2012 financial results
$’000 1H 2012 1H 2011 % Change
Wisma Atria
Retail (1)
Office (2)
25,178
4,695
23,183
4,339
8.6%
8.2%
Ngee Ann City
Retail
Office (3)
20,809
6,527
20,695
6,864
0.6%
(4.9%)
Japan portfolio (4)
Chengdu (5)
Australia (6)
Malaysia
3,956
8,179
7,431
15,614
3,594
8,782
7,182
15,444
10.1%
(6.9%)
3.5%
1.1%
Total 92,389 90,083 2.6%
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$’000 1H 2012 1H 2011 % Change
Wisma Atria
Retail (1)
Office (2)
19,247
3,473
17,997
3,217
6.9%
8.0%
Ngee Ann City
Retail
Office (3)
16,923
5,281
16,780
5,451
0.9%
(3.1%)
Japan portfolio (4)
Chengdu (5)
Australia (6)
Malaysia
2,900
5,264
6,208
15,190
2,764
5,453
5,967
15,017
4.9%
(3.5%)
4.0%
1.2%
Total 74,486 72,646 2.5%
Revenue Net Property Income
Notes: 1. Mainly due to positive rental reversions resulting from the asset redevelopment. 2. Mainly due to higher office occupancy for Wisma Atria office.3. Mainly due to negative rental reversions for Ngee Ann City office.4. Mainly due to higher occupancy for Japan Properties, partially offset by higher operating
expenses.5. Mainly due to lower revenue amidst increased competition and tenant renovations,
partially offset by appreciation of RMB against the Singapore dollar.6. Mainly due to higher rental rates achieved for David Jones Building.
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6.53%6.20%
1.44%
2.50%
0.37%0.08%
Starhill Global REIT2Q12 Annualized Yield
Average Retail S‐REITYield
10‐Year SingaporeGovt Bond
CPF OrdinaryAccount
5‐Year Singapore GovtBond
12‐month Bank FixedDeposit Rate
Trading yield
Notes: 1. Based on Starhill Global REIT’s closing price of $0.665 per unit as at 30 June 2012 and annualized 2Q 2012 DPU.2. As at 30 June 2012, Average Retail S-REIT Yield excluding SGREIT (Source: Bloomberg).3. As at 5 July 2012 (Source: Singapore Government Securities website).4. Based on interest paid on Central Provident Fund (CPF) ordinary account in June 2012 (Source: CPF website).5. As at 5 July 2012 (Source: DBS website).
(4)(3)(2)(1) (5)
Attractive trading yield compared to other investment instruments
6.45%5.09%
(3)
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Liquidity statistics
Average daily traded volume (units)
1.64 mil
Estimated free float 60%
Market cap (SGD) $1,292 mil
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Unit price performance
2
Source: Bloomberg
Notes: 1. For the quarter ended 30 June 2012.2. Free float as at 30 June 2012. Mainly excludes the 29.38% stake held by YTL Group, and the 9.76% stake held by AIA Group.3. By reference to Starhill Global REIT’s closing price of $0.665 per unit as at 30 June 2012.
1
Starhill Global REIT’s Unit Price Movement and Daily Traded Volume
(2 Jan 2012 to 30 June 2012)
3
Uni
t Pric
e (S
GD
) Trading Volume
‐
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
$0.50
$0.55
$0.60
$0.65
$0.70
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Distribution timetable
Notice of Books Closure Date 24 July 2012
Last Day of Trading on “Cum” Basis 27 July 2012, 5.00 pm
Ex-Date 30 July 2012, 9.00 am
Books Closure Date 1 August 2012, 5.00 pm
Distribution Payment Date 28 August 2012
Distribution Period 1 April to 30 June 2012
Distribution Amount 1.08 cents per unit
Distribution Timetable
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Debt profile
No debt refinancing until 2013
Notes:(1) In active discussion with banks to refinance the A$ term loan (maturing
in January 2013), with an expected maturity beyond 2016.(2) As at 30 June 2012. Currently SG REIT has approximately $1.88
billion of untapped balance from its $2 billion MTN programme.(3) For the quarter ended 30 June 2012.(4) As at 30 June 2012. Includes interest rate derivatives but excludes
upfront costs.(5) Includes interest rate derivatives.
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Total debt (2) $860 million
Gearing 30.5%
Interest cover (3) 4.8x
Average interest rate p.a.(4) 3.16%
Unencumbered assets ratio 42%
Fixed/hedged debt ratio (5) 85%
Weighted average debt maturity 1.8 years
364
- -
106
124
132
81
24
26 1
1
1 -
100
200
300
400
500
600
2012 2013 2014 2015 2016
$ million
Debt maturity profileAs at 30 June 2012
$364m term loan JPY6.6b term loan $124m Singapore MTNRM330m Malaysia MTN A$63m term loan $24.5m RCFJPY1.6b bond RMB15.5m loan
(1)
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Balance sheet
As at 30 June 2012 $’000
Non Current Assets 2,718,960
Current Assets 98,034
Total Assets 2,816,994
Current Liabilities 147,990
Non Current Liabilities 818,107
Total Liabilities 966,097
Net Assets 1,850,897
Unitholders’ Funds 1,677,452
Convertible Preferred Units 173,445
NAV statistics
NAV Per Unit (as at 30 Jun 2012) (1) $0.95
Adjusted NAV Per Unit (net of distribution)
$0.94
Closing price as at 30 Jun 2012 $0.665
Unit Price Premium/(Discount) To: NAV Per Unit
Adjusted NAV Per Unit
(30.0%)
(29.3%)
Corporate Rating (2) BBB (S&P)
Notes:(1) The computation of NAV per unit for 2Q 2012 is based on number of units entitled to distributions comprising number of units in issue as at 30 June 2012 of
1,943,023,078 units. For illustrative purpose, the NAV per unit assuming the full conversion of the CPU into ordinary units will be $0.85. For avoidance ofdoubt, the CPU is only convertible after three years from the date of issuance.
(2) Reaffirmed by S&P in May 2012, with a stable outlook.
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Agenda
Financial Highlights
Portfolio Performance Update– Singapore– Kuala Lumpur– Chengdu– Perth– Tokyo
Outlook
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Portfolio summary
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ASSET VALUE BY COUNTRY AS AT 30 JUN 2012
2Q 2012 GROSS REVENUE BY COUNTRY
2Q 2012 GROSS REVENUE BY RETAIL/OFFICE
Portfolio comprising 13 prime assets in 5 countries
Singapore69.4%
Malaysia16.0%
China 3.2%
Australia 5.6%
Japan5.8%
Singapore62.8%
Malaysia16.7%
China 8.2%
Australia8.0%
Japan4.3%
Retail87.8%
Office12.2%
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High occupancy
18
As at 31 Dec 05 31 Dec 06 31 Dec 07 31 Dec 08 31 Dec 09 31 Dec 10 31 Dec 11 30 Jun 12
Retail 100.0% 100.0% 100.0% 98.3% 100.0% 99.1% 98.3% 99.8%
Office 92.8% 97.8% 98.7% 92.4% 87.2% 92.5% 95.3% 98.4%
Singapore 97.3% 99.2% 99.5% 96.0% 95.1% 96.5% 97.1% 99.3%
Japan - - 100.0% 97.1% 90.4% 86.7% 96.3% 91.1%
China - - 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Australia - - - - - 100.0% 100.0% 100.0%
Malaysia - - - - - 100.0% 100.0% 100.0%
SG REIT portfolio
97.3% 99.2% 99.6% 96.6% 95.4% 98.2% 98.7% 99.5%
Uptrend in occupancy since Global Financial Crisis
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Portfolio lease expiry
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Weighted average lease term of 7.5 and 6.0 years (by NLA and gross rent respectively)
Notes:1. Portfolio lease expiry schedule includes Starhill Global REIT’s properties in Singapore, Malaysia, Australia and Japan but excludes Renhe Spring Zongbei Property,
China which operates as a department store with short-term concessionaire leases running 3-12 months.2.Lease expiry schedule based on committed leases as at 30 June 2012.3.Toshin Development Singapore Pte Ltd has exercised its option to renew for another 12-year term, expiring in 2025, thus lowering the lease expiry in 2013.4. Includes master tenant leases and long-term lease that incorporate rent reviews or step-up rents.
Portfolio Lease Expiry (as at 30 Jun 2012) (1) (2)
1.8%
11.4%8.5% 6.3%
2.7%
17.5%14.4% 15.8%
49.6%
0%
10%
20%
30%
40%
50%
60%
70%
2012 2013 2014 2015 Beyond 2015
By NLA By Gross Rent
(3)
(3),(4)
72.0%
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2.1%
13.8% 10.9%15.4%
57.8%
0%
10%
20%
30%
40%
50%
60%
70%
2012 2013 2014 2015 Beyond 2015
Retail Lease Expiry Profile (as at 30 Jun 2012) (1)
20
Portfolio lease expiry profile
Lease expiry schedule for retail and office portfolio (by gross rent)
Notes:1. Includes Starhill Global REIT’s properties in Singapore, Malaysia, Australia and Japan but excludes Renhe Spring Zongbei Property, China which operates as a
department store with short-term concessionaire leases running 3-12 months.2.Comprises Wisma Atria and Ngee Ann City office properties only.3.Toshin Development Singapore Pte Ltd has exercised its option to renew for another 12-year term, expiring in 2025, thus lowering the lease expiry in 2013.4. Includes master tenant leases and long-term lease that incorporate rent reviews or step-up rents.
(3)
(3), (4)
5.9%
39.5%
35.5%
18.6%
0.5%0%
10%
20%
30%
40%
50%
2012 2013 2014 2015 Beyond 2015
Office Lease Expiry Profile (as at 30 Jun 2012) (2)
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Portfolio top 10 tenants
21
Notes: 1. For the month of June 2012.2. The total portfolio gross rent is based on the gross rent of all the properties including the Renhe Spring Zongbei Property.3. Consists of Katagreen Development Sdn Bhd, YTL Singapore Pte Ltd, YTL Starhill Global REIT Management Limited, YTL Starhill Global Property Management
Pte Ltd, YTL Hotels (S) Pte Ltd and Lakefront Pte Ltd.
Top 10 tenants contributed 53.8% of portfolio gross rent
Tenant Name Property % of Portfolio Gross Rent (1) (2)
Toshin Development Singapore Pte Ltd Ngee Ann City, Singapore 18.8%
YTL Group (3) Ngee Ann City & Wisma Atria, SingaporeStarhill Gallery & Lot 10, Malaysia 17.1%
David Jones Limited David Jones Building, Australia 5.8%
FJ Benjamin Lifestyle Pte Ltd Wisma Atria, Singapore 2.4%
BreadTalk Group Wisma Atria, Singapore 2.1%
Cortina Watch Pte Ltd Ngee Ann City & Wisma Atria, Singapore 2.0%
Cotton On Singapore Pte Ltd Wisma Atria, Singapore 2.0%
LVMH Group Ngee Ann City & Wisma Atria, Singapore 1.2%
Feria Tokyo Co., Ltd Terzo, Japan 1.2%
Charles & Keith Group Wisma Atria, Singapore 1.2%
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Singapore - Wisma Atria Property
Lease expiry schedule (by gross rent) as at 30 June 2012 Committed occupancy: 99.3%
– Retail : 99.5%– Office : 99.0%
22
Committed occupancy rates (by NLA)
Active lease management– Retail: Almost full committed
occupancy achieved in 2Q 2012. Positive rental reversions achieved for new and renewed leases.
– Office: Committed leases enjoyed positive reversion and higher occupancy in 2Q 2012.97.7%
95.3% 94.8% 95.3%99.5%
92.0%94.6% 95.8% 96.8%
99.0%
50%55%60%65%70%75%80%85%90%95%
100%
30 Jun 11 30 Sep 11 31 Dec 11 31 Mar 12 30 Jun 12
Retail Office
4.8%
26.0%22.1%
35.2%
11.9%11.1%
36.2%32.1%
19.5%
1.1%0%
10%
20%
30%
40%
50%
60%
2012 2013 2014 2015 Beyond 2015
Retail Office
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Wisma Atria Property - Diversified tenant base
WA retail trade mix – by % gross rent(as at 30 Jun 2012)
23
WA office trade mix – by % gross rent(as at 30 Jun 2012)
Fashion41.2%
Jewellery & Watches
18.3%
Shoes & Accessories
15.6%
F&B15.4%
Health & Beauty5.3%
General Trade4.2%
Medical16.6%
Fashion Retail16.4%
Consultancy / Services14.2%Real Estate &
Property Services12.9%
Trading12.3%
Others9.8%
Aerospace7.1%
Petroleum Related6.6%
Government related2.7%
Investments1.4%
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Wisma Atria Retail – Shoppers traffic and centre sales
Shopper traffic and centre sales
2Q 2012 traffic was 6.5 million which is 9% yoy lower compared to 2Q 2011 mainly due to Level 4 food court closing for renovations from Apr 2012 to Jun 2012.
Centre sales for 2Q 2012 was S$71.8 mil, which is 22% yoy lower compared to 2Q 2011, mainly due to the asset redevelopment works and the closure of the Level 4 food court tenant for renovations.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Wisma Atria Traffic Count at Primary Entrances
Year 2010 Year 2011 Year 2012
Millions
0
5
10
15
20
25
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
S$ Millions
Wisma Atria Property Retail Sales TurnoverYear 2010 Year 2011 Year 2012
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Wisma Atria Retail – Rejuvenation of an Orchard Road Landmark
25
The asset redevelopment works have substantially been completed in 2Q 2012
All Orchard Road frontage units have commenced business25
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Wisma Atria Retail – Uplifting effects of the asset redevelopment
26
Annualized incremental NPI based on secured tenancies as at 30 June 2012 is about S$3.9 million*. Based on total capital expenditure of about S$31 million, the ROI is approximately 12.8%, exceeding the initial projected ROI of 8%.
Since the start of the asset redevelopment, based on leases committed between July 2011 to June 2012, positive rental reversion achieved was 33%.
High committed occupancy of 99.5% as at 30 June 2012.
* compared to the 12 months preceding July 2011 when the asset redevelopmentcommenced.
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0.0% 3.8% 5.2% 4.2%
86.8%
2.1%
42.0% 37.9%
18.0%
0.0%0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 Beyond 2015
Retail Office
Singapore - Ngee Ann City Property
Committed occupancy rates (by NLA)
Lease expiry schedule (by gross rent) as at 30 Jun 2012 Committed occupancy : 99.3%– Retail : 100.0% – Office : 98.0%
27
Active lease management– Retail: Full occupancy. Level 5 is
established as a health and beauty cluster. All expiring leases for 2012 have been renewed
– Office: Committed leases enjoyed positive rental reversion and higher occupancy in 2Q 2012
99.7% 99.7% 100.0% 100.0% 100.0%96.6%
91.8%94.9%
97.0% 98.0%
50%
60%
70%
80%
90%
100%
30 Jun 11 30 Sep 11 31 Dec 11 31 Mar 12 30 Jun 12
Retail Office
(1)
(1) Includes a master tenancy lease that incorporates a rent review every 3 years
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Ngee Ann City Property - Diversified tenant base
NAC retail trade mix – by % gross rent(as at 30 Jun 2012)
NAC office trade mix – by % gross rent(as at 30 Jun 2012)
28
Toshin88.6%
Beauty & Wellness
9.2%
Services1.8% General Trade
0.4% Fashion Retail23.7%
Petroleum Related21.3%
Beauty/ Health17.5%
Consultancy / Services10.7%
Banking and Financial Services
8.5%
Real Estate & Property Services
7.6%
Others7.2%
Aerospace3.5%
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Singapore properties : Niche office location
* Committed occupancy as at 30 June 2012
Overall office occupancy : 98.4%*
Wisma Atria office occupancy: 99.0%*
Ngee Ann City office occupancy: 98.0%*
Based on leases committed from 1 January 2012 to 30 June 2012, the positive reversion was 19%.
Wisma Atria and Ngee Ann City are established as the choice office locations for international tenants in the fashion retail as well as medical and energy-related sectors.
Differentiated from the office space in the central business district.
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Both properties located within the heart of KL’s popular shopping precinct Bukit Bintang.
Master leases with a fixed term of 3+3 years with a put and call option by the landlord and master tenant respectively to extend tenancies for further 3 years upon expiry. Payment obligations guaranteed by YTL Corporation Berhad.
In May 2012, Debenhams opened a new 37,000 sq ft store in Starhill Gallery, showcasing the largest collection of “Designers at Debenhams” in Southeast Asia.
Fast fashion retailer, H&M, will open its first flagship store in Malaysia in Lot 10 by end September 2012.
Malaysia - Starhill Gallery and Lot 10Quality assets in prime Kuala Lumpur location
30
Two lifestyle destinations targeting trendy and affluent tourists & chic urbanites in KL
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010203040506070
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
RMB Million
2010 sales turnover 2011 sales turnover
2012 sales turnover
Chengdu, one of the fastest growing cities in China, is ranked the top 4 cities in the world by growth in international visitors and international visitor expenditure in the Mastercard 2012 survey.
The asset operates as a department store under the Renhe Spring Department Store chain, benefitting from its extensive base of affluent VIP customers.
2Q 2012 revenue was 2% lower in RMB terms than 2Q 2011 mainly due to tenant renovations and competition from newly opened malls.
A series of tenant remix embarked since 1Q 2012 will enhance the retail offerings of the mall. The expanded ErmenegildoZegna store offers the brand’s complete product range, while Armani Collezioni is slated to open in 3Q 2012.
Quality asset in Chengdu, China
Renhe Spring Zongbei Property -Luxury mall in Chengdu
Zongbei Monthly Sales Performance
Renhe Anniversary Sales
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David Jones Building –Located in Perth CBD
Western Australia is one of the key performers behind Australia’s economic growth fueled largely by the resources and mining boom. It enjoys higher growth compared to other major cities in Australia.
Freehold property on prime retail district in Perth’s CBD with total retail lettable area of 259,154 sq ft. Property is fully occupied and anchored by David Jones Department Store and six specialty tenants. Long term lease with David Jones expires in 2032 and incorporates an upward only rent review every 3 years with the
last review in August 2011.
Prime stable asset in Perth, Australia
Retail trade mix – by % Gross rent(as at 30 Jun 2012)
David Jones74%
Specialty tenants
26%
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Japan Properties –Located around prime Tokyo districts
Occupancy rates as at 30 Jun 2012
All the properties are located in prime Tokyo districts within 5 minutes’ walk from the nearest subway stations. Japan’s economic activity has started to see signs of moderate growth as domestic demand remains firm, largely
supported by reconstruction-related demand*.
Portfolio occupancy was 91.1% as at 30 Jun 2012.
Japan portfolio contributed 4.3% to the Group’s revenue in 2Q 2012. During the quarter, NPI grew 4.1% on a yoy basis.
Holon L Harajuku Secondo Roppongi Terzo Ebisu Fort Roppongi Primo Nakameguro Daikanyama
* Source: Bank of Japan Monthly Report of Recent Economic and Financial Developments, June 2012
100.0% 100.0% 100.0% 100.0%
76.5% 74.3%62.6%
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Agenda
Financial Highlights
Portfolio Performance Update– Singapore– Kuala Lumpur– Chengdu– Perth– Tokyo
Outlook
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8,943 9,751
10,285 10,116 9,683
11,642
13,171
13,500 to14,500*
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2005 2006 2007 2008 2009 2010 2011 2012 2015
ION Orchard
International Visitor Arrivals
Singapore: Increasing tourist arrivals
Source: Singapore Tourism Board (“STB”)
1Q 2012Visitor arrivals : up 15% yoyTourism receipts: up 8% yoy
YTD May 2012Visitor arrivals : up 12.3% yoy
Thousands
The Singapore Tourism Board targets 17m visitors and tourism receipts of S$30bn by 2015
Origin of Tourists Arrivals
International Visitor Arrivals:1.Indonesia2.PR China3.Malaysia
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*STB’s forecast for 2012 and 2015
17,000*
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Singapore: Limited retail supply pipeline in Orchard Road
^Consist of (1) The Atrium@Orchard and (2) Orchard GatewaySource: URA, CBRE (1Q2012)
NLA
(SQ
FT)
Future Retail Supply (2012-2015) Summary
New island-wide retail supply to 2015 of 4.77m sqft New Orchard Road retail supply to 2015 of 0.5m sqft, or 10.5% of total supply to 2015
^
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New brands opening and/or expected to be looking for space in Singapore
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New Brands Launching in 2012
New Brands Launched in 2011
New Brands opening or likely to open after 2012
Timo Wiland
24/7/2012
2012 Global Ranking –Top destinations for international retailers (CBRE)
38
Ranking by Country Ranking by City
Source: CBRE “How Global is the Business of Retail” 2012 Edition
China, S’pore and Japan rank amongst the top in the world for attracting international retailers
Singapore is one of the top destinations for Chinese tourists to buy luxury watches and jewellery, with each spending an average of S$8,757, compared to S$7,221 in Italy and S$3,127 in Germany.Source: Global Blue on world’s biggest tax free shoppers in 2011
Outside China, Kuala Lumpur is one of the most active development markets in the world.Source: CBRE retail research 2012 edition
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Source: URA, CBRE (FY2011)
Million sqft (Net)
Total Existing Office Stock : 51.8m sqftTotal New Supply to 2016 : +9.7m sqft (+19%)Orchard New Supply to 2016 : +0.03m sqft
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Office supply in Orchard Road less than 1% of upcoming supply of 9.7m sqft to 2016
Singapore: Office
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Malaysia ranked 9th globally for tourist arrivals with 24.7 million visitors in 2011
International Visitor Arrivals
Malaysia: Increasing tourist arrivals
Source: Tourism Malaysia
Origin of Tourists Arrivals
40
0
5
10
15
20
25
30
0
10
20
30
40
50
60
70
Arriv
als (M
illions)
Receipts (R
M Billion)
Arrivals (mil) Receipts (RM Bn)
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Growth drivers
Steady organic growth from active asset management, rental reversion and asset enhancementStrong balance sheet with debt headroom
Wisma Atria – Revenue increase from Asset Redevelopment
2Q 2012 2013
Completion
Wisma Atria and Ngee Ann City – Active asset management and ongoing rent reversions
Ngee Ann City – Toshin rental review from Jun 2011
David Jones Building – DJ department store rent review every 3 yrs to 2032 (2011 review completed in August)
2014 and beyond
David Jones Building – Leases with specialty tenants allow for annual upwards rent review
Starhill Gallery and Lot 10 step-up only master tenancy revision
Rental reversion
Asset enhancements
Acquisitions
Toshin’s renewal of master lease
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Summary:Well positioned for the growth
Quality Assets:
Prime Locations
13 mid to high-end retail properties in five countries
- Singapore and Malaysia make up 85.4% of total assets. China, Australia and Japan account for the balance of the portfolio
Quality assets with strong fundamentals strategically located with high shopper traffic
Strong Financials: Financial Flexibility
Gearing at 30.5% with no debt refinancing until 2013
S$2 billion unsecured MTN programme
Rated ‘BBB’ by Standard & Poor’s
Developer Sponsor:
Strong Synergies
Strong synergies with the YTL Group, one of the largest companies listed on the Bursa Malaysia with total assets of about US$13.6 billion as at 30 June 2012
Global presence with track record of success in real estate development and property management
Management Team: Proven Track Record
Demonstrated strong sourcing ability and execution by acquiring 3 quality malls in 2010
- DJ Building (Perth, Australia), Starhill Gallery and Lot 10 (Kuala Lumpur, Malaysia)
Asset redevelopment of Wisma Atria and Starhill Gallery demonstrates the depth of the manager’s asset management expertise
International and local retail and real estate experience
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References 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
CPU means convertible preferred units in Starhill Global REIT
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
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Disclaimer
This presentation has been prepared by YTL Starhill Global REIT Management Limited (the “Manager”), solely in its capacity as Manager of Starhill Global Real Estate Investment Trust (“Starhill Global REIT”). A press release, together with Starhill Global REIT’s unaudited financial statements, have been posted on SGXNET on 24 July 2012 (the “Announcements”). This presentation is qualified in its entirety by, and should be read in conjunction with the Announcements 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.
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YTL Starhill Global REIT Management LimitedCRN 200502123C
Manager of Starhill Global REIT
391B Orchard Road, #21-08
Ngee Ann City Tower B
Singapore 238874
Tel: +65 6835 8633
Fax: +65 6835 8644
www.starhillglobalreit.com