Full Year / Fourth Quarter 2008 Fi i l R ltFinancial...

Full Year / Fourth Quarter 2008 Fi i l R ltFinancial Results 30 January 2009

AgendaAgenda

Financial Highlights

P tf li P f U d tPortfolio Performance Update– Singapore– Tokyo– Chengdu

Growth StrategiesGrowth Strategies– Asset Enhancements– Business Strategy

30 January 2009 Starhill Global REIT 2

Key highlightsKey highlights

4Q 2008 11 8%

4Q 2008 DPU of 1.85 cents (increase of 10.1% over 4Q 2007)

4Q 2008: Distributable income up 11.8%

NPI increased 24.8% FY 2008 v FY 2007

Continued strong performance from Chengdu property – QoQ NPI increased by 29%

Investment properties values decreased by S$105 million or 4.8% (after FX gain)Investment properties values decreased by S$105 million or 4.8% (after FX gain)

Commitment secured for S$35 million revolving credit facility


4Q 2008 financial highlights4Q 2008 financial highlights

f 1 8 4Q 200 10 1%

Period: 1 Oct – 31 Dec 2008 4Q 2008 4Q 2007 % Change

DPU of 1.85 cents exceeded 4Q 2007 by 10.1%

Gross Revenue $33.8 mil $29.8 mil 13.4%

Net Property Income $26.0 mil $22.2 mil 17.1%

Distributable Income $18.1 mil $16.2 mil 11.8%

DPU 1.85 cents (1) 1.68 cents 10.1%

Note: 1. The computation of DPU is based on number of units entitled to distributions comprising: (a) number of units in issue as at 31 Dec 2008 of 957,933,611


units and (b) units issuable to the Manager as partial satisfaction of management fee (base fee) earned for 4Q 2008 of 2,746,493 units.

FY 2008 financial summaryFY 2008 financial summary

Period: 1 Jan – 31 Dec 2008 FY 2008 FY 2007 % Change

FY 2008 DPU 15.8% higher than FY 2007

g

Gross Revenue $127.0 mil $103.0 mil 23.4%

Net Property Income $95.9 mil $76.8 mil 24.8%

Distributable Income $69.4 mil $59.0 mil 17.6%

DPU 7.17 cents 6.19 cents 15.8%

Property revaluation (loss) gain $(160 9) mil $448 9 mil 135 8%

30 January 2009

Property revaluation (loss) gain $(160.9) mil $448.9 mil 135.8%

5Starhill Global REIT

DPU performanceDPU performance

Actual DPU Increase % (Q-on-Q)

DPU growth

FY2008 (1 Jan – 31 Dec 2008)

4Q 2008 (1 Oct – 31 Dec 2008)

3Q 2008 (1 Jul – 30 Sep 2008)

7.17 cents

1.85 cents

1.78 cents

15.8%

3.9%

0.0%

2Q 2008 (1 Apr – 30 Jun 2008)

1Q 2008 (1 Jan – 31 Mar 2008)

FY2007 (1 Jan – 31 Dec 2007)

4Q 2007 (1 Oct 31 Dec 2007)

1.78 cents

1.76 cents

6.19 cents

1 68 t

1.1%

4.8%

6.9%

9 1%4Q 2007 (1 Oct – 31 Dec 2007)

3Q 2007 (1 Jul – 30 Sep 2007)

2Q 2007 (1 Apr – 30 Jun 2007)

1Q 2007 (1 Jan – 31 Mar 2007)

1.68 cents

1.54 cents

1.50 cents

1 47 cents

9.1%

2.7%

2.0%

n m


1Q 2007 (1 Jan 31 Mar 2007) 1.47 cents n.m.

4Q 2008 financial results4Q 2008 financial results

4Q 2008 gross revenue exceeded$’000 4Q08 4Q07 % Change

4Q 2008 gross revenue exceeded 4Q 2007 by 13.4% due primarily to higher rates achieved from renewals and new leases in Singapore, and higher revenue

Gross Revenue 33,835 29,830 13.4%

Less: Property Expenses

Depreciation

(7,533)

(330)

(7,117)

(525)

5.8%

(37.1%) g p gfrom the Chengdu propertyNet Property Income 25,972 22,188 17.1%

Less: Fair Value Adjustment (1)

Borrowing Costs

(106)

(6,278)

(75)

(5,067)

41.3%

23.9%

Management Fees

Other Trust Expenses

Goodwill payment (2)

(2,867)

( 807)

-

(2,576)

(389)

(167)

11.3%

107.5%

(100.0%)

Net Income Before Tax 15,914 13,914 14.4%

Add: Non-Tax Deductibles (3) 2,161 2,258 (4.3%)

Distributable Income 18,075 16,172 11.8%

Notes: 1. Being accretion of tenancy deposit and retention sum

stated at amortised cost in accordance with Financial Reporting Standard 39. This financial adjustment has no impact on the DPU

2. Goodwill payments were made in 4Q 2007 to WA tenants relating to the temporary closure of the Orchard MRT linkway

30 January 2009 Macquarie MEAG Prime REIT 7

DPU 1.85 cents 1.68 cents 10.1%Orchard MRT linkway

3. Includes adding back of the goodwill payment, management fees payable in units, finance costs, depreciation, sinking fund provisions and trustee fees

Starhill Global REIT

FY 2008 financial resultsFY 2008 financial results

$’000 FY 2008 FY 2007 % ChangeFY 2008 d d

Gross Revenue 127,042 102,959 23.4%

Less: Property Expenses

Depreciation

(29,552)

(1,606)

(24,445)

(1,700)

20.9%

(5.5%)

FY 2008 gross revenue exceeded FY 2007 by 23.4% due primarily to higher rates achieved from renewals and new leases in Singapore, and a full year contribution from overseas

Net Property Income 95,884 76,814 24.8%

Less: Fair Value Adjustment (1)

Borrowing Costs

(28)

(22,146)

( )

42

(16,448)

( )

(166.7%)

34.6%

%

properties (acquired between May and September 2007)

Management Fees

Other Trust Expenses

Goodwill payment (2)

(11,404)

(3,334)

-

(8,843)

(1,238)

(917)

29.0%

169.3%

(100.0%)

Net Income Before Tax 58,972 49,410 19.4% Notes:

Add: Non-Tax Deductibles (3) 10,455 9,628 8.6%

Distributable Income 69,427 59,038 17.6%

DPU 7.17 cents 6.19 cents 15.8%

1. Being accretion of tenancy deposit and retention sumstated at amortised cost in accordance with FinancialReporting Standard 39. This financial adjustmenthas no impact on the DPU

2. Goodwill payments were made in FY2007 to WA tenants relating to the temporary closure of the Orchard MRT linkway

3. Includes the adding back of the goodwill payment,

30 January 2009

DPU 7.17 cents 6.19 cents 15.8% management fees payable in units, finance costs, depreciation, sinking fund provisions and trustee fees

8

4Q 2008 financial results4Q 2008 financial results

$’000 4Q 2008 4Q 2007 % Change

Wisma Atria

$’000 4Q 2008 4Q 2007 % Change

Wisma Atria

Revenue Net Property Income

Retail

Office (1)

10,281

2,498

10,936

1,897

(6%)

32%

Ngee Ann City

Retail (1) 10,288 8,469 22%

Retail

Office (1)

7, 239

2,209

7,419

1,470

(2%)

50%

Ngee Ann City

Retail (1) 8,391 6,717 25%

Office (1) 3,569 2,697 32%

Japan portfolio

Chengdu (2)

2,590

4,609

2,173

3,658

19%

26%

Office (1) 2, 883 2,099 37%

Japan portfolio

Chengdu (2)

1,987

3,263

1,947

2,536

2%

29%

Total 33,835 29,830 13% Total 25,972 22,188 17%

30 January 2009 Macquarie MEAG Prime REIT 9

Notes: 1. Renewal of leases at higher market rates2. Stronger performance of Chengdu property in 4Q 2008


FY 2008 financial resultsFY 2008 financial results

$’000 FY 2008 FY 2007 % Change

Wisma Atria

$’000 FY 2008 FY 2007 % Change

Wisma Atria

Revenue Net Property Income

Retail

Office (1)

44,238

9,078

44,223

7,147

0%

27%

Ngee Ann City

Retail (1) 37,793 33,788 12%

Retail

Office (1)

31,534

6,957

30,984

5,243

2%

33%

Ngee Ann City

Retail (1) 30,289 27,167 12%

Office (1) 12,943 9,156 41%

Japan portfolio (2)

Chengdu (3)

9,157

13,833

3,987

4,658

130%

197%

Office (1) 10,147 6,773 50%

Japan portfolio (2)

Chengdu (3)

7,719

9,238

3,430

3,217

125%

187%

Total 127,042 102,959 23% Total 95,884 76,814 25%

Notes: 1 Renewal of leases at higher market rates

30 January 2009 Macquarie MEAG Prime REITStarhill Global REIT 10

1. Renewal of leases at higher market rates2. Japan portfolio acquired in May and September 20073. Chengdu property acquired in August 2007

Trading yieldTrading yield

Attractive trading yield compared to other investment instruments

12 10%

14.15%

Attractive trading yield compared to other investment instruments

12.10%

13.22%11.65%

1.40%2.50%

0.93%2.05%

Notes: 1. Based on Starhill Global REIT’s closing price of S$0.520 per unit as at 31 Dec 2008 and actual annualised distribution for 4Q 2008

(4)(3)(2)(1) (5)

(4)

30 January 2009 11

g p $ p Q2. As at 31 Dec 2008 (Source: Bloomberg)3. Based on interest paid on Central Provident Fund (CPF) ordinary account in Dec 2008 (Source: CPF website)4. As at Dec 2008 (Source: Singapore Government Securities website)5. As at 9 Jan 2009 (Source: DBS website)

Unit price performanceUnit price performance

Liquidity statistics

Last 3 months average 2.3 mil

1 10

1.20

1.30

1.40

50,000

60,000

70,000

Tra

daily trading volume (units)

Estimated free float 74.0%

Market cap (31 Dec 08) $498 mil1

0.70

0.80

0.90

1.00

1.10

Uni

t Pric

e (S

GD

)

20 000

30,000

40,000ading Volum

e ('000s)

0.40

0.50

0.60

Sep-05

Dec-05

Mar-06

Jun-06

Sep-06

Dec-06

Mar-07

Jun-07

Sep-07

Dec-07

Mar-08

Jun-08

Sep-08

Dec-08

0

10,000

20,000 )

Source: Bloomberg

05 05 06 06 06 06 07 07 07 07 08 08 08 08

Volume ('000s) Unit Price 200-day mvng avg


Note: 1. By reference to Starhill Global REIT’s closing price of $0.520 as at 31 Dec 2008

Distribution timetableDistribution timetable

Distribution Period 1 October to 31 December 2008

Distribution Amount 1.85 cents per unit

Notice of Books Closure Date 30 January 2009

Distribution Timetable

Last Day of Trading on “Cum” Basis 4 February 2009, 5.00 pm

Ex-Date 5 February 2009, 9.00 am

Books Closure Date 9 February 2009, 5.00 pm

Distribution Payment Date 27 February 2009


Debt profileDebt profile

As at 31 Dec 2008 $’000

Term loan (CMBS) 380,000

Term loan (Secured) 190,000

Revolving Credit Facilities 46,067

Japanese Loan 49,386

Deferred payment to Chinese vendor 5,798

Total Debt 671,251

Fixed Rate Debt (up to Sept 2010) 1 89.4%

Gearing Ratio 2 31.0%

Interest Cover 4.3 x

Weighted Average Effective Interest Rate 1 2.98% p.a.

Starhill Global REIT corporate rating3 Baa2

Notes:


1. Includes interest rate derivatives and Japanese loan2. Based on deposited property as defined in the Trust Deed3. By Moody’s Investors Service, Sep 2008

Debt profileDebt profile

f S 2010No significant debt maturing until September 2010

Weighted Average Effective Interest %

700

S$ millionDebt maturity profile

Rate is 2.98% p.a.

89.4% of borrowings is fixed (including derivatives) until

400

500

600 601

September 2010

Commitment secured for refinancing of S$35m of Revolving Credit

200

300

400

Facility. The loan facility is subject to final documentation-

100

2009 2010 2011 2012 2013 2014

1750

1 1 1


Club deal Jpn loan RCF CMBS Chinese loan

Balance sheetBalance sheet

As at 31 Dec 2008 $’000

Non Current Assets 2,116,561

Current Assets 46,809

NAV statistics

NAV Per Unit (as at 31 Dec 2008) (1) $1.44

Adjusted NAV Per Unit (1) $1 42Total Assets 2,163,370

Current Liabilities (114,251)

Non Current Liabilities (665,581)

Adjusted NAV Per Unit (1)

(excluding distribution)

$1.42

Last traded price as at 31 Dec 08 $0.52

Total Liabilities (779,832)

Net Assets 1,383,538

Units (’000) 960,680

Unit Price Premium/(Discount) To:NAV Per Unit

Adjusted NAV Per Unit

(63.9%)

(63.4%)

Notes:1. The number of units used for computation of NAV per unit is 960,680,104. This comprises: (a) number of units in issue as at 31 Dec 2008 of 957,933,611

units; and (b) units to be issued to the Manager as partial satisfaction of management fee (base fee) earned for 4Q 2008 of 2,746,493 units.


Valuation of Investment PropertiesValuation of Investment Properties

Marginal 4.8% drop in the valuation of Starhill Global REIT’s investment properties

Description 31-Dec-07 Capex Revaluation FX 31-Dec-08 Change ChangeS$'000 S$'000 S$'000 S$'000 S$'000 S$'000 %

Wisma Atria Property 901,450 1,015 (52,665) - 849,800 (51,650) (5.7%)

Ngee Ann City Property 1,030,900 791 (84,791) - 946,900 (84,000) (8.1%)Japan Portfolio (1) 199,464 171 (21,318) 48,095 226,412 26,948 13.5%

Chengdu Property (2) 76,760 - (2,110) 5,516 80,166 3,406 4.4%

2,208,574 1,977 (160,884) 53,611 2,103,278 (105,296) (4.8%)

Notes:1. Japan Portfolio valued at JPY14.2 billion as at 31 Dec 2008, translated at JPY62.77:S$1.00 (2007: JPY15.5 billion, translated at JPY77.89:S$1.00)

30 January 2009 17

2. Chengdu Property valued at RMB380 million as at 31 Dec 2008, translated at RMB4.74:S$1.00 (2007: RMB390 million, translated at RMB5.08:S$1.00)


AgendaAgenda

Financial HighlightsFinancial Highlights

Portfolio Performance UpdatePortfolio Performance Update– Singapore– Tokyo– Chengdu

Growth StrategiesGrowth Strategies– Asset Enhancements– Business Strategy

30 January 2009

18


Portfolio summary

Portfolio

Portfolio summary

f f S CDiversified portfolio comprising Singapore, Japanese and Chinese assets

Gross Revenue by Retail and Office Gross Revenue by Property(4Q 08)

Gross Revenue by Country(4Q 08)

Office18%

y(4Q 08)

NAC

Renhe Spring Zongbei Property

8%

(4Q 08)

China13%

(4Q 08)

NAC41%

WA38%

Japan8%

Retail82% Japanese

Properties8%

38% Singapore79%

30 January 2009 19Starhill Global REIT

Portfolio lease expiry

Portfolio

Portfolio lease expiry

f 2 6 2 1 ( )*Weighted average lease term of 2.76 and 2.71 years (by NLA and gross rent respectively)*

Portfolio Lease Expiry (as at 31 December 08)

40.7%

36.2%40%

50% By NLA By Gross Rent

Office Retail

17.0%20.0%

22.3%

16.0%

24.0% 23.9%

10%

20%

30% Japan Totalsq ft WA NAC WA NAC

2009 44,208 28,761 24,553 8,353 5,429 111,304

2010 21,797 62,054 38,528 2,379 6,484 131,242

2011 16,254 48,576 58,944 17,201 5,167 146,141 Beyond

* Potfolio lease expiry profile does not include Chengdu Property which

0%

10%

FY2009 FY2010 FY2011 Beyond 2011

y2011 - - - 225,969 40,409 266,377

Total 82,258 139,392 122,024 253,901 57,489 655,065

30 January 2009 20

Potfolio lease expiry profile does not include Chengdu Property which operates as a department store with short-term concessionaire leases running 3-12 months


Portfolio lease expiry profile by year

Portfolio

Portfolio lease expiry profile by year

186 f 1941 2011 f 63 8% f186 out of 1941 leases expire by 2011, accounting for 63.8% of gross rental income

YearOffice 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 26 7.80 35 26.75 570 1,025 16.0%

2010 23 9.60 48 33.60 806 1,593 24.0%

2011 16 10.30 38 21.12 669 1,718 23.9%Total 65 9.23 121 18.35 2,045 4,336 63.8%

30 January 2009 21

1. Excludes leases in Chengdu property as it operates as a department store comprising concessionaries with short leases2. As a percentage of total gross rental income for the month of December 2008


Portfolio top 10 tenants

Portfolio

Portfolio top 10 tenants

T 10 t t t ib t d 48 6% f th tf li tTop 10 tenants contributed 48.6% of the portfolio gross rent

Tenant Name Property Leased Area (sq ft) Lease Expiry % of Portfolio

Gross Rent 1% of Portfolio

NLAToshin Development Co Ltd NAC 225,969 Jun 2013 28.5% 29.9%

Ebi F t S t 2012

Future Revolution K.K. 2Ebisu Fort

NakameguroHarajyuku Secondo

Roppongi Terzo

39,511

Sept 2012,Dec 2015,Dec 2015Jan 2016

5.7% 5.2%

Bread Talk Group WA 27,104 Sep 09, Oct 09, Sep 2011 2.6% 3.6%

Nike Singapore Pte Ltd WA 8,288 Nov 2011 2.4% 1.1%

Wing Tai Retail Pte Ltd WA 6,146Feb 2001, May 2010, Jun 2010, Oct 2010,

Nov 20101.6% 0.8%

Aspial-Lee Hwa (S) Pte Ltd WA 3,778 May 09, Aug 2010, Sept 2011, Oct 2011 1.6% 0.5%

RSH (Singapore) Pte Ltd WA 4,061 Mar 2010, Jun 2010, Oct 2010 1.5% 0.5%

FJ Benjamin Lifestyle Pte Ltd WA 7,847 Nov 2011 1.4% 1.0%Fashion Retail Pte Ltd WA 3,832 Sep 2009 1.2% 0.5%G2000 Apparel (S) Pte Ltd WA 2,799 May 2010, Jul 2010 1.1% 0.4%Perfect Aim (S) P/L WA 2,174 Jul 2010 1.1% 0.3%

30 January 2009 22

Note: 1. For the month of December 20082. Future Revolution KK is the fixed rent master tenant for these four properties. For the other three properties, Future Revolution is the pass-

through master tenant where end tenants pay rent directly to Starhill Global REIT’s trustee account Starhill Global REIT

( ) / ,

Singapore Pro active office leasing

Portfolio

Singapore - Pro-active office leasing

A t f l d l i d 116% f FY2008 i

Period WA and NAC

Number

NLA Avg. increase over preceding rentssq ft % of office NLA

Average rents of renewals and new leases increased 116% for FY2008 over average passing rents

u be sq ft % of office NLA

2007 New Leases 22 62,873 26.2% 81%

Renewals 17 38,987 16.3% 61%

Total 39 101 860 42 5% 73%Total 39 101,860 42.5% 73%

2008 New Leases 9 21,571 9.0% 171%

Renewals 21 59 426 24 8% 97%Renewals 21 59,426 24.8% 97%

Total 26 74,162 33.8% 116%


Singapore Significant rent upside

Portfolio

Singapore - Significant rent upsidesecured to date for office portfolio

Continued uplift in rents in 4Q 2008 albeit at a slower pace with 5,888 sq ft of new

Results reflect the impact of positive rental reversions achieved since 1Q 2008

Portfolio Office New/Renewal Leases and Average Monthly Gross Rent

Sq ft S$ psf pm

leases and renewal rents committed at rents that were 110% higher than passing

12.00 12.20

13.90 13.30 13.90

10

12

14

16

30,000

40,000

For the FY2008, a total of 80,000 sq ft of office space was committed at rents that were 116% higher than passing rents

13 326 19 580 22 691 11 300 5 888

5.00 4.90

7.10

5.606.60

2

4

6

8

10,000

20,000

13,326 19,580 22,691 11,300 5,888-0

4Q07 1Q08 2Q08 3Q08 4Q08

Office Expiry (by NLA)Expiring Leases Avg Gross Passing Rent (S$ psf pm)Avg Gross Rent for Renewal & New Office Leases (S$ psf pm)

30 January 2009 24Note: Average monthly gross rent rounded to nearest ten cents


Avg Gross Rent for Renewal & New Office Leases (S$ psf pm)

Rental reversions:

Portfolio

Rental reversions:Robust office rent contribution expected

The average passing rent of leases expiring in 2009 accounting for 73,000 sq ft

Expect to continue to capitalise on under-rented office units in 2008 and 2009

Portfolio Office Lease Expiry and Average Gross Passing Rents

S$ psf pmSq ft

of total office NLA is still below current market rent

Highest rent committed in 4Q 2008 is 7 80

9.60 10.30

8

10

12

60,000

70,000

80,000

90,000

100,000

q

g$14.00 psf pm

7.80

2

4

6

10 000

20,000

30,000

40,000

50,000

,

72,969 83,852 64,830 --

10,000

2009 2010 2011

Expiring Office Leases (by NLA)

Gross passing rents of expiring leases (S$ psf pm)

30 January 2009 25

Note: Average monthly gross rent rounded to nearest ten cents


Retail Passing Rents

Portfolio

Retail Passing Rents

34 5036.40 36.67

40

Average Passing Rents for Wisma Atria & Ngee Ann City Retail

S$ psf pm

Ngee Ann City’s average retail rents are lower due to master lease under Toshin which occupies 89% of retail NLA at Ngee Ann City

28.16 27.91 28.11 29.26

33.0034.50

20

25

30

35

Footnotes:1. 2005 average rents computed from September - December 20052. 2008 average rents are year-to-date as at December 20083 T k th f 1Q t 3Q2008 O h d R d i

10.85 10.86 10.96 12.45

5

10

15

20

3. Taken as the average of 1Q to 3Q2008 Orchard Road prime retail rents from CBRE, where prime space is defined as “specialty” shop units of 500-1,000sf on level with heaviest traffic-

5

2005₁ 2006 2007 2008₂

Wisma Atria Retail Ngee Ann City Retail CBRE₃


g y ₃

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

Wisma Atria25%

Renhe Spring30%

Occupancy Cost %

Occupancy costs (4Q2008)

tenants given the centre s positioning as a female-centric mall

Renhe Spring Zong Bei Property operates as a hi h d d t t t ith i t ti l l

25% Spring Zongbei Property

16%

5%10%15%20%25%30%

Wisma Atria Renhe Spring

Occupancy Cost %

high-end department store with international luxury labels such as Prada, Hugo Boss, Chopard, Montblanc and Vertu which typically enjoy lower occupancy costs

0%5%

Occupancy costs (year-to-date)

24% Spring Zongbei Property

17%

10%

15%

20%

25%

Occupancy costs for Ngee Ann City and Japanese properties are

30 January 2009

0%

5%

%

27

Occupancy costs for Ngee Ann City and 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)g g y ( y )– Retail: 1.78 years; Office: 1.18 yearsHigh committed occupancy (90.2% by NLA) – Retail: 95.6%; Office 83.2% (includes 7,600 sq ft

previously occupied by property manager at no rent)Increasing proportion of retail leases structured as base

Rent Structure of Retail Leases (by NLA)

66%

80%

60%

80%

100%Dec 2005 Dec 08

g p prent plus % GTO– Base rent plus % GTO from 33% (Dec 05) to 80%

(Dec 08)– Higher of base rent or % GTO from 66% (Dec 05) to

19% (Dec 08)

33%19%

0%

20%

40%

60%

Higher of Base Rent or % GTO Base Rent plus % GTO

Committed Occupancy RatesLease Expiry Schedule (by NLA) as at 31 Dec 2008

48.3%53.7%

50%

60%Retail Office 100%

95% 95.3% 95.6%98%

86.0% 84.7% 83 2%90%95%

100%

20.1%

31.6%26.5%

19.8%

10%

20%

30%

40%

50% 83.2%

55%60%65%70%75%80%85%

Retail

Office


0%FY2009 FY2010 FY2011

50%55%

31 Mar 08 30 Jun 08 30 Sep 08 31-Dec-08

Note: Committed occupancy for Office as at 29 Jan 09 is 90.9% following take-up by YTL Singapore of an office lease

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 Rents

Wisma Atria Office Expiring Leases and their Average Rents

4050 000

S$ psf pmSq ft

50 000S$ psf pmSq ft

34.0

37.8

30

35

40

30 000

35,000

40,000

45,000

50,000

12.0 12.6

10

12

14

30 000

35,000

40,000

45,000

50,000

23.5

20

25

10 000

15,000

20,000

25,000

30,000

8.6

6

8

10

10 000

15,000

20,000

25,000

30,000

24,553 38,528 58,94410

15

0

5,000

10,000

2009 2010 2011

44,208 21,797 16,254 2

4

-

5,000

10,000

2009 2010 2011



Expiring retail leases (by NLA)




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

Wisma Atria Traffic Count at Primary EntrancesMillion

Wisma Atria Property Retail Sales TurnoverS$ Million

1 5

2.0

2.5 Year 2006 Year 2007 Year 2008

20

22

24

262007 Sales Turnover

2006 Sales Turnover

Basement MRT Linkway closed on 30

S$ Million

0.5

1.0

1.5

12

14

16

18

20

2008 Sales Turnover

0.0

Basement linkway to MRT station closed on 30 Sep 06

10

12

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2006 Sales TurnOver 2007 Sales TurnOver 2008 Sales TurnOver

30 January 2009 30

Note: Linkway to Orchard MRT station was closed from October 2006 and slated to be reopened mid-2009


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

Aerospace10.1%Trading

8.7%

Travel/Leisure1.0%

Jewellery & Watches

Services3.8%

Shoes & Accessories

8.4%

WA Office Trade Mix – by % NLA(as at 31 Dec 2008)

WA Retail Trade Mix – by % NLA(as at 31 Dec 2008)

Consultancy / Services13.0%

Government related2.9%

Investments4.9%

Real Estate & Property Services

8.0%

Fashion49.7%

General Trade2.0%

Watches6.9%

4.9%Jewellery & Watches

4.8%

Medical9.3%

Others9.8%

Petroleum Related27.4%

Health & Beauty2.0%

F&B27.3%

30 January 2009 31

Ngee Ann City Property Overview

Ngee Ann City

Ngee Ann City Property - Overview

Lease Expiry Schedule (by NLA) as at 31 Dec 2008 Weighted average lease term of 3.2 years – Retail: 4.13 years; Office 1.52 years

Close to full committed occupancy (99% by NLA) – Retail: 99.6%; Office 98.8%

89.0%

44.5%50%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% (Dec 2008) and step-up rents from 0% to 72% (Dec 08)3.3% 0.9%

6.8%

20.6%

34.8%

0.0%0%

10%20%30%40%50%

FY2009 FY2010 FY2011 Beyond 2011

Committed Occupancy Rates

100% 99.6% 99.6% 99.6%97.7% 98.2% 98.2% 98.8%100%

70%

80%

90%

Retail

Office


60%31 Mar 08 30 Jun 08 30 Sep 08 31-Dec-08

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 Average Rents

Ngee Ann City Office Expiring Leases and their Average Rents

S$ psfSq ftS$ psf pm

Sq ft

16.9 16.6

15

16

17

18

200,000

250,000

p

10

12

14

40,000

50,000

60,000 $ p p

14.513.1

12

13

14

15

50 000

100,000

150,000

6.7

8.8 9.6

6

8

10

20,000

30,000

8,353 2,37917,201

225,96910

11

0

50,000

2009 2010 2011 Beyond 2011

28,761 62,054 48,576 2

4

-

10,000

2009 2010 2011


Expiring retail leases (by NLA)

Gross passing rents of expiring leases (S$ psf pm)Expiring Office Leases (by NLA)


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 % NLA

Aerospace 3.6% Banking and

Financial Services

7.4%Beauty/ H lth

Real Estate & Property Services

6 9%

Travel/Leisure 5.4%

NAC Trade mix – by % NLA(as at 31 Dec 2008)

NAC Office Trade Mix – by % NLA(as at 31 Dec 2008)

Beauty & Wellness

8.8%

Services1.9%

General Trade0.4%

Health 4.5%

Consultancy / Services

Others 16.6%

6.9%

Toshin 28.2%

Jewellery & Watches 11.0%

Toshin89.0%


Japan Properties Overview

Japan Properties

Japan Properties - Overview

Weighted average lease term of 4.0 yearsWeighted average lease term of 4.0 years

Full occupancy except for two properties

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)

100% 100% 100% 100% 100%100%

Committed occupancy rates as at 31 Dec 2008

Medium Term Master Lease

Pass-through Leases

31%

* *86% 88%

70%75%80%85%90%95%

100%Master Lease34%

Long Term

31%

Long term master leases expire late 2015

M di t t l i i S 2012

50%55%60%65%

Hol

on L

araj

yuku

S

econ

do

Rop

pong

i Te

rzo

Rop

pong

i P

rimo

Nak

a-m

egur

o

Dai

kan-

yam

a

Ebi

su

Fort

Long Term Master Lease

35%

30 January 2009

Medium term master lease expires in Sep 2012

Pass-through leases typically have 3 year terms

35

The rent for the vacant units in the Roppongi Primo and Daikanyama properties are guaranteed by Fund Creation (until May 2009) and Future Revolution (until June 2010) respectively


H S R R

Japan Properties Overview

Japan Properties

Japan Properties - Overview

F t R l ti i th t t t f thFuture Revolution is the master tenant of the seven Japanese properties

– 33% of the NLA is directly occupied by Future Revolution and its related entities

Area occupied by Future Revolution and end tenants

Future Revolution’s parent company commenced civil rehabilitation proceedings on 26 December 2008

Future Revolution

29%

On 16 January 2009, the parent company assigned 100% of its interest in Future Revolution to a non-related party, Hexagon Capital Partners

Future Revolution

related4%3rd party

end-tenants67%

The manager is monitoring the situation closely and is evaluating the possibility of replacing Future Revolution as master tenant if necessary

67%


Renhe Spring Zongbei Overview

Renhe Spring Zongbei

Q C C

Renhe Spring Zongbei - Overview

Full occupancy as at end December 2008

Year-on-year sales performance 15.3% higher in 2008

New tenants who commenced operations in the last quarter include Chopard Longines Rado and Porsche phones

Quality high-growth asset in Chengdu, China

New tenants who commenced operations in the last quarter include Chopard, Longines, Rado and Porsche phones

25 000

Sales (RMB'000)including VAT

Zong Bei Weekly Sales Performance

10,000

15,000

20,000

25,000

0

5,000

,

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

AgendaAgenda

Financial Highlights

Portfolio Performance Update– Singapore– Tokyo

Growth StrategiesAsset Enhancements– Asset Enhancements

– Business Strategy


Ngee Ann City:Positioning strengthened by new tenants and upgraded storesPositioning strengthened by new tenants and upgraded stores

New concept stores and upgraded stores by Toshin in 2008


Ngee Ann City:Successful reconfiguration and branding of Level 5Successful reconfiguration and branding of Level 5

The Fifth - a level above shopping

Post re-configuration of the National Library space on Level 5 hasspace on Level 5 has

been branded to complement the Ngee

Ann City shopping experience


Wisma Atria:Continuing tenant remix to enhance positioningContinuing tenant remix to enhance positioning

New stores in 2008


Wisma Atria:New mini anchor to enhance positioning and increase revenuesNew mini anchor to enhance positioning and increase revenues

New NIKE concept store will enhance Wisma Atria’s appeal and improve revenues

As part of Wisma Atria’s ongoing process of upgrading and rejuvenation, Nike opened its first and largest self-owned

Sconcept store in South East Asia in Wisma Atria on 28 November 2008, replacing Topshop as a mini-anchor.

NIKE is committed to investing resources to ensure the continue success of the store including holding major events and bringing in international celebrities

New rents are significantly higher

Meanwhile, Topshop has reopened in Isetan Wisma AtriaIsetan Wisma Atria

Premises Part L2 & L3 Floor Area 8,020 sq ftGross Rent Substantial increase from

previous

30 January 2009

pLease Term 3+3 yearsLease start 24 Nov 2008


Wisma Atria:Wisma Atria’s Orchard Turn taxi stand upgradedWisma Atria s Orchard Turn taxi stand upgraded

Upgrading of Wisma Atria’s taxi stand was completedUpgrading of Wisma Atria s taxi stand was completed in December 2008 to align with neighboring development and accommodate anticipated heavier usage

– Number of taxi bays increased

– Waiting area expanded to include new convenience store to improve commuter comfort

– New canopy installed to provide better coverage and improve prominence of mall by incorporating unique architectural features


Wisma Atria:Ground level integration with ION Orchard on trackGround level integration with ION Orchard on track

New entrance at West Elevation of Wisma Atria was completed in November 2008 to facilitate access for shoppers

ION ORCHARDWISMA ATRIA

New escalators from Orchard MRT

for shoppers emerging from the new Orchard MRT entrance that will be completed soon

ION ORCHARDIntegration of stairs leading from Orchard pedestrian mall to ION Orchard and Wisma Atria willWisma Atria will be seamless to ensure ease of pedestrian flow

30 January 2009

ORCHARD ROAD


Wisma Atria:Widening of basement MRT linkway access in progress

Working with ION Orchard and

Widening of basement MRT linkway access in-progress

Working with ION Orchard and related authorities to ensure seamless basement connectivity

Configuration of Orchard MRT station will remain the same even after ION Orchard is completed

MRT Commuter traffic flow

after ION Orchard is completed

The MRT Linkway will be wider when it re-opens to facilitate easy access to Wisma Atria

Overall footfall to Wisma Atria expected to increase from 15.8 million p.a. (2008 full year traffic) to close to pre-linkway closure levels of about 25 million p.a. (50% plus increase)

Basement retailers will benefit from the anticipated high traffic flow

Target Completion J ne 2009

30 January 2009 45

Target Completion – June 2009


Wisma Atria:Creating lettable retail area at Basement and Level 1Creating lettable retail area at Basement and Level 1

First FloorBasement Level

Removal of New Escalators to unlock valuable lettable area when basement MRT linkway re-opens


Wisma Atria:Creating lettable retail area at basement and Level 1Creating lettable retail area at basement and Level 1

Overview Estimated impact

Assumptions:

Basement

Potential GFA (sq ft) 764

Removal of escalators between basement and Level 1 near GAP after re-opening of the MRT linkway

– Escalators were installed in Dec 2006 to facilitate traffic flow to basement during MRT linkway closure

Overview Estimated impact

Expected gross rent (S$ psf pm) 50.00

Level 1

Potential GFA (sq ft) 474

Expected gross rent (S$ psf pm) 19.00

traffic flow to basement during MRT linkway closure (closed on 30 Sep 2006)

– Quick recovery in traffic flow in Nov 2006 and particularly Dec 2006 due to the new escalators

– Re-opening of MRT linkway will offset need for

Estimated Expense Margin 20%

Impact (S$’000 unless otherwise stated):

Annual Rental Income 566

Annual Expenses (assume 20% expense margin) 113

escalator and allow creation of additional lettable area

Target completion in October 2009

RationaleIncremental Annual NPI 453

Capital value of initiative (assume 5.15% cap rate) 8,800

Less Capital Expenditure (740)

Increase NPI by creating additional lettable area

Reconfiguration to take 3 months with minimal disruption on existing tenants

Rationale

30 January 2009

Increase in capital value (net of investment cost) 8,060

Return on investment pa (%) 61%


Ongoing Growth DriversOngoing Growth Drivers

Rental Reversions

Continued growth expected over next few years

Ngee Ann City – Toshin rent increased by 19.75% from 8 Jun 2008 for 3 yrs

Wisma Atria and Ngee Ann City – Ongoing office rent reversions

Wisma Atria – Re-opening of MRT linkway – expected in 2Q 2009

Asset Enhancements

Ngee Ann City – Level 5 reconfiguration – from Jun 2008

Wisma Atria – Rent increase from new Nike lease – from Dec 2008

C l ti

Wisma Atria – New lettable area at B1 and L1 – from Oct 2009

Wisma Atria – Ground level integration with ION Orchard

30 January 2009

2008 2009 2010

Completion


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 (29.0% of retail 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:

• Singapore office leases expiring in 2009 (72,969 sq ft) represent 30.4% of total office NLA and have an average passing rent of S$7.80 psf vs average achieved rents of S$13.90 for renewals in 4Q 2008

• Singapore retail leases expiring in 2009 (32,905 sq ft) represent only 6.1% of total Singapore retail NLAg p p g ( , q ) p y g p– Year-to-date sales at Wisma Atria held steady compared to 2007 amidst current economic climate– 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 29% over 4Q 2007)

Healthy debt profile – Low gearing of 31.0% after revaluations– No significant refinancing due until September 2010– Average weighted average interest rate of 2.98% p.a.

89 4% of borrowings fixed (including derivatives) until September 2010

30 January 2009 49

– 89.4% of borrowings fixed (including derivatives) until September 2010


Change in sponsor and boardChange in sponsor and board

YTL Corp as sponsor offers synergiesNew Board composition YTL Corp as sponsor offers synergies

Extensive track record and expertise in developing and managing retail real estate in Asia

New Board composition

Appointment of Executive Chairman underscores commitment of management focus

Source of potential pipeline acquisition opportunities

Capability to incubate and warehouse potential pipeline of properties

Appointment of Lead Independent Director maintains corporate governance standards

New Board of Directors line-up:

T S i D t ’ (D ) F i Y h E Ch iPotential synergy with Starhill REIT in Malaysia

Established relationships with international luxury retail principals including the watch, fashion and jewellery industries

- Tan Sri Dato’ (Dr) Francis Yeoh, Exec Chairman- Franklin Heng, Chief Executive Officer- Dato’ Yeoh Seok Kian, Non-Executive Director- Dr Hong Hai, Lead Independent Director- Michael Hwang, Independent Director- Keith Tay Ah Kee Independent Director jewellery industries

Wide network and relationships with banks

Keith Tay Ah Kee, Independent Director


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

Secured commitment for refinancing of $35m Revolving Credit Facility

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 downturn

Focus for acquisitions continues to be retail and commercial properties

Build on the Starhill brand by sourcing for potential retail management and commercial property fundBuild on the Starhill brand by sourcing for potential retail management and commercial property fund management contracts


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


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 30 January 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.


30 January 2009Investor, Analyst and Media Contact: Ms Mok Lai Siong Tel : +65 6835 8633 Email : [email protected]

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