Lippo Malls Indonesia Retail Trust 3Q 2015 Results Presentation

Transcription

1 Lippo Malls Indonesia Retail Trust 3Q 2015 Results Presentation 5 November 2015

2 Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. These forward-looking statements reflect our current views with respect to future events and financial performance and are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in the Indonesian retail industry including those factors which may affect our ability to attract and retain suitable tenants, our ability to manage our operations, reduced demand for retail spaces, our ability to successfully complete and integrate potential acquisitions, liability for damages on our property portfolios, the success of the retail malls and retail spaces we currently own, withdrawal of tax incentives, political instability, and legal restrictions on raising capital or acquiring real property in Indonesia. In addition to the foregoing factors, a description of certain other risks and uncertainties which could cause actual results to differ materially can be found in the section captioned "Risk Factors" in our preliminary prospectus lodged with the Monetary Authority of Singapore on 19 October Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events. We undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

3 Key Highlights of 3Q 2015 Results 3Q 2015 Results YTD Gross Rental Income increased by 28.6% in IDR term 3Q 2015 DPU of 0.77 cents and YTD DPU of 2.29 cents 3Q 2015 DPU represents an annualized yield of 9.6% Financial Position Weighted Average Maturity of debt facilities was 1.84 years 1 Outstanding debt was S$695 million as at 30 September 2015 Established Euro Medium Term Securities Programme of S$1 billion Economic and Retail Landscape Indonesia's FDI increased by 18.2% YoY to IDR 92.2 trillion in 2Q Bank Indonesia expects Indonesia s economy to grow 4.9% in 2015 Retail space asking rents in Jakarta increased by 6.1% YoY in 3Q Portfolio Update Overall occupancy of 93.9% as at 30 September 2015 New and renewed leases of approximately 36,026 square meters during 3Q 2015 Average rental reversion was 22.9% during 3Q 2015 Notes: 1. As at 30 September Indonesia Investment Coordination Board Q Press Release 3. Colliers Research and Forecast Report Q3 2015

4 Performance Summary for 3Q 2015 Value of AUM (IDR billion) Gross Rent (IDR million) 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000-1,087 3,641 3,568 2,749 2,878 2,933 2,937 2,769 2,653 2,507 2,446 2,450 1,371 1,470 1,613 1,680 1,688 6,527 6,897 6,575 6,558 6, Q , , , , , , ,000 50, , ,101 Q Q IPO Malls SUN Plaza PV & PMF PS, PSX, Tamini, KJI, PJV, BSM LMK LPB & Picon 400, , ,000 NPI (IDR million) 290, , DPU (SGD cents) , , , ,000 50, Q Q Q Q3 2015

5 Financial Results COPY FOR ASTRA INTERNATIONAL 5 5

6 3Q 2015 Financial Results P&L (in IDR) 3Q 2015 (IDR million) 3Q 2014 (IDR million) Variance Gross Rent 359, , % Rental Guarantee Income - 2, % Other Income 8,124 6, % Net Parking Income 52,514 24,769 NM Rental of Electrical, Mechanical, and Mall Operating Equipment 10,761 5,224 NM Total Revenue 430, , % Property Management Fee (11,139) (8,950) -24.5% Property Management Expenses (20,881) (5,950) NM Total Property Operating Expenses (32,020) (14,900) NM Net Property Income 398, , %

7 3Q 2015 Financial Results P&L (in S$) 3Q 2015 (S$ 000) 3Q 2014 (S$ 000) Variance Gross Rent 36,327 28, % Rental Guarantee Income % Other Income % Net Parking Income 5,313 2,637 NM Rental of Electrical, Mechanical, and Mall Operating Equipment 1, % Total Revenue 43,547 32, % Property Management Fee (1,129) (954) -18.3% Property Management Expenses (2,128) (628) NM Total Property Operating Expenses (3,257) (1,582 ) NM Net Property Income 40,290 30, % Distributable Income 21,487 17, % Distribution Per Unit (cents) ¹ % Annualized Distribution Yield ² 9.6% Notes: 1. Based on billion units in issue as at 30 September Based on a closing price of S$0.32 as at 30 September 2015.

8 3Q 2015 Financial Results Balance Sheet (in S$) 30 September 2015 S$ million 31 December 2014 S$ million 1 2 Non Current Assets 1, ,845.9 Current Assets Total Debt Other Liabilities Net Assets 1, ,149.7 Net Asset Value S$ 0.37 S$ 0.42 Total Units In Issue 2, ,701.8 Gearing Ratio 35% 31% Notes:, 1. Included in the Non Current Assets are the Investment properties of S$ 1,773.4 million. The carrying values of the properties are stated based on independent valuation as at 31 December 2014 and acquisition price (Lippo Plaza Batu & Palembang Icon only), and adjusted for property enhancements to date. The valuations and property enhancements figures are recorded in the financial statements of the Indonesian subsidiaries in Indonesian Rupiah and translated into Singapore Dollars using the exchange rate as at end of the period. 2. Included in the Non current Assets are the Investment properties of S$1,806.9 million. The carrying values of the properties are stated based on the independent valuation as at 31 December 2014 in the financial statements of the Indonesian subsidiaries in IDR and translated into SGD using the exchange rate as at the end of the period.

9 Distribution Details 1 July September 2015 Total DPU 0.77 cents - Tax-Exempt 0.49 cents - Capital 0.28 cents Books Closure Date 16 November 2015 Tentative Distribution Payment Date 30 November 2015 Since listing in Nov 2007, LMIR Trust has maintained a payout policy of 100% of distributable income

10 Portfolio Performance COPY FOR ASTRA INTERNATIONAL 10 10

11 Diversified Trade Mix As at 30 September 2015 Trade Sector Breakdown by Rental Income 1.3% 2.7% 6.3% 11.2% Department Store (Retail Spaces) Department Store (Retail Malls) Fashion Books & Stationary 9.4% Hobbies Education / School 19.3% Supermarket / Hypermarket Other Sports & Fitness Toys 16.0% Leisure & Entertainment 1.5% 1.1% 4.2% Electronic / IT Gifts & Specialty Jewelry 3.6% 0.6% 1.5% 9.1% 9.2% 1.2% 0.6% 1.2% F & B / Food Court Home Furnishing Services Optic

12 Diversified Trade Mix As at 30 September 2015 Trade Sector Breakdown by NLA 3.0% 4.3% 0.7% 11.6% Department Store (Retail Spaces) Department Store (Retail Malls) Fashion 0.5% 0.4% 4.3% 10.3% 15.5% Books & Stationary Hobbies Education / School Supermarket / Hypermarket Other Sports & Fitness 7.8% Toys Leisure & Entertainment 0.5% 8.6% Electronic / IT Gifts & Specialty 1.8% Jewelry 13.1% 14.5% 1.7% 0.3% 1.0% F & B / Food Court Home Furnishing Services Optic

13 Top 10 Tenants By Gross Rental Income As at 30 September 2015, includes retail space Giant Supermarket Ace Hardware Electronic Solution Cinema 21 Fitness First Solaria Gramedia 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.7% Carrefour 3.5% Hypermart 6.4% Matahari Department Store 9.4% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Top 10 tenants contribute approximately 22.9% of LMIRT Retail Mall Portfolio s Gross Rental Income

14 Lease Expiry Profile As at 30 September 2015 Weighted Average Lease Expiry (by NLA) as at 30 September 2015: 5.13 years 50% 45% 43% 40% 35% 30% 25% 23% 20% 15% 10% 5% 4% 8% 11% 0% & Beyond LMIRT s portfolio lease terms represent a balanced mix of long-term anchor leases and shorter-term leases for non-anchor tenants, providing both stability and growth potential.

15 Debt Maturity Profile As at 30 September 2015 Weighted Average Maturity of Debt Facilities as at September 2015: 1.84 years Notes: 1 S$ 200 million 5.46% term loan due January S$ 150 million 4.25% fixed rate note (EMTN Program) due October 2016 (All in cost of debt: 4.6%) 3 S$ 50 million 5.875% fixed rate note (EMTN Program) due July 2017 (All in cost of debt: 6.5%) 4 S$ 75 million 4.48% fixed rate note (EMTN Program) due November 2017 (All in cost of debt: 5.0%) 5 S$ 145 million 5.57% p.a. (after taking into account interest rate swap contracts) term loan due December S$ 75 million 4.1% fixed rate note (EMTN Program) due June 2020 (All in cost of debt: 4.3%)

16 Rental Reversion Trend As at 30 September ,000 45,000 45, % 65.0% 40,000 35,000 36, % 30,000 25,000 30,606 26,542 22,072 24,764 25, % 35.0% 20,000 15,000 10,000 5,000 6, % 11,257 10,117 9, % 8.7% 8.0% 13,598 16, % 10.8% 16,455 17, % 8.9% 11, % 15.5% 19, % 15,168 16, % 9.4% 10.1% 11.6% 10.8% 9.5% 11.4% 22.9% 25.0% 15.0% 5.0% 0 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q % Renewal & New Leases NLA Rental Reversion Rate

17 Our Value Proposition 3Q2015 Net Property Income of S$40.3 million 3Q2015 Distributable Income of S$21.5 million 3Q2015 DPU of 0.77 cents contributes to 3Q 2015 annualized DPU yield of 9.6% Portfolio occupancy rate stood at 93.9%, remained higher than the industry average As at 30 September 2015, LMIRT s outstanding debt was S$695 million. Clarity of growth in a fragmented retail market with a visible pipeline of Sponsor and 3 rd party malls Indonesia's domestic demand driven economy remained resilient in the face of global uncertainty