3Q 2013 Financial Results

Size: px

Start display at page:

Download "3Q 2013 Financial Results"

Sylvia Kelly
6 years ago
Views:

1 3Q 2013 Financial Results 23 October Q 2013 Financial Results *23 October 2013*

2 Disclaimer This presentation may contain forward-looking statements that involve assumptions, 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 other developments or companies, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses (including employee wages, benefits and training costs), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. 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. The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither CapitaRetail China Trust Management Limited (the Manager ) or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation. The past performance of CapitaRetail China Trust ( CRCT ) is not indicative of the future performance of CRCT. Similarly, the past performance of the Manager is not indicative of the future performance of the Manager. The value of units in CRCT ( Units ) and the income derived from them may fall as well as rise. 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 should note that they will have no right to request that the Manager redeem or purchase their Units for as long as the Units are listed on the Singapore Exchange Securities Trading Limited ( SGX-ST ). It is intended that holders of Units (Unitholders) 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. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for Units. 1 3Q 2013 Financial Results *23 October 2013*

3 Contents Summary Financial Highlights Financial Results Portfolio & Acquisition Update Proactive Asset Management Market Outlook 2 3Q 2013 Financial Results *23 October 2013*

4 3Q 2013 Summary Gross revenue 1 up 5.3% y-o-y Net Property Income (NPI) 1 increased 1.7% y-o-y Underpinned by favourable RMB exchange rate, YTD 2013 NPI 1 in Singapore dollars up 6.3% 3Q 2013 distributable income grew 2.1% y-o-y; YTD 2013 distributable income increased 4.6% y-o-y Robust performance of malls Stable and Sustainable Growth Healthy portfolio rental reversion of 10.0% Strong growth in tenants sales of 10.1% 2 y-o-y and 3.7% 2 q-o-q Steady shopper s traffic growth of 3.4% 2 y-o-y and 8.1% 2 q-o-q 1. Excluding CapitaMall Minzhongleyuan which is currently undergoing asset enhancement works. 2. Includes only tenants at multi-tenanted malls except CapitaMall Minzhongleyuan, which was acquired in June 2011 and is undergoing asset enhancement works. 3 3Q 2013 Financial Results *23 October 2013*

5 Financial Highlights 4 3Q 2013 Financial Results *23 October 2013* CapitaMall Xizhimen, Beijing, China

6 3Q 2013 Distributable Income Grew 2.1% 3Q Q 2012 Change Actual Actual Gross Revenue (RMB 000) 191, ,162 (1.3%) NPI (RMB 000) 121, ,521 (4.3%) Distributable Income (S$ 000) 17,081 16, % DPU (Singapore cents) 2.26* 2.42 (6.6%) Annualised Distribution Yield 6.5% (Based on unit price of S$1.375 on 30 Sep 2013) Annualised Distribution Yield 6.4% (Based on unit price of S$1.395 on 22 Oct 2013) * Excluding the 57 million units issued through private placement in 2 November 2012, DPU for 3Q 2013 would have been 2.44 cents, ~0.8% higher than the 2.42 cents for 3Q Q 2013 Financial Results *23 October 2013*

7 YTD 2013 Distributable Income Grew 4.6% YTD 2013 YTD 2012 Change Actual Actual Gross Revenue (RMB 000) 592, , % NPI (RMB 000) 385, , % Distributable Income (S$ 000) 52,323 50, % DPU (Singapore cents) 6.95* 7.24 (4.0%) Annualised Distribution Yield 6.8% (Based on unit price of S$1.375 on 30 Sep 2013) Annualised Distribution Yield 6.7% (Based on unit price of S$1.395 on 22 Oct 2013) * Excluding the 57 million units issued through private placement in 2 November 2012, DPU for YTD 2013 would have been 7.47 cents, ~3.2% higher than the 7.24 cents for YTD Q 2013 Financial Results *23 October 2013*

8 Healthy Balance Sheet As at 30 Sep 2013 S$ 000 Investment Properties 1,644,116 Net assets attributable Other Assets 60,416 to unitholders (S$ 000) Financial Derivatives Assets 4,541 Cash & Cash Equivalents 108,327 Units In Issue ( 000 units) 756,895 Total Assets 1,817,400 Net Asset Value (NAV) Interest-bearing Borrowings 469, per unit Deferred Tax Liabilities 143,143 1,113,356 Financial Derivatives Liabilities 1,490 Adjusted NAV per unit Other Liabilities 64,147 (net of distribution) Total Liabilities 677,924 Non-controlling Interest 26, Q 2013 Financial Results *23 October 2013*

9 Financial Results 8 3Q 2013 Financial Results *23 October 2013* CapitaMall Xizhimen, Beijing, China

10 Property Gross Revenue (in RMB 000): 3Q 2013 vs 3Q 2012 Excluding CapitaMall Minzhongleyuan, gross revenue grew 5.3% y-o-y CRCT Portfolio Multi-Tenanted Malls CapitaMall Xizhimen 60,987 56, , , % CapitaMall Wangjing CapitaMall Qibao CapitaMall Saihan 44,591 42,176 20, ,171 12,833 10,656 3Q 2013: RMB 147,724K 3Q 2012: RMB 138,722K 6.5% CapitaMall Wuhu Master-Leased Malls CapitaMall Anzhen CapitaMall Erqi 12,480 12,356 CapitaMall Shuangjing Mall under Asset Enhancement ,363 8,454 20,256 20,051 10,921 10,600 12,433 3Q 2013: RMB 43,657K 1.5% 3Q 2012: RMB 43,007K CapitaMall Minzhongleyuan Actual 3Q Q 2013 Actual 3Q Q Decline in gross revenue was due to tenancy adjustment carried out when area was recovered from a mini-anchor. 2. CRCT has a 51.0% interest in CapitaMall Wuhu. 9 N.M. Not meaningful 3Q 2013 Financial Results *23 October 2013*

11 Net Property Income (in RMB 000): 3Q 2013 vs 3Q 2012 CRCT Portfolio Multi-Tenanted Malls CapitaMall Xizhimen CapitaMall Wangjing CapitaMall Qibao CapitaMall Saihan CapitaMall Wuhu Master-Leased Malls CapitaMall Anzhen CapitaMall Erqi CapitaMall Shuangjing (1,392) CapitaMall Minzhongleyuan Excluding CapitaMall Minzhongleyuan, NPI grew 1.7% y-o-y Mall under Asset Enhancement 2 6, ,475 7,055 5,633 2,761 3,657 9,853 9,747 8,742 8,426 6,109 16,595 16,425 30,020 29,833 40,692 39,216 3Q 2013: RMB 87,317K 3Q 2012: RMB 85,814K 3Q 2013: RMB 35,190K 3Q 2012: RMB 34,598K 1. Decline in gross revenue was due to tenancy adjustment carried out when area was recovered from a mini-anchor. 2. CRCT has a 51.0% interest in CapitaMall Wuhu. 10 N.M. Not meaningful 3Q 2013 Financial Results *23 October 2013* 121, , % 1.7% Actual 3Q Q 2013 Actual 3Q Q %

12 Property Gross Revenue (in RMB 000): YTD 2013 vs YTD 2012 Excluding CapitaMall Minzhongleyuan, gross revenue grew 6.4% y-o-y CRCT Portfolio Multi-Tenanted Malls CapitaMall Xizhimen CapitaMall Wangjing CapitaMall Qibao CapitaMall Saihan CapitaMall Wuhu Master-Leased Malls CapitaMall Anzhen CapitaMall Erqi CapitaMall Shuangjing Mall under Asset Enhancement 1 36,810 30,525 25,930 24,705 64,403 61,549 60,462 59,858 37,511 37,068 32,911 31, , , , , CRCT has a 51.0% interest in CapitaMall Wuhu. 11 N.M. Not meaningful 3Q 2013 Financial Results *23 October 2013* YTD 2013: RMB 438,881K YTD 2012: RMB 406,677K YTD 2013: RMB 130,884K YTD 2012: RMB 128,672K 592, , % 1.7% CapitaMall Minzhongleyuan 22,652 37,292 YTD 2013 YTD %

13 Net Property Income (in RMB 000): YTD 2013 vs YTD 2012 Excluding CapitaMall Minzhongleyuan, NPI grew 6.1% y-o-y CRCT Portfolio Multi-Tenanted Malls CapitaMall Xizhimen 123, , , , % CapitaMall Wangjing 93,858 90,260 CapitaMall Qibao CapitaMall Saihan 26,349 24,463 19,914 15,199 YTD 2013: RMB 273,883K YTD 2012: RMB 255,167K 7.3% CapitaMall Wuhu Master-Leased Malls 1 10,593 10,990 CapitaMall Anzhen CapitaMall Erqi CapitaMall Shuangjing Mall under Asset Enhancement 49,519 49,028 29,634 28,060 26,243 25,199 YTD 2013: RMB 105,396K YTD 2012: RMB 102,287K 3.0% CapitaMall Minzhongleyuan 5,910 19, CRCT has a 51.0% interest in CapitaMall Wuhu. 12 N.M. Not meaningful 3Q 2013 Financial Results *23 October 2013* YTD 2013 YTD 2012

14 Debt Maturity Profile (30 Sep 2013) S$ million 500 S$470.0 million Variable Rate 17.3% Fixed Rate 82.7% 20% Market Capitalisation 2 CapitaMall Anzhen Unsecured- Onshore Loan Trust - Unsecured Money Market Line Trust - Unsecured Term Loan Variable Rate 0 Total Borrowings Fixed Rate 1. Amortisation payment for CapitaMall Anzhen unsecured loan in 2013 is S$1.3 million. 2. Market capitalisation is computed based on the closing price of S$1.375 as at 30 September Q 2013 Financial Results *23 October 2013*

15 Key Financial Indicators 3Q Q 2013 Unencumbered Assets as % of Total Assets 100.0% 100.0% Gearing 25.8% 23.5% Net Debt / EBITDA (Times) Interest Coverage (Times) Average Term to Maturity (Years) Average Cost of Debt 2.60% 2.58% 14 3Q 2013 Financial Results *23 October 2013*

16 Attractive Distribution Yield 8.0% 6.7% Based on historical gross dividend yield of past 12 months 6.0% 4.9% 4.0% 4.1% 3.3% 3.5% 2.4% 2.5% 2.0% 0.3% 0.0% CRCT Yield 1 Singapore 10-year Govt Bond Yield China 10- year Govt Bond Yield FSSTI Yield FSTRE Yield FSTREI Yield CPF Ordinary Account 6 12-month Fixed (S$) Deposit 7 Sources: Bloomberg, CRCTML, CPF Board, Monetary Authority of Singapore 1) Based on annualised distribution per unit of 9.29 for YTD 2013 and the unit closing price of S$1.395 on 22 Oct ) Singapore Government 10-year and China Government 10-year bond yields as at 30 Sep ) Average 12-month gross dividend yield of Straits Times Index stocks as at 30 Sep ) Average 12-month gross dividend yield of Straits Times Real Estate Index as at 30 Sep ) Average 12-month gross dividend yield of Straits Times REIT Index as at 30 Sep ) Prevailing CPF-Ordinary Account savings rate. 7) Average 12-month S$ fixed deposit savings rate as at Sep Q 2013 Financial Results *23 October 2013*

17 Portfolio & Acquisition Update 16 3Q 2013 Financial Results *23 October 2013* CapitaMall Saihan, Huhhot, China

18 Strong Portfolio Occupancy Rate 30 Sep Dec Mar Jun Sep 13 1 Multi-tenanted Malls CapitaMall Xizhimen 98.5% 94.8% 96.0% 98.5% 98.1% CapitaMall Wangjing 99.8% 99.5% 99.8% 99.9% 98.9% CapitaMall Qibao 97.5% 97.4% 97.2% 95.1% 96.6% CapitaMall Saihan 99.0% 99.9% 97.0% 98.5% 99.9% CapitaMall Wuhu 90.1% % % % % 3 Master-leased Malls CapitaMall Anzhen 100% 100% 100% 100.0% 100.0% CapitaMall Shuangjing 100% 100% 100% 100.0% 100.0% CapitaMall Erqi 100% 100% 100% 100.0% 100.0% Mall under Asset Enhancement CapitaMall Minzhongleyuan % 81.3% 72.1% 65.2% N/A CRCT Portfolio 97.5% 97.2% 96.5% 96.5% 98.3% 1. Based on committed leases. 2. CapitaMall Minzhongleyuan is excluded as it is undergoing asset enhancement works Tenancy adjustment on level one and four of CapitaMall 3Q 2013 Financial Wuhu. Results CRCT s *23 stake October in CapitaMall 2013* Wuhu is 51%.

19 Healthy Portfolio Rental Reversion of 10% in 3Q 2013 Property 1,3 From 1 July to 30 Sep 2013 No. of new leases/renewals Var. over last rental rate 2, 3 (%) CapitaMall Xizhimen % CapitaMall Wangjing % CapitaMall Qibao % CapitaMall Saihan % CapitaMall Wuhu % 4 CRCT Portfolio % 1. CapitaMall Minzhongleyuan is excluded as it is undergoing asset enhancement works. 2. Excluding gross turnover component. 3. Majority of leases have rental escalation clauses. 4. Mainly due to new tenants at L1 rented at lower fixed rate compared to preceding rent. CRCT s stake in CapitaMall Wuhu is 51%. 18 3Q 2013 Financial Results *23 October 2013*

20 Portfolio Lease Expiry (By Year) As at 30 Sep 2013 No. of Leases 1,3 Gross Rental Income 3 RMB 000 % of Total (Sep 13) , , , , , Beyond , CRCT Portfolio Weighted Average Lease Term to Expiry 3 By Gross Rent By Gross Rentable Area 5.3 years 8.4 years 1. Based on all committed leases as of 30 September As percentage of total gross rental income for the month of September CapitaMall Minzhongleyuan is excluded as it is undergoing asset enhancement works. 19 3Q 2013 Financial Results *23 October 2013*

21 Portfolio Lease Expiry Profile for 2013 As at 30 Sep 2013 No. of Leases 1,3 Gross Rentable Area 3 Gross Rental Income 3 Sq m % of total RMB 000 % of total (Sep 13) 2 CapitaMall Xizhimen 34 9, , CapitaMall Wangjing 46 6, , CapitaMall Qibao 21 1, CapitaMall Saihan 33 2, CapitaMall Wuhu , Based on all committed leases as of 30 September As percentage of total gross rental income for the month of September CapitaMall Minzhongleyuan is excluded as it is undergoing asset enhancement works. 4. CRCT s stake in CapitaMall Wuhu is 51%. 20 3Q 2013 Financial Results *23 October 2013*

22 Portfolio Tenants Sales & Shopper Traffic Tenants Sales 1 Shopper Traffic 2 RMB psm 1,500 Ave. Monthly Sales ' Ave. Daily No. of Shoppers 1, Y-o-Y 10.1% Y-o-Y 3.4% 0 Q-o-Q 3.7% 3Q Q Q Q-o-Q 8.1% 3Q Q Q Q Q Q Q Q Q Includes only tenants at multi-tenanted malls except CapitaMall Minzhongleyuan, which was acquired in June 2011 and is undergoing asset enhancement works. 2. Includes only shoppers at multi-tenanted malls except CapitaMall Minzhongleyuan, which was acquired in June 2011 and is undergoing asset enhancement works. 21 3Q 2013 Financial Results *23 October 2013*

23 CapitaMall Minzhongleyuan s Asset Enhancement Initiative Site Photos Structure Reinforcement Construction Construction of Escalator Opening New Structure for Conserved Building 22 3Q 2013 Financial Results *23 October 2013*

24 CapitaMall Minzhongleyuan s Asset Enhancement Initiative Leasing Update >50% committed and under advanced negotiation Achieved 15.8%* higher than target rent Some of the committed tenants include UA Cinemas, (only IMAX within the vicinity), Starbucks, Swatch, Charles & Keith and etc 23 * Excluding anchor tenant. 3Q 2013 Financial Results *23 October 2013*

25 Proposed Acquisition of Grand Canyon Mall Status Update Expect to obtain official approval before year end; Completion of acquisition accelerated to 1Q Q 2013 Financial Results *23 October 2013*

26 Proactive Asset Management 25 3Q 2013 Financial Results *23 October 2013* CapitaMall Minzhongleyuan, Wuhan, China

Generating Growth Fine-tuning Tenant Mix CapitaMall Xizhimen Popular international fashion

range of customers including youngsters and families Improve popularity of the mall and

Brought in attractive fashion tenants Refresh mall s image with trendy fashion brands Rental

27 Generating Growth Fine-tuning Tenant Mix CapitaMall Xizhimen Popular international fashion chains replaced outdated fashion tenants Provide varieties to meet the demands from a wide range of customers including youngsters and families Improve popularity of the mall and convert shoppers to repeated customers Paul Frank (CapitaMall Xizhimen) CapitaMall Wangjing Brought in attractive fashion tenants Refresh mall s image with trendy fashion brands Rental >65% GAP (CapitaMall Xizhimen) 26 3Q 2013 Financial Results *23 October 2013* Bouthentique (CapitaMall Wangjing)

Optimising Returns Reconfiguration of Spaces CapitaMall Qibao Recovered

smaller units 68% committed with various F&B tenants Active engagement

operations in Sep and Oct 13; target to open the other 2 in 4Q 2013 New

to move in popular dessert shop Provide varieties to F&B Rental 83% 27

28 Optimising Returns Reconfiguration of Spaces CapitaMall Qibao Recovered 3,000 sq m from a mini-anchor tenant at level 1; reconfigured to 6 smaller units 68% committed with various F&B tenants Active engagement with prospect tenants for the remaining area 4 tenants have commenced operations in Sep and Oct 13; target to open the other 2 in 4Q 2013 New F&B Tenants (CapitaMall Qibao) CapitaMall Wangjing Combined two units to move in popular dessert shop Provide varieties to F&B Rental 83% 27 3Q 2013 Financial Results *23 October 2013* New F&B Tenant (CapitaMall Wangjing)

29 Driving Traffic & Sales Marketing Activities 28 3Q 2013 Financial Results *23 October 2013*

30 Market Outlook 29 3Q 2013 Financial Results *23 October 2013* CapitaMall Qibao, Shanghai, China

31 Market Outlook China economy on track to achieve its GDP growth target: GDP picked up with growth of 7.8% * y-o-y in 3Q 2013 Retail sales increased by 12.9% * y-o-y for YTD 2013 The Chinese government is committed to take gradual and active steps to reform financial sector Liberalising interest rates through removal of floor lending rates by banks Outlook on China is expected to improve with signs of pickup in external demand and supportive domestic policies * Source: National Bureau of Statistics of China 30 3Q 2013 Financial Results *23 October 2013*

32 Appendix 31 3Q 2013 Financial Results *23 October 2013* CapitaMall Erqi, Zheng Zhou, China

33 Diversified Trade Mix By Gross Rent 1,3 By Net Lettable Area 2,3 Department Store Supermarket Fashion & Accessories 7.8% 1.7% 3.4% 6.5% 18.3% 4.5% 4.5% 0.8% 1.1% 3.3% 3.2% 33.5% Food & Beverages Leisure & Entertainment 2.5% 1.7% 10.6% 10.9% Houseware & Furnishings Beauty & Healthcare 19.9% 10.1% Shoes & Bags Sundry & Services 27.6% 28.1% Others 1. For the month of September Percentage of committed NLA as at 30 September CapitaMall Minzhongleyuan is excluded as it is undergoing asset enhancement works. 32 3Q 2013 Financial Results *23 October 2013*

34 Portfolio at a Glance CapitaMall Xizhimen 凯德 MALL 西直门 CapitaMall Wangjing 凯德 MALL 望京 CapitaMall Anzhen 凯德 MALL 安贞 CapitaMall Erqi 凯德广场二七 CapitaMall Shuangjing 凯德 MALL 双井 CapitaMall Minzhong leyuan 新民众乐园 CapitaMall Qibao 凯德七宝购物广场 CapitaMall Saihan 凯德 MALL 赛罕 CapitaMall Wuhu 1 凯德广场芜湖 Location Beijing Beijing Beijing Zhengzhou Beijing Wuhan Shanghai Huhhot Wuhu GFA 2 (sq m) 83,075 83,768 43,443 92,356 49,463 41,717 83,986 41,938 59,624 GRA 2 (sq m) 83,075 68,010 43,443 92,356 49,463 38,631 72,729 41,938 45,634 Land Use Right Expiry 23 Aug Aug May May Oct Mar Jun May Jul Jun Sep Mar Mar Mar May 2044 Valuation 3 (RMB million) 2,527 1, NPI Yield on Valuation 3 6.5% 6.8% 7.0% 6.7% 6.5% N.M % 7.6% 5.9% Number of Leases N.M Committed Occupancy % 98.9% 100% 100% 100% N.M % % 89.9% 7 Shopper Traffic for 2012 (million) CRCT has a 51.0% interest in CapitaMall Wuhu. 2. As at 30 September NPI yield is based on annualised YTD 2013 NPI (1 January September 2013) and valuation as at 30 June The conserved building is under a lease from the Wuhan Cultural Bureau. 5. The NPI yield for CapitaMall Minzhongleyuan is not meaningful due to the on-going asset enhancement works. 6. CapitaMall Qibao is indirectly held by CRCT under a master lease which expires in Jan 2024, with the right to renew for a further term of 19 years and 2 months. 7. CapitaMall Minzhongleyuan is undergoing asset enhancement works. Tenancy adjustment on level 1 of CapitaMall Qibao. Tenancy adjustments on levels 1 and 4 of CapitaMall Wuhu. 33 3Q 2013 Financial Results *23 October 2013*

35 Thank You For enquiries from analysts & investors, please contact (Ms) LENG Tong Yan Investor Relations Tel: (65) Q 2013 Financial Results *23 October 2013*

CapitaLand Retail China Trust

CapitaLand Retail China Trust Financial Results for 3Q 2016 25 October 2016 0 Financial Results for 3Q 2016 *25 October 2016* Disclaimer This presentation may contain forward-looking statements that involve