Mapletree Commercial Trust Results Announcement. For the period 27 April 2011 to 30 June 2011

Size: px

Start display at page:

Download "Mapletree Commercial Trust Results Announcement. For the period 27 April 2011 to 30 June 2011"

Lucas Henderson
5 years ago
Views:

1 Mapletree Commercial Trust Results Announcement For the period 27 April 2011 to 30 June 2011

2 Disclaimer This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in Mapletree Commercial Trust ( Units ). The value of 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. The past performance of MCT is not necessarily indicative of its future performance. This presentation may also 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, property expenses and 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 current view of management on future events. This presentation shall be read in conjunction with Mapletree Commercial Trust s financial results for the period from 27 April 2011 to 30 June 2011 in the SGXNET announcement. 2

3 Key Highlights Financial Highlights Portfolio Performance Asset Enhancement Outlook 3

4 Key Highlights Distribution Per Unit of cents exceeds Forecast 2 by 8.7% Robust year on year growth in Tenant Sales and Shopper Traffic at VivoCity Alexandra Retail Centre is on schedule for completion by end December 2011 and soft opening targeted by March 2012 Completed hedging of 85% of total debt and achieved actual all-up interest costs of 1.96% against Forecast of 2.43% 4 1 For the period from the Listing Date of 27 April 2011 to 30 June The Forecast is derived from the FY2011/12 forecast in MCT s IPO Prospectus dated 18 April 2011 (the Prospectus )

5 Key Highlights 27 Apr to 30 Jun 11 1 Actual Forecast 2 Variance (%) Distributable Income (S$ 000) 17,798 16, % Distribution per Unit ( DPU ) (cents) % Annualised DPU 4 (cents) Annualised Distribution Yield 5 6.1% 5.6% 5 1. Represents the period from Listing Date to 30 June 2011, the first full trading period for the portfolio of 3 assets. Accordingly, the Forecast is used for comparison as there are no prior year comparatives. 2. The Forecast is derived from the FY2011/2012 figures disclosed in the Prospectus 3. Represents a distribution of 100% of MCT s income available for distribution for the period from Listing Date to 30 June Annualised DPU for actual is based on annualising 65 days whereas Forecast DPU is full year FY2011/12 as shown in the Prospectus 5. Based on MCT Unit Price of S$0.885 as at close of trading on 26 July The Annualised Actual Distribution Yield is 6.1% based on IPO Price of S$0.88 per unit.

6 Key Highlights Financial Highlights Portfolio Performance Asset Enhancement Outlook 6

7 Distributable Income Exceeded Forecast by 8.7% For the period 27 April 2011 to 30 June 2011 (S$ 000) Actual Forecast Variance (%) Revenue 32,669 32, % Less Property Expenses (9,959) (10,107) 1.5% Net Property Income 22,710 22, % Managers Fees (2,195) (2,162) (1.5%) Other Trust Expenses (332) (385) 13.8% Finance Costs (3,912) (4,864) 19.6% Net Investment Income before Tax 16,270 14, % Add back Non-Tax Deductible Items 1 1,528 1, % Distributable Income 17,798 16, % 7 1. Non-tax deductible items include management fees paid in units, fees paid to Trustee, financing fees incurred on establishing bank facilities, and other non-tax deductible expenses.

8 Robust Balance Sheet All figures S$ 000 Actual as at 30 June 11 Pro-forma as at 31 Dec 10 Investment Properties 2,830,757 2,823,607 Current Assets 91,045 54,565 Total Assets 2,921,802 2,878,172 Current Liabilities 62,132 53,216 Bank Borrowings 1,124,649 1,124,431 Non-Current Liabilities 14,782 4,344 Net Assets 1,702,373 1,696,181 Units in Issue ( 000) 1,861,000 1,861,000 Net Asset Value per Unit $0.915 $

9 Favourable Debt Maturity and Cost of Debt Gross Debt (S$ m) FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 % of Total Debt Maturing 0% 25% 30% 30% 15% % of Total Debt fixed through Interest rate Swaps and Caps 0% 25% 30% 30% 0% Weighted Average Debt Maturity of 3.11 years as at 30 June 2011 Completed hedging for 85% of the Total Debt of S$1,128.7m by way of plain vanilla interest rate swaps and caps, providing stability and certainty of interest rates Actual all-up interest rate was 1.96% for the period from 27 April 2011 to 30 June 2011 which compares favourably to the Forecast of 2.43%. 9

10 Key Financial Indicators Actual as at 30 Jun 11 Pro-forma as at Listing Date Gearing Ratio 38.6% 39.1% Interest Coverage Ratio 5.1 times 4.0 times Average Term to Maturity for Debt (years) Average Cost of Debt 1.96% 2.43% Unencumbered Assets as % of Total Assets 100% 100% 10

11 Distribution Details Distribution Period 27 Apr Jun 2011 Distribution Amount cent per unit Distribution Timetable Notice of Books Closure Date Wednesday, 27 Jul 2011 Last Day of Trading on cum Basis Monday, 1 Aug 2011 Ex-Date Tuesday, 2 Aug 2011 Books Closure Date 5:00 pm, Thursday, 4 Aug 2011 Distribution Payment Date Thursday, 1 Sep

12 Key Highlights Financial Highlights Portfolio Performance Asset Enhancement Outlook 12

Escalation PSA Building ( PSAB ) PSAB Asset Enhancement ie.

13 MCT Portfolio Overview VivoCity Strong Rental Uplift with Built-in Rental Escalation Strong Tenant Sales Growth Bank of America Merrill Lynch HarbourFront ( MLHF ) Stable Income Built-in Rental Escalation PSA Building ( PSAB ) PSAB Asset Enhancement ie. construction of Alexandra Retail Centre ( ARC ) is on schedule for completion by end-december 2011 Expected Opening of Labrador Park MRT Station in 3QFY2011/12 13

14 Portfolio Revenue and NPI Above Forecast Gross Revenue 1 (S$ m) Net Property Income 1 (S$ m) % % Forecast Actual Forecast Actual VivoCity MLHF PSAB For the period from Listing Date to 30 June 2011

15 MCT Portfolio Occupancy (as at 30 June 2011) Office 100% Retail 99.7% MCT Portfolio % 96% 97.1% 91.7% 89.1% 92.8% URA 2011Q2 real estate statistics 2. NLA does not include PSAB AE. PSAB committed occupancy is 91.9% 3. NLA does not include PSAB AE. MCT Office Portfolio committed occupancy is 94.7% 4. VivoCity committed occupancy is 99.9% 5. NLA does not include PSAB AE. MCT Portfolio committed occupancy is 97.9%

16 Lease Expiry Profile 36.6% Portfolio WALE Office 2.1 years 4.4 years Rental Revenue for Jun 2011 As % of Gross 21.9% % 4.4% 1 2.1% 1.7% Retail 1.4 years 13.5% 1.8% 2.4% 0.8% FY11 FY12 FY13 FY14 FY15 & Beyond No of Leases Majority of leases are expiring in Q3 and Q4 FY 2011/12

17 Progress of Rental Commitments New/Renewed Leases Committed No. of Leases Retention Rate (by NLA) Rental Uplift (on Gross Rent) Retail 15 88% 23% Office 10 94% 9% All leases 18.5% expiring in Q1 and Q2 FY2011/12 have already been renewed or re-let Remaining lease expiries for H2 FY2011/12 under negotiation 17

18 VivoCity Robust Growth in Shopper Traffic & Tenant Sales Shopper Traffic 16% Tenant Sales 12% (in Mil) 12.3 (in S$m) Q1 FY2010/11 Q1 FY2011/12 1 Q1 FY2010/11 Q1 FY2011/12 1 1Q Q Q Q For the period from 1 April 2011 to 30 June Includes estimates of Tenant Sales for a portion of tenants 18

19 19 VivoCity Refreshing Retail Mix with Quality Tenants

20 VivoCity New Retail and Foods Kiosks Retail Kiosks at Level 1 20 F&B Kiosks at Basement 2

21 Key Highlights Financial Highlights Portfolio Performance Asset Enhancement Outlook 21

City NOL Office PSAB & ARC Overhead Bridge from MRT Station to ARC ARC NLA Retail (Levels 1-3) NLA: 89,600 sq ft Office (Level 4)

22 PSAB Asset Enhancement Alexandra Retail Centre ( ARC ) ARC is a one-stop modern convenience centre that provides an ideal retail solution to meet the daily needs of the large working and residential population in the Alexandra area Comtech Mapletree Business City NOL Office PSAB & ARC Overhead Bridge from MRT Station to ARC ARC NLA Retail (Levels 1-3) NLA: 89,600 sq ft Office (Level 4) NLA: 15,129 sq ft Total NLA: 104,729 sq ft Labrador Park MRT Station Expected Opening of Labrador Park MRT Station in 3Q FY2011/12 22

23 Alexandra Retail Centre Construction on Schedule Construction progress at 68% and is on schedule for completion by end- December 2011 Pre-leasing is progressing well with leases for more than 1/3 of the space being concluded Target for soft launch before March 2012 Façade works along Alexandra Rd Pedestrian Overhead Bridge from MRT station at ARC 2 nd Storey Cladding replacement works for Office Tower 23

24 Key Highlights Financial Highlights Portfolio Performance Asset Enhancement Outlook 24

25 Market Outlook Barring any unforeseen external shocks, the growth of Singapore economy is likely to moderate in H Current MTI economy forecast remains at 5%-7% GDP growth in 2011 Tourism arrivals forecast at million, up from 11.6m in Tourism receipts expected to increase from the S$18.8bn in 2010 Pace of office rental increases is expected to slow and is largely dependent on the pace of absorption for new and existing space Discretionary spending & retail sales expected to continue its uptrend, supported by a tight labour market and positive income growth Retail sales index increased y-o-y (8.5% for April 11 and 10% for May 11) Overall unemployment rate at 1.9% with nominal monthly earnings up 8.5% 25

26 Thank You For enquiries, please contact: Koh Wee Leong Investor Relations Tel:

Mapletree Commercial Trust

Mapletree Commercial Trust 3Q FY16/17 Financial Results 25 January 2017 1 Important Notice This presentation is for information only and does not constitute an offer or solicitation of an offer to sell