IMPACT Growth REIT REIT SET Thai Corporate Day Investor Presentation. 8 March REIT Manager. Page 1

Transcription

1 IMPACT Growth REIT REIT SET Thai Corporate Day 2016 Investor Presentation 8 March 2016 Page 1 REIT Manager

2 Content IMPACT Growth REIT Overview Operational & Financial Performance Prospected new assets Page 2

3 IMPACT Growth REIT Overview Page 3

4 IMPACT Growth REIT Structure Public Trust Holders Trust Certificates Lenders REIT Manager RMI Company Limited Manage the REIT Management fee IMPACT GROWTH REIT Trustee fee Monitor the REIT Trustee IMPACT as property manager Freehold ownership Property Manager Manage an operation of all assets Management fee IMPACT Arena IMPACT Challenger IMPACT Exhibition Center IMPACT Forum Page 4

5 Bangkok Land Overview Bangkok Land Public Company Limited ( BLand ) is a leading property development and holding company in Thailand with established track record in the development of large-scale self-contained community projects including Muang Thong Thani Chaengwattana and Muang Thong Thani Bangna BLand currently operates the largest exhibition and convention facility in Southeast Asia through IMPACT Exhibition & Management Company Limited. Bangkok Land Public Company limited ( BLand ) Real Estate Exhibition, Convention Centre & Hotel Building Management and Service Retail Others 100% Sinpornchai Company Limited ( SPC ) 100% 97% IMPACT Exhibition Management Company Limited ( Property Manager ) Muang Thong Services and Management Company Limited ( MSM ) 99.3% 100% Bangkok Land Agency Limited ( Agency ) Bangkok Land (Cayman Islands) Limited ( Cayman ) 100% Bangkok Airport Industry Company Limited ( BAIC ) 100% RMI Company Limited ( REIT Manager ) 97% Muang Thong Building Services Company Limited ( MBS ) Page 5

6 IMPACT Growth REIT Summary REIT Name IMPACT Growth Real Estate Investment Trust ( IMPACT ) Investment Assets REIT acquired Freehold Assets of IMPACT Muangthong Thani Project including Land, building and utilities system of IMPACT Arena Land, building and utilities systems of IMPACT Exhibition Center Land, building and utilities systems of IMPACT Forum and P2 Parking Building Land, building and utilities systems of IMPACT Challenger and P1 Parking Dividend Policy Sources of Fund Number of Unit At least 90% of the adjusted net profit for the year as distribution to holders of trust units. Distribution to be made includes annual distribution and interim distribution (if any) Capital 80% ; 15,714,500,000 THB Debt 20% ; 3,900,000,000 THB 1,482,500,000 Units NAV ( End of Dec 15) Listed Date October 1, 2014 Sponsor / Property Manager REIT Manager IMPACT Exhibition Management Company Limited RMI Company Limited (a 100% subsidiary of IMPACT) Trustee Kasikorn Asset Management Company Limited Page 6

7 Stock Information Stock Information Bloomberg /Reuters : Unit Price (15 Feb-16) : THB Historical price: 52 week high* THB week low* THB Average Trading Volume : IMPACT.TB/ IMPACT.BK THB 12.7mn No. of unit : 1,482,500,000 Par Value: THB Market Capitalization : THB 18.2bn Major Unitholders Top 10 Major 27- Nov IMPACT Exhibition Management Co.,Ltd % 2. Social Security Office of Thailand 4.06% 3. Allianze Ayudhya Assurance Pcl. 2.23% 4. TMB Property Income Fund 1.96% 5. Government Saving Bank 1.93% 6. Muang Thai Life Assurance Pcl. 1.29% 7. Thanachart Property Sector 1.29% 8. HSBC (SINGAPORE) NOMINEES PTE LTD 1.28% 9. South East Insurance Pcl. 1.27% 10. Thai Insurance Plc. 1.27% Points Bt. / unit 1,700 SET IMPACT ,500 1,300 1, /10/ /11/ /12/ /2/ /3/ /5/2015 2/7/ /8/ /9/ /11/ /12/ /2/2016 Page 7 Source : SETSMART From the period of16 Feb Feb 2016

8 Competitors & Market share IMPACT offers complete facilities with unique characteristics that suit distinguished need of different types of customers Top MICE Business Players in Thailand IMPACT has secured the highest market share among 4 key players in Thailand 1 IMPACT (ChaengWattana Rd) Venue Area : 120,000 sq.m. Characteristic : largest indoor venue area with abundant parking space 2 BITEC (Bangna-Trad Rd) Venue Area : 32,000 sq.m. Characteristic : large hall area with an expansion plan BITEC 20% QSNCC 11% PARAGON 2% IMPACT 67% Source : RMI Co.,Ltd. during 1 Jan Dec 15 Factors Supporting IMPACT High Market Share 4 Royal Paragon (Rama 1 Rd) Venue Area : 12,000 sq.m. Characteristic : comprise of Royal Paragon Hall 1,2,3 and 5 meeting rooms 3 QSNCC(Ratchadapisek Rd) Venue Area : 18,000 sq.m. Characteristic : comprise of 4 zones, each zone has 1 3 floor 1 Biggest Exhibition Center in South East Asia with over 122,165 sq.m. indoor venue space 2 Ability to host 40,000 50,000 visitors at a time 3 Fully equipped with modern and technological advanced facility 4 A one-stop service providers to diverse customers 5 Ample car parking spaces Page 8

9 Strategic Location Strategic Location suitable for MICE businesses IMPACT Forum IMPACT Exhibition Hall 5-8 IMPACT Exhibition Hall 1-4 IMPACT Arena IMPACT Challenger Page 9

10 Easily access and convenience The right location leads to the robust traffic to the events held at IMPACT Muang Thong Thani Strategic Location suitable for MICE businesses Why Does customer choose IMPACT LARGE VENUE IMPACT boasts on its vast venue and complete facilities to accomodate increasing number of visitor on continual basis year after year. This fact attracts a number of new events and repeating events to IMPACT, constituting a strong growth in revenue year on year. LARGE PARKING AREA Ample Parking spaces is a competitive advantage that allows convenience for commuters Connected to 5 main roads of Bangkok and Nonthaburi Located 15 km away from Don Muang Airport and 45 km from Suwannabhumi Airport 3 Located close to Expressways Accessible by multiple public transports; IMPACT LINK, Bus, Taxi 5 Potential of upcoming Mass Rapid Transit (Pink Line) MEETING INCENTIVE CONVENTION & EXHIBITION HUB OF ASIA IMPACT has prepared its property to serve wide range of customer ranging from industrial machine exhibition to international concert. Customer can choose among distintive facilities to suit their need at IMPACT Convention & Exhibition Center. ONE STOP SERVICE IMPACT provides integrated services to customers ranging from F&B catering, event management, operations, floor space consultation to sales&marketing. Page 10

11 High Experience of Property Manager ARENA FORUM HALL 5-8 CHALLENGER HALL 1-4 Raised fund through REIT for future expansion IMPACT has managed the properties since its inception and continuously expanded the project along to accomplish its vision to be Asia s Top 5 Venues. Currently, IMPACT is the market leader in Thailand MICE industry with the highest market share of occupied venue spaces. With more than 15 years of expertise in managing exhibition center, the excellent service provided by the company are widely recognized by to be beyond the expectations. an integrated venue manager with versatile services guaranteed by many awards and standard certifications 1 floor space consultant 2 event manager 3 skillful operator 4 catering provider 5 media consultant TCEB Approved Event Award Thailand Incentive and Convention Association UFI ICT Award 2010 Runner up TIS MICE Security Management System Certification ISO Energy Management Standard Certification ISO Food-Safety Management Standard Certification Page 11

12 4 Initial Assets All of the four assets comprise IMPACT Muang Thong Thani : The Largest Exhibition and Convention Center in ASEAN 1 IMPACT ARENA 2 IMPACT EXHIBITION Center Land Land covering the area of approximately 76 Rai (same title deed with the IMPACT Exhibition Hall 1-8) Land Land covering the area of approximately 76 Rai (same title deed with the IMPACT Arena) Building 5-floor building with a gross floor area of 41,810 sq.m. and net leasable area of 16,294 sq.m. Building 8 buildings with a combined gross floor area of 99,519 sq.m. and net leasable area of 53,471 sq.m. 3 IMPACT FORUM 4 IMPACT CHALLENGER 1-3 Land Land covering the area of approximately 29 Rai Land Land covering the area of approximately 84 Rai Building 2-floor building with10-floor parking lot; combined gross floor area of 119,522 sq.m. and net leasable area of 25,943 sq.m. Building 3 buildings with a combined gross floor area of 221,087 sq.m. and net leasable area of 69,898 sq.m. Page 12

13 IMPACT Growth REIT Revenue Structure 1 Exhibition Venue Service Meetings Incentives & Parties Conventions Exhibitions Concerts & Events 2 Long-term Rent 2 Media Space Long-term Rent 3 F&B Right Fee 4 5 to IMPACT Right Fee Parking Fee IMPACT Growth REIT receives revenue from many sources of income Page 13

14 Asset s Character IMPACT Arena Concert Family Show Incentive & party IMPACT Challenger Exhibition Public Exhibition Trade Conference Page 14

15 Asset s Character IMPACT Exhibition Center Hall 1-8 Exhibition - Trade Exhibition - Public Meeting IMPACT Forum Conference Meeting Banquet Page 15

16 Operational & Financial Performance Page 16

17 Past Performance Occupancy Rate Historical data of Occupancy rate showed that despite many unexpected events during FY such as the flood crisis and political turmoil, IMPACT s overall occupancy rate still able to rise at CAGR for 6 years at 6% Rajaprasong Riot Thailand Mega Flood Bangkok Shutdown Coup Pattaya Riot 44% 41% 47% 53% 52% 51% 35% 2008/ / / / / / /2015 Page 17

18 Average Occupany Rate Occupancy Rate Occupancy Rate (%) & Average Rental Rate (Bt/sq.m./Day) IMPACT Arena IMPACT Exhibition Hall % 100% 80% 60% 40% 61% 59% 35% 36% 41% 36% 2015/ / % 60% 40% 68% 56% 54% 57% 55% 62% 2015/ / % 0% 1Q 2Q IMPACT Forum 3Q 20% 0% 1Q 2Q IMPACT Challenger 3Q 40.0% 20.0% 0.0% 22% 15% 12% 12% 1Q 2Q 9% 12% 3Q 2015/ /2015 Page % 80% 60% 40% 20% 0% 46% 50% 48% Maximum occupancy rate in exhibition and convention industry is approximately 70% (taking into account set-up and tear-down period throughout the year) 100.0% % 70.0 OR ARR % % % % 49.0% 50.7% 49.2% 52.5% 60.4% 54.1% 0.0% Q 2014/2015 9M2014/2015 FY2014/2015 1Q 2015/2016 2Q 2015/2016 3Q 2015/2016 9M 2015/2016 1Q 2Q 46% 59% 3Q 70% 2015/ /2015

19 Service income by Assets Hall 1-8 and Challenger are IMPACT s key revenue drivers Million (Baht) 1,800 1,600 1,400 1,200 1, FY2014/2015 1Q'2015/2016 2Q'2015/2016 3Q'2015/2016 9M2015/2016 FY2014/2015* 1Q 2015/2016 2Q 2015/2016 3Q 2015/2016 9M 2015/2016 * REIT acquired asset on 29 th September 2014, thus this performance compose of the REITs 2 days performance of 2Q, 3Q and 4Q of 2014/2015 IMPACT Challenger IMPACT Exhibition Hall 1-8 IMPACT Arena IMPACT Forum Contribute 49% of Service income Contribute 36% of Service income Contribute 7% of Service income Contribute 8% of Service income CAGR of Challenger Venue Sale over 4 years 10.5% CAGR of Hall 1-8 Venue Sale over 4 years 7.3% CAGR of Arena Venue Sale over 4 years 4.7% CAGR of Forum Venue Sale over 4 years -3.4% Remark: Venue Sales data does not include Outdoor Exhibition Income and Other Income (e.g. reservation fee, interest income, profit from sale of assets, etc.) Page 19

20 Customer Segment Each asset serves 3 main groups of customers; Public Sector, Domestic Private Sector and International Private Sector. The proportion of asset s revenue contributed by each type of customers are shown in the graphs below. 100% 80% 60% 40% 20% 0% 100% 80% 60% 40% 20% 0% International Private Sector Domestic Private Sector Public Sector ARENA 100% HALL % 60% 40% 20% 0% 3Q'2014/2015 1Q'2015/2016 2Q'2015/2016 3Q'2015/2016 3Q 14/15 1Q 15/16 2Q 15/16 3Q 15/16 3Q 14/15 1Q 15/16 2Q 15/16 3Q 15/ / / /2015 6M2014/ / /2014 6M2014/15 FORUM CHALLENGER 100% 80% 60% 40% 20% 0% 3Q'2014/2015 1Q'2015/2016 2Q'2015/2016 3Q'2015/2016 3Q'2014/2015 1Q'2015/2016 2Q'2015/2016 3Q'2015/2016 2Q 2014/2015 3Q 14/15 1Q 15/16 1Q 2015/2016 2Q 15/162Q 2015/2016 3Q 15/16 2Q 2014/2015 3Q 14/15 1Q 15/16 1Q 2015/2016 2Q 15/16 2Q 2015/2016 3Q 15/ / / /2015 6M2014/ / / /2015 6M2014/15 100% 80% 60% 40% 20% 0% Average Revenue Contribution by type of customers 17% 20% 69% 60% 14% 3Q 14/15 30% 49% 20% 21% 1Q 15/16 2Q 15/16 24% 25% 70% 7% 3Q 15/16 60% 15% 9M 15/16 Customer segment in 3Q15/16 : 3Q15/16, the Domestic Private Sector is no. 1 proportion at 70%, comparing with Public Sector and Private International Sector share portion at 24% and 7% respectively. The Public sector share bigger portion in this year compare with 3Q 2014/2015, at 17%. The Private International Sector decrease its portion, at 7%, as most of event in this quarter are Thai companies, which is lower from 3Q 2014/2015, at 14%. Page 20

21 3Q 2015/16 Income Statement Million Baht 3Q'14/15 Page 21 % to income 2Q'15/16 % to income 3Q'15/16 Service income % % % 14% 2% Cost of service % % % 8% 2% Gross profit % % % 16% 2% SG&A % % % -5% 46% Interest Income % % % -5% -4% Other income % % % -64% 115% Operating profit % % % 17% -1% Property management fee % % % 14% 58% REIT management fee % % % 7% 37% Trustee's fee % % % 0% 1% Registrar's fee % % % 0% -1% Professional fees % % % 21% 18% Total fee related % % % 7% 31% Financial Cost % % % 0% -4% Total expenses % % % 4% 15% Net Investment incomes % % % 22% -6% % to income Net realised gain on investments in securities % Unrealized gain/loss % % % 4% -10% Total realized and unrealized gains on investments % % % 81% 56% Increase in net asset from operation % % % 23% -5% Earning per share Growth QoQ Growth YoY

22 9M 2015/16 Income Statement Million Baht 22 Sep Dec'14 % to income 9M'15/16 % to income Service income % 1, % Cost of service % % Gross profit % 1, % SG&A % % Interest Income % % Other income % % Operating profit % 1, % Property management fee % % REIT management fee % % Trustee's fee % % Registrar's fee % % Professional fees % % Total fee related % % Financial Cost % % Total expenses % % Net Investment incomes % % Net realized gain on investments in securities % Unrealized gain/loss % % Total realised and unrealised gains on investments % % Increase in net asset from operation % % Earning per share Page 22

23 Revenue & Cost Structure Service Income Breakdown Cost of Sale Breakdown 8% 6% 3% Venue Sale F&B Right fee & Media Right Fee 13% 9% 8% 50% Utility cost Security, Cleaning,Laundry Property Tax 83% Service / Long term rental 20% service cost (Equipment +sound + casual) Parking Income Other cost Admin cost Breakdown 15% 12% 4% 33% 36% Utility &Service & cleaning Repair & Maintenance Equipment Other Bank fee & Other fee Page 23 For 9 month period from April December 2015

24 Balance Sheet as at 31 Dec 15 FY2014/2015 % to 3Q'2015/2016 % to Change Million baht End of Mar'15 total assets End of Dec'15 total assets Investment in Properties in fair Value 19, % 19, % 0.0% Investment in Securities at fair value % % 24.7% Cash and cash at Bank % % -28.6% Receivables from service % % -48.1% Interest % % -94.2% Prepaid expense % % -33.8% Other assets % % 24.0% Total assets 20, % 20, % -0.2% Trade Payable % % 23.2% Other Payable % % -8.8% Accrued expenses % % -17.1% Unearned income % % -46.6% Security Deposits % % -34.4% Other liabilities % % 8.9% Long - term loans 3, % 3, % 0.0% Total liabilities 4, % 4, % -2.3% Net Assets 16, % 16, % 0.3% Capital from Unitholders 15, % 15, % 0.0% Retain Earnings % % 18.5% Net assets 16, % 16, % 0.3% NAV Page 24

25 IMPACT Growth REIT Prudent Capital Structure Details of IMPACT Growth REIT debt structure Two long-term debts tranches based on floating interest rate Tranche 1: Acquisition Tranche of THB 3,900 Million To fund the acquisition of IMPACT Growth REIT s initial assets Tenor: 5-7 Years Interest Rate: Floating rate based on MLR Repayment Schedule: Bullet Loan and amortized Collateral: Land and building mortgage Debt, 3,900 Equity, 16,059 Tranche 2: Maintenance Tranche of THB 180 Million To fund the maintenance/renovation of IMPACT Growth REIT s assets Tenor: 5 years Interest Rate: Floating rate based on MLR Line for capital expenditures and normal repair & maintenance expenditures Ensured source of fund are available for major maintenance/renovation besides those from normal operation Collateral: Land and building mortgage Unit : THB million Expected maximum total debt of THB 4,080 Million Loan to total assets is at 19%, from the maximum limit at 35% 5-7 year loan tenor Likely methods of refinancing can either be in a form of bond offering or bank loan. The REIT manager will perform the refinancing with the most cost-effective manner. Lower REIT s cost of capital by utilizing the optimal debt structure Page 25

26 Performance Efficiency Ratios (Annualized return) Debt Covenant ROA ROE ROIC 10% 10% 8% 7% 7% 6% 6% 6% 4% 1Q'2015/2016 2Q'2015/2016 3Q'2015/ Loan / Total asset Interest Coverage Debt/EBITDA * DSCR % 19% 19% 19% FY2014/2015 1Q'2015/2016 2Q'2015/2016 3Q'2015/ % 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Profitability Ratios * Debt/EBITDA, EBITDA = Annualized EBITDA GPM OPM EBITDA margin NPM 86% 87% 86% 85% 86% 81% 81% 75% 76% 78% 70% 62% 61% 62% 62% 65% 52% 53% 53% 57% 3Q'2014/2015 4Q'2014/2015 1Q'2015/2016 2Q'2015/2016 3Q'2015/2016 Page 26

27 Distribution Historical Dividend Payment Distribution Policy At least 90% of the adjusted net profit for the year as distribution to holders of trust units. Distribution to be made includes annual distribution and interim distribution (if any) The distribution shall pay not over 4 times per year. Historical Dividend Payment Baht/ Unit EPS % Dividend Payout DPU % Dividend Payout Q'2014/15 4Q'2014/15 * FY2014/2015 1Q'2015/16 2Q'2015/16 3Q'2015/2016 9M'2015/2016 * REIT acquired assets on 29 th September 2014, thus this performance compose of the REITs 2 days performance of 2Q, 3Q and 4Q of 2014/2015 Page 27

28 Prospected new assets Page 28

29 Prospected New Assets 3 Year Term Novotel Bangkok IMPACT 4 star hotel adjacent to IMPACT Challenger and Forum 380 rooms with 71% Occupancy Rate, THB1,745 ARR Main customers come from IMPACT s customers and tour group New Geneva Office Building Office building with 86% Occupancy Rate 49, sq.m. with Average rental THB340 Rental rate adjusted 15% every 3Y 2,000 cars capacity Indoor Parking with Outlet square sitting on the same property P3 Indoor Parking Oct Dec 15 number of cars were parked at P3 Indoor parking is 54,369 cars. Directly connected to IMPACT Growth REIT s properties via a sky-bridge Call Option IMPACT Growth REIT can offer to buy any future developed exhibition/convention assets from IMPACT Exhibition Management Co.,Ltd. Once IMPACT Exhibition Management Co.,Ltd. refuses REIT s offer, IMPACT Exhibition Management Co.,Ltd. can sell to other parties only if the sale conditions are superior to REIT s offer Under the condition of the REIT has rights of First Refusal Enhanced Rights of First Refusal (ROFR) Page 29 Rights of First Refusal (ROFR) IMPACT Exhibition Management Co.,Ltd. must first offer to IMPACT Growth REIT any of its current and future exhibition/convention assets before offering to other entities

30 Future Investment in Muang Thong Thani New Investment Projects which are developed by Bangkokland Plc. in the next 3-6 years term. These 6 assets provide long term strategic to the REIT and also come with high potential to be acquired into IMPACT Growth REIT 5 Water Park 1 Marina Year Term IBIS Hotel 3 Link bridge & 4 Storey Building Cosmo Office 4 Park 6 Pullman Hotel Page 30

31 Future Investment in Muang Thong Thani 1 Marina 2 Pontoons 36 Yacht Ships Equipped with water and power supply One 8m wide boat ramp Completion in May 2016 Water Front dining + Boat ShowRoom and Shopping will be later developed surrounded the lake Page 31

32 Future Investment in Muang Thong Thani 2 IBIS Hotel Budget hotel with 600 rooms, near IMPACT Exhibition Center Target for government sector which have hotel budget under THB 1,000/ night Completion in the 1 st Quarter 2017 Page 32

33 Future Investment in Muang Thong Thani 3 Link Bridge & 4 Storey Building Air Conditioned bridge linking Challenger Halls with IEC Halls and Arena 4 Storey building 7,630 m 2 (net area) of Food and Beverage facilities with a multipurpose hall on level 4 Completion in 1 st Quarter 2017 Page 33

34 Future Investment in Muang Thong Thani 4 Cosmo Office Park 58,321 sq.m. prime office spaces Average Rental Rate at THB 450 / sq.m. Rental Rate adjusted 15% every 3 year Completion in the 1st Quarter 2017 Page 34

35 Future Investment in Muang Thong Thani 5 Water Park Approximately 100,000 sq.m. The largest in Southeast Asia Beauty Setting on the Lake and Floating stage with 3,000 seat amphitheater for MICE activity and corporate assembly. Making the IMPACT Exhibition and Convention Center the one stop MICE destination Page 35

36 Future Investment in Muang Thong Thani 6 Pullman Hotel 5-star hotel 300 Luxury rooms, located on the lake-shore Completion in the1st quarter 2018 Page 36

37 Q&A Page 37