1Q 2011 Results Presentation 28 April 2011

Transcription

1 1Q 2011 Results Presentation 28 April 2011

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. 2

3 Overview of LMIR Trust 3

4 Overview of LMIR Trust Portfolio of Indonesian Retail Assets valued at S$1.082 billion 1 including 8 retail malls and 7 retail spaces Strategically located within large population catchment areas : the Retail Malls are located in Greater Jakarta (5), Bandung (2), and Medan (1) Portfolio is well positioned in terms of target segment and diversified tenant base to benefit from Indonesia s flourishing economy and favorable demographics Low gearing provides funding opportunities for future growth Notes: 1 Adopted valuation from KJPP Rengganis as at 31 December 2010 in IDR, converted to SGD at the year end exchange rate 4

5 Key Highlights Economic Outlook The Indonesian government predicted Indonesia will grow 6.6 percent this year after expanding 6.1 percent in major rating agencies raised Indonesia s credit to one grade below Investment Grade Indonesian retail market expected to continue improving with household consumption remains strong going forward. Financial Results 1Q 2011 DPU of 1.17 cents equates to an annualised yield of 8.7% at price of 54 cents 1 NAV = S$0.86 with low gearing 10.0% of Total Assets Portfolio Update Overall occupancy of 98.0% as at 31 March 2011 versus industry average of 86.3% 2 Well diversified portfolio Note: 1. Closing price of $0.54 on 31 March Source: Cushman Wakefield Indonesia 4Q 2010 Jakarta Retail Report 5

6 Financial Results 6

7 1Q 2011 Financial Results P&L Actual Actual 1Q Q 2010 (S$'000) (S$'000) Variance (%) Mainly due to: Remarks Gross Revenue 32,772 23, (i) (ii) Inclusion of service charges & utilities recoveries income from 7 retail malls since 2Q 2010 Average rate increase in renewed lease during the year Property Expenses (10,419) (2,935) NM Net Property income 22,353 20, Distribution income 12,667 12,877 (1.6) Distribution per unit (cents) Distribution yield 2 (%) 8.7 Mainly due to: Cost relating to the operating of the retail malls since 2Q 2010 The higher gross revenue offset by higher property operating expenses resulted in higher net property income Mainly due to income tax on the service charges and utilities recoveries and realised loss on the cross currency swap Notes: 1. Based on billion units in issue as at 31 March Based on the closing price of $.0.54 as at 31 March

8 1Q 2011 Financial Results Balance Sheet 31-Mar-11 (S$ million) 31-Dec-10 (S$ million) Non Current Assets 1, ,082.4 Current Assets Total Debt Other Liabilities Net Assets Net Asset Value S$0.86 S$0.83 Average Cost of Debt 7.7%p.a 7.7% p a Total Units in Issue 1, ,081.7 Gearing Ratio 10.0% 10.3% Notes: 1. Adopted valuation from KJPP Rengganis as at 31 December 2010 in IDR, converted to SGD at the year end exchange rate 2. DB loan expires on 24 March Interest cost is fixed at 2.03% until 31 May 2011 plus margin and costs. 8

9 Distribution Details 1 January March 2011 Total DPU 1.17 c -Tax-Exempt 0.94 c -Capital 0.23 c Books Closure Date 9 May 2011 Distribution Payment Date 31 May 2011 Since listing in Nov 2007, LMIR Trust has maintained a payout policy of 100% of distributable income 9

10 Unit Price Performance in 1Q Jan-11 Feb-11 Apr-11 Notes: Starting from 2011, LMIR Trust unit price has slightly outperformed the SREIT, JCI and the STI index in the 1 st Quarter 2011 Market capitalization was S$585 million 1 as of 31 March 2011 LMIRT unit price has been trading at a discount of 37% to NAV at end of March 2011 JCI LMRT SP Equity FSSTI Index FSTREI Index Notes: 1.Based on the closing price of $0.54 as at 31 March

11 Portfolio Performance 11

12 Portfolio Update: Occupancy No. Malls NLA (sqm) As at Dec 10 (%) As at Mar11 (%) 1 Bandung Indah Plaza 29, Cibubur Junction 33, Ekalokasari Plaza 25, Gajah Mada Plaza 34, Istana Plaza 26, Mal Lippo Cikarang 28, The Plaza Semanggi 63, Sun Plaza 62, A Mall Portfolio 304, B Retail Spaces 94, A+B Total Portfolio 398, Note: Industry Average Source : Cushman & Wakefield, 4Q 2010 Jakarta Retail Report 2. Occupancy rate at the LMIRT malls as of end December 2010 LMIR Trust s mall portfolio occupancy is at 98.0% as of 31 March 2011, which is higher than the industry average of 86.3% 1 Occupancy is generally been higher than average due to good locations of the malls, good customer targeting and strong mall operator in Lippo Karawaci In general the performance of each malls have been favourable 12

13 Portfolio Update: Diversification Portfolio Income Breakdown NLA Breakdown by Trade Sectors 19% 12% 9% 5% 3% 1% 1% 11% 4% 5% 0% 24% 16% 16% 6% 9% 8% 9% 0% 2% 6% 11% 2% 1% 8% 13% Bandung Indah Plaza Cibubur Junction Ekalokasari Plaza Gajah Mada Plaza Istana Plaza Mall lippo Cikarang Plaza Semanggi Sun Plaza Retail Spaces Note: As at 31 March 2011 Department Store (Retail Spaces) Fashion Hobbies Supermarket / Hypermarket Sports & Fitness Leisure & Entertainment Gifts & Specialty F & B / Food Court Services Department Store (Retail Malls) Books & Stationary Education / School Other Toys Electronic / IT Jewelry Home Furnishing Optic 13

14 Top 10 Tenants by Gross Income SOGO Dept. Store Cinema 21 Electronic Solution Ace Hardware Solaria Gramedia Giant Super Store Centro 0.5% 0.5% 0.5% 0.6% 0.6% 0.7% 0.7% 0.9% Total 31.1% of portfolio gross income Matahari (Retail Malls) Hypermart 3.7% 3.7% Matahari (Retail Spaces) 18.6% Note: As at 31 March % 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 14

15 Lease Expiry as % of Total Portfolio NLA 45% 40% 42% 35% 30% 25% 20% 18% 15% 10% 8% 9% 11% 12% 5% 0% > 2016 Long lease expiry profile underpins portfolio stability Mixture of long-term and short term leases, provides stable performance Note: As at 31 March

16 LMIR Trust Growth Strategies 16

17 Targeted Growth Strategies 5 AEIs were completed in 2010, with total NLA around 6,894 sqm of space, and total ROI is expected to be above 30% Improving macroeconomic fundamentals Growing & affluent urban middle income class Active portfolio management and tenant re-mixing / re-positioning strategies Large available pipeline from both Sponsor and third parties. ROFR over malls from Sponsor A fragmented and diverse retail market provides further acquisition growth opportunities 17

18 Access to acquisitions through Sponsor and third parties LK has 25 malls under management throughout in Indonesia N Grand Palladium Medan SULAWESI MALUKU PACIFIC OCEAN Sun Plaza KALIMANTAN Plaza Medan Fair Binjai Supermall Palembang Square GTC Makassar IRIAN JAYA INDIAN OCEAN JAVA City of Tomorrow Mall Malang Town Square Metropolis Town Square WTC Matahari WEST JAKARTA BANTEN PROVINCE MALLS IN GREATER JAKARTA PX Pavillion Pluit Village CENTER OF JAKARTA Gajah Mada Plaza SOUTH JAKARTA Pejaten Village - Istana Plaza - Bandung Indah Plaza JAVA SEA The Plaza Semanggi Kemang Village NORTH JAKARTA Grand Mall Bekasi Kramat Jati Indah Plaza EAST Lippo Cikarang Mall JAKARTA Bekasi Trade Mall Tamini Square WEST JAVA PROVINCE Strata-titled Malls (8 of 10 malls are owned by LK) LMIRT Malls LK Malls Third Party Malls Key Statistics: 2.2 million sqm of GFA 15,695 total units 80% average occupancy rate Annual Shopper Traffic: >200mm Depok Town Square Cibubur Junction Bellanova Country Mall Eka Lokasari Mall 18

19 Summary 19

20 Conclusion Based on announced DPU and unit price as at end of March, attractive yield of 8.7% Share price trading at 37% discount to NAV Well-balanced property diversification with no single property accounting for more than 16% of Net Property Income Portfolio occupancy rate remains higher than industry average Conservative gearing provides capacity for further yield accretive acquisitions Access to future acquisitions in a fragmented and diverse retail market Underlying macro economy of Indonesia continuing to grow along side the domestic consumer confidence, LMIRT is committed to deliver stable results to our unit holders 20

21 Thank You 21

22 Appendix 22

23 Major Indonesian Conglomerate Indonesia Regional presence in China, Macau, Hong Kong, Philippines, Korea, Singapore Retail Property Others Retail Property & Hospitality Others Matahari & Hypermart First Media PT Lippo Karawaci Tbk Urban Development Large Scale Integrated Development Retail Malls Healthcare Property & Portfolio Management Hotels & Hospitality 23

24 LMIR Trust Management Ltd Partnership between two leading real estate forces Lippo is one of Indonesia s largest conglomerates Lippo Karawaci ( LK ) is the largest listed property company in Indonesia. LK has the most integrated business model of all property companies in Indonesia. LK rated by 3 rating agencies-b by S&P, B1 by Moody s and B+ by Fitch million units 18.3% in LMIR Trust 60% 40% Indonesia s premier real estate company REIT Manager: million units 11.78% in LMIR Trust Singapore s leading real estate company Leading real estate company in Singapore with Asian focus. Owns and manages over S$14.4 billion of real estate assets pan Asia. Owner/Manager of one of Asia s best malls # # According to report by Asiaone news 24

25 Quality and strategically located Retail Malls THE PLAZA SEMANGGI GAJAH MADA PLAZA Location : South Jakarta NLA : 63,786 sqm GFA : 91,232 sqm Appraised Value : S$193.7 m Location NLA GFA Appraised Value : Central Jakarta : 34,278 sqm : 66,160 sqm : S$105.6 m CIBUBUR JUNCTION EKALOKASARI PLAZA Location : East Jakarta Location : Bogor NLA : 33,574 sqm NLA : 25,458 sqm GFA : 49,341 sqm GFA : 39,895 sqm Appraised Value : S$71.1 m Appraised Value : S$52.9 m 25

26 Quality and strategically located Retail Malls MAL LIPPO CIKARANG SUN PLAZA Location : Cikarang Location : Medan NLA : 28,263 sqm NLA : 62,597 sqm GFA : 37,418sqm GFA : 73,871 sqm Appraised Value : S$67.7 m Appraised Value : S$179.7 m BANDUNG INDAH PLAZA ISTANA PLAZA Location : Bandung Location : Bandung NLA : 29,377 sqm NLA : 26,677 sqm GFA : 55,196 sqm GFA : 37,434 sqm Appraised Value : S$116.9 m Appraised Value : S$103.9 m 26

27 Retail Spaces Master-leased to Matahari LMIR Trust s portfolio includes 7 Retail Spaces with total NLA of 94,070 sqm, master-leased to Matahari for a period of years, with fixed rental growth of 8% p.a. for the first 4 years and a revenue sharing formula thereafter Mall WTC Matahari Units Metropolis Town Square Units Depok Town Square Units Java Supermall Units NLA : 11,184 sqm NLA : 15,248 sqm NLA : 13,045 sqm NLA : 11,082 sqm Malang Town Square Units Plaza Madiun Grand Palladium Unit NLA : 11,065 sqm NLA : 19,029 sqm NLA : 13,417 sqm 5 of the 7 Retail Spaces reside in strata-titled malls built by the Sponsor 27

28 Annual Portfolio Revaluations 2010 Property Valuation as at 31 Dec 2009 IDR' million Valuation as at 31 Dec 2010 SGD' million Valuation as at 31 Dec 2010 Gajah Mada Plaza 669, , Cibubur Junction 491, , The Plaza Semanggi 1,238,500 1,367, Mal Lippo Cikarang 443, , Ekalokasari Plaza 343, , Bandung Indah Plaza 796, , Istana Plaza 642, , Sun Plaza 1,175,200 1,268, TOTAL RETAIL MALLS 5,800,000 6,291, TOTAL RETAIL SPACES 1,276,890 1,344, TOTAL PORTFOLIO 7,076, ,635, ,082.0 Note: Exchange rate as at 31 December 2010: Rupiah 1. Represents the book value in LMIR Trust s balance sheet as at 31 December 2010 based on either the most recent valuation plus any subsequent capital expenditure or if acquired recently purchase price plus any capital expenditure and other acquisition costs committed. 2. Valuation date for all properties is 31 December