suntec reit 2qfy15 results presentation (final)suntecreit.listedcompany.com/newsroom/20150723... ·...
TRANSCRIPT
FINANCIAL RESULTS For Second Quarter and Half Year ended 30 June 2015
2
Q2 Highlights
Financial Performance
Portfolio Performance
AEI Updates
Looking Ahead
Unit Performance
AGENDA
Q2 HIGHLIGHTS
4
Q2 HIGHLIGHTS
FINANCIAL HIGHLIGHTS
Distributable income of S$62.9 mil, +11.1% y‐o‐y
DPU of 2.500¢, +10.3% y‐o‐y
PORTFOLIO MANAGEMENT
Portfolio occupancy as at 30 June 2015
o Office ‐ 99.0%
o Retail ‐ 95.1%
Suntec City AEI ‐ 95.3% overall committed
occupancy to‐date
CAPITAL MANAGEMENT
Average all‐in financing cost of 2.70%
DIVESTMENT & REDEVELOPMENT OF PARK MALL
Realised the value of Park Mall at S$411.8 mil
Entered into joint venture to redevelop Park Mall
o 30% interest in JV
o Redevelop Park Mall into two office blocks with an
ancillary retail component
FINANCIAL PERFORMANCE
Revenue and net property income increased y‐o‐y mainly due to the opening of Suntec City Phase 2 and stronger performance from Suntec Singapore.
6
FINANCIAL PERFORMANCE: 2Q FY15
1 April – 30 June 2015 2Q FY15 2Q FY14 Change
Gross Revenue S$81.4 mil S$68.1 mil 19.6%
Net Property Income S$56.9 mil S$46.1 mil 23.5%
Distributable Income S$62.9 mil S$56.6 mil 11.1%
‐ from operations S$56.9 mil S$51.6 mil 10.2%
‐ from capital S$6.0 mil S$5.0 mil 20.0%
Distribution per unit1 2.500¢ 2.266¢ 10.3%
‐ from operations 2.261¢ 2.066¢ 9.4%
‐ from capital 0.239¢ 0.200¢ 19.5%
Annualised Distribution Yield2 5.8% 5.3%
Source: ARATMS
Achieved DPU of 2.500 cents
Notes:1. Based on 2,510,787,767 units in issue as at 30 June 2015 and 4,795,767 units to be issued to the Manager by 30 July 2015 as partial satisfaction of management fee
incurred for the period 1 April to 30 June 2015.2. Based on the last traded price of S$1.715 per unit as at 22 July 2015.
1 January – 30 June 2015 1H FY15 1H FY14 Change
Gross Revenue S$155.9 mil S$134.1 mil 16.3%
Net Property Income S$108.3 mil S$89.9 mil 20.5%
Distributable Income S$118.9 mil S$107.5 mil 10.6%
‐ from operations S$112.9 mil S$102.5 mil 10.1%
‐ from capital S$6.0 mil S$5.0 mil 20.0%
Distribution per unit1 4.730¢ 4.495¢ 5.2%
‐ from operations 4.491¢ 4.295¢ 4.6%
‐ from capital 0.239¢ 0.200¢ 19.5%
Annualised Distribution Yield2 5.6% 5.3%
Revenue and net property income increased y‐o‐y mainly due to the opening of Suntec City Phase 2 and stronger performance from Suntec Singapore.
7
FINANCIAL PERFORMANCE: 1H FY15
Source: ARATMS
Achieved DPU of 4.730 cents
Notes:1. Based on 2,510,787,767 units in issue as at 30 June 2015 and 4,795,767 units to be issued to the Manager by 30 July 2015 as partial satisfaction of management fee
incurred for the period 1 April to 30 June 2015.2. Based on the last traded price of S$1.715 per unit as at 22 July 2015.
8
PORTFOLIO REVENUE AND NPI CONTRIBUTION
2Q FY15Composition of Office, Retail and Convention Revenue and NPI
Asset Revenue NPI
Suntec City• Office• Retail
S$32.3 milS$21.4 mil
S$25.6 milS$15.8 mil
Park Mall• Office• Retail
S$2.3 milS$3.6 mil
S$1.7 milS$2.7 mil
Suntec Singapore• Convention• Retail
S$15.7 milS$6.1 mil
S$6.1 milS$5.0 mil
Total S$81.4 mil S$56.9 mil
Office revenue contributed approximately 43% of the Total Gross Revenue1 for 2Q FY15
Retail revenue contributed approximately 38% of the Total Gross Revenue1 for 2Q FY15
Convention revenue contributed approximately 19% of the Total Gross Revenue1 for 2Q FY15
Note:1. Excludes revenue contribution from joint ventures
9
DEBT‐TO‐ASSET RATIO STOOD AT 35.3%
Debt Metrics 30 Jun 2015
Total Debt Outstanding (Group) S$3.090 bil
Debt‐to‐Asset Ratio1 35.3%
All‐in Financing Cost 2.70%
Interest Coverage Ratio 4.2x
Issuer Rating “Baa2”
Note:
1. Suntec REIT’s “Aggregate Leverage Ratio” as at 30 June 2015 was 36.2%. “Aggregate Leverage Ratio” refers to the ratio of total borrowings (inclusive of proportionate share of borrowings of joint ventures) and deferred payments (if any) to the value of theDeposited Property
Source: ARATMS
0
200
400
600
800
1,000
1,200
FY15 FY16 FY17 FY18 FY19 FY20
S$ 'mil
10
Debt Maturity Profile (REIT) S$50 mil revolving credit facilities
S$100 mil loan facility
S$150 mil medium term note
S$120 mil term loan
S$200 mil loan facility
S$280 mil convertible bonds
S$500 mil loan facility
S$500 mil loan facility1
S$800 mil loan facility
S$310 mil medium term note
Weighted average term to expiry of 3.08 years
Note:1. Under the S$500 million loan facility, S$214.4 million has been utilised.
DEBT MATURITY PROFILE AS AT 30 JUNE 2015
11
825
700
1,105
270
200
280
500 500
200
110
800
153
429
350
‐
200
400
600
800
1,000
1,200
Apr 2009 Dec 2009 Oct 2010 Dec 2010 Aug 2011 Oct 2012 Mar 2013 Jul 2013 Nov 2013 Feb 2014 Mar 2014 Apr 2014
S$ m
il
Strong Financing Track Record
Debt Equity
S$6.4 BILLION OF FINANCING SINCE APRIL 2009
Global Financial Crisis
Average all‐in financing cost of 2.70% for 2Q FY15
12
NAV PER UNIT OF S$2.101 AS AT 30 JUNE 2015
Consolidated Balance Sheet 30 Jun 2015
Total Assets S$8,681 mil
Total Liabilities S$3,281 mil
Net Assets Attributable to Unitholders S$5,286 mil
NAV Per Unit1 S$2.101
Adjusted NAV Per Unit2 S$2.076
Notes:1. Based on 2,510,787,767 units in issue as at 30 June 2015 and 4,795,767 units to be issued to the Manager by 30 July
2015 as partial satisfaction of management fee incurred for the period 1 April to 30 June 2015.
2. After DPU adjustment of 2.500 cents for the quarter ended 30 June 2015.
Source: ARATMS
13
DISTRIBUTION TIMETABLE
Source: ARATMS
Distribution Payment
Distribution Period 1 April – 30 June 2015
Amount (cents/unit) 2.500
Ex‐date 29 July 2015
Books closure date 31 July 2015
Payment date 26 August 2015
PORTFOLIO PERFORMANCE
15
Achieved 99.0% committed occupancy for office portfolio as at 30 June 2015
Source: ARATMS
STRONG OFFICE PORTFOLIO COMMITTED OCCUPANCY
98.4%96.6%
100.0% 100.0% 99.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Suntec Office Park Mall Office One Raffles Quay MBFC Properties Office Portfolio
16
Committed occupancy for retail portfolio stood at 95.1% as at 30 June 2015
Source: ARATMS
RETAIL PORTFOLIO COMMITTED OCCUPANCY
94.7%
97.8%100.0%
95.1%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Suntec City Park Mall Marina Bay Link Mall Retail Portfolio
95.2%95.3% 95.5%
96.6%
98.1%99.1% 99.5% 99.5%
98.0%
99.2% 99.5%100.0%100.0%100.0%
99.4% 99.4% 99.7%99.2% 98.9%
99.4%100.0%100.0% 99.6%
98.4%
80%
82%
84%
86%
88%
90%
92%
94%
96%
98%
100%
Dec 09Mar 10 Jun 10 Sep 10 Dec 10Mar 11 Jun 11 Sep 11 Dec 11Mar 12 Jun 12 Sep 12 Dec 12Mar 13 Jun 13 Sep 13 Dec 13Mar 14 Jun 14 Sep 14 Dec 14Mar 15 Jun 15
Core CBD Occupancy Suntec City Office Occupancy
Suntec City Office achieved committed occupancy of 98.4% versus Singapore average CBD
Grade A office occupancy of 95.2%
Leases secured for the quarter at an average rent of S$9.14 psf/mth
Source: Colliers International, ARATMS
17
SUNTEC CITY OFFICE ACHIEVED 98.4% COMMITTED OCCUPANCY
18
OFFICE LEASES EXPIRING IN FY 2015 REDUCED TO 6.0 %
Note:1. Assumes one third of total office net lettable area of One Raffles Quay and Marina Bay Financial Centre Office Towers 1 and 2
Expiry Profile
As at 30 Jun 2015
Net Lettable Area1
Sq ft % of Total
FY 2015 144,251 6.0%
FY 2016 545,491 22.6%
FY 2017 507,560 21.1%
FY 2018 428,941 17.8%
FY 2019 & Beyond 758,993 31.5%
Lease Expiry as % of Total Office NLA1 (sq ft)
Source: ARATMS
Balance of office leases expiring in FY 2015 reduced to 6.0%
Signed approximately 169,000 sq ft of renewal and replacement leases in 2Q FY15
6.0%
22.6%21.1%
17.8%
31.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2015 2016 2017 2018 2019 & Beyond
Notes:1. Assumes one third of total retail net lettable area of One Raffles Quay, Marina Bay Link Mall and 60.8% interest in Suntec Singapore
19
RETAIL PORTFOLIO LEASE EXPIRY PROFILE
Source: ARATMS
Expiry Profile
As at 30 Jun 2015
Net Lettable Area1
Sq ft % of Total
FY 2015 28,131 2.7%
FY 2016 296,338 28.3%
FY 2017 281,830 27.0%
FY 2018 180,883 17.3%
FY 2019 & Beyond 207,126 19.8%
Lease Expiry as % of Total Retail NLA1 (sq ft)
Balance 2.7% of retail leases expiring in FY 2015
2.7%
28.3%27.0%
17.3%
19.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2015 2016 2017 2018 2019 & Beyond
REMAKING OF SUNTEC CITY – AEI UPDATES
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PHASE 1 –Opened in June
2013
PHASE 2 –Opened in June
2014
PHASE 3 –Opening Now
Overall committed passing rent1
stands at $12.12 psf/mth
currently
REMAKING OF SUNTEC CITY ACHIEVED 95.3% COMMITTED OCCUPANCY TO‐DATE
Notes:1. On a stabilised basis
22
PHASE 3 – RETAIL AND F&B TENANTS
LOOKING AHEAD
24
AUM OF S$8.8 BILLION*
Singapore’s 2nd largest REIT by AUM with a strong portfolio of strategically‐located prime assets
Office portfolio of 2.4 mil sq ft and retail portfolio of 1.1 mil sq ft
Entered into a conditional property sale agreement to divest Park Mall on 29 June 2015. The divestment is expected to complete by end 3Q 2015.
Source: ARATMS
AUM (S$b)
Note:
*Includes S$176.9 million for 177 Pacific Highway
SINGAPORE:
AUSTRALIA – 177 PACIFIC HIGHWAY, NORTH SYDNEY
ASSETS UNDER MANAGEMENT
2.2 2.3
3.2
4.6
5.4 5.2
7.07.7
8.08.6 8.8*
0
2
4
6
8
10
Dec 04 Sep 05 Sep 06 Sep 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14
S$ bil
OUTLOOK
TRACK RECORD
Economy to remain stable
Positive on 2015 office portfolio performance
Proven track record in enhancing the performance of our property portfolio
Strong credit standing and debt financing record
Delivered 98.2 cents of DPU since IPO in December 2004
STRATEGY Proactive leasing management
Prudent and proactive capital management
25
WELL POSITIONED IN SINGAPORE‐REIT SECTOR
Source: ARATMS
UNIT PERFORMANCE
Notes:1. Based on the share price of S$1.725 as 30 June 20152. Based on the market capitalisation as at 30 June 2015
27
UNIT PERFORMANCE
Source: ARATMS
2Q FY2015 DPU of 2.500 cents
Trading yield of 5.81%1
Market Capitalisation of S$4.3 billion1 as at 30 June 2015
43rd largest company2 on the SGX
0
5
10
15
20
25
0.50
0.70
0.90
1.10
1.30
1.50
1.70
1.90
2.10
2.30
Dec‐04Jun‐05Dec‐05Jun‐06Dec‐06Jun‐07Dec‐07Jun‐08Dec‐08Jun‐09Dec‐09Jun‐10Dec‐10Jun‐11Dec‐11Jun‐12Dec‐12Jun‐13Dec‐13Jun‐14Dec‐14Jun‐15
Volume (Daily, M
illions)
Unit Price (S$)
Volume Price
28
STABLE SUSTAINABLE DPU
2Q FY2015 DPU of 2.500 cents was 10.3% higher year‐on‐year
Delivered a total DPU of 98.2 cents since IPO in December 2004
2.513 2.528 2.502
2.3162.388
2.532 2.5332.479 2.453
2.361 2.350 2.3262.228 2.249 2.289
2.562
2.229 2.2662.328
2.577
2.230
2.500
0.0
0.5
1.0
1.5
2.0
2.5
3.0
1Q2010
2Q2010
3Q2010
4Q2010
1Q2011
2Q2011
3Q2011
4Q2011
1Q2012
2Q2012
3Q2012
4Q2012
1Q2013
2Q2013
3Q2013
4Q2013
1Q2014
2Q2014
3Q2014
4Q2014
1Q2015
2Q2015
29
OUR 10‐YEAR TRACK RECORD SUMMARY
Source: ARATMS
98.2 centsTotal DPU since IPO
170.7%Total Return for IPO Unitholder
30
#16‐02 Suntec Tower 46 Temasek BoulevardSingapore 038986
Tel: +65 6835 9232Fax: +65 6835 9672
Yeo See KiatChief Executive [email protected]
Susan SimDeputy Chief Executive [email protected]
Low Poh ChooSenior Director, [email protected]
Melissa ChowManager, Investor [email protected]
ARA Trust Management (Suntec) Limited
www.suntecreit.comwww.ara‐asia.com
CONTACT
31
THANK YOU
32
This presentation is focused on the comparison of actual results for the quarter ended 30 June 2015 versus results achieved for the quarter ended 30
June 2014. It should be read in conjunction with Paragraph 8 of Suntec REIT’s financial results for the quarter ended 30 June 2015 announced on
SGXNET.
The information included in this release does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or
subscribe for units in Suntec REIT (“Units”) in Singapore or any other jurisdiction.
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 the expected levels of occupancy rates, property rental income,
changes in operating expenses, 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. Past performance is not necessarily indicative of future performance. Predictions,
projections or forecasts of the economy or economic trends of the markets are not necessarily indicative of the future or likely performance of Suntec
REIT. 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.
IMPORTANT NOTICE
1. The value of Units and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits in, or guaranteed by, ARA Trust
Management (Suntec) Limited (as the manager of Suntec REIT) (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.
2. Investors should note that they will have no right to request the Manager to redeem or purchase their Units for so long as the Units are listed on the
SGX‐ST. It is intended that holders of Units may only deal in their Units through trading on the SGX‐ST. The listing of the Units on the SGX‐ST does not
guarantee a liquid market for the Units.
3. The past performance of Suntec REIT is not necessarily indicative of the future performance of Suntec REIT.
DISCLAIMER