CAPITALAND MALL TRUST Singapore’S First & Largest REIT
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Swee Seng, Singapore Seng, Swee Swee Seng, Singapore Seng, Swee Kwek Kwek Photo Credit: Photo Photo Credit: Photo CAPITALAND MALL TRUST Singapore’s First & Largest REIT Third Quarter 2015 Financial Results 22 October 2015 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 CapitaLand Mall 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 CapitaLand Mall Trust (‘CMT’) is not indicative of the future performance of CMT. Similarly, the past performance of the Manager is not indicative of the future performance of the Manager. The value of units in CMT (‘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 the Manager to redeem or purchase their Units for so long as the Units are listed on the Singapore Exchange Securities Trading Limited (the ‘SGX-ST’). It is intended that unitholders of CMT 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. CapitaLand Mall Trust Third Quarter 2015 Financial Results *October 2015* Contents . Review of 3Q 2015 . Key Financial Highlights . Portfolio Updates . Asset Enhancement Initiatives (‘AEI’) . Acquisition of Bedok Mall . Looking Forward 3 CapitaLand Mall Trust Third Quarter 2015 Financial Results *October 2015* Review of 3Q 2015 Operational performance (year-to-date) , , , , 4.1% 96.8% . 4.2% . 4.4% 5 as at end-Sep 2015 y-o-y y-o-y . Positive rental Portfolio Shopper traffic Tenants’ sales reversion based on occupancy rate per square foot 518 new leases/ renewals Updates on AEI Creating value through acquisition Education hub on New link bridge Completed the acquisition of all the units in Level 5, new facade between IMM Brilliance Mall Trust (‘BMT’) which holds and covered Building and Devan Bedok Mall linkway Nair Institute 4 CapitaLand Mall Trust Third Quarter 2015 Financial Results *October 2015* Key Financial Highlights CapitaLand Mall Trust Third Quarter 2015 Financial Results *October 2015* Bugis Junction 3Q 2015 Distributable Income Up 10.2% Y-o-Y Distributable Income (S$ mil) Distributable Income Distribution Per Unit (DPU) (1) 103.2 (2) 93.7 S$103.2 (1) 2.98 million cents 10.2% Y-o-Y 9.6% Y-o-Y 3Q 2015 3Q 2014 DPU (cents) Annualised DPU Annualised Distribution 2.98 2.72 Yield 11.82 5.77 cents % (Based on closing unit price of 3Q 2015 3Q 2014 9.6% Y-o-Y S$2.050 on 21 October 2015) (1) Distribution for 3Q 2015 includes the release of S$8.0 million of taxable income retained in 1Q 2015. Capital distribution and tax- exempt income of S$6.6 million received from CapitaLand Retail China Trust (‘CRCT’) had been retained for general corporate and working capital purposes. (2) In 3Q 2014, capital distribution of S$6.1 million received from CRCT had been retained for general corporate and working capital purposes. 6 CapitaLand Mall Trust Third Quarter 2015 Financial Results *October 2015* YTD Sep 2015 Distributable Income Up 5.0% Y-o-Y Distributable Income (S$ mil) Distributable Income Distribution Per Unit (DPU) (1) (2) 290.1 276.2 S$290.1 (1) 8.37 million cents 5.0% Y-o-Y 4.9% Y-o-Y YTD Sep 2015 YTD Sep 2014 DPU (cents) Annualised DPU Annualised Distribution 8.37 7.98 Yield 11.19 5.46 cents % (Based on closing unit price of YTD Sep 2015 YTD Sep 2014 4.9% Y-o-Y S$2.050 on 21 October 2015) (1) Capital distribution and tax exempt income of S$12.5 million received from CRCT in YTD Sep 2015 had been retained for general corporate and working capital purposes. (2) In YTD Sep 2014, CMT had retained S$11.2 million of its taxable income available for distribution to Unitholders for distribution in 4Q 2014. Capital distribution and tax exempt income of S$11.4 million received from CRCT in YTD Sep 2014 had also been retained for general corporate and working capital purposes. 7 CapitaLand Mall Trust Third Quarter 2015 Financial Results *October 2015* Attractive Yield versus Other Investments As at 30 September 2015 Net Yield for: Individual: 5.9% (0% tax) 8 Corporate Overseas: 5.3% (10% tax) Corporate Local: 4.9% (17% tax) 5.9 6 4.8 4.3 340 bps yield spread 4 Yield % Yield 2.5 2.5 2.0 2 0.3 0 CMT YTD Sep 10Y Govt Bond 5Y Govt Bond CPF Ordinary 12-mth Fixed Straits Times FTSE Straits Times 2015 Yield Yield Account (S$) Deposit Index 12-mth Real Estate Yield (1) Savings Yield Index 12-mth Yield Sources: Bloomberg, Central Provident Fund Board, Monetary Authority of Singapore (1) Based on the annualised DPU of 11.19 cents for the period 1 January 2015 to 30 September 2015 and the closing unit price of S$1.900 on 30 September 2015. 8 CapitaLand Mall Trust Third Quarter 2015 Financial Results *October 2015* 5-Year Historical Yield versus Singapore Government Bonds 7 6 5 CMT DPU Yield 4 Yield (%) Yield 3 10Y Govt Bond Yield 2 1 5Y Govt Bond Yield 0 2010 2011 2012 2013 2014 2015 Sources: Bloomberg, Monetary Authority of Singapore 9 CapitaLand Mall Trust Third Quarter 2015 Financial Results *October 2015* 3Q 2015 Financial Performance Gross Revenue Net Property Income Distributable Income S$161.7 S$113.3 S$103.2 (1) million million million 1.8% Y-o-Y 0.7% Y-o-Y 10.2% Y-o-Y S$ million 3Q 2015 3Q 2014 161.7 164.6 113.3 114.1 (1) 103.2 (2) 93.7 Gross Revenue Net Property Income Distributable Income (1) Distribution for 3Q 2015 includes the release of S$8.0 million of taxable income retained in 1Q 2015. Capital distribution and tax-exempt income of S$6.6 million received from CRCT had been retained for general corporate and working capital purposes. (2) In 3Q 2014, capital distribution of S$6.1 million received from CRCT had been retained for general corporate and working capital purposes. 10 CapitaLand Mall Trust Third Quarter 2015 Financial Results *October 2015* YTD Sep 2015 Financial Performance Gross Revenue Net Property Income Distributable Income S$488.6 S$340.5 S$290.1 (1) million million million 1.0% Y-o-Y 0.6% Y-o-Y 5.0% Y-o-Y S$ million YTD Sep 2015 YTD Sep 2014 488.6 493.6 340.5 342.4 (1) (2) 290.1 276.2 Gross Revenue Net Property Income Distributable Income (1) Capital distribution and tax exempt income of S$12.5 million received from CRCT in YTD Sep 2015 had been retained for general corporate and working capital purposes. (2) In YTD Sep 2014, CMT had retained S$11.2 million of its taxable income available for distribution to Unitholders for distribution in 4Q 2014. Capital distribution and tax exempt income of S$11.4 million received from CRCT in YTD Sep 2014 had also been retained for general corporate and working capital purposes. 11 CapitaLand Mall Trust Third Quarter 2015 Financial Results *October 2015* YTD Sep 2015 Gross Revenue (1) decreased by 1.0% versus YTD Sep 2014 On Comparable Mall Basis (2), YTD Sep 2015 Gross Revenue Down 1.4% Y-o-Y CMT Portfolio 488.6 56.8 493.6 Tampines Mall 56.1 1.0% 43.7 Junction 8 42.7 25.3 Funan DigitaLife Mall 24.9 54.2 IMM Building 58.0 68.6 Plaza Singapura 66.9 Mainly due to: • Lower occupancy rates at Clarke Quay and JCube Bugis Junction 62.4 • Ongoing AEI at IMM Building 18.6 58.2 JCube 24.3 32.7 Lot One Shoppers' Mall 32.1 19.6 Bukit Panjang Plaza 19.8 38.7 The Atrium@Orchard 39.1 25.8 Clarke Quay 29.1 24.1 Bugis+ 24.5 YTD Sep 2015 YTD Sep 2014 (3) 18.1 Other Assets 17.9 S$ million (1) Excluding JCube and Clarke Quay, YTD Sep 2015 gross revenue increased by 0.9% Y-o-Y.