CAPITAMALL TRUST Singapore’S First & Largest REIT
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CAPITAMALL TRUST Singapore’s First & Largest REIT Full Year 2010 Financial Results 20 January 2011 CapitaMall Trust Full Year 2010 Financial Results *January 2011* Disclaimer This presentation may 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. You are cautioned not to place undue reliance on these forward-looking statements, which are based on CapitaMall Trust Management Limited‟s (the manager of CapitaMall Trust (“CMT”, and the manager of CMT, the “Manager”)) current view of future events. 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. The past performance of CMT is not necessarily indicative of the future performance of CMT. 2 CapitaMall Trust Full Year 2010 Financial Results *January 2011* Results Overview 3 CapitaMall Trust Full Year 2010 Financial Results *January 2011* Year in Review • Improved economic conditions in Singapore – GDP grew 14.7% in 2010 – Unemployment rate down to 2.1%, compared to 3.3% a year ago – Strong growth in tourist arrivals – More optimism among retailers and improved consumer confidence • Strengthened CMT‟s balance sheet – Raised approximately S$1.2 billion with five medium-term note issuances – Successfully launched S-REIT market‟s maiden Euro medium-term notes – Diversified sources of funding and extended debt maturity profile • Strong rental reversions for overall portfolio – Increase of 6.5% over preceding rental rates for rental renewals • Asset enhancements – AEI at Raffles City Singapore completed – AEI at JCube on track – Commencement of AEI at The Atrium@Orchard in January 2011 • Acquisition of Clarke Quay – Platform to leverage on the influx of tourist arrivals to Singapore 4 CapitaMall Trust Full Year 2010 Financial Results *January 2011* Key Financial Highlights 5 CapitaMall Trust Full Year 2010 Financial Results *January 2011* 4Q 2010 Distribution Per Unit Up 2.1% vs Forecast S$3.5 million Taxable Income Released in 4Q 2010 4Q 2010 Actual 4Q 2010 4Q 2009 Chg Chg Actual Actual Change Forecast(1) Amount available for distribution S$71.9m S$69.5m 3.5% S$71.4m 0.8% Tax-exempt income released ─ S$2.2m(3) N.M. S$2.5m(2) N.M. Taxable income released S$3.5m(2) S$4.8m(3) (27.1%) ─ N.M. Distributable income S$75.4m S$76.5m (1.4%) S$73.9m 2.1% Estimated distribution/unit (DPU) 2.36¢(4) 2.40¢ (1.4%) 2.31¢ 2.1% Annualised DPU 9.36¢(4) 9.52¢ (1.4%) 9.16¢ 2.1% Annualised distribution yield 4.93% 4.82% 2.1% (Based on unit price of S$1.90 on 19 Jan 2011) (1) The forecast is based on CMT Circular dated 24 March 2010. (2) Refers to the release of S$3.5 million, being the balance of the S$4.5 million taxable income retained in 1Q 2010. Forecast included release of approximately S$2.5 million retention of tax-exempt income from CapitaRetail China Trust (“CRCT”) in 3Q 2010. (3) Refers to the release of S$4.8 million taxable income retained in 1H 2009 and S$2.2 million of net tax-exempt income (after interest expense of S$0.3 million) from CRCT retained in 3Q 2009. (4) DPU in the table above is computed on the basis that as at the books closure date, none of the outstanding S$550.0 million in principal amount of the S$650.0 million 1.0% convertible bonds due 2013 (the “Outstanding CBs”) have been converted into units in CMT (“Units”). Accordingly, the actual quantum of DPU may differ from the table above if any of the Outstanding CBs are converted into Units before the books closure date. 6 N.M. – Not Meaningful CapitaMall Trust Full Year 2010 Financial Results *January 2011* FY 2010 Distribution Per Unit Up 4.6% Y-o-Y Tax-Exempt Income from CRCT to be Distributed in FY 2011 FY 2010 FY 2009 Chg Actual Actual Amount available for distribution S$304.9m S$282.0m 8.1% Tax-exempt income retained (S$10.1m) (1) ─ N.M. Distributable income S$294.8m S$282.0m 4.6% Estimated distribution/unit (DPU) 9.24¢(2) 8.85¢ 4.6% Annualised distribution yield 4.86% (Based on unit price of S$1.90 on 19 Jan 2011) (1) Tax-exempt income from CRCT of S$5.0 million received in 1Q 2010 in respect of the period 1 July 2009 to 31 December 2009 and S$5.1 million received in 3Q 2010 in respect of the period 1 January 2010 to 30 June 2010 have been retained for distribution in FY 2011. (2) DPU in the table above is computed on the basis that none of the Outstanding CBs are converted into Units before the books closure date. Accordingly, the actual quantum of DPU may differ from the table above if any of the Outstanding CBs are converted into Units before the books closure date. N.M. – Not Meaningful 7 CapitaMall Trust Full Year 2010 Financial Results *January 2011* Attractive Yield versus Other Investments Net Yield for: Individual: 4.7% (0% tax) 6.0 Corporate Overseas: 4.3% (10% tax) 4.7 Corporate Local: 3.9% (17% tax) Yield % Yield 4.0 2.0% yield spread 3.5 2.7 2.7 2.5 2.0 1.4 0.5 0.0 (6) CMT FY 2010 10yr Govt Bond 5yr Govt Bond CPF Ordinary 12mth Fixed STI Yield (5) FTSTRE Yield Yield(1) Yield(2) Yield (2) Account (3) (S$) Deposit (4) Sources: Bloomberg, CMTML, CPF Board, Monetary Authority of Singapore (1) Based on FY 2010 distribution per unit of 9.24 cents and the unit closing price of S$1.95 on 31 December 2010. (2) Singapore Government 10-year and 5-year bond yields as at 31 December 2010. (3) Prevailing CPF-Ordinary Account savings rate. (4) Average 12-month S$ fixed deposit savings rate as at December 2010. (5) Average 12-month gross dividend yield of Straits Times Index stocks as at 31 December 2010. (6) Average 12-month gross dividend yield of Straits Times Real Estate Index as at 31 December 2010. 8 CapitaMall Trust Full Year 2010 Financial Results *January 2011* Steady Distributable Income Growth 9 CapitaMall Trust Full Year 2010 Financial Results *January 2011* Distribution Statement (4Q 2010 vs 4Q 2009) 4Q 2010 4Q 2009 Variance S$‟000 S$‟000 (%) Gross revenue 151,347 140,104 8.0 Less property operating expenses (49,866) (44,054) 13.2 Net property income 101,481 96,050 5.7 Interest income 539 234 N.M. Administrative expenses (10,452) (10,746) (2.7) Interest expenses (30,731) (23,702) 29.7 Net income before tax and share of profit of associate 60,837 61,836 (1.6) Adjustments: Net effect of non-tax deductible items(1) 10,922 6,802 60.6 Net loss from subsidiaries/joint venture 184 846 (78.3) Amount available for distribution to Unitholders 71,943 69,484 3.5 Distributable income 75,443(2) 76,500(3) (1.4) (1) 4Q 2010 included the amortisation cost relating to the CBs and other non-tax deductible items that are non-income generating. 4Q 2009 included the amortisation cost relating to the CBs, the interest and borrowing cost which has been deducted against distribution income from CRCT and other non-tax deductible items that are non-income generating. (2) In 4Q 2010, amount included release of S$3.5 million, being the balance of the S$4.5 million taxable income retained in 1Q 2010. (3) In 4Q 2009, amount included release of S$4.8 million taxable income retained in 1H 2009 and S$2.2 million of net tax- exempt income (after interest expense of S$0.3 million) from CRCT retained in 3Q 2009. N.M. – Not Meaningful 10 CapitaMall Trust Full Year 2010 Financial Results *January 2011* Distribution Statement (4Q 2010 vs Forecast) Actual Forecast(1) Variance S$‟000 S$‟000 (%) Gross revenue 151,347 146,667 3.2 Less property operating expenses (49,866) (46,733) 6.7 Net property income 101,481 99,934 1.5 Interest income 539 21 N.M. Administrative expenses (10,452) (10,071) 3.8 Interest expenses (30,731) (27,161) 13.1 Net income before tax and share of profit of associate 60,837 62,723 (3.0) Adjustments: Net effect of non-tax deductible items 10,922 8,636 26.5 Net loss from subsidiaries/joint venture 184 - N.M. Amount available for distribution to Unitholders 71,943 71,359 0.8 Distributable income 75,443(2) 73,856(3) 2.1 (1) The forecast is based on CMT Circular dated 24 March 2010. (2) In 4Q 2010, amount included release of S$3.5 million, being the balance of the S$4.5 million taxable income retained in 1Q 2010. (3) In the forecast, approximately S$2.5 million of tax-exempt income from CRCT in 3Q 2010 is assumed to be retained.