Central Pattana Plc. Property Development and Investment Corporate Presentation: 3Q12 Performance Review
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Central Pattana Plc. Property Development and Investment Corporate Presentation: 3Q12 Performance Review Central Suratthani CentralPlaza Suratthani Disclaimer The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for share in Central Pattana Public Company Limited (“CPN” and shares in CPN, “shares”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever. This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which CPN operates and general achievement of CPN business forecasts, which will cause the actual results, performance or achievementsof CPN to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation. This presentation has been prepared by the CPN. The information in this presentation has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of the CPN or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation. This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or indirectly for any investment decision-making or for any other purposes. This presentation and all other information, materials or documents provided in connection therewith, shall not, either in wholeor in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws. Note: All currency figures within this presentation are presented in Thai Baht unless otherwise stated. 2 Agenda ► Company Overview ► Operations ► Future Developments ► Financial Highlights Company Overview 3Q12 Overview Operations • CentralPlaza Suratthani was launched on October 11, 2012 an Occupancy Rate of approximately 93%. • Shopping centers achieved 3Q12 same store effective rental rate +12% yoy (1). Financials – Overall performance : – 3Q12 Revenues + 42% yoy – 3Q12 Operating Profit +150% yoy – 3Q12 Net Profit +220% yoy – 3Q12 Net Profit (Include non-recurring) +632% yoy – For a same store basis(1) : – 3Q12 Revenues +11% yoy – Net D/E stood at 0.88 times. • Expansion – CentralPlaza Lampang will be launched on November 30 with approximately 90% occupancy rate. – Development of future projects – CentralPlaza Ubonratchathani and CentralFestival Hatyai and CentralFestival Chiangmai is on progress. Note 1:.Excludes CentralPlaza Udonthani, CentralPlaza Lardprao, CentralPlaza Pitsanulok, and CentralPlaza Grand Rama9. 5 Operational Performance Property Locations Existing Projects: Thailand Shopping Centers: 19 World Format 1 (BMA) Plaza Format 16 (9 - BMA) (7 - Province) Equity-owned (CPN) Center Format 1 (Province) Festival Format 1 (Province) Pure-managed (CPNRF) Offices: 7 (BMA) Under construction Hotel: 2 (Province) Bangkok Metropolitan Area (BMA) Pipeline Projects: Shopping Centers: BMA - Suan Lumpini (Pre-Cadet School) Provinces - Lampang - Ubonratchthani - Hatyai (Songkla) - Chiangmai Note : As of 30 September 2012. 7 Leasable Area and Occupancy: Bangkok Retail As of 3Q12, CPN manages 18 premium shopping centers – 10 in Bangkok Metropolitan Area (BMA) and its vicinities and 8 in provincial areas. In 3Q12, occupancy of the BMA shopping centers stood at 97%. Retail Properties in BMA Leaseable area(1) (sqm) Occupancy Rate (2) CPN Retail Develop- Land Properties ment Ownership Department Retail Total 3Q12 2Q12 3Q11 Store 1. Lardprao Greenfield Leasehold 48,140 - 48,140 100% 100% 97% 2. Ramindra Greenfield Leasehold 17,156 - 17,156 100% 100% 98% 3. Pinklao (3) Greenfield Leasehold 35,575 - 35,575 100% 100% 99% 4. Rama 3 (3) Greenfield Freehold 18,192 - 18,192 85% 100% 100% Under renovation. 5. Bangna Acquisition Freehold 58,112 - 58,112 91% 96% 95% 6. Rama 2 (3) Greenfield Leasehold 5,937 - 5,937 100% 100% 100% 7. Rattanathibet Acquisition Freehold 59,680 17,558 77,238 100% 98% 98% Underwent a major 18,970 8. CentralWorld Acquisition Leasehold 141,029 187,054 98% 98% 88% renovation during 27,055 May 10 – Nov 11. 9.Chaengwattana Greenfield Freehold 64,458 - 64,458 95% 95% 96% 10.Grand Rama 9 Greenfield Leasehold 59,505 23,432 82,937 99% 99% n/a Opened in Dec11. CPN Portfolio in BMA 507,784 87,015 594,799(4) 97% 98% 94% Note 1: Excludes rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines. Note 2: Percentage based on leaseable area. 8 Note 3: Excludes areas transferred to CPNRF. Leasable Area and Occupancy: Provincial Retail 8 shopping centers are strategically located in high traffic growth areas in provinces. Occupancy rate in 3Q12 averaged 98%. Retail Properties in Provincial Areas Land Leaseable area (1) (sqm) Occupancy Rate (2) CPN Retail Develop- Department Properties ment Ownership Retail Total 3Q12 2Q12 3Q11 Store 1. Pattaya Center Greenfield Leasehold 15,226 - 15,226 97% 97% 93% 2. Chiangmai Acquisition Freehold 45,140 30,751 75,891 99% 98% 99% 3. Pattaya Festival Greenfield Freehold 57,161 - 57,161 96% 96% 97% 4. Udonthani Acquisition Freehold 45,196 23,640 68,836 99% 98% 91% Underwent a major renovation 5. Chonburi Greenfield Freehold 40,386 - 40,386 96% 94% 96% during Jun 11 – Mar 12. 6. Khonkaen Greenfield Freehold 50,146 - 50,146 95% 96% 93% 7. Chiangrai Greenfield Freehold 21,459 - 21,459 98% 98% 98% 8. Phitsanulok Greenfield Freehold 24,974 - 24,974 100% 100% n/a Opened in Oct 11. CPN Portfolio in Provinces 299,688 54,391 354,079 98% 97% 96% Total CPN Portfolio for Retail Properties 807,472 141,406 948,878 98% 98% 95% Note 1: Excludes rental agreements < 1 year, such as kiosk, carts, ATMs and coin machines. Note 2: Percentage based on leaseable area. 9 Note 3: CentralPlaza Suratthani opened in October 2012 with an occupancy rate 93% Leasable Area and Occupancy: Office Office property is considered as non-core business, complementing shopping center business and adding value to the overall project. As of 3Q12, CPN owned five office towers located in BMA with an average occupancy rate of 96%. Leaseable Occupancy Rate (2) Develop- Land Office area (1) ment Ownership (sqm) 3Q12 2Q12 3Q11 1. Lardprao Greenfield Leasehold 16,250 96% 99% 22% Completed its major renovation in 1Q11. 2. Bangna Acquisition Freehold 10,007 94% 97% 99% 3. CentralWorld Acquisition Leasehold 82,796 98% 97% 89% Divested to CPNCG in Sep 12. 4. Chaengwattana Greenfield Freehold 19,867 84% 85% 56% 5. Grand Rama 9 Greenfield Leasehold 13,163 95% 94% n/a Opened in Dec 11. Total 142,082 96% 95% 76% Note 1: Excludes storage. Note 2: Percentage based on leaseable area. 10 Occupancy: Residential and Hotel Residential property and hotel are non-core businesses. These businesses complement that of the shopping center and add value to the project. Residential Leaseable area (1) Occupancy Rate (2) Residential (sqm) 3Q12 2Q12 3Q11 1. Bangna 1,907 47% 47% 49% Strata title. Asset for sales. 2. Langsuan 4,466 61% 65% 64% 50-unit furnished apartment. Total 6,373 57% 60% 60% Hotel No. of Occupancy Rate % Hotel Available Room 3Q12 2Q12 2Q11 Centara Udonthani 259 56% 53% n.a Closure for refurbishment during Jun 11 – Dec 11. Managed by Central Plaza Hotel Plc. Hilton Pattaya 302 63% 76% 59% Launched in Dec 10. Managed by Hilton Hotel Corporation Total 561 60% 66% 59% Note 1: Includes retail space. Excludes storage. Note 2: Percentage based on leaseable area. 11 Operation Performance: CPNRF In 3Q12, CPN Retail Growth Leasehold Property Fund (“CPNRF”) owns three shopping centers and two office towers. CPNRF is managed by SCB Asset Management, Fund Manager. Its properties are managed by CPN, Property Manager. Leaseable Occupancy Rate (2) CPNRF Retail Develop- Land area (1) Properties ment Ownership 3Q12 2Q12 3Q11 (sqm) 1. Rama 2 Greenfield Leasehold 88,945 100% 99% 100% 2. Rama 3 Greenfield Freehold 37,053 99% 100% 96% 3. Pinklao Greenfield Leasehold 21,706 99% 98% 94% CPNRF Retail Properties 147,704 100% 99% 98% Leaseable Occupancy Rate (2) CPNRF Office Develop- Land area (1) Properties ment Ownership 3Q12 2Q12 3Q11 (sqm) Pinklao Tower Greenfield Leasehold 33,760 97% 98% 97% A & B CPNRF Portfolio 181,464 99% 98% 97% Note 1: Includes rental agreements < 1 year such as kiosk, carts, ATMs and coin machines and CPN acts as the property manager. Note 2: Percentage based on leaseable area. 12 Rental Contract Type : By Area Monthly basis collection (up to 3 years) • Tenants: food centers, cineplex and international brands such as “McDonalds”, “KFC” • Range of percentage: 10% - 30% of sales Monthly basis collection (up to 3 years) • With minimum guarantees • Increase rental rate approx 5% p.a. • Approx. 1/3 of rental contract expired every year Up-front collection (up to 30 years) • Up-front payment – realize throughout lease contract period on straight-line basis Note: On top of space rental fee, service & utility fees are collected on a