3Q 2020 Results Presentation
Total Page：16
File Type：pdf, Size：1020Kb
3Q 2020 Results Presentation 2 November 2020 Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a Disclaimer 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 2007. 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. The value of units in LMIRT (“Units”) and the income derived from them may fall as well as rise. The Units are not obligations of, deposits in, or guaranteed by, LMIRT Management Ltd, as manager of LMIR Trust (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 have no right to request the Manager to redeem their Units while the Units are listed. It is intended that Unitholders may only deal in their Units through trading on Singapore Exchange Securities Trading Limited. Listing of the Units on the SGX- ST does not guarantee a liquid market for the Units. This document is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Units. The past performance of LMIRT is not necessarily indicative of the future performance of LMIRT. 2 Financial Highlights Key Highlights QoQ YoY S$’000 3Q 2020 2Q 2020 3Q 2019 % Change % Change Gross Rental Income (GRI) 15,272 12,627 20.9 39,308 (61.1) Total Gross Revenue1 28,872 27,383 5.4 69,248 (58.3) Net Property Income 13,146 12,823 2.5 44,122 (70.2) Amount Available for Distribution - - - 17,996 n.m. Distribution to Unitholders 2,049 3,137 (34.7) 16,196 (87.3) DPU (Singapore cents) 0.07 0.11 (36.4) 0.56 (87.5) ❑ GRI recovered 20.9% QoQ as malls reopen for operations during the quarter although at shorter 8-hour operating hours and at a regulated 50% capacity, partially offset by a S$1.8 million fall due to the divestments of Pejaten Village and Binjai Supermall. Rental and service charge billings aligned to the shorter hours and continue to be waived for those tenants who remain closed due to regulation ❑ Net property income rose marginally 2.5% QoQ impacted by the lowered revenue from shorter operating hours and rental reliefs offered to tenants. After taking into account fixed and financing costs, LMIR Trust recorded nil distributable income for 3Q 2020 ❑ Distributions of S$2.0 million to Unitholders, along with the S$4.9 million paid to perpetual security holders on 24 September, after taking into considerations restrictions imposed under terms and conditions of the US$250.0 million 7.25% Guaranteed Senior Notes due 2024 1. Total Gross Revenue includes Gross Rental Income, Carpark Income, Service Charge and Utilities Recovery and Other Rental Income 4 Distribution Restrictions ❑ Under the US$250.0 million 7.25% Guarantee Senior Notes due in 2024, LMIR Trust is restricted to make any distributions (in the form of Perpetual Coupons or Dividends) unless ✓Aggregate leverage is below the MAS gearing limit as prescribed under the Property Funds Appendix (currently 50%); and ×Aggregate of distributable income less any distributions made to Perpetual securities holders and Unitholders since Note issuance, is greater than zero ➢ As at 30 Sept 2020, aggregate of distributable income = 0 ❑ If such aggregate number is zero, LMIR Trust is only permitted to make distributions of up to US$5.0 million for the remaining life of the US$ Notes ➢ S$4.9 mio paid to Perpetual Security Holders on 24 Sept 2020 ➢ S$2.0 mio declared as dividends to Unitholders for 3Q2020 5 Distribution Restrictions ❑ Any further distributions, beyond this US$5.0 million limit, to either Perpetual securities holders or Unitholders is subject to ➢ Aggregate of distributable income less any distributions made to Perpetual securities holders and Unitholders since Note issuance, is greater than zero ➢ US$ noteholders' consent; or ➢ New equity injection, such as the proposed rights issuance in conjunction with the proposed Lippo Mall Puri acquisition transaction. ❑ Such restrictions on distributions is a typical feature in high yield US$ Bond issuance and is not specific or unique to LMIR Trust 6 Key Financial Performance S$’000 % Rp’million % Change 3Q 2020 2Q 2020 Change 3Q 2020 2Q 2020 Gross Rental Income 15,272 12,627 20.9 164,029 141,559 15.9 Carpark Income 971 471 n.m. 10,416 5,571 87.0 Other Rental Income 513 360 42.5 5,462 3,920 39.3 Service Charge and Utilities Recovery 12,116 13,925 (13.0) 130,146 152,128 (14.4) Total Gross Revenue 28,872 27,383 5.4 310,053 303,178 2.3 Property Management Fee (549) (1,020) 46.2 (5,975) (11,146) 46.4 Property Operating and Maintenance (13,283) (10,999) (20.8) (141,893) (120,372) (17.9) Expenses Other Property Operating Expenses (1,894) (2,541) 25.5 (20,271) (27,209) 25.5 Total Property Operating Expenses (15,726) (14,560) (8.0) (168,139) (158,727) (5.9) Net Property Income 13,146 12,823 2.5 141,914 144,451 (1.8) Amount Available for Distribution - - n.m. Distribution to Unitholders 2,049 3,137 (34.7) Distribution Per Unit (cents)1 0.07 0.11 (36.4) 1. Based on 2.927 billion units in issue as at 30 September 2020 7 Balance S$’million 30 September 2020 31 December 2019 Sheet Non-Current Assets1 1,458.2 1,712.8 Cash and Cash Equivalents 123.1 109.7 Other Current Assets2 57.4 190.5 Total Debt 696.2 721.7 Other Liabilities 171.3 215.4 Total Equity3 771.2 1,075.9 Gearing Ratio 42.5% 35.9% Total Units In Issue (million) 2,926.8 2,894.9 Net Asset Value per unit (in cents)4 17.57 28.20 1. Included in the Non-Current Assets are the Investment properties of S$1,446.7 million as at 30 September 2020 and S$1,696.8 million as at 31 December 2019. The carrying values of the properties are stated based on the independent valuation as at 31 July 2020, which was carried out because the outbreak of the Covid-19 pandemic has brought about market uncertainties. All respective valuations and property enhancements figures are recorded in the financial statements in IDR and translated into SGD using the respective exchange rate as at the end of each period 2. As Pejaten Village and Binjai Supermall were divested on 30 July 2020 and 3 August 2020 respectively, Other Current Assets, which used to include these two properties held for divestment has dipped from S$190.5 million on 31 December 2019 to S$57.4 million on 30 September 2020 3. Total equity is represented by Unitholder’s funds of S$514.2 million and Perpetual Securities of S$257.0 million as at 30 September 2020 and S$816.3 million and Perpetual Securities of S$259.6 million as at 31 December 2019 4. Net Asset Value per unit is calculated as Unitholder’s funds over the units issued at the end of the period 8 Distribution Details Period: 1 July 2020 to 30 September 2020 Total DPU 0.07 cents - Tax-Exempt - - Capital 0.07 cents Record Date 10 November 2020 Distribution Payment Date: 26 November 2020 9 Portfolio Performance Steady Occupancy Rate 94.3% 93.7% 92.9% 91.5% 90.9% 88.2% Portfolio Average 85.4% 85.5% 84.8% 83.2% 80.8% Industry Average 81.1% 80.8% 79.5% (Cushman & Wakefield) FY 2016 FY 2017 FY 2018 FY 2019 1Q 2020 2Q 2020 3Q 2020 ❑ All 21 malls and seven retail spaces having resumed operations as of 3 July 2020 ❑ During the imposition of PSBB in Jakarta in September/October, seven malls in Jakarta remained operational with unchanged visitor capacity of 50%. Entertainment centres and fitness centres remained closed while cafes and restaurants were not allowed dine-in services and can only offer delivery or take- away 11 Lease Expiry and Renewals Long Lease Profile • Weighted Average Lease Expiry (by NLA) as 35.5% at 30 September 2020: 3.4 years • Balanced mix of long-term anchor leases and shorter-term leases for non-anchor tenants 13.6% provide both stability and growth potential 10.7% 9.4% 10.0% • Average rental reversion YTD Sep: 4.4% 2020 2021 2022 2023 >2024 Lease expiry as at FY2020* FY2021 FY2022 FY2023 >FY2024 30 September 2020 Number of unit lots expiring 337 888 751 407 1,274 Leased area expiring (sqm) 89,827 78,585 114,230 83,622 298,031 Expiries as % of total NLA 10.7 9.4 13.6 10.0 35.5 as at 30 September 2020 Committed Renewal in 2020 Approximately 52.9% of expired leases or due to expire in 2020 has renewed / committed to renew their leases * Figures are for leases expiring between October 2020 to December 2020.