Lippo Malls Indonesia Retail Trust 3Q 2016 Results Presentation

Transcription

1 Lippo Malls Indonesia Retail Trust 3Q 2016 Results Presentation 10 November 2016

2 Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a 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 res ults 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 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. 1

3 Key Highlights of 3Q 2016 Results 3Q 2016 (S$ 000) 3Q 2015 (S$ 000) Variance (%) Total Revenue 47,030 44, % Net Property Income 43,338 40, % Distributable Income 24,153 21, % 3Q 2016 DPU of 0.86 cents (2Q 2016: 0.85 cents) represents an annualized yield of 8.9% 1 Healthy balance sheet with total assets under management of S$1,867.3 million Prudent capital structure management with gearing ratio at 32.7% Overall occupancy at 94.8%, higher than industry average of 84.3% 2 Over 77% of leases expired in 3Q 2016 were renewed with average rental reversion of 7.3% High Weighted Average Lease Expiry (by NLA) at 4.63 years Notes: 1. Based on a closing price of S$0.375 as at 30 September Cushman & Wakefield: Retail Snapshot Q Jakarta 2

4 Performance Summary for 3Q 2016 Gross Revenue (SGD '000) NPI (SGD '000) 48,000 47,000 47,030 44,000 43,000 43,338 46,000 42,000 45,000 44,000 44,137 41,000 40,000 39,000 40,290 43,000 Q Q ,000 Q Q ,000 24,000 Distributable Income (SGD '000) 24, DPU (SGD cents) ,000 22,000 21,000 20,000 21, ,000 Q Q Q Q

5 Financial Results COPY FOR ASTRA INTERNATIONAL 4 44

6 3Q 2016 Financial Results P&L 3Q 2016 (S$ 000) 3Q 2015 (S$ 000) Variance 3Q 2016 (IDR million) 3Q 2015 (IDR million) Variance Gross Rent 37,903 36, % 367, , % Other Income % 5,010 5, % Parking Income 6,600 5, % 63,934 58, % Rental of Electrical, Mechanical, and Mall Operating Equipment 2,016 1, % 19,508 10, % Total Revenue 47,030 44, % 456, , % Property Management Fee 1,064 1, % 10,322 11, % Property Operating and Maintenance Expenses 2,628 2, % 25,471 26, % Total Property Operating Expenses 3,692 3, % 35,793 37, % Net Property Income 43,338 40, % 420, , % Distributable Income 24,153 21, % Distribution Per Unit (cents) ¹ % Annualized Distribution Yield ² 8.9% Notes: 1. Based on billion units in issue as at 30 September Based on a closing price of S$0.375 as at 30 September

7 3Q 2016 Financial Results P&L Gross Revenue (S$ 000) 101,761 79, , , , , , ,004 40,200 44,137 47,030 42,257 46,806 41,972 45,524 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY Q 2016 Net Property Income (S$ 000) 88,297 75,109 85,269 92, , , , ,565 40,200 40,290 43,338 39,049 43,124 39,026 40,832 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY Q 2016 Note: FY 2008 figures includes private trust period from 8 Aug 2007 to 18 Nov 2007 and public trust period from 19 Nov 2007 ("Listing Date") to 31 Dec

8 3Q 2016 Financial Results P&L Distributable Income (S$ 000) 59,492 54,009 47,878 47,446 64,137 73,023 68,014 85,553 22,690 21,487 24,153 19,875 23,802 21,501 23,178 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY Q 2016 DPU (cents) Q Q Q Q Q Q Q Q Q Q Q 2016 Note: FY 2008 figures includes private trust period from 8 Aug 2007 to 18 Nov 2007 and public trust period from 19 Nov 2007 ("Listing Date") to 31 Dec

9 3Q 2016 Financial Results Balance Sheet (in S$) 30 September 2016 S$ million 31 December 2015 S$ million Non Current Assets 1, , Current Assets Total Debt Other Liabilities Total Equity 1, ,075.1 Gearing Ratio 32.7% 35.0% Total Units In Issue (million) 2, , Net Asset Value (per unit) S$ 0.39 S$ 0.38 Notes:, 1. Included in the Non Current Assets are the Investment properties of S$1,844.2 million. The carrying values of the properties are stated based on the independent valuation as at 31 December 2015 and adjusted for property enhancements to date. The valuations and property enhancements figures are recorded in the financial statements in Indonesian Rupiah and translated into Singapore Dollars using the exchange rate as at 30 September 2016 (IDR/SGD: 9,529.04) 2. Included in the Non Current Assets are the Investment properties of S$1,804.9 million. The carrying values of the properties are stated based on independent valuation as at 31 December 2015 in Indonesian Rupiah and translated into Singapore Dollars using the exchange rate as at 31 December 2015 (IDR/SGD: 9,707.06) 3. Total equity is represented by Unitholder s funds of $1,098.8m and Perpetual securities of $138.4m 4. Net Asset Value is calculated as Unitholder s funds over the units issued at the end of the period 8

10 Distribution Details 1 July September 2016 Total DPU 0.86 cents - Tax-Exempt 0.60 cents - Capital 0.26 cents Books Closure Date 18 November 2016 Tentative Distribution Payment Date 30 November 2016 Since listing in Nov 2007, LMIR Trust has maintained a payout policy of 100% of distributable income 9

11 Portfolio Performance COPY FOR ASTRA INTERNATIONAL

12 Strategically Located Portfolio LMIRT has a diversified portfolio of 19 retail malls and 7 retail spaces across Indonesia Portfolio across Indonesia: 10 malls across Greater Jakarta 2 malls in Bandung 3 malls in Medan 3 malls in Palembang 1 mall in Batu 7 retail spaces Binjai Supermall Plaza Medan Fair Sun Plaza Grand Palladium Medan Medan Metropolis Town Square Mall WTC Matahari Pejaten Village Lippo Mall Kemang Depok Town Square Cibubur Junction West Central Jakarta Jakarta North Jakarta South Jakarta East Jakarta Pluit Village Gajah Mada Plaza The Plaza Semanggi Mal Lippo Cikarang Lippo Plaza Kramat Jati Tamini Square Ekalokasari Plaza Assets Under Management: S$1,867.3 million Total NLA: 821,429 sqm Portfolio Occupancy: 94.8% WALE (by NLA) 4.63 years Sumatra Palembang Square Pontianak Palembang Kalimantan Balikpapan Palembang Square Extension Palembang Icon Java Supermall Jakarta Semarang Istana Plaza Java Surabaya Bandung Batu Malang Plaza Madiun Lippo Malang Bandung Indah Plaza Plaza Town Batu Square Sulaw esi Retail Malls IrianJaya Retail Spaces 11 11

13 Consistently Diversified Trade Mix As at 30 September 2016 Trade Sector Breakdown by Rental Income Trade Sector Breakdown by NLA 2.6% 6.3% 1.7% 10.2% 3.0% 4.2% 0.8% 11.5% 19.3% 10.1% 0.5% 0.4% 4.3% 10.2% 15.5% 1.5% 0.8% 4.5% 4.8% 0.7% 1.6% 6.6% 9.0% 17.6% 1.2% 0.6% 0.9% 0.5% 9.9% 2.1% 10.6% 14.5% 9.2% 1.6% 0.4% 0.8% 12

14 Top 10 Tenants By Gross Rental Income As at 30 September 2016, includes retail space Fitness First Centro Gramedia Sport Station 0.4% 0.4% 0.4% 0.5% Solaria 0.5% Ace Hardware Electronic Solution 0.6% 0.7% Carrefour 2.5% Hypermart 6.7% Matahari Department Store 9.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Top 10 tenants contribute approximately 22% of LMIRT Retail Mall Portfolio s Gross Rental Income 13

15 Lease Expiry Profile As at 30 September 2016 Weighted Average Lease Expiry (by NLA) as at 30 September 2016: 4.63 years 45% 42% 40% 35% 30% 25% 23% 20% 15% 10% 12% 10% 5% 0% 2% >2020 LMIRT s portfolio lease terms represent a balanced mix of long-term anchor leases and shorter-term leases for non-anchor tenants, providing both stability and growth potential. 14

16 Rental Reversion Trend As at 30 September ,000 45,000 45, % 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, , % 11,257 10,117 9, % 8.7% 8.0% 16,23816,455 17,650 13, % 11, % 10.8% 8.9% 30, % 12.4% 19, % 15,168 26,542 16,094 22,072 24,764 25, % 9.4% 10.1% 11.6% 10.8% 9.5% 11.4% 36, % 22,906 20,920 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q % 7.5% 16, % 13, % 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Renewal & New Leases NLA Rental Reversion Rate 15

17 Debt Maturity Profile As at 30 September 2016 To mitigate the impact of interest rate fluctuations, 87% of LMIRT s debt is on a fixed rate basis Weighted Average Maturity of Debt Facilities is 1.99 years % % % % % Notes: 1 S$ 150 million 4.25% bond due October 2016* 2 S$ 50 million 5.875% bond due July S$ 75 million 4.48% bond due November S$ 100 million 4.50% bond due November S$ 145 million 3.00% + SOR term loan due December S$ 75 million 4.10% bond due June S$ 50 million 2.95% + SOR term loan due August S$ 50 million 3.15% + SOR term loan due August 2021 *Refinanced on 4 October 2016 Bonds Term Loans 16