Mapletree Pan Asia Commercial Trust · SGX:N2IU
Mapletree Pan Asia Commercial Trust — Mapletree Greater China Commercial Trust — Shareholder Meeting (July 2017)
50 slides from Mapletree Pan Asia Commercial Trust's shareholder meeting presentation, Jul 19, 2017
Slide 1: 4th Annual General Meeting
4th Annual General Meeting 19 July 2017 1
Slide 2: Important Notice
Important Notice This presentation is for information only and does not constitute an offer or solicitation of an offer to sell or invitation to subscribe for or acquire any units in Mapletree Greater China Commercial Trust (“MGCCT” and units in MGCCT, “Units”). The past performance of the Units and
Slide 3: Notice of AGM
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Slide 4: AGM Resolutions
AGM Resolutions ORDINARY BUSINESS Resolution 1 To receive and adopt the Trustee's Report, the Manager’s Statement, the Audited Financial Statements of MGCCT for the financial year ended 31 March 2017 and the Auditor's Report thereon. Resolution 2 To re-appoint PricewaterhouseCoopers LLP as Auditor a
Slide 5: Agenda
Agenda • FY16/17 Key Highlights • Portfolio Highlights • Financial and Capital Management Highlights • Balance in Business and Sustainability • Outlook Festival Walk, Hong Kong Gateway Plaza, Beijing Sandhill Plaza, Shanghai 5
Slide 6: FY16/17 Key Highlights
FY16/17 Key Highlights 6
Slide 7: MGCCT FY16/17 Highlights
MGCCT FY16/17 Highlights Gross Revenue Net Property Income S$350.6 million 4.2% S$285.6 million 2.9% 4YR CAGR: 11.6% y-o-y 4YR CAGR: 11.8% y-o-y 1. Stub period from 7 to 31 March 2013 has been excluded. 7
Slide 8: MGCCT FY16/17 Highlights
MGCCT FY16/17 Highlights Distributable Income Distribution per Unit (Paid)2 S$204.6 million 2.4% 7.341 cents 1.0% 4YR CAGR: 8.7% y-o-y 4YR CAGR: 7.3% y-o-y • Higher rental income from FW, and an enlarged portfolio with SP acquisition, partly offset by higher property tax for GW effective July 20
Slide 9: MGCCT FY16/17 Highlights
MGCCT FY16/17 Highlights • Maintaining Resilience in Portfolio Portfolio FY16/17 Rental FY16/17 Rental FY16/17 Rental Portfolio Valuation Reversion Reversion Reversion Occupancy (as of 31/3/17) (GW) (SP) (as of 31/3/17) (FW) S$6.2b 12% 10% 16% 98.6% • Upholding Prudence & Discipline Average Term FY1
Slide 10: Distributable Income (DI) and DPU since IPO
Distributable Income (DI) and DPU1 since IPO Note: The reported Number of Units in Issue as at the end of the first quarter and the third quarter does not include the payment of Fees (“Manager’s Base Fee and the Property Manager’s Management Fees”) in units for the quarter. The payment of Fees in un
Slide 11: Relative Price Performance vs Major Indices In FY16/17
Relative Price Performance vs Major Indices In FY16/17 Rebased opening prices on 1 April 2016 to 100 Unit Price on 31 Mar 2017: $1.020 Unit price was on a downward The Fed’s guidance of not more than 3 MGCCT unit price trend, weighed down by an rate hikes in 2017, and at a gradual continued to incre
Slide 12: Delivered Healthy Returns to Unitholders
Delivered Healthy Returns to Unitholders 1 April 2016 to 31 1 April 2014 to 31 Listing on 7 March 2017 March 2017 March 2013 to 31 (1-Year) (3-Year) March 2017 Total Return 14.5%1 51.2%2 38.9%3 Unit Price 6.8% 25.2% 9.7% Appreciation Total Distribution 7.7% 26.0% 29.2% Yield 1. Sum of unit price app
Slide 13: MGCCT Offers Higher Return vs Comparable Instruments
MGCCT Offers Higher Return vs Comparable Instruments As of 31 March 2017 1. Based on DPU paid to Unitholders of 7.341 cents (sum of first-half and second-half DPU) over closing unit price of $1.020 on 31 March 2017. 2. 12-month gross dividend yield of FTSE ST REIT Index as of 31 March 2017, Bloomber
Slide 14: MGCCT's Vision, Mission and Strategy
MGCCT’s Vision, Mission and Strategy Vision To be a leading Greater China- focused commercial REIT by portfolio size, quality of assets and returns Mission To deliver regular and stable returns to Unitholders and to achieve long-term sustainable growth in DPU and Net Asset Value per unit To be t
Slide 15: Portfolio Highlights
Portfolio Highlights 15
Slide 16: Portfolio Composition (FY16/17)
Portfolio Composition (FY16/17) Hong Kong and China contribute 70% and 30% to Gross Revenue respectively By Gross Revenue By Net Property Income By Asset Valuation FY16/17: S$350.6m FY16/17: S$285.6m FY16/17: S$6,226.3m Sandhill Sandhill Sandhill Plaza Plaza Plaza 7% 8% 7% Gateway Gateway Gateway Pl
Slide 17: Appreciation in Portfolio Valuation
Appreciation in Portfolio Valuation Portfolio Valuation Portfolio Valuation (as at 31 Mar 2016) (as at 31 Mar 2017) S$5,922m S$6,226m ▲ 5.1% y-o-y Festival Walk Gateway Plaza Sandhill Plaza HK$ RMB RMB HK$ RMB 5,930m 6,120m RMB 23,930m 24,870m 2,040m 1,950 m S$ S$ S$ S$ S$ S$ 4,549 m 1,256m 1,258m 4
Slide 18: Portfolio Occupancy
Portfolio Occupancy High occupancy rate of 98.6% at portfolio level As at As at As at As at 31 Mar 2017 31 Mar 2016 31 Mar 2015 31 Mar 2014 Festival Walk 100.0% 100.0% 100.0% 100.0% Gateway Plaza 96.9% 96.8% 98.0% 97.5% Sandhill Plaza1 100.0% 100.0%2 n.a. n.a. Portfolio 98.6% 98.6% 98.8% 98.5% 1 San
Slide 19: Rental Reversion
Rental Reversion Positive Rental Reversion across all three assets As at As at As at As at Rental Reversion1 31 Mar 2017 31 Mar 2016 31 Mar 2015 31 Mar 2014 Festival Walk - Retail 12% 37% 22% 20% - Office 7% n.a.2 12% 22% Gateway Plaza 10% 25% 30% 79% Sandhill Plaza3 16% n.a. n.a. n.a. 1 Rental reve
Slide 20: Well-Staggered Lease Expiry Profile
Well-Staggered Lease Expiry Profile As of 31 March 2017 Weighted Average Lease Expiry (WALE) by Gross Rental Income (GRI) Portfolio : 2.5 years ~14% already Festival Walk (FW) : 2.1 years renewed Gateway Plaza (GW) : 3.6 years Sandhill Plaza (SP) : 2.2 years 20
Slide 21: Diversified Tenant Mix by Monthly GRI
Diversified Tenant Mix by Monthly GRI No single trade sector comprises more than 21.9% of Gross Rental Income As of 31 March 2017 21
Slide 22: MGCCT's Top 10 Tenants by Monthly GRI
MGCCT’s Top 10 Tenants by Monthly GRI Top 10 tenants accounted for not more than 28.8% of monthly portfolio GRI By Monthly Gross Rental Income (GRI) as of 31 March 2017 7.7% 3.7% 3.6% 3.1% 2.3% 2.1% 1.9% 1.6% 1.5% 1.3% BMW Arup CFLD TaSTe Festival Apple I.T Bank of Cummins Spreadtrum Grand China Fes
Slide 23: Festival Walk – Best-in-Class Territorial Mall
Festival Walk (又一城) – Best-in-Class Territorial Mall Premier Shopping, Strategically Located in the Heart 100% Occupancy since Dining and Lifestyle of Kowloon Tong, Hong Kong Completion in 1998 Destination Office Retail 23
Slide 24: Festival Walk – Retail Sales & Footfall FY16/17
Festival Walk – Retail Sales & Footfall FY16/17 Tenant Sales (HK$ million) Footfall (million) HK$ 5,321 mil HK$ 4,853 mil 40.4 40.4 FY15/16 FY16/17 FY15/16 FY16/17 • Steady annual footfall at 40.4m supported by year-long marketing activities • Decline in tenant sales at FW largely due to weak retail
Slide 25: Festival Walk – New Concepts & Brands
Festival Walk – New Concepts & Brands More Apparel & Lifestyle Concepts to Engage Shoppers LOG-ON Anteprima Camper (re-location) (refreshing new look after renovation) Smiggle Other New Brands: Festival Grand Cinema (Grand opening in July 2016) 25
Slide 26: Festival Walk – New Concepts & Brands
Festival Walk – New Concepts & Brands Expanding Dining Options to Complement Existing Trade Mix Tai Hing Venchi Petite House (new store at ‘FoodFest’ food court) (Italian Gourmet Chocolate) (dessert cafe) ANA Gura LeTAO – Hokkaido Cheesecake (Japanese restaurant) (Kiosk) 26
Slide 27: Festival Walk – Exciting Events and Promotions
Festival Walk – Exciting Events and Promotions Movie Premieres and Festive Events to Attract Shoppers ‘Grand Opening & Movie Premiere of ‘Line Walker’ movie premiere starring Hong Kong celebrities “Three – 三人行’ Louis Koo, Nick Cheung and Charmaine Sheh Chinese New Year’s opening ceremony by An encha
Slide 28: Festival Walk – Exciting Events and Promotions
Festival Walk – Exciting Events and Promotions Wide Variety of Events to Cater to Shoppers Estee Lauder / Origins Disney Tsum Tsum Event Beauty Roadshow Asian Junior Figure Skating Disney on Ice Press Challenge Competition Performance Special Olympics HK Games Festival Walk PlayStation® Lexus & To
Slide 29: Festival Walk & MGCCT: Awards & Accolades in FY16/17
Festival Walk & MGCCT : Awards & Accolades in FY16/17 One of Hong Kong’s Top Ten Favourite Shopping Malls July 2016 October 2016 Corporate Award International Business Awards • Best Annual Report (Silver) • 2016 Gold Stevie® Award for Corporate Social Marketing Events Awards Responsibility Program o
Slide 30: Festival Walk – Active Asset Management
Festival Walk – Active Asset Management Re-configuration of Shop Units to Drive Retail Sales Efficiency & Footfall Re-configured two apparel & footwear shop units into a footwear and full- service F&B restaurant to enhance tenant mix as well as improve footfall and tenant sales Footwear shop Campe
Slide 31: Festival Walk – Active Asset Enhancement
Festival Walk – Active Asset Enhancement Enhanced customer experience with the completion of upgrading works at the food court & refurbishment of all toilets and the baby care room Upgraded toilets Upgraded food court with increased seating capacity and brighter ambience Refurbished baby care room 3
Slide 32: Gateway Plaza – Premier Grade-A Office Building
Gateway Plaza (佳程广场) – Premier Grade-A Office Building Premier Grade A Office Excellent Connectivity Upgraded Podium Area Space in Beijing’s between the CBD and Airport with Retail Amenities Lufthansa Area Key Tenants 32
Slide 33: Gateway Plaza – Active Asset Enhancement
Gateway Plaza – Active Asset Enhancement With completion of asset enhancement works at podium area in FY15/16, improved security measures and more dining options introduced in FY16/17 New security turnstiles Registration and collection of cards to New western cafe at the podium area access lifts to
Slide 34: Sandhill Plaza – Premium Quality Business Park
Sandhill Plaza (展想广场) – Premium Quality Business Park Located in Shanghai’s Established tenants Premium Grade-A Zhangjiang Hi-tech Park, a Free including leading global Building Specifications Trade Zone companies Comprises one 20-storey tower, seven blocks of 3-storey buildings1 and two basement le
Slide 35: Financial & Capital Management Highlights
Financial & Capital Management Highlights 35
Slide 36: Financial Highlights FY16/17
Financial Highlights FY16/17 (S$’million) FY16/17 FY15/16 Variance % Gross Revenue1 350.6 336.6 ▲ 4.2 Property Expenses (65.0) (59.1) ▲ 9.9 Net Property Income 285.6 277.5 ▲ 2.9 Management Fees (21.0) (24.9) ▼ 15.8 Finance Costs (Net) (73.0) (64.5) ▲ 13.3 Distributable Income 204.6 199.9 ▲ 2.4 DPU P
Slide 37: Contribution by Assets to Portfolio Gross Revenue & NPI
Contribution by Assets to Portfolio Gross Revenue & NPI Gross Revenue by Asset Net Property Income (NPI) by Asset • Higher gross revenue (in local currency) for all three assets • Higher NPI for FW mainly due to higher rental income • Lower NPI for GW mainly due to additional property tax and lower
Slide 38: Healthy Balance Sheet
Healthy Balance Sheet As at 31 As at 31 (S$’million) Variance % March 2017 March 2016 Investment Properties (“IP”) 6,226.3 5,922.5 ▲ 5.1 Total Assets 6,528.9 6,153.5 ▲ 6.1 Borrowings 2,556.2 2,422.3 ▲ 5.5 Total Liabilities 2,892.6 2,737.3 ▲ 5.7 Net Assets 3,636.3 3,416.2 ▲ 6.4 Net Asset Value per Un
Slide 39: Prudent Capital Management
Prudent Capital Management As of As of 31 Mar 2017 31 Mar 2016 Total Debt Outstanding (HK$ million) 14,133 13,733 Gearing Ratio1 (%) 39.2 39.5 Average Term to Maturity for Debt (years) 3.73 3.01 MGCCT Corporate Rating by Moody’s Baa1 Stable Baa1 Stable FY16/17 FY15/16 Interest Cover Ratio2 (times) 3
Slide 40: Well-Staggered Debt Maturity Profile
Well-Staggered Debt Maturity Profile Total Gross Debt : HK$14,133 million • Completed two note issuances, and entered into facility agreements for new loan facilities during FY16/17 • About HK$2,498m of debt due in March 2017 and HK$3,500m of debt due in March 2018 were refinanced during FY16/17, ah
Slide 41: Interest Rate Risk Management
Interest Rate Risk Management As at As at 31 Mar 2017 31 Mar 2016 Total Debt Outstanding HK$14,133 m HK$13,733 m (Denomination: ~97% HKD1, ~3% RMB2) Percentage of Debt with Fixed Interest 71% 77% Cost Interest rate volatility largely mitigated as interest cost on 71% of total debt outstanding has
Slide 42: Forex Risk Management
Forex Risk Management Portfolio Level (as of 31 March 2017) 1H FY17/181 % of Distributable Income (comprising HKD & ~ 65% RMB) that has been hedged into SGD • A large proportion of rental income received from overseas assets has been hedged using forward contracts and secured in SGD terms • The Mana
Slide 43: Balance in Business and Sustainability
Balance in Business and Sustainability 43
Slide 44: Committed to Sustainable Practices
Committed to Sustainable Practices Inaugural sustainability report in accordance with GRI (2016) Standards Protecting the Environment Festival Walk was awarded Energy Consumption Water Consumption Waste Recycled Saved Y-o-Y1 Saved Y-o-Y1 Y-o-Y1 the Final Platinum rating 2.4% 2.3% under the BEAM
Slide 45: Enhancing Stakeholder Engagement
Enhancing Stakeholder Engagement Engaging internal and external stakeholders to understand their key issues or concerns Engagement Platforms SHOPPERS TENANTS INVESTORS TRUSTEE Surveys, online/mobile Partnerships, events, AGM, announcements, Regular reporting, communications, events regular meetings
Slide 46: Corporate Social Responsibility Events: FW & MGCCTM
Corporate Social Responsibility Events: FW & MGCCTM Charity and community events held at Festival Walk and staff volunteer event in Singapore CKK Foundation’s Toys collection drive ‘Christmas Charity Sales’ Kick-off by Students share overseas experiences in support of Hacken Lee sponsored by Wai Yin
Slide 47: Outlook
Outlook 47
Slide 48: FY17/18 Outlook
FY17/18 Outlook Hong Kong & Gateway Plaza & MGCCT Festival Walk Sandhill Plaza Gateway Plaza: Domestic consumption The Manager will stay • Leasing demand to be is expected to remain focused on proactive dominated by resilient given a stable lease management to domestic companies labour market
Slide 49: Mapletree
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Slide 50: Thank you
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