Altus Holdings Limited · HKEX:8149
Altus — Saizen Real Estate Investment Trust — 2Q FY2014 Earnings Presentation
16 slides from Altus's earnings presentation, February 2014
Slide 1: Presentation
www.saizenreit.com.sg Presentation February 2014
Slide 2: Disclaimer
Disclaimer • The value of units (the “Units”) in Saizen Real Estate Investment Trust (“Saizen REIT”) and the income derived from them, if any, may fall or rise. Units are not obligations of, deposits in, or guaranteed by, Japan Residential Assets Manager Limited as manager of Saizen REIT (the “Manag
Slide 3: Saizen REIT in Brief
Saizen REIT in Brief Listed on SGX Mainboard in November 2007 Only Singapore-listed REIT to offer access exclusively to Japanese residential properties Properties targeted at mass market tenants in 14 cities Size of portfolio: JPY 41.2 billion (S$497 million1) Saizen REIT has a corporate family rati
Slide 4: Well-diversified Portfolio
Well-diversified Portfolio Portfolio Total number of properties: 139 Region City distribution by revenue (%) Kumamoto 17.7 Kitakyushu 10.3 Fukuoka 5.8 Kyushu Kagoshima 3.2 Oita 0.8 37.8 Sapporo 24.2 Hokkaido Hakodate 0.8 25.0 Sendai 11.4 Koriyama 2.7 Tohoku Morioka 1.5 15.6 Hiroshima 13.9 Chugoku Ku
Slide 5: Distributions
Distributions Distribution per Unit 3.25 Singapore cents Distribution period 1 July 2013 to 31 December 2013 Date payable 21 March 2014 Singapore cents Distribution per Unit (DPU) JPY 3.50 3.50 3.00 3.00 2.50 2.50 2.00 2.00 1.50 1.50 Actual DPU (Singapore cents) 1.00 1.00 DPU in JPY-terms 0.50 0.50
Slide 6: Distributions
Distributions For 1H FY2014, the use of capital cash resources to offset loan principal repayment contributed to 1.19 cents out of the DPU of 3.25 cents At present, loan principal amortisation amounts to approximately JPY 633 million annually Going forward, the ability to offset such loan principal
Slide 7: Hedging of Distribution Payments
Hedging of Distribution Payments As Saizen REIT’s distributable income from operations is generated in JPY, its S$-denominated distributions have been hedged as follows: Distribution period 6-month period ended 6-month period ending 31 December 2013 30 June 2014 Expected payment 21 March 2014 Septem
Slide 8: 2Q FY2014 Overview
2Q FY2014 Overview Year-on-year gross revenue (JPY989 million) and net property income (JPY689 million) increased by 5.2% and 3.3% respectively in 2Q FY2014, due mainly to the acquisitions of 5 properties between November 2012 and June 2013 and partially offset by the divestment of a property in Mar
Slide 9: 2Q FY2014 Overview
2Q FY2014 Overview Property operations remained stable Average occupancy rate in 2Q FY2014 was 90.6% (2Q FY2013: 91.7%; 4Q FY2013: 91.2%) The decline in occupancy rate was partly attributable to seasonal factors and occupancy demand is expected to improve during the major leasing season in the month
Slide 10: Occupancy Rates
80% 85% 90% 95% 100% Jun-08 Jun 08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Occupancy Rates Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Average occupancy rates remained stable above 90% since 10
Slide 11: Stable Rental Rates
Stable Rental Rates Average rental rates maintained above JPY 1,500 / sqm (approx. S$20 / sqm) since Jun 08 2,000 Average rental rates of residential units (JPY / sqm) 1,500 1,000 500 0 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Sep-08 Dec-08 Mar-09 Sep-09 Dec-09 Mar-10 Sep-10 Dec-10 Mar-11 Sep-11 De
Slide 12: Debt Profile
Debt Profile Prevailing Loan Property Annual loan Company Source of Debt Maturity Guarantor Loan-to- Interest Amount Value amortisation Date Fee (%) value (%) Rate (%) (JPY’mln) (JPY’mln) (JPY’mln) GK Gyotatsu Unencumbered 1,347.0 GK Gyosei Unencumbered 671.0 GK Chosei 643.0 YK JOF 1,982.0 YK Keizan
Slide 13: Debt Profile
Debt Profile 6.00% 8 5.00% 7 6 4.00% 5 3.00% 4 2.00% 3 WA loan interest 2 rate 1.00% 1 0.00% 0 Loan duration Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 (years) After FY2023 FY2022 to FY2023 Nearest loan maturity is in FY2020 to FY2021 February 2018 FY2
Slide 14: Upcoming Plans
Upcoming Plans Deloitte and Touche Corporate Finance Pte Ltd had been appointed in December 2013 as an independent financial adviser, to undertake strategic review of options for enhancing unitholders’ value. The strategic review is ongoing 14
Slide 15: Key Financial Information
Key Financial Information Number of Units in issue as at 7 February 2014 283,611,720 NAV attributable to Unitholders as at 31 December 2013 1 S$332 million NAV per Unit as at 31 December 2013 1 S$1.17 Market capitalisation as at 31 December 2013 2 S$262 million 2Q FY2014 interest cover ratio 6.1 tim
Slide 16: Thank You
SaizenREIT )¢ Thank You 16
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