Altus Holdings Limited · HKEX:8149
Altus — Saizen Real Estate Investment Trust — FY2015 Earnings Presentation
22 slides from Altus's earnings presentation, August 2015
Slide 1: FY2015 Results Presentation
FY2015 Results Presentation August 2015 www.saizenreit.com.sg
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 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 43.1 billion (S$474 million1) Saizen REIT has a corporate family rating of Ba3, with a stable outlook (rated b
Slide 4: Well-diversified Portfolio
Well-diversified Portfolio Portfolio Total number of properties: 136 Region City distribution by revenue (%) Kumamoto 17.2 Kitakyushu 10.5 Fukuoka 6.0 Kyushu Kagoshima 3.3 Oita 0.8 37.8 Sapporo 24.6 Hokkaido Hakodate 0.7 25.3 Sendai 10.2 Koriyama 2.7 Tohoku Morioka 1.5 14.4 Hiroshima 14.6 Chugoku Ku
Slide 5: Distributions
Distributions Distribution per Unit 2.93 Singapore cents Distribution period 1 January 2015 to 30 June 2015 Date payable 28 September 2015 Singapore cents Distribution per Unit (DPU) JPY 3.50 3.50 3.00 3.00 2.50 2.50 2.00 2.00 1.50 Actual DPU 1.50 (Singapore cents) 1.00 1.00 DPU in JPY-terms 0.50 0.
Slide 6: Distributions
Distributions For 2H FY2015, the use of capital cash resources to offset loan principal repayment contributed to 1.45 cents out of the DPU of 2.93 cents At present, loan principal amortisation amounts to approximately JPY 694 million annually Going forward, the ability to offset such loan principal
Slide 7: Hedging of Distribution Payments
Hedging of Distribution Payments Distributions have been hedged as follows: Distribution period 6-month period ended 6-month period ending 30 June 2015 31 December 2015 Expected payment September 2015 March 2016 Hedge rate (S$/JPY) 85.6 87.0 Hedge instrument Forward contract Forward contract 7
Slide 8: FY2015 Overview
FY2015 Overview Y-o-Y revenue and net property income decreased by 1.4% and 1.9% in FY2015, due mainly to property divestments and decrease in occupancy rates Property operations remained stable Average occupancy rate in FY2015 was 90.6% (FY2014: 91.0%) Overall rental reversion of new contracts ente
Slide 9: FY2015 Overview
FY2015 Overview 2 property were divested Sun Port 6 and High Grace II were divested at premiums of 12.8% and 16.0% respectively over valuation Debt profile was strengthened with 3 loans 3 loans, amounting to an aggregate of JPY 1,450 million, were secured in FY2015 from the Hiroshimashi Credit Co-op
Slide 10: Divestments since 2014
Divestments since 2014 Saumur Meinohama II Sun Port 6 60.0 168.0 Valuation Sold at 12.8% Sold at above (JPY'mln) 19.0% above valuation valuation 149 Sale price * 50.4 (JPY'mln) May 2014 Jul 2014 High Grace II Niken Chaya Grand Heights ** * sale price includes 460.0 consumption tax 366.45 ** a condit
Slide 11: FY2015 Overview
FY2015 Overview The weakening of the JPY against the S$ has weighed on Saizen REIT’s net asset value and income in S$-terms As Saizen REIT’s distributable income from operations is generated in JPY, its S$- denominated distributions are dependent on the JPY-S$ cross rates The Management Team may, wh
Slide 12: Financial Performance
Financial Performance 4,500 4,269 4,133 Gross revenue (JPY'mln) 3,868 3,824 3,954 3,900 4,000 3,578 3,485 3,500 Net property income 3,000 2,914 2,782 (JPY'mln) 2,657 2,727 2,674 2,487 2,536 2,339 2,500 Distributable income 2,000 1,697 generated during the 1,390 1,460 1,487 year (JPY'mln) 1,500 1,375
Slide 13: Occupancy Rates
80% 85% 90% 95% 100% Jun-08 Sep- 08 Dec-08 M ar -09 Jun-09 since Jun 08 Sep- 09 Dec-09 M ar -10 Jun-10 Sep- 10 Occupancy Rates Dec-10 M ar -11 Jun-11 Sep- 11 Dec-11 M ar -12 Jun-12 Sep- 12 Dec-12 M ar -13 Jun-13 Sep- 13 Dec-13 M ar -14 Jun-14 Sep- 14 Dec-14 M ar -15 Jun-15 Average occupancy rates re
Slide 14: Stable Rental Rates
Stable Rental Rates Average rental rates maintained above JPY 1,500 / sqm (approx. S$17 / sqm) since Jun 08 2,000 Average rental rates of residential units (JPY / sqm) 1,500 1,000 500 0 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Ju
Slide 15: Debt Profile of TK Operators
Debt Profile of TK Operators Prevailing Loan Property Annual loan TK operator Source of Debt Maturity Guarantor Loan-to- Interest Amount Value amortisation Date Fee (%) value (%) Rate (%) (JPY’mln) (JPY’mln) (JPY’mln) GK Choan Unencumbered 750.0 YK Shinzan Bank of Fukuoka Mar 2020 2.223 0.175 1,700.
Slide 16: Debt Profile of TK Operators
Debt Profile of TK Operators All loans are: non-recourse to Saizen REIT not cross-collateralised long-term in nature (7 to 30-year loans) secured only by specific properties of the TK operator(s) Interest rates for 87% of loans outstanding are fixed 16
Slide 17: Debt Profile of TK Operators
Debt Profile of TK Operators 6.00% 12 5.00% 10 4.00% 8 WA loan interest rate 3.00% 6 2.00% 4 Loan duration (years) 1.00% 2 0.00% 0 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 After FY2023 FY2023 Nearest loan maturity is in FY2022 Ma
Slide 18: Upcoming Plans
Upcoming Plans Evaluation Committee Comprise solely the independent non-executive directors of the Manager Lead the assessment and evaluation of proposals, including those that may involve, among others, material corporate actions involving Saizen REIT’s portfolio and/or unitholding structure Distri
Slide 19: Upcoming Plans of Saizen REIT
Upcoming Plans of Saizen REIT Capital management Seek opportunities to expand and further diversify banking relationships in Japan and Singapore Headroom to increase gearing level from 35% currently to between 40% and 45% Ability to operate under higher gearing is supported by stable rental cashflow
Slide 20: Property Valuations
Property Valuations 50,000 Total valuation (JPY'mln) 49,062 Valuation of consistent portfolio of 125 43,774 properties (JPY'mln) 45,000 42,734 43,093 39,932 40,382 41,178 40,000 42,056 36,443 35,000 35,715 32,995 35,134 35,335 33,782 34,017 33,309 32,431 32,669 30,000 25,000 Jun-08 Jun-09 Jun-10 Jun
Slide 21: Key Financial Information
Key Financial Information Number of Units in issue as at 19 August 2015 283,611,720 NAV attributable to Unitholders as at 30 June 2015 1 S$324 million NAV per Unit as at 30 June 2015 1 S$1.14 Market capitalisation as at 30 June 2015 2 S$245 million 4Q FY2015 interest cover ratio 6.0 times Gearing 3
Slide 22: Thank You
SaizenREIT )¢ Thank You 22
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