Altus Holdings Limited · HKEX:8149

Altus — Saizen Real Estate Investment Trust — 1Q FY2015 Earnings Presentation

17 slides from Altus's earnings presentation, November 2014

  1. Slide 1: Presentation

    Presentation November 2014 www.saizenreit.com.sg

  2. 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

  3. 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 41.9 billion (S$488 million1) Saizen REIT has a corporate family rating of Ba3, with a stable outlook (rated b

  4. Slide 4: Well-diversified Portfolio

    Well-diversified Portfolio Portfolio Total number of properties: 137 Region City distribution by revenue (%) Kumamoto 16.9 Kitakyushu 10.4 Fukuoka 5.9 Kyushu Kagoshima 3.4 Oita 0.9 37.5 Sapporo 24.3 Hokkaido Hakodate 0.7 25.0 Sendai 10.9 Koriyama 2.7 Tohoku Morioka 1.5 15.1 Hiroshima 14.4 Chugoku Ku

  5. Slide 5: Hedging of Distribution Payments

    Hedging of Distribution Payments Distributions have been hedged as follows: Distribution period 6-month period ending 6-month period ending 31 December 2014 30 June 2015 Expected payment March 2015 September 2015 Hedge rate (S$/JPY) 81.9 85.6 Hedge instrument Forward contract Forward contract 5

  6. Slide 6: 1Q FY2015 Overview

    1Q FY2015 Overview Leverage enhanced 30-year loan of JPY 450.0 million from the Hiroshimashi Credit Cooperative was secured in July 2014 at a loan-to-value ratio of 67% 22-year loan of JPY 740.0 million from the Kitakyushu Bank Ltd was secured in August 2014 at a loan-to-value ratio of 53% Revenue a

  7. Slide 7: 1Q FY2015 Overview

    1Q FY2015 Overview Property operations remained stable Average occupancy rate in 1Q FY2015 was 90.1% (1Q FY2014 and 4Q FY2014: 91.2% and 91.0% respectively) Properties in Kumamoto had been facing competition from new buildings. Occupancy rates have since showed improvements following the end of the

  8. Slide 8: Proportion of rental reversions

    1Q FY2015 Overview Rental reversions (residential units) in Jul - Sep 2014 100% Proportion of rental reversions 26% 80% 67% 60% Rent decrease 45% Same rent 40% Rent increase 18% 20% 29% 15% 0% 2008 and before 2009 onwards In cases where the previous rental contract was entered from 2009 onwards, the

  9. Slide 9: FY2014 Overview

    FY2014 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

  10. Slide 10: Occupancy Rates

    80% 85% 90% 95% 100% Jun-08 Sep -08 Jun 08 Dec-08 Mar-09 Jun-09 Sep -09 Dec-09 Mar-10 Jun-10 Occupancy Rates 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 Mar-14 Jun-14 Average occupancy rates remained stable above 90% since Sep -14 10

  11. Slide 11: Stable Rental Rates

    Stable Rental Rates Average rental rates maintained above JPY 1,500 / sqm (approx. S$19 / sqm) since Jun 08 2,000 Average rental rates of residential units (JPY / sqm) 1,500 1,000 500 0 Sep-08 Dec-08 Mar-09 Sep-09 Dec-09 Mar-10 Sep-10 Dec-10 Mar-11 Sep-11 Dec-11 Mar-12 Sep-12 Dec-12 Mar-13 Sep-13 De

  12. Slide 12: 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 721.0 YK Shinzan Bank of Fukuoka Mar 2020 2.223 0.175 1,750.

  13. Slide 13: 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 89% of loans outstanding are fixed 13

  14. Slide 14: Debt Profile of TK Operators

    Debt Profile of TK Operators 6.00% 12 5.00% 10 4.00% 8 WA loan interest 3.00% 6 rate 2.00% 4 Loan duration 1.00% 2 (years) 0.00% 0 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 After FY2023 FY2023 Nearest loan maturity is in FY2022 March 2020 FY202

  15. Slide 15: Upcoming plans

    Upcoming plans Continued implementation of capital management and portfolio expansion Headroom to increase gearing level from 38% currently to between 40% and 45% Several S-REITs have increased their gearing in recent times to close to or above 40%, and Management believes that this is indicative of

  16. Slide 16: Key Financial Information

    Key Financial Information Number of Units in issue as at 10 November 2014 283,611,720 NAV attributable to Unitholders as at 30 September 2014 1 S$324 million NAV per Unit as at 30 September 2014 1 S$1.14 Market capitalisation as at 30 September 2014 2 S$254 million 1Q FY2015 interest cover ratio 6.0

  17. Slide 17: Thank You

    SaizenREIT )¢ Thank You 17

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