2002 FULL YEAR RESULTS PRESENTATION 15 JANUARY 2003
This Presentation is focused on comparing actual results versus forecasts stated in the CMT Offering Circular (28 June, 2002). This shall be read in conjunction with paragraph 9 of CMT 2002 Full Year Financial Statement Masnet announcement. This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events.
Highlights
� � � CMT “E xceeds Performance” IPO vs. Actual Forecast Distribution per unit 3.38c 3.12c 8.4% S$25 mil S$23 mil 8.4% Distributable Income 7.66% 7.06% 8.4% Annualised Distribution Yield (Based on issue price S$0.96)
� � � � � Strong renewals drive result Net Property Income vs IPO Forecast 5.2% Rental rates for expiring leases: (1 May – 31 Dec 2002) • Achieved vs preceding rents 20.9% • Achieved vs IPO Forecast 9.1% CMT portfolio committed occupancy rate 99.7% (@ 31 Dec 2002) Property Valuation S$935 mil S$895 mil (IPO) Revaluation surplus S$15.9 mil
CMT continues to outperform the market % Price Change 12 8 4 CMT 0 IPO/ 30-Jul 14-Aug 28-Aug 11-Sep 25-Sep 9-Oct 23-Oct 7-Nov 21-Nov 5-Dec 20-Dec 7-Jan 16 Jul -4 STI -8 -12 -16 Based on 14 Jan 03 Closing Prices: -20 CMT + 8.33% -24 STI - 11.63% SESPROP SESPROP - 20.71% -28 Source: Bloomberg Note: STI = ST Index, SESPROP = S’pore Property Equities Index
CMT’s yield stands out as an attractive safe haven 9 8 7 6 494 bps % yield per annum 5 4 8.00 7.66 7.07 3 5.74 2 3.44 2.99 2.72 2.50 1 1.32 0.45 0 A-REIT $0.96 $1.04 DBS 6% STI Avg SESPROP S'pore CPF S$ 12-Mth S$ Savings Forecast Pref Shares Gross Avg Gross Govt Ordinary FD Deposit CMT 2002 Annulaised Dividend Dividend 10-Yr Account Forecast Yield Yield Yield Bonds Annulaised ($0.88) Yield
Financial Results
� � � � � � Distribution statement AS AT 31 DEC 2002 Actual IPO Forecast Variance S$’000 S$’000 Gross revenue 88,390 85,777 3.0% Less property expenses 24,014 24,598 (2.4%) Total net property income 64,376 61,179 5.2% Other Income 66 308 (78.5%) Net interest expenses (6,887) (6,946) (0.9%) Administrative expenses (6,098) (6,035) (1.0%) Net income before tax 51,457 48,505 6.1% (56.5%) Tax and other adjustments 538 1,238 Distributable income 51,457 49,743 4.5% Pre-IPO distribution (27,025) (26,705) 1.2% Net distributable income 24,970 23,038 8.4% to post-IPO unitholders * Distribution per unit 3.38c 3.12c 8.4% Management Expense Ratio (%) 0.62% 0.63% (1.6%) * 16 Jul 2002 to 31 Dec 2002
Net property income Net property income 2002 FULL-YEAR 64.4 CMT Portfolio 5.2% 61.2 31.5 Tampines Mall 4.3% 30.2 19.9 Junction 8 6.8% 18.6 13.0 Funan The IT Mall 5.1% 12.4 0 10 20 30 40 50 60 70 80 S$’m Actual IPO Forecast
Gross revenue Gross revenue 2002 FULL-YEAR 88.4 CMT Portfolio 3.0% 85.7 41.4 Tampines Mall 2.7% 40.3 26.9 Junction 8 3.8% 25.9 20.1 Funan The IT Mall 2.7% 19.5 0 10 20 30 40 50 60 70 80 90 100 S$’m Actual IPO Forecast
Property expenses Property expenses 2002 FULL-YEAR 24.0 -2.4% CMT Portfolio 24.6 9.9 -2.1% Tampines Mall 10.1 7.1 -3.7% Junction 8 7.3 -1.4% 7.1 Funan The IT Mall 7.2 0 5 10 15 20 25 30 S$’m Actual IPO Forecast
Interest expense Interest expense 2002 FULL-YEAR Actual 6.89 -0.9% IPO Forecast 6.95 0 1 2 3 4 5 6 7 8 S$’m Interest cover 8x Gearing* 20.2% Debt rated “ AAA” *As % of total deposited properties
Balance sheet Balance sheet AS AT 31 DEC 2002 S$’000 Investment Properties 935,080 Net Asset Value Per Unit (at listing) S$0.973 Current Assets 55,142 Net Asset Value Per Unit (31 Dec 02) S$1.030 Total Assets 990,222 Current price as at 14 Jan 03 S$1.040 Current Liabilities 19,550 Premium to NAV 1% Non Current Liabilities 209,452 Less Total Liabilities 229,002 Net Assets 761,220 Unitholders’ Funds 761,220 Units In Issue 738,561
Net Asset Value per unit Net Asset Value per unit At IPO S$ 0.973 Revaluation surplus S$ 0.022 NAV per unit (before distributable income) S$ 0.995 Distributable income S$ 0.034 NAV per unit as at 31 Dec 2002 S$ 1.029
Portfolio Update
Asset valuations Asset valuations Inc. over 1 Oct 2001 1 1 Jun 2002 1 Dec 2002 (S$ mil) 1 Oct 2001 Tampines Mall 409 438 441 7.8% Junction 8 295 301 303 2.7% Funan The IT Mall 191 191 191 - Portfolio 895 930 935 4.5% 1 Adopted for CMT IPO. � � Revaluation surplus of S$15.9 mil � � Increase NAV per unit by S$0.02
Summary of renewals Summary of renewals 1 MAY TO 31 DEC 2002 Increase over Area Prospectus Preceding % of total No. of (%) Rent (%) (sq ft.) NLA Leases Tampines Mall 16 10,154 14.9% 45.7% 3.2% Junction 8 59 103,841 41.8% 9.0% 20.3% Funan The IT Mall 31 49,359 6.9% 12.8% 19.7% Portfolio 106 163,354 9.1% 20.9% 20.1%
Gross turnover 1 1 Gross turnover 2002 FULL-YEAR CMT Portfolio 1,582 20% 1,323 1,313 Tampines Mall 15% 1,140 260 Junction 8 42% 183 8 Funan The IT Mall 0 500 1,000 1,500 2,000 S$’000 1. On an accrual basis Actual IPO Forecast
Gross turnover & lease step- Gross turnover & lease step -ups ups Tenants with 247 Lease 42% 174 Step-Ups 182 Tenants 42% Paying GTO 123 0 50 100 150 200 250 300 No. of tenants % of total Sep 02 Apr 02 portfolio tenants Lease step-ups 58.3 GTO 42.9
Portfolio lease expiry profile Portfolio lease expiry profile AS AT 31 DEC 2002 Net Lettable Area Gross Rental Income No. of % of total (S$) % of total (sq ft.) Leases 2003 163 208,150 25.6 1,607,427 23.6 2004 120 172,511 21.2 1,764,677 25.9 2005 127 257,059 31.6 2,256,693 33.2 2006 21 34,363 4.2 505,194 7.4 Total/Average 431 672,083 20.7 6,133,991 22.5
2003 Portfolio lease expiry profile 2003 Portfolio lease expiry profile AS AT 31 DEC 2002 Net Lettable Area Gross Rental Income No. of % of total (S$) % of total (sq ft.) Leases Tampines Mall 13 10,699 1.3 194,798 2.9 Junction 8 36 90,980 11.2 650,180 9.6 Funan The IT Mall 114 106,471 13.1 762,449 11.2 Total 163 208,150 25.6 1,607,427 23.6 � � 88.9% of gross rental income for 2003 has been locked in by committed leases
Accelerated enhancement plans to meet demand Accelerated enhancement plans to meet demand NLA No. of Cap Ex Start Completion Marketing Property (sq ft) retail units (S$M) Date Date Update Tampines Mall 8,007 7 5.9 Mar 03 Nov 03 • Received overwhelming rental proposals • Expect to exceed rental forecasts Junction 8 Phase 1 11,685 13 shops & Jul 03 Dec 03 • Commenced marketing 10 kiosks (Basement) • Confident of securing at 27.0 least 50% of new space Phase 2 30,700 L1 – 8 shops Jan 04 Dec 04 before works commence L2 – 26 shops (Level 1&2)
� Other income generating initiatives Other income generating initiatives • The manager has identified other income generating initiatives: • Create more kiosks at all CMT properties • “Carve up” certain anchor spaces in Junction 8 to accommodate smaller specialty tenants and improve mix Rental income expected to increase 35% from this space
Well positioned for 2003 Well positioned for 2003 • CMT is well positioned for 2003 • 2003 objectives: - maintain existing occupancy rates, - control costs, - execute asset enhancement initiatives, and - achieve targeted returns. • Confident of delivering the 2003 forecasted distribution of 6.96 cents per unit, barring unforeseen circumstances
Thank You
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