CapitaLand Retail China Trust Financial Results for 1Q 2018 26 April 2018 0 Financial Results for 1Q 2018 *26 April 2018*
Disclaimer This presentation may contain forward-looking statements that involve assumptions, 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 developments or companies, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses (including employee wages, benefits and training costs), 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 the current view of management on future events. The information contained in this presentation has not been independently verified. No representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither CapitaLand Retail China Trust Management Limited (the “Manager”) or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection with this presentation. The past performance of CapitaLand Retail China Trust (“CRCT”) is not indicative of the future performance of CRCT. Similarly, the past performance of the Manager is not indicative of the future performance of the Manager. The value of units in CRCT (“Units”) and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in Units is subject to investment risks, including the possible loss of the principal amount invested. Investors should note that they will have no right to request that the Manager redeem or purchase their Units for as long as the Units are listed on the Singapore Exchange Securities Trading Limited (“SGX - ST”) . It is intended that holders of Units (Unitholders) may only deal in their Units through trading on the SGX-ST. Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for Units. 1 Financial Results for 1Q 2018 *26 April 2018*
Contents 1Q 2018 Key Highlights ▪ Financial Highlights ▪ Capital Management ▪ Portfolio Update ▪ CapitaMall Wangjing, Beijing Proactive Asset Management ▪ Outlook ▪ Appendix ▪ CapitaMall Qibao, Shanghai 2 Financial Results for 1Q 2018 *26 April 2018*
1Q 2018 Key Highlights +12.8% Gross Revenue 1 Net Property Income 1 Rental Reversion 4 In RMB terms In RMB terms RMB267.4 RMB179.6 94.9% million million Portfolio Occupancy 7.8% y-o-y 8.1% y-o-y As at 31 March 2018 +2.1% y-o-y Distribution Per Unit 3 Distributable Income 2 Tenants’ Sales (S$ million) (S cents) S$26.7 2.75 million +7.7% y-o-y cents Shopper Traffic 9.6% y-o-y 0.4% y-o-y Notes: 1. The financial results exclude CapitaMall Anzhen which was divested with effect from 1 July 2017. 2. Includes distributable income contribution from 51% interest in Rock Square which is accounted for as a joint venture. 3. 1Q 2018 DPU was based on 969.9 million Units and 1Q 2017 DPU was based on 888.7 million Units. 4. Based on all committed leases as of 31 March 2018. 3 Financial Results for 1Q 2018 *26 April 2018*
1Q 2018 Key Highlights Rock Square – Quality Growth Driver • Improved occupancy to 97.1% • Encouraging rental reversion rate of >20% • Upgraded manned carpark booths to electronic parking system • Tangible savings in operational costs by leveraging on synergies with Sponsor Proactive Capital Management • No refinancing requirements in 2018 • Early-refinancing of S$400 million loans due 2019 underway • With 80% of total debt on fixed rates, interest rate volatility is mitigated 4 Financial Results for 1Q 2018 *26 April 2018*
Financial Highlights 5 Financial Results for 1Q 2018 *26 April 2018* CapitaMall Xizhimen, Beijing
1Q 2018 Distributable Income Up 9.6% Y-o-Y 1Q 2018 1Q 2017 Change Actual Actual -8.1% 1 Gross Revenue (RMB’000) 267,448 290,865 -7.8% 1 NPI (RMB’000) 179,617 194,896 -7.7% 1 NPI (S$'000) 37,184 40,303 Distributable Income From Joint Venture 2 1,215 - N.M. (S$’000) 26,699 3 Distributable Income (S$’000) 24,355 9.6% DPU (Singapore cents) 4 2.75 3 2.74 0.4% Annualised Distribution Yield 7.1% (Based on unit price of S$1.58 on 29 Mar 2018) Annualised Distribution Yield 7.2% (Based on unit price of S$1.55 on 26 Apr 2018) Notes: 1. Due to the loss of contribution from CapitaMall Anzhen following its divestment with effect from 1 July 2017. 2. This relates to CRCT’s 51% interest in Rock Square from 1 February 2018 to 31 March 2018. 3. Includes capital distribution from a portion of the gain from the disposal of Anzhen SPV. 6 Financial Results for 1Q 2018 *26 April 2018* 4. 1Q 2018 DPU was based on 969.9 million Units and 1Q 2017 DPU was based on 888.7 million Units.
Healthy Balance Sheet As at 31 Mar 2018 S$’000 Investment Properties 2,505,029 Net Assets Attributable To 1,619,041 Unitholders (S$'000) Interest In Joint Venture 265,259 Other Assets 116,292 Financial Derivatives Assets 2,219 Units In Issue (‘000 units) 969,947 Cash & Cash Equivalents 103,317 Net Asset Value (NAV) 1.67 per unit Total Assets 2,992,116 Adjusted NAV per unit Interest-bearing Borrowings 997,535 1.64 (net of distribution) Deferred Tax Liabilities 236,935 Financial Derivatives 835 Liabilities Other Liabilities 117,286 Total Liabilities 1,352,591 Non-controlling Interest 20,484 7 Financial Results for 1Q 2018 *26 April 2018*
Attractive Yield Vs Comparative Investment Instruments 1 CRCT 7.1% 1.8% 2 FSTREI Yield 5.3% 2.9% 3 FSTRE Yield 4.2% 4.0% 4 FSSTI Yield 3.1% 3.3% 5 China 10-year Govt Bond Yield 3.8% 4.8% 5 Singapore 10-year Govt Bond Yield 2.3% 4.6% 6 CPF Ordinary Account 2.5% 0.3% 6.8% 7 12-month Fixed (S$) Deposit Notes: 1. Based on annualised 1Q 2018 distribution per unit of 11.15¢ and the unit closing price of S$1.58 on 29 March 2018. 2. Average 12-month gross dividend yield of Straits Times REIT Index as at 29 March 2018. 3. Average 12-month gross dividend yield of Straits Times Real Estate Index as at 29 March 2018. 4. Average 12-month gross dividend yield of Straits Times Index stocks as at 29 March 2018. 5. Singapore Government 10-year and China Government 10-year bond yields as at 29 March 2018. 6. Prevailing CPF-Ordinary Account savings rate. 7. Average 12-month S$ fixed deposit savings rate as at March 2018. Sources: Bloomberg, CRCTML, Central Provident Fund (CPF) Board, Monetary Authority of Singapore. 8 Financial Results for 1Q 2018 *26 April 2018*
Capital Management 9 Financial Results for 1Q 2018 *26 April 2018* CapitaMall Xinnan, Chengdu, China
Key Financial Indicators as at 31 Mar 2018 32.5% 1 2.51% Gearing Average Cost of Debt 31 Dec 2017: 28.4% 31 Dec 2017: 2.48% 100.0% 2 2.54 years Unencumbered Assets Average Term to Maturity as % of Total Assets 31 Dec 2017: 3.37 years 31 Dec 2017: 100.0% 6.3x 6.7x Interest Coverage Net Debt / EBITDA 31 Dec 2017: 5.8x 31 Dec 2017: 5.5x Notes: 1. Higher gearing due to the additional loan drawn down to fund the acquisition of Rock Square. 2. Negative pledge and non-disposal is allowed, subject to a ratio of the market value of the unencumbered assets and the unsecured borrowings of at least 2:1. 10 Financial Results for 1Q 2018 *26 April 2018*
Well-Spread Debt Maturity Profile Early-Refinancing of Loans Due 2019 Underway Debt Maturity Profile (31 March 2018) S$ million Interest Rate 600 Risk Management Trust - Floating Bridge Term Loan Trust - Unsecured Offshore Term Loan Variable Rate, 20% 400 250 Fixed Rate, 200 80% 1 No refinancing in 2018 200 200 With 80% of total debt on • 150 fixed rates, interest rate 100 100 volatility is mitigated 0 2018 2019 2020 2021 2022 2023 Note: 1. Excludes bridge loan. Total Debt - 400 100 200 100 200 (S$ million) % of -% 40% 10% 20% 10% 20% Outstanding Debt 11 Financial Results for 1Q 2018 *26 April 2018*
Portfolio Update 12 Financial Results for 1Q 2018 *26 April 2018* CapitaMall Grand Canyon, Beijing
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