CapitaLand Retail China Trust Financial Results for 1Q 2019 24 April 2019 0 Financial Results for 1Q 2019 *24 April 2019*
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 2019 *24 April 2019*
Contents 1Q 2019 Key Highlights ▪ Financial Highlights ▪ Capital Management ▪ CapitaMall Wangjing, Beijing Portfolio Update ▪ Proactive Asset Management ▪ Outlook ▪ Appendix ▪ CapitaMall Grand Canyon, Beijing 2 Financial Results for 1Q 2019 *24 April 2019*
1Q 2019 Key Highlights – Performance Led by Organic Growth Gross Revenue Net Property Income 1 In RMB terms In RMB terms RMB279.6 RMB198.9 million million 4.5% y-o-y 10.7% y-o-y 0.5% q-o-q 9.8% q-o-q Distributable amount to Distributable income Income Available for Unitholders 3 contribution from Joint Venture 2 Distribution to Unitholders S$ million S$ million S cents S$2.6 S$24.9 S$25.9 million million million 115.9% y-o-y 4.9% y-o-y 3.1% y-o-y 3.9% q-o-q 8.2% q-o-q 9.0% q-o-q Notes: 1. Operating lease rental expenses associated with the lease contracts in CapitaMall Qibao and CapitaMall Minzhongleyuan have been replaced with net changes in fair value of investment properties and interest expense on lease liabilities under FRS 116 Leases with effect from 1 Jan 2019. 2. This relates to 51% interest in Rock Square for 1Q 2019. 3. Includes capital distribution from gain of disposal of CapitaMall Anzhen of $1 million and $3 million in 1Q 2019 and 1Q 2018 respectively. 3 Financial Results for 1Q 2019 *24 April 2019*
1Q 2019 Key Highlights – Performance Led by Organic Growth Distribution Per Unit Before Distribution Per Unit After 97.4% Capital Distribution Capital Distribution Portfolio Occupancy S cents S cents As at 31 March 2019 3 2.49 2.59 cents cents +9.8% y-o-y 2.0% y-o-y 5.8% y-o-y Tenants’ Sales 4,5 6.4% q-o-q 7.0% q-o-q Distribution Per Unit After Capital Distribution Yield% 2 Distribution (annualised) +14.0% y-o-y S cents Shopper Traffic 4 10.50 6.7% cents +9.5% Rental Reversion 6 2.7% vs 10.22 cents 1 Notes: 1. FY 2018 actual DPU. 2. Based on YTD 2019 annualised distribution per unit of 10.50¢ and the unit closing price of S$1.57 on 29 Mar 2019. 3. Based on all committed leases. 4. Excludes master-leased malls and CapitaMall Wuhu. 5. Excluded Tenants’ sales from Supermarkets and Department Store. 6. Refer to slide 15 for more information. 4 Financial Results for 1Q 2019 *24 April 2019*
Financial Highlights 5 Rock Square, Guangzhou Financial Results for 1Q 2019 *24 April 2019*
1Q 2019 Net Property Income Grew 10.7% Y-o-Y and 9.8% Q-o-Q 1Q 2019 1Q 2018 Y-o-Y 4Q 2018 Q-o-Q Actual Actual Change Actual Change Gross Revenue (RMB’000) 279,577 267,448 4.5% 281,033 (0.5) % NPI (RMB’000) 1 198,874 179,617 10.7% 181,070 9.8% NPI (S$’000) 1 39,803 37,184 7.0% 35,878 10.9% Distributable Income from joint 2 2,623 1,215 115.9% 2,524 3.9% venture (S$’000) Income Available for Distribution 24,866 23,699 4.9% 22,984 8.2% to Unitholders (S$’000) Capital Distribution (S$’000) 3 1,000 3,000 (66.7) % 750 33.3% Distributable Income (S$’000) 25,866 26,699 (3.1) % 23,734 9.0% DPU (Singapore cents) 4 2.59 2.75 (5.8) % 2.42 7.0% Annualised Distribution Yield 6.7% (Based on unit price of S$1.57 on 29 Mar 2019) Annualised Distribution Yield 7.0% (Based on unit price of S$1.51 on 24 Apr 2019) Notes: 1. Operating lease rental expenses associated with the lease contracts in CapitaMall Qibao and CapitaMall Minzhongleyuan have been replaced with net changes in fair value of investment properties and interest expense on lease liabilities under FRS 116 Leases with effect from 1 Jan 2019. 2. This relates to 51% interest in Rock Square from 1 Feb 2018 to 31 Mar 2018. 3. This relates to the partial distribution of gains from the disposal of CapitaMall Anzhen. 4. 1Q 2019 DPU was based on 998.5 million Units. 1Q 2018 DPU and 4Q 2018 DPU were based on 969.9 million Units and 980.5 million Units respectively. 6 Financial Results for 1Q 2019 *24 April 2019*
Healthy Balance Sheet As at 31 Mar 2019 S$’000 Non-current assets 2,651,436 Units In Issue (‘000 units) 998,517 Current assets 460,015 Net Asset Value (NAV) 1.59 per unit Total Assets 3,111,451 Current liabilities 196,806 Adjusted NAV per unit 1.57 (net of distribution) Non-current liabilities 1,304,642 Total liabilities 1,501,448 Net Assets 1,610,003 Represented by: Unitholders' Funds 1,589,567 Non-controlling Interest 20,436 Total Equity 1,610,003 7 Financial Results for 1Q 2019 *24 April 2019*
Attractive Yield Vs Comparative Investment Instruments 1 CRCT 6.7% 2 2.1% FSTREI Yield 4.6% 3 2.6% FSTRE Yield 4.1% 4 2.4% FSSTI Yield 4.2% 5 3.6% China 10-year Govt Bond Yield 3.1% 5 4.6% Singapore 10-year Govt Bond Yield 2.1% 6 4.2% CPF Ordinary Account 2.5% 0.6% 7 6.1% 12-month Fixed (S$) Deposit Notes: 1. Based on YTD 2019 annualised distribution per unit of 10.50¢ and the unit closing price of S$1.57 on 29 Mar 2019. 2. Average 12-month gross dividend yield of Straits Times REIT Index as at 29 Mar 2019. 3. Average 12-month gross dividend yield of Straits Times Real Estate Index as at 29 Mar 2019. 4. Average 12-month gross dividend yield of Straits Times Index stocks as at 29 Mar 2019. 5. Singapore Government 10-year and China Government 10-year bond yields as at 29 Mar 2019. 6. Prevailing CPF-Ordinary Account savings rate. 7. Average 12-month S$ fixed deposit savings rate as at Mar 2019. Sources: Bloomberg, CRCTML, Central Provident Fund (CPF) Board, Monetary Authority of Singapore. 8 Financial Results for 1Q 2019 *24 April 2019*
Capital Management 9 CapitaMall Grand Canyon, Beijing Financial Results for 1Q 2019 *24 April 2019*
Key Financial Indicators 1 as at 31 March 2019 35.5% 2 2.96% 3 Gearing Average Cost of Debt 31 Dec 2018: 35.4% 31 Dec 2018: 2.73% 100.0% 4 3.12 years Unencumbered Assets Average Term to Maturity as % of Total Assets 31 Dec 2018: 3.47 years 31 Dec 2018: 100.0% 5.0x 6.9x Interest Coverage Net Debt / EBITDA 31 Dec 2018: 5.3x 31 Dec 2018: 7.2x Notes: 1. All key financial indicators exclude the effect of FRS 116 Leases which was effective from 1 Jan 2019. 2. Based on total borrowings over the deposited properties in accordance to Property Funds Appendix (includes CRCT’s proportionate share of its Joint Venture’s borrowing and deposited property). 3. Ratio of the consolidated YTD 2019 interest expense reflected over weighted average borrowings on balance sheet. 4. Excludes CRCT’s proportionate share of its Joint Venture assets. 10 10 Financial Results for 1Q 2019 *24 April 2019*
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