Fourth Quarter FY 2017/18 Financial Results 27 July 2018 Singapore Australia Malaysia China Japan 1
Key highlights FY 2017/18 DPU amount to 4.55 cents – Revenue and NPI for FY17/18 eased 3.5% y-o-y and 2.8% y-o-y respectively – SGREIT benefited from David Jones’ lease rent review and lower operating expenses for China Property. Malaysia NPI was higher on the back of Malaysian ringgit strength – These were offset mainly by weaker contributions from the office portfolio and Myer Centre Adelaide (Retail), as well as disruption in income resulting from Plaza Arcade’s asset redevelopment – Excluding the one-off rental compensation for a retail lease at Wisma Atria Property recorded last year, revenue and NPI would have decreased by 2.6% y-o-y and 1.7% y-o-y respectively – Income available for distribution for FY17/18 declined 6.6% y-o-y mainly due to lower NPI including the effects of straight-lining rent adjustments and higher withholding taxes in Malaysia 4Q FY17/18 DPU at 1.09 cents – Revenue and NPI for 4Q FY17/18 decreased by 3.9% y-o-y and 3.3% y-o-y respectively. The lower NPI was primarily due to weaker contribution from the office portfolio and Myer Centre Adelaide (Retail), partially offset by higher NPI for Plaza Arcade and the appreciation of the Malaysian ringgit – DPU for 4Q FY17/18 declined 7.6% y-o-y but remained stable against 3Q FY17/18 – Annualised 4Q FY17/18 yield of 6.78% based on closing unit price of S$0.645 as at 30 June 2018 3
Key highlights Property highlights – Singapore office portfolio continues to show signs of recovery as committed occupancy leapt to 95.0% 1 as at 30 June 2018, an improvement from 90.7% 1 as at 31 March 2018 – Hospitality-inspired co-working space The Great Room commenced its operations in June 2018 at Ngee Ann City Property, taking up approximately 15,000 sq ft of office space – Plaza Arcade in Perth completed its asset redevelopment, with anchor tenant UNIQLO expected to open its doors by the third quarter of 2018 – Portfolio valuation remained stable (-0.6%) Maintains strong financial position – Stable gearing at 35.5% as at 30 June 2018 – Hedged about 96% of its borrowings as at 30 June 2018, following the purchase of new interest rate swaps which replace those maturing in 2018 largely for the S$460 million four-year and five- year term loans drawn in September 2017 – Secured commitment to early refinance A$63 million secured loan with the same bank ahead of its maturity in June 2019, thereby extending the average debt maturity from 3.5 years as at 30 June 2018 to approximately 3.8 years post refinancing. Following this, there is no refinancing requirement until September 2019 Note: 1. Includes leases that have been contracted but have not commenced as at the reporting date. 4
4Q FY17/18 financial highlights 3 months ended 3 months ended Period: 1 Apr – 30 Jun 30 Jun 2018 30 Jun 2017 % Change (4Q FY17/18) (4Q FY16/17) $51.6 mil $53.7 mil (3.9%) Gross Revenue $40.0 mil $41.4 mil (3.3%) Net Property Income $25.3 mil $26.4 mil (3.9%) Income Available for Distribution $23.8 mil (1) Income to be Distributed to Unitholders $25.7 mil (7.6%) 1.09 cents (2) DPU 1.18 cents (7.6%) Notes: 1. Approximately $1.6 million of income available for distribution for 4Q FY17/18 has been retained for working capital requirements. 2. The computation of DPU for 4Q FY17/18 is based on the number of units in issue as at 30 June 2018 of 2,181,204,435 (4Q FY16/17: 2,181,204,435) units. 5
FY17/18 financial highlights 12 months ended 12 months ended Period: 1 Jul – 30 Jun 30 Jun 2018 30 Jun 2017 % Change (FY17/18) (FY16/17) $208.8 mil $216.4 mil (3.5%) Gross Revenue Net Property Income $162.2 mil $166.9 mil (2.8%) Income Available for Distribution $103.1 mil $110.4 mil (6.6%) $99.2 mil (1) Income to be Distributed to Unitholders $107.3 mil (7.5%) 4.55 cents (2) DPU 4.92 cents (7.5%) Notes: 1. Approximately $3.9 million of income available for distribution for FY17/18 has been retained for working capital requirements. 2. The computation of DPU for FY17/18 is based on the number of units in issue as at 30 June 2018 of 2,181,204,435 (FY16/17: 2,181,204,435) units. 6
DPU performance Cents FY 2014/15 (18 months) (3) 8.00 7.60 2.49 7.00 6.00 FY 2016/17 4.92 4Q FY 2017/18 5.00 1.18 4.55 3Q 2Q 4.00 1.09 1Q 1.18 5.11 3.00 5.18 1.09 5.00 4.39 4.12 3.90 3.80 2.00 3.58 1.26 1.17 3.10 2.90 1.00 1.30 1.20 - FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014/15 FY2015/16 FY2016/17 FY2017/18 Notes: 1. DPU from 1Q 2006 to 2Q 2009 have been restated to include the 963,724,106 rights units issued in August 2009. 2. For the period from FY 2006 to FY 2017/18. DPU for FY 2014/15 (18 months ended 30 June 2015) has been annualised for the purpose of computing CAGR. 3. Following the change of Starhill Global REIT’s financial year end from 31 December to 30 June, FY 2014/15 refers to the 18-month period from 1 January 2014 to 30 June 2015. 7
4Q FY17/18 financial results $’000 4Q FY17/18 4Q FY16/17 % Change Gross Revenue 51,635 53,712 (3.9%) Notes: 1. Being accretion of tenancy Less: Property Expenses (11,587) (12,314) (5.9%) deposit stated at amortised cost in accordance with Net Property Income 40,048 41,398 (3.3%) Financial Reporting Standard 39. This financial Less: Fair Value Adjustment (1) (68) 252 NM adjustment has no impact on the DPU. Borrowing Costs (9,273) (9,549) (2.9%) Finance Income 221 254 (13.0%) 2. Includes certain finance costs, sinking fund Management Fees (3,999) (4,010) (0.3%) provisions, straight-line rent adjustment, fair value Trust Expenses (971) (897) 8.2% adjustment, trustee fees, commitment fees, deferred Income Tax (203) (803) (74.7%) income tax, change in fair Change in Fair Value of Derivative Instruments 571 (418) NM value of derivative instruments and investment Change in Fair Value of Investment Properties (22,669) (3,415) 563.8% properties, foreign exchange differences and Gain on Divestment of Investment Property 1,147 770 49.0% reversal of gross profit from Foreign Exchange Gain 32 820 (96.1%) Japan divestment. Net Income After Tax 4,836 24,402 (80.2%) Add: Non-Tax Deductible/(Chargeable) items (2) 20,513 1,988 931.8% Income Available for Distribution 25,349 26,390 (3.9%) Income to be Distributed to Unitholders 23,775 25,738 (7.6%) DPU (cents) 1.09 1.18 (7.6%) 8
FY17/18 financial results $’000 FY17/18 FY16/17 % Change Gross Revenue 208,814 216,364 (3.5%) Notes: Less: Property Expenses (46,627) (49,476) (5.8%) 1. Being accretion of tenancy deposit stated at amortised Net Property Income 162,187 166,888 (2.8%) cost in accordance with Financial Reporting Less: Fair Value Adjustment (1) (330) (20) NM Standard 39. This financial adjustment has no impact Borrowing Costs (38,259) (38,930) (1.7%) on the DPU. Finance Income 900 1,089 (17.4%) 2. Includes certain finance costs, sinking fund Management Fees (16,094) (16,192) (0.6%) provisions, straight-line rent Trust Expenses (3,793) (3,542) 7.1% adjustment, fair value adjustment, trustee fees, Income Tax (3,446) 1,268 NM commitment fees, deferred income tax, change in fair Change in Fair Value of Derivative Instruments 4,467 1,425 213.5% value of derivative Change in Fair Value of Investment Properties (22,669) (16,321) 38.9% instruments and investment properties, foreign Gain on Divestment of Investment Property 1,147 770 49.0% exchange differences and reversal of gross profit from Foreign Exchange Gain 134 3,819 (96.5%) Japan divestment. Net Income After Tax 84,244 100,254 (16.0%) Add: Non-Tax Deductible/(Chargeable) items (2) 18,892 10,191 85.4% Income Available for Distribution 103,136 110,445 (6.6%) Income to be Distributed to Unitholders 99,244 107,315 (7.5%) DPU (cents) 4.55 4.92 (7.5%) 9
4Q FY17/18 financial results Revenue Net Property Income $’000 4Q FY17/18 4Q FY16/17 % Change $’000 4Q FY17/18 4Q FY16/17 % Change Wisma Atria Wisma Atria 13,363 13,880 (3.7%) 10,510 10,608 (0.9%) Retail Retail Office (1) 2,562 2,699 (5.1%) Office (1) 1,809 1,967 (8.0%) Ngee Ann City Ngee Ann City Retail 12,685 12,685 0.0% Retail 10,429 10,484 (0.5%) Office (1) 3,522 3,727 (5.5%) Office (1) 2,767 2,983 (7.2%) Singapore 32,132 32,991 (2.6%) Singapore 25,515 26,042 (2.0%) Australia (2) 11,219 12,452 (9.9%) Australia (2) 6,813 7,867 (13.4%) Malaysia (3) 7,115 6,790 4.8% Malaysia (3) 6,875 6,571 4.6% Others (4) (5) 1,169 1,479 (21.0%) Others (4) (5) 845 918 (8.0%) Total 51,635 53,712 (3.9%) Total 40,048 41,398 (3.3%) Notes: 1. Mainly due to lower average occupancies. 2. Mainly due to lower revenue at Myer Centre Adelaide largely due to office vacancies and allowance for rent rebates, as well as depreciation of AUD. 3. Mainly due to appreciation of RM. 4. Others comprise one property in Chengdu, China and two properties in Tokyo, Japan as at 30 June 2018. 5. Mainly due to lower revenue, partially offset by lower operating expenses for China Property, following the conversion of the departmental store model to a single tenancy model. 10
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