Third Quarter FY 2019/20 Financial Results 28 April 2020 Singapore Australia Malaysia Japan China
Key highlights Income available for distribution stood at S$24.0 million for 3Q FY19/20 – Income available for distribution for 3Q FY19/20 stood at S$24.0 million, 4.1% lower than 3Q FY18/19 – Group revenue and NPI for 3Q FY19/20 declined by 8.9% and 11.1% y-o-y respectively. Excluding the rental rebate extended to the master tenant during asset enhancement period of Starhill Gallery in Malaysia, revenue and NPI for the Group in 3Q FY19/20 decreased by 5.2% and 6.4% y-o-y respectively – The decline in revenue and NPI for 3Q FY19/20 was mainly attributed to the rental assistance extended to tenants in Singapore, Malaysia and China to assist tenants in cushioning the impact of the COVID-19 pandemic, as well as depreciation of A$ against S$ – As per the Circular to Unitholders dated 25 April 2019, the income disruption resulting from the planned asset enhancement of Starhill Gallery will be largely mitigated by the Manager receiving part of its base management fees in units – Following the change of distribution frequency to semi-annual distributions with effect from 3Q FY19/20, there is no proposed distribution to its Unitholders for the three-month period from 1 January 2020 to 31 March 2020. The next distribution will be for the six-month period from 1 January 2020 to 30 June 2020. SGREIT will also adopt half-yearly reporting of financial statements with effect from FY 20/21 1 . Note: 1. For further details, please refer to the SGX-ST announcement issued on 8 April 2020. 3
Key highlights Property highlights – NPI of Singapore retail portfolio declined 5.3% y-o-y mainly due to the rental assistance extended to eligible tenants to alleviate impact of COVID-19 pandemic – Singapore retail portfolio registered an actual occupancy of 99.5% as at 31 March 2020, with Ngee Ann City Property (Retail) being fully occupied as at 31 March 2020 – Actual occupancy of Australia office portfolio rose to 94.8% as at 31 March 2020, from 94.5% as at 31 December 2019, while actual occupancy of the Australia’s retail portfolio stood at 94.3% as at 31 March 2020 – Our assets in Singapore and Malaysia have encountered movement restriction orders while retail tenants in Australia and China were impacted by stricter social distancing measures and lower tourist arrivals Capital management – Gearing level stood at 36.7% as at 31 March 2020. SGREIT also hedged about 87% of its borrowings and the average debt maturity is approximately 2.7 years as at 31 March 2020 – In March 2020, Fitch Ratings has assigned a “BBB” corporate credit rating with stable outlook to SGREIT, its medium-term notes programmes and the notes drawn under the programmes – SGREIT does not have any debt maturities in the next 12 months, save for S$100 million medium term notes due in February 2021 and some short-term debts drawn under its revolving credit facilities – The Group has available undrawn committed revolving credit facilities which is in excess of maturing debts and can be drawn down to fund its working capital requirement 4
3Q FY19/20 financial highlights 3 months ended 3 months ended Period: 1 Jan – 31 Mar 31 Mar 2020 31 Mar 2019 % Change (3Q FY19/20) (3Q FY18/19) Gross Revenue (1) $46.7 mil $51.3 mil (8.9%) Gross Revenue (excluding Starhill Gallery) (1) $44.5 mil $47.0 mil (5.2%) Net Property Income (1) $35.2 mil $39.6 mil (11.1%) $33.1 mil $35.4 mil (6.4%) Net Property Income (excluding Starhill Gallery) (1) $24.0 mil $25.0 mil (4.1%) Income Available for Distribution Income to be Distributed to Unitholders - (2) $24.0 mil (3) NM DPU - (2) 1.10 cents NM Notes: 1. Net of rental rebates extended to eligible tenants. 2. Following SGREIT’s change of its distribution frequency to semi-annual distributions, there is no proposed distribution declared for 3Q FY19/20. 3. Approximately S$1.0 million of income available for distribution for 3Q FY18/19 has been retained for working capital requirements. 5
YTD FY19/20 financial highlights 9 months ended 9 months ended Period: 1 Jul – 31 Mar 31 Mar 2020 31 Mar 2019 % Change (YTD FY19/20) (YTD FY18/19) Gross Revenue (1) $143.4 mil $154.3 mil (7.1%) Gross Revenue (excluding Starhill Gallery) (1) $137.7 mil $141.4 mil (2.7%) Net Property Income (1) $109.2 mil $119.5 mil (8.6%) $103.9 mil $107.0 mil (2.9%) Net Property Income (excluding Starhill Gallery) (1) $74.5 mil $76.4 mil (2.5%) Income Available for Distribution Income to be Distributed to Unitholders $49.4 mil (2) (3) $73.7 mil (3) NM DPU 2.26 cents (2) 3.38 cents NM Notes: 1. Net of rental rebates extended to eligible tenants. 2. Following Starhill Global REIT’s change of its distribution frequency to semi-annual distributions, there is no proposed distribution declared for 3Q FY19/20. The reported number for YTD FY19/20 comprise the total distributions declared for the six-month period from 1 July 2019 to 31 December 2019. 3. Approximately S$1.1 million of income available for distribution for the six months ended 31 December 2019 (2019: S$2.6 million for nine months ended 31 March 2019) has been retained for working capital requirements. 6
DPU performance Cents FY 2014/15 (18 months) (3) 8.00 7.60 2.49 7.00 6.00 FY 2018/19 5.00 4Q 4.48 3Q 4.00 2Q 1.10 1Q 3.00 1.10 5.18 4.92 4.55 5.11 2.00 1.13 1.13 4.39 5.00 4.12 3.90 3.80 3.58 3.10 1.00 2.90 1.15 1.13 - FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014/15 FY2015/16 FY2016/17 FY2017/18 FY2018/19 FY2019/20 YTD Notes: FY19/20 (4) 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 2018/19. 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. 4. Following SGREIT’s change of its distribution frequency to semi-annual distributions, there is no proposed distribution declared for 3Q FY19/20. The reported number for YTD FY19/20 comprise the total distributions declared for the six-month period from 1 July 2019 to 31 December 2019. 7
3Q FY19/20 financial results Note: $’000 3Q FY19/20 3Q FY18/19 % Change 1. Includes certain finance Gross Revenue 46,684 51,267 (8.9%) costs, sinking fund provisions, straight-line rent Less: Property Expenses (11,514) (11,712) (1.7%) adjustment, accretion of security deposits, trustee Net Property Income 35,170 39,555 (11.1%) fees, commitment fees, deferred income tax, Less: Finance Income 163 230 (29.1%) change in fair value of derivative instruments, Management Fees (3,878) (3,904) (0.7%) foreign exchange differences, FRS 116 Trust Expenses (1,193) (1,124) 6.1% adjustments and Finance Expenses (9,753) (9,618) 1.4% management fees payable in units. Change in Fair Value of Derivative Instruments (5,639) (1,639) 244.1% Foreign Exchange Gain/(Loss) 457 (31) NM Income Tax (649) (934) (30.5%) Total Return After Tax 14,678 22,535 (34.9%) Add: Non-Tax Deductible items and other adjustments (1) 9,339 2,503 273.1% Income Available for Distribution 24,017 25,038 (4.1%) 8
YTD FY19/20 financial results Note: $’000 YTD FY19/20 YTD FY18/19 % Change 1. Includes certain finance Gross Revenue 143,402 154,330 (7.1%) costs, sinking fund provisions, straight-line rent Less: Property Expenses (34,161) (34,831) (1.9%) adjustment, accretion of security deposits, trustee Net Property Income 109,241 119,499 (8.6%) fees, commitment fees, deferred income tax, Less: Finance Income 675 678 0.4% change in fair value of derivative instruments, Management Fees (11,801) (11,909) (0.9%) foreign exchange differences, FRS 116 Trust Expenses (3,353) (3,088) 8.6% adjustments and Finance Expenses (29,668) (28,899) 2.7% management fees paid/payable in units. Change in Fair Value of Derivative Instruments (6,420) (7,413) (13.4%) Foreign Exchange Gain/(Loss) 766 (95) NM Income Tax (1,990) (2,663) (25.3%) Total Return After Tax 57,450 66,110 (13.1%) Add: Non-Tax Deductible items and other adjustments (1) 17,060 10,296 65.7% Income Available for Distribution 74,510 76,406 (2.5%) 9
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