FY 2011 Results Presentation 16 February 2012

Transcription

1 FY 2011 Results Presentation 16 February 2012

2 Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forwardlooking statements. These forward-looking statements reflect our current views with respect to future events and financial performance and are subject to certain risks and uncertainties, which could cause actual results to differ materially from historical results or those anticipated. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in the Indonesian retail industry including those factors which may affect our ability to attract and retain suitable tenants, our ability to manage our operations, reduced demand for retail spaces, our ability to successfully complete and integrate potential acquisitions, liability for damages on our property portfolios, the success of the retail malls and retail spaces we currently own, withdrawal of tax incentives, political instability, and legal restrictions on raising capital or acquiring real property in Indonesia. In addition to the foregoing factors, a description of certain other risks and uncertainties which could cause actual results to differ materially can be found in the section captioned "Risk Factors" in our preliminary prospectus lodged with the Monetary Authority of Singapore on 19 October Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained. 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. We undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise. 2

3 Overview of LMIR Trust 3

4 Overview of LMIR Trust Acquisitions completed on 6 Dec 2011 Plaza Medan Fair Istana Plaza Sun Plaza Grand Palladium Medan Medan Sumatra Jakarta Bandung Pontianak Kalimantan Balikpapan Sulawesi Java Supermall Semarang Java Surabaya Malang Plaza Madiun Malang Town Square Metropolis Town Square Mall WTC Matahari Depok Town Square Cibubur Junction West Jakarta South Jakarta North Jakarta Centra l Jakarta Pluit Village Gajah Mada Plaza The Plaza Semanggi Mal Lippo Cikarang Ekalokasari Plaza Irian Jaya Portfolio of Indonesian retail assets valued at S$1.55 billion 1 including 10 retail malls and 7 retail spaces Retail malls are strategically located within large population catchment areas in Greater Jakarta (6 malls), Bandung (2 malls), and Medan (2 mall) Portfolio is well positioned in terms of target segment and diversified tenant base to benefit from Indonesia s flourishing economy and favourable demographics Low gearing of 8.7% provides funding opportunities for future growth LMIR Trust is core component of Lippo Karawaci s growth strategy in Indonesia s mall sector Bandung Indah Plaza Retail Malls Retail Spaces Notes: 1 Valuation by KJPP Rengganis, KJPP Wilson & Rekan and KJPP Damianus Ambur, as at 31 December 2011 in IDR, and converted to SGD at the year end exchange rate 4

5 Key Highlights Economic Outlook Indonesia cut its benchmark interest rate to a record low of 5.75% on 9 Feb 2012 despite a global slowdown. Gross domestic product increased 6.45% in the fourth quarter from a year earlier Financial Results FY 2011 DPU of 3.85 cents equates to an annualised yield of 7.5% 1 NAV of S$0.60 per unit with low gearing 8.7% of total assets Secured a S$190 million new term loan facility at an interest margin of 4.0% p.a over base lending rate Portfolio Update Overall occupancy of 94.1% as at December 31, 2011 versus industry average of 87.6% 2 Well diversified portfolio Acquisitions Acquisition of Pluit Village and Plaza Medan Fair valued at c.s$388 million at attractive NPI yields Quality acquisitions increase total portfolio assets value to S$1.55 billion Note: 1 Based on adjusted average DPU yield for FY Source: Jones Lang Lasalle Jakarta Property Market Review 4Q

6 Financial Results 6

7 FY 2011 Financial Results P&L Actual FY 2011 (S$'000) Actual FY 2010 Variance (%) (S$'000) Gross Revenue 136, , % Remarks Mainly due to additional gross revenue from Pluit Village and Plaza Medan Fair for the period 6 December 2011 to 31 December 2011, following the completion of the acquisitions. The higher gross revenue is partly reduced by the effect of foreign exchange rates used for translating revenues denominated in Indonesian Rupiah ("IDR") to Singapore Dollars ("SGD"). Property Operating Expenses (44,097) (44,101) 0.01% The increase in property operating expenses as a result of acquisition of Pluit Village and Plaza Medan Fair is offset by higher mall operating and maintenance expenses in FY Net Property Income 92,011 85, % The higher gross revenue coupled with lower property operating expenses resulted in higher net property income Distribution Income 47,446 47,878 (0.9%) Distribution per Unit (cents) Distribution Yield 2 (%) 7.5 Notes: 1 Based on billion units in issue as at 31 December Based on adjusted average DPU yield for FY

8 FY 2011 Financial Results Balance Sheet 31-Dec-11 (S$ million) 31-Dec-10 (S$ million) Non Current Assets 1, ,082.4 Current Assets Total Debt Other Liabilities Net Assets 1, Net Asset Value S$0.60 S$0.83 Average Cost of Debt 6.7% p.a. 7.7% p.a. Total Units in Issue 2, ,081.7 Gearing Ratio 8.7% 10.3% Notes: 1 Valuation by KJPP Rengganis, KJPP Wilson & Rekan and KJPP Damianus Ambur, as at 31 December 2011 in IDR, and converted to SGD at the year end exchange rate 8

9 Distribution Details 1 October December 2011 Total DPU 0.53 cents -Tax-Exempt 0.36 cents -Capital 0.17cents Books Closure Date 24 February 2012 Distribution Payment Date 16 March 2012 Since listing in Nov 2007, LMIR Trust has maintained a payout policy of 100% of distributable income 9

10 5-Dec Dec Dec Dec Dec Dec-11 4-Jan-12 9-Jan Jan Jan Jan Jan-12 3-Feb-12 8-Feb-12 Unit Price Performance (Post Rights Issue) Notes: LMIRT has increased (12.7%) since the post rights issue. It has performed better than the SREIT (2.0%), and the STI index (7.8%) except for JCI (5.2%) as of 9 Feb Market capitalization was S$870 million 1 as of 9 Feb LMIRT unit price was trading at a discount of 41% to NAV at end of Dec JCI Index LMRT SP Equity FSSTI Index FSTREI Index Note: 1. Based on a closing price as at 9 February 2012 of S$ Based on a closing price as at 31 December 2011 of S$

11 Portfolio Performance 11

12 Annual Portfolio Revaluations 2011 IDR' million SGD' million Property Valuation as at Valuation as at Valuation as at 31-Dec Dec Dec 2011 Gajah Mada Plaza 762, , Cibubur Junction 534, , The Plaza Semanggi 1,330,000 1,367, Mal Lippo Cikarang 490, , Ekalokasari Plaza 367, , Bandung Indah Plaza 885, , Istana Plaza 787, , Sun Plaza 1,371,000 1,268, Pluit Village 1,668,215 N/A Plaza Medan Fair 1,100,369 N/A TOTAL RETAIL MALLS 9,294,584 6,291,000 1, TOTAL RETAIL SPACES 1,372,000 1,344, TOTAL PORTFOLIO 10,666,584 7,635, , Note: Exchange rate as at 31 December 2011: Rupiah 1. Represents the book value in LMIR Trust s balance sheet as at 31 December 2011 based on either the most recent valuation plus any subsequent capital expenditure or if acquired recently purchase price plus any capital expenditure and other acquisition costs committed. 2. Valuation date for all properties is 31 December

13 Portfolio Update: Occupancy No. Malls NLA (sqm) As at Sep 11 (%) As at Dec 11 (%) 1 Bandung Indah Plaza 29, Cibubur Junction 33, Ekalokasari Plaza 25, Gajah Mada Plaza 35, Istana Plaza 26, Mal Lippo Cikarang 28, The Plaza Semanggi 63, Sun Plaza 63, Pluit Village 86, Plaza Medan Fair 56, A Mall Portfolio 449, B Retail Spaces 94, A+B Total Portfolio 543, Industry Average 87.6 LMIR Trust s mall portfolio occupancy is at 94.1% as of 31 December 2011, inclusive of the two newly acquired malls, which is higher than the industry average of 87.6% 1 Portfolio occupancy has been higher than the industry average due to good locations of the malls, good customer targeting and strong mall operator in Lippo Karawaci In general the performance of each mall has been favourable Note: 1. Source : Jones Lang Lasalle Jakarta Property Market Review 4Q

14 Portfolio Update: Diversification Portfolio Income Breakdown 1 NLA Breakdown by Trade Sectors % 17.8% 1.5% 6.5% 2.5% 6.5% 2.9% 0.5% 4.7% 15.1% 15.3% 10.3% 7.6% 16.2% 2.1% 2.1% 2.8% 4.5% 0.3% 1.9% 5.9% 1.8% 1.1% 0.7% 5.8% 0.7% 0.9% 4.0% 8.1% 0.3% 2.2% 9.4% 12.4% 2.2% 0.5% 0.6% Department Store (Retail Spaces) Fashion Hobbies Supermarket / Hypermarket Sports & Fitness Leisure & Entertainment Gifts & Specialty F & B / Food Court Services Department Store (Retail Malls) Books & Stationary Education / School Other Toys Electronic / IT Jewelry Home Furnishing Optic Department Store (Retail Spaces) Fashion Hobbies Supermarket / Hypermarket Sports & Fitness Leisure & Entertainment Gifts & Specialty F & B / Food Court Services Department Store (Retail Malls) Books & Stationary Education / School Other Toys Electronic / IT Jewelry Home Furnishing Optic Notes: (1) For Full Year ended 2011 (2) As at 31 December

15 Well Diversified Tenant Mix Top 10 Tenants account for 37.4% of portfolio gross income As at 31 December 2011 Studio 21 Pizza Hut Electronic Solution Solaria Gramedia Centro 0.7% 0.7% 0.7% 0.7% 0.9% 0.9% Carrefour 2.0% Hypermart 3.6% Matahari (Retail Malls) 9.3% Matahari (Retail Spaces) 18.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% Note: With the acquisitions of Pluit Village and Plaza Medan Fair completed on 6 December 2011, gross income includes their contributions for the period from 6 December 2011 to 31 December

16 Lease Expiry as % of Total Portfolio NLA As at 31 December % 40% 39% 35% 30% 25% 20% 15% 10% 5% 10% 12% 13% 17% 5% 0% >2017 Long lease expiry profile underpins portfolio stability Mixture of long-term and short-term leases, provides stable performance Note: The lease expiry profile of the portfolio includes the lease expiries from the 2 new properties, Pluit Village and Plaza Medan Fair 16

17 LMIR Trust Growth Strategies 17

18 Targeted Growth Strategies To achieve a S$4 billion asset portfolio over the next 5 years ASSET ENHANCEMENT 8 AEIs were completed in 2011, with total NLA around 11,008 sqm of space, and total ROI is expected to be above 53% ACQUISITIONS Large available pipeline from both Sponsor and third parties. ROFR over malls from Sponsor A fragmented and diverse retail market provides further acquisition growth opportunities ORGANIC GROWTH Improving macroeconomic fundamentals Growing & affluent urban middle income class Active portfolio management and tenant re-mixing / repositioning strategies 18

19 Access to acquisitions through Sponsor and third parties LK has 25 malls under management throughout in Indonesia N Grand Palladium Medan SULAWESI MALUKU PACIFIC OCEAN Sun Plaza KALIMANTAN Plaza Medan Fair Binjai Supermall Palembang Square GTC Makassar IRIAN JAYA INDIAN OCEAN JAVA City of Tomorrow Mall Malang Town Square Metropolis Town Square WTC Matahari WEST JAKARTA BANTEN PROVINCE MALLS IN GREATER JAKARTA PX Pavillion Pluit Village CENTER OF JAKARTA Gajah Mada Plaza SOUTH JAKARTA Pejaten Village - Istana Plaza - Bandung Indah Plaza JAVA SEA The Plaza Semanggi NORTH JAKARTA Grand Mall Bekasi Kramat Jati Indah Plaza EAST Lippo Cikarang Mall JAKARTA Tamini Square WEST JAVA PROVINCE Strata-titled Malls (8 of 10 malls are owned by LK) LMIRT Malls LK Malls Third Party Malls Key Statistics: 2.2 million sqm of GFA 15,695 total units 80% average occupancy rate Annual Shopper Traffic: >200mm Depok Town Square Cibubur Junction Bellanova Country Mall Eka Lokasari Mall 19

20 Summary 20

21 Our Value Proposition 4Q2011 DPU of 0.53 cents and adjusted average full year DPU yield of 7.5% 32.5% discount to NAV (based on S$0.405 as at 16 Feb 2012) Property diversification with no single property accounting for more than 16% of net property income Portfolio occupancy rate remains higher than the industry average Conservative gearing provides debt capacity for further yield accretive acquisitions Clarity of growth in a fragmented and diverse retail market with a committed pipeline of quality malls from Lippo Karawaci Target to grow LMIR Trust s portfolio to S$4 billion over the next 5 years Indonesia remains largely unaffected by the global financial crisis as its economy is driven largely by domestic demand LMIRT is committed to deliver stable results to our unit holders 21

22 Thank You 22

23 Appendix 23

24 Major Indonesian Conglomerate Indonesia Regional presence in China, Macau, Hong Kong, Philippines, Korea, Singapore Retail Property Others Retail Property & Hospitality Others Matahari & Hypermart First Media PT Lippo Karawaci Tbk Urban Development Large Scale Integrated Development Property & Portfolio Retail Malls Healthcare Hotels & Hospitality Management 24

25 Quality and Strategically Located Retail Malls The Plaza Semanggi Gajah Mada Plaza Location : South Jakarta Location : Central Jakarta NLA : 63,701 sq m NLA : 35,187sq m GFA : 91,232 sq m GFA : 66,160 sq m Appraised Value (1) : S$192.7 m Appraised Value (1) : S$110.4 m Cibubur Junction Ekalokasari Plaza Location : East Jakarta Location : Bogor NLA : 33,815 sq m NLA : 25,458 sq m GFA : 49,341 sq m GFA : 39,895 sq m Appraised Value (1) : S$77.4 m Appraised Value (1) : S$53.2 m Note: (1) The appraised values are as at 31 December

26 Quality and Strategically Located Retail Malls Mal Lippo Cikarang Sun Plaza Location : Cikarang Location : Medan NLA : 28,400 sq m NLA : 63,962 sq m GFA : 37,418 sq m GFA : 73,871 sq m Appraised Value (1) : S$71.0 m Appraised Value (1) : S$198.6 m Bandung Indah Plaza Istana Plaza Location : Bandung Location : Bandung NLA : 29,505 sq m NLA : 26,768 sq m GFA : 55,196 sq m GFA : 37,434 sq m Appraised Value (1) : S$128.2 m Appraised Value (1) : S$114.0 m Note: (1) The appraised values are as at 31 December

27 Quality and Strategically Located Retail Malls Pluit Village Plaza Medan Fair Location : North, Jakarta Location : Medan NLA : 86,341 sq m NLA : 56,031 sq m GFA : 150,649 sq m GFA : 128,993 sq m Appraised Value (1) : S$241.7m Appraised Value (1) : S$159.4m Note: (1) The appraised values are as at 31 December 2011

28 Retail Spaces Master-leased to Matahari LMIR Trust s portfolio includes 7 Retail Spaces with total NLA of 94,070 sqm, master-leased to Matahari for a period of years, with fixed rental growth of 8% p.a. for the first 4 years and a revenue sharing formula thereafter (2) Mall WTC Matahari Units Metropolis Town Square Units Depok Town Square Units Java Supermall Units NLA : 11,184 sq m NLA : 15,248 sq m NLA : 13,045 sq m NLA : 11,082 sq m Malang Town Square Units Plaza Madiun Grand Palladium Unit NLA : 11,065 sq m NLA : 19,029 sq m NLA : 13,417 sq m 5 of the 7 Retail Spaces reside in strata-titled malls built by the Sponsor 28