Lippo Malls Indonesia Retail Trust 4Q 2016 Results Presentation 15 February 2017
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 forward-looking 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 2007. 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
Key Highlights S$ 000 4Q 2016 4Q 2015 Variance FY 2016 FY 2015 Variance Total Income 48,706 44,638 9.1% 188,066 173,004 8.7% Net Property Income 44,566 40,200 10.9% 171,860 158,565 8.4% Distributable Income to Unitholders 24,335 22,690 7.2% 95,468 85,553 11.6% DPU (cents) 0.87 0.81 7.4% 3.41 3.10 10.0% 4Q 2016 DPU of 0.87 cents (4Q 2015: 0.81 cents) represents an annualised yield of 9.2% 1 Healthy balance sheet with total assets under management of S$1,949.4 million 3 Prudent capital structure management with gearing ratio at 31.5% Overall occupancy at 94.3%, higher than industry average of 85.4% 2 High Weighted Average Lease Expiry (by NLA) at 4.51 years Notes: 1. Based on a closing price of S$0.370 as at 30 December 2016 2. Cushman & Wakefield: Retail Snapshot Q4 2016 - Jakarta
Performance Summary 50,000 49,000 Gross Revenue (S$ '000) 48,706 45,000 44,000 NPI (S$ '000) 44,566 48,000 47,000 46,000 45,000 44,000 43,000 42,000 44,638 4Q 2015 4Q 2016 43,000 42,000 41,000 40,000 39,000 38,000 40,200 4Q 2015 4Q 2016 4 24,500 24,000 23,500 23,000 22,500 22,000 21,500 Distributable Income to Unitholders (S$ '000) 24,335 22,690 4Q 2015 4Q 2016 0.88 0.87 0.86 0.85 0.84 0.83 0.82 0.81 0.80 0.79 0.78 DPU (S$ Cents) 0.87 0.81 4Q 2015 4Q 2016
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Key Financial Highlights 4Q 2016 (S$ 000) 4Q 2015 (S$ 000) % Variance 4Q 2016 (IDR million) 4Q 2015 (IDR million) % Variance Gross Rent 39,908 36,651 8.9 374,360 356,956 4.9 Other Income 520 622 (16.4) 4,972 6,097 (18.5) Parking Income 6,864 6,033 13.8 64,455 58,754 9.7 Rental of Electrical, Mechanical, and Mall Operating Equipment 1,414 1,332 6.2 13,172 12,819 2.8 Total Revenue 48,706 44,638 9.1 456,959 434,626 5.1 Property Management Fee (1,129) (1,203) 6.2 (10,598) (11,707) 9.5 6 Property Operating and Maintenance Expenses (3,011) (3,235) 6.9 (28,306) (31,366) 9.8 Total Property Operating Expenses (4,140) (4,438) 6.7 (38,904) (43,073) 9.7 Net Property Income 44,566 40,200 10.9 418,055 391,553 6.8 Distributable Income to Unitholders 24,335 22,690 7.2 Distribution Per Unit (cents) ¹ 0.87 0.81 7.4 Annualised Distribution Yield ² 9.2% Notes: 1. Based on 2.803 billion units in issue as at 31 December 2016. 2. Based on a closing price of S$0.370 as at 30 December 2016.
Key Financial Highlights Gross Revenue (S$ 000) 101,761 79,638 129,370 136,108 144,026 152,599 136,985 173,004 44,638 44,137 188,066 48,706 47,030 42,257 46,806 41,972 45,524 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 7 Net Property Income (S$ 000) 88,297 75,109 85,269 92,011 119,671 143,360 126,007 158,565 40,200 40,290 171,860 44,566 43,338 39,049 43,124 39,026 40,832 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Note: FY 2008 figures include private trust period from 8 Aug 2007 to 18 Nov 2007 and public trust period from 19 Nov 2007 ("Listing Date") to 31 Dec 2008.
Key Financial Highlights Distributable Income to Unitholders (S$ 000) 59,492 54,009 47,878 47,446 64,137 73,023 68,014 85,553 22,690 21,487 95,468 24,335 24,153 19,875 23,802 21,501 23,178 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 8 DPU (Cents) 0.68 0.68 0.69 0.71 0.79 0.73 0.77 0.81 0.83 0.85 0.86 0.87 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 Note: FY 2008 figures include private trust period from 8 Aug 2007 to 18 Nov 2007 and public trust period from 19 Nov 2007 ("Listing Date") to 31 Dec 2008.
Balance Sheet 31 December 2016 S$ million 31 December 2015 S$ million Non Current Assets 1,949.4 1 1,837.3 2 Current Assets 115.9 150.5 Total Debt 650.7 695.0 Other Liabilities 182.0 217.7 Total Equity 3 1,232.6 1,075.1 Gearing Ratio 31.5% 35.0% Total Units In Issue (million) 2,803.0 2,797.8 Net Asset Value (per unit) 4 S$ 0.39 S$ 0.38 9 Notes:, 1. Included in the Non Current Assets are the Investment properties of S$1,922.6 million. The carrying values of the properties are stated based on the independent valuation as at 31 December in Indonesian Rupiah and translated into Singapore Dollars using the exchange rate as at 31 December 2016 (IDR/SGD: 9333.57) 2. Included in the Non Current Assets are the Investment properties of S$1,804.9 million. The carrying values of the properties are stated based on independent valuation as at 31 December 2015 in Indonesian Rupiah and translated into Singapore Dollars using the exchange rate as at 31 December 2015 (IDR/SGD: 9,707.06) 3. Total equity is represented by Unitholder s funds of $1,091.7m and Perpetual securities of $140.9m. 4. Net Asset Value is calculated as Unitholder s funds over the units issued at the end of the period.
Distribution Details 1 October 2016 31 December 2016 Total DPU 0.87 cents - Tax-Exempt 0.56 cents - Capital 0.31 cents 10 Books Closure Date 23 February 2017 Tentative Distribution Payment Date 15 March 2017 Since listing in Nov 2007, LMIR Trust has maintained a payout policy of 100% of distributable income.
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Strategically Located Portfolio LMIRT has a diversified portfolio of 20 retail malls and 7 retail spaces across Indonesia Portfolio across Indonesia: 10 malls across Greater Jakarta 2 malls in Bandung 3 malls in Medan 3 malls in Palembang 1 mall in Batu 1 mall in Bali 7 retail spaces Binjai Supermall Plaza Medan Fair Sun Plaza Grand Palladium Medan Medan Metropolis Town Square Mall WTC Matahari Pejaten Village Lippo Mall Kemang Depok Town Square Cibubur Junction West Central Jakarta Jakarta North Jakarta South JakartaEast Jakarta Pluit Village Gajah Mada Plaza The Plaza Semanggi Mal Lippo Cikarang Lippo Plaza Kramat Jati Tamini Square Ekalokasari Plaza 12 Assets Under Management: S$1,949.4 million Total NLA: 849,694 sqm Portfolio Occupancy: 94.3% WALE (by NLA) Istana Plaza Sumatra Palembang Square Palembang Square Extension Palembang Icon Pontianak Palembang Java Supermall Jakarta Semarang Java Surabaya Bandung Batu Malang Plaza Madiun Lippo Bandung Indah Plaza Plaza Batu Kalimantan Balikpapan Sulawesi Malang Town Square Lippo Mall Kuta Retail Malls IrianJaya Retail Spaces 12 4.51 years
Consistently Diversified Trade Mix As at 31 December 2016 Trade Sector Breakdown by Rental Income Trade Sector Breakdown by NLA 2.6% 6.3% 1.3% 0.2% 10.1% 3.0% 4.4% 0.7% 0.1% 11.3% 10.0% 0.5% 11.0% 19.3% 0.4% 3.9% 15.7% 13 1.6% 0.8% 4.5% 17.6% 10.0% 9.2% 4.8% 0.7% 1.6% 7.0% 9.0% 0.5% 0.9% 1.2% 0.5% 1.8% 10.1% 14.7% 1.6% 0.3% 0.8% Storage
Top 10 Tenants by Gross Rental Income As at 31 December 2016, includes retail space Centro Gramedia Cinemaxx Sport Station Solaria ACE Hardware Electronic Solution 0.3% 0.4% 0.4% 0.5% 0.5% 0.6% 0.6% 14 Carrefour 2.5% Hypermart 6.7% Matahari Department Store 9.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Top 10 tenants contribute approximately 22% of LMIRT Retail Mall Portfolio s Gross Rental Income
Lease Expiry Profile Weighted Average Lease Expiry (by NLA) as at 31 December 2016: 4.51 years 40% 35% 34% 30% 25% 23% 20% 15 15% 10% 12% 10% 9% 5% 0% 2017 2018 2019 2020 >2021 LMIRT s portfolio lease terms represent a balanced mix of long-term anchor leases and shorterterm leases for non-anchor tenants, providing both stability and growth potential
Rental Reversion Trend As at 31 December 2016 50,000 45,000 45,628 70.0% 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 13,598 10,117 11,257 6,290 9,335 9.0% 5.0% 8.7% 8.0% 9.4% 10.8% 16,455 17,650 16,238 25.7% 8.9% 11,970 30,606 15.5% 12.4% 19,039 27.1% 15,168 26,542 16,094 22,072 24,764 25,115 11.1% 9.4% 10.1% 11.6% 10.8% 9.5% 11.4% 36,026 22.9% 22,906 20,920 13.2% 16,575 13,634 4,726 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 7.5% 6.3% 7.3% 6.7% 0.0% 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 16 Renewal & New Leases NLA Rental Reversion Rate
Debt Maturity Profile As at 31 December 2016 70% of LMIRT s debt is on a fixed rate basis, mitigating the impact of interest rate fluctuations Weighted Average Maturity of Debt Facilities is 2.59 years 300 250 37.6% 4 200 150 100 50 19.2% 1 50 75 1 2 2 3 100 145 3 4 5 27.3% 5 75 6 15.8% 6 7 103 7 103 8 17 0 2017 2018 2020 2021 Bonds Notes: 1 S$ 50 million 5.875% bond due July 2017 2 S$ 75 million 4.48% bond due November 2017 3 S$ 100 million 4.50% bond due November 2018 4 S$ 145 million 3.00% + SOR term loan due December 2018 5 S$ 75 million 4.10% bond due June 2020 6 S$ 103 million 2.95% + SOR term loan due August 2020 7 S$ 103 million 3.15% + SOR term loan due August 2021 Term Loans Perpetuals: S$140 million 7.00 % Subordinated Perpetual Securities was issued in September 2016.
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