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First Quarter 2012 Financial Results 26 April 2012
26 April 2012
Agenda
Financial Highlights
Portfolio Performance Update– Singapore– Kuala Lumpur– Chengdu– Perth– Tokyo
Outlook
2
26 April 2012
Highlights
1Q 2012 DPU of 1.07 cents, translating to annualized yield of 6.72%– DPU up 5.9% from 4Q 2011 despite ongoing redevelopment work at Wisma Atria
Occupancy for the portfolio remains high at 99%
– Rental demand for properties in quality location remains firm
Asset Redevelopment progress
– Wisma Atria, Singapore is on schedule for completion in 3Q 2012
– First Orchard Road façade tenant has started retail operations in April 2012
Strong capital base
– Gearing of 30.4%
– No major debt refinancing until 2013
3
26 April 2012 4
Period: 1 Jan – 31 Mar 2012 1Q 2012 1Q 2011 % Change
Gross Revenue $46.0 mil $45.8 mil 0.4%
Net Property Income $37.3 mil $37.1 mil 0.8%
Income Available for Distribution $23.3 mil $24.0 mil (2.6%)
Income to be Distributed to Unitholders $20.8 mil $20.8 mil -
Income to be Distributed to CPU holders $2.4 mil (1) $2.4 mil (0.3%)
DPU 1.07 cents (2) 1.07 cents -
1Q 2012 financial highlights
Notes: 1. CPU distribution for 1Q 2012 is based on S$ coupon of up to RM0.1322 per CPU, equivalent to a distribution rate of 5.65% per annum. Total number of
CPU units in issue as at 31 March 2012 is 173,062,575.
2. The computation of DPU for 1Q 2012 is based on number of units entitled to distributions comprising number of units in issue as at 31 March 2012 of1,943,023,078 units.
DPU of 1.07 cents, same as 1Q 2011
26 April 2012
0.74 0.750.77
0.84
0.88 0.89 0.890.92 0.93
0.95 0.950.97
0.95
0.91
1.00
1.041.07
1.04
1.00 1.01
1.07
0.65
0.70
0.75
0.80
0.85
0.90
0.95
1.00
1.05
1.10
1Q07
2Q07
3Q07
4Q07
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
5
DPU performance
Quarterly DPU(1) of 1.07 cents for 1Q 2012
Note: 1. DPU from 1Q 2007 to 2Q 2009 have been restated to include the 963,724,106 rights units issued in August 2009.
26 April 2012
1Q 2012 financial results
$’000 1Q 2012 1Q 2011 % Change
Gross Revenue 46,033 45,847 0.4%
Less: Property Expenses (8,689) (8,792) (1.2%)
Net Property Income 37,344 37,055 0.8%
Less: Fair Value Adjustment (1)
Borrowing Costs
Finance Income
Management Fees
Other Trust Expenses
Tax Expenses (2)
(16)
(8,338)
157
(3,492)
(773)
(1,091)
(88)
(8,333)
172
(3,432)
(940)
(1,254)
(81.8%)
0.1%
(8.7%)
1.7%
(17.8%)
(13.0%)
Net Income After Tax (3) 23,791 23,180 2.6%
Add: Non-Tax Deductibles (Chargeable) (4) (470) 772 n.m.
Income Available for Distribution 23,321 23,952 (2.6%)
Income to be Distributed to Unitholders 20,790 20,790 -
Income to be Distributed to CPU holders 2,350 2,357 (0.3%)
DPU (cents) 1.07 1.07 -
Notes: 1. Being accretion of tenancy deposit stated at
amortised cost in accordance with Financial Reporting Standard 39. This financial adjustment has no impact on the DPU.
2. Excludes deferred income tax.
3. Excludes changes in fair value of derivative instruments.
4. Includes certain finance costs, sinking fund provisions, straight-line rent and fair value adjustment and trustee fees.
6
26 April 2012
1Q 2012 financial results
$’000 1Q 2012 1Q 2011 % Change
Wisma Atria
Retail
Office (1)
12,133
2,336
11,623
2,136
4.4%
9.4%
Ngee Ann City
Retail
Office (2)
10,404
3,226
10,318
3,552
0.8%
(9.2%)
Japan portfolio (3)
Chengdu (4)
Australia (5)
Malaysia
1,960
4,359
3,725
7,890
1,820
5,072
3,532
7,794
7.7%
(14.1%)
5.5%
1.2%
Total 46,033 45,847 0.4%
7
$’000 1Q 2012 1Q 2011 % Change
Wisma Atria
Retail
Office (1)
9,427
1,698
9,193
1,544
2.5%
10.0%
Ngee Ann City
Retail
Office (2)
8,438
2,618
8,399
2,836
0.5%
(7.7%)
Japan portfolio (3)
Chengdu (4)
Australia (5)
Malaysia
1,477
2,877
3,133
7,676
1,397
3,167
2,937
7,582
5.7%
(9.2%)
6.7%
1.2%
Total 37,344 37,055 0.8%
Revenue Net Property Income
Notes: 1. Mainly due to higher office occupancy for Wisma Atria office.2. Mainly due to negative rental reversions for Ngee Ann City office.3. Mainly due to higher occupancy for Japan Properties.4. Mainly due to lower revenue amidst increased competition and tenant
renovations for Chengdu Property.5. Mainly due to higher rental rates achieved for David Jones Building and
appreciation of Australian Dollar against the Singapore Dollar.
26 April 2012
6.72% 6.00%
1.62%
2.50%
0.57%0.08%
Starhill Global REIT1Q12 Annualized Yield
Average Retail S‐REITYield
10‐Year SingaporeGovt Bond
CPF OrdinaryAccount
5‐Year Singapore GovtBond
12‐month Bank FixedDeposit Rate
8
Trading yield
Notes: 1. Based on Starhill Global REIT’s closing price of $0.64 per unit as at 31 March 2012 and annualized 1Q 2012 DPU.2. As at 31 March 2012, Weighted Average Retail S-REIT Yield excluding SGREIT (Source: Bloomberg).3. As at 13 April 2012 (Source: Singapore Government Securities website).4. Based on interest paid on Central Provident Fund (CPF) ordinary account in March 2012 (Source: CPF website).5. As at 13 April 2012 (Source: DBS website).
(4)(3)(2)(1) (5)
Attractive trading yield compared to other investment instruments
6.64%5.10%
(3)
26 April 2012
0
10,000
20,000
30,000
40,000
0.25
0.35
0.45
0.55
0.65
0.75
Trading Volume ('000s)
Uni
t Pric
e (S
GD
) 4
Liquidity statistics
Average daily traded volume (units)
1.04 mil
Estimated free float 60%
Market cap (SGD) $1,244 mil
9
Unit price performance
2
Source: Bloomberg
Notes: 1. For the quarter ended 31 March 2012.2. Free float as at 1 March 2012. Mainly excludes the 29.38% stake held by YTL Group, and the 9.76% stake held by AIA Group.3. By reference to Starhill Global REIT’s closing price of $0.64 per unit as at 31 March 2012.4. Starhill Global REIT issued 963,724,106 units pursuant to the rights issue completed in August 2009.
1
Starhill Global REIT’s Unit Price Movement and Daily Traded Volume
(2 Jan 2009 to 31 March 2012)
3
26 April 2012 10
Distribution timetable
Notice of Books Closure Date 26 April 2012
Last Day of Trading on “Cum” Basis 2 May 2012, 5.00 pm
Ex-Date 3 May 2012, 9.00 am
Books Closure Date 7 May 2012, 5.00 pm
Distribution Payment Date 30 May 2012
Distribution Period 1 January to 31 March 2012
Distribution Amount 1.07 cents per unit
Distribution Timetable
26 April 2012
Debt profile
No major debt refinancing until 2013
Notes:(1) JPY1.5 billion of the JPY3.1 billion Japan bond (Series 1) has been redeemed using
proceeds from the issuance of a five-year JPY1.6 billion ($24.5 million) Japan bond(Series 2) in Dec 2011. The remaining portion of the Japan bond (Series 1) will beredeemed on maturity in May 2012 using internal source of funds.
(2) As at 31 Mar 2012. Currently SG REIT has approximately $1.88 billion of untappedbalance from its $2 billion MTN programme and $115 million of available RCF lines.
(3) For the quarter ended 31 Mar 2012.(4) As at 31 Mar 2012. Includes interest rate derivatives but excludes upfront costs.(5) Includes interest rate derivatives.(6) Reaffirmed by S&P in May 2011.
11
Total debt (2) $859 million
Gearing 30.4%
Interest cover (3) 4.8x
Average interest rate p.a.(4) 3.26%
Unencumbered assets ratio 42%
Fixed/hedged debt ratio (5) 88%
Weighted average debt maturity 2.0 years
Corporate rating (6) BBB (S&P)
‐
364
‐ ‐
101
‐ ‐‐
‐
‐
124
‐‐
82
‐ ‐25 (1)
‐
‐25 (1)
1
1
135
-
100
200
300
400
500
600
2012 2013 2014 2015 2016
S$ million Debt maturity profileAs at 31 Mar 2012
Malaysia MTN China loan Japan bond (Series 2)Japan bond (Series 1) Australia loan Singapore MTNJPY term loan SGD term loan
1
26 April 2012 12
Balance sheet
As at 31 March 2012 $’000
Non Current Assets 2,722,087
Current Assets 101,262
Total Assets 2,823,349
Current Liabilities 170,120
Non Current Liabilities 793,932
Total Liabilities 964,052
Net Assets 1,859,297
Unitholders’ Funds 1,685,852
Convertible Preferred Units 173,445
NAV statistics
NAV Per Unit (as at 31 Mar 2012) (1) $0.96
Adjusted NAV Per Unit (net of distribution)
$0.94
Closing price as at 31 Mar 2012 $0.64
Unit Price Premium/(Discount) To: NAV Per Unit
Adjusted NAV Per Unit
(33.3%)
(31.9%)
Note:1. The computation of NAV per unit for 1Q 2012 is based on number of units entitled to distributions comprising number of units in issue as at 31 March 2012 of
1,943,023,078 units. For illustrative purpose, the NAV per unit assuming the full conversion of the CPU into ordinary units will be $0.85. For avoidance of doubt, theCPU is only convertible after three years from the date of issuance.
26 April 2012
Agenda
Financial Highlights
Portfolio Performance Update– Singapore– Kuala Lumpur– Chengdu– Perth– Tokyo
Outlook
13
26 April 2012
Portfolio summary
14
ASSET VALUE BY COUNTRY AS AT 31 Mar 2012
1Q 2012 GROSS REVENUE BY COUNTRY
1Q 2012 GROSS REVENUE BY RETAIL/OFFICE
Portfolio comprising 13 prime assets in 5 countries
Singapore61.0%
Malaysia17.1%
China 9.5%
Australia8.1%
Japan4.3%
Retail87.9%
Office12.1%
Singapore69.2%
Malaysia16.4%
China 3.2%
Australia 5.6%
Japan5.6%
26 April 2012
High occupancy
15
As at 31 Dec 05 31 Dec 06 31 Dec 07 31 Dec 08 31 Dec 09 31 Dec 10 31 Dec 11 31 Mar 12
Retail 100.0% 100.0% 100.0% 98.3% 100.0% 99.1% 98.3% 98.4%
Office 92.8% 97.8% 98.7% 92.4% 87.2% 92.5% 95.3% 96.9%
Singapore 97.3% 99.2% 99.5% 96.0% 95.1% 96.5% 97.1% 97.9%
Japan - - 100.0% 97.1% 90.4% 86.7% 96.3% 96.3%
China - - 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Australia - - - - - 100.0% 100.0% 100.0%
Malaysia - - - - - 100.0% 100.0% 100.0%
SG REIT portfolio
97.3% 99.2% 99.6% 96.6% 95.4% 98.2% 98.7% 99.0%
Uptrend in occupancy since Global Financial Crisis
26 April 2012
Portfolio lease expiry
16
Weighted average lease term of 6.6 and 3.8 years (by NLA and gross rent respectively)3
Notes:1. Portfolio lease expiry schedule includes Starhill Global REIT’s properties in Singapore, Malaysia, Australia and Japan but excludes Renhe Spring Zongbei Property,
China which operates as a department store with short-term concessionaire leases running 3-12 months.2. Lease expiry schedule based on committed leases as at 31 March 2012.3. Consists of a master tenant lease with option to renew. 4. Consists of master tenant lease/ long-term lease that enjoy fixed rent escalation
Portfolio Lease Expiry (as at 31 Mar 2012) (1) (2)
2.9%
26.7%
8.2%4.9%
57.3%
4.6%
41.2%
14.0%11.0%
29.2%
0%
10%
20%
30%
40%
50%
60%
70%
2012 2013 2014 2015 Beyond 2015
By NLA By Gross Rent
(3)
(4)
26 April 2012 17
Portfolio lease expiry profile
Lease expiry schedule for retail and office portfolio (by gross rent)
Notes:1. Includes Starhill Global REIT’s properties in Singapore, Malaysia, Australia and Japan but excludes Renhe Spring Zongbei Property, China which operates as a
department store with short-term concessionaire leases running 3-12 months.2.Comprises Wisma Atria and Ngee Ann City office properties only.3.Consists of a master tenant lease with option to renew.4.Consists of master tenant lease/ long-term lease that enjoy fixed rent escalation.
3.8%
41.3%
10.8% 10.2%
33.9%
0%
10%
20%
30%
40%
50%
2012 2013 2014 2015 Beyond 2015
Retail Lease Expiry Profile (as at 31 Mar 2012) (1)
(4)
(3)
9.1%
40.7%
34.1%
15.6%
0.5%0%
10%
20%
30%
40%
50%
2012 2013 2014 2015 Beyond 2015
Office Lease Expiry Profile (as at 31 Mar 2012) (2)
26 April 2012
Portfolio Top 10 tenants
18
Notes: 1. For the month of March 2012.2. The total portfolio gross rent is based on the gross rent of all the properties including the Renhe Spring Zongbei Property.3. Consists of Katagreen Development Sdn Bhd, YTL Singapore Pte Ltd, YTL Starhill Global REIT Management Limited, YTL Starhill Global Property Management Pte Ltd,
YTL Hotels (S) Pte Ltd and Lakefront Pte Ltd.
Top 10 tenants contributed 53.2% of portfolio gross rent
Tenant Name Property % of Portfolio Gross Rent (1) (2)
Toshin Development Singapore Pte Ltd Ngee Ann City, Singapore 18.8%
YTL Group (3) Ngee Ann City & Wisma Atria, SingaporeStarhill Gallery & Lot 10, Malaysia 16.9%
David Jones Limited David Jones Building, Australia 5.8%
FJ Benjamin Lifestyle Pte Ltd Wisma Atria, Singapore 2.4%
Cotton On Singapore Pte Ltd Wisma Atria, Singapore 2.1%
BreadTalk Group Wisma Atria, Singapore 2.1%
Cortina Watch Pte Ltd Ngee Ann City & Wisma Atria, Singapore 2.0%
Feria Tokyo Co., Ltd Terzo, Japan 1.2%
Charles & Keith Group Wisma Atria, Singapore 1.2%
Betts Group David Jones Building, Australia 0.7%
26 April 2012
Singapore - Wisma Atria Property
Lease expiry schedule (by gross rent) as at 31 March 2012
Committed occupancy: 96.0% – Retail : 95.3%– Office : 96.8%
19
Committed occupancy rates (by NLA)
Active lease management– Retail: Positive rental reversions
were achieved for new and renewed leases
– Office: Occupancy increased yoy by about 6.5% in 1Q 2012
8.3%
33.7%
22.4% 23.8%
11.8%15.9%
39.8%
30.0%
13.1%
1.2%0%
10%
20%
30%
40%
50%
60%
2012 2013 2014 2015 Beyond 2015
Retail Office
97.8% 97.7%95.3% 94.8% 95.3%
90.3% 92.0%94.6% 95.8% 96.8%
50%55%60%65%70%75%80%85%90%95%
100%
31 Mar 11 30 Jun 11 30 Sep 11 31 Dec 11 31 Mar 12
Retail Office
26 April 2012
Fashion44.0%
Shoes & Accessories
12.4%
F&B14.7%
Jewellery & Watches
19.6%
General Trade4.2%
Health & Beauty5.1%
Wisma Atria Property - Diversified tenant base
WA retail trade mix – by % gross rent(as at 31 Mar 2012)
20
WA office trade mix – by % gross rent(as at 31 Mar 2012)
Consultancy / Services14.9%
Fashion Retail16.5%
Real Estate & Property Services13.7%
Medical15.7%
Trading12.8%
Aerospace9.2%
Petroleum Related
7.0%
Others6.0%
Government related2.8%
Investments1.4%
26 April 2012 21
Wisma Atria Property – Shoppers traffic and Centre sales
Shopper traffic and Centre sales
Due to temporary vacancies arising from the asset redevelopment works, YTD Mar’12 shopper traffic and centre sales for YTD Mar’12 were impacted.
On floors that were not impacted by the asset redevelopment works, YTD Mar’12 shopper traffic increased by 2.2%.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Wisma Atria Traffic Count at Primary Entrances
Year 2010 Year 2011 Year 2012S$ Millions
10
12
14
16
18
20
22
24
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
S$ Millions
Wisma Atria Property Retail Sales TurnoverYear 2010 Year 2011 Year 2012
26 April 2012
Wisma Atria Property – Rejuvenation of an Orchard Road Landmark
22
Asset redevelopment works commenced in July 2011, with targeted completion by 3Q 2012
Secured commitments from international retailers including Coach, Tory Burch, Tag Heuer Flagship Store and Dickson Watch & Jewellery for Orchard Road fronting units. Swatch Concept store commenced operations on 5 Apr 2012
Other new-to-market tenants attracted by the rejuvenation include fashion retailer Tommy Bahamas from the USA
Level 4 tenant Food Republic is undergoing renovations to open a new concept with completion targeted in 3Q 2012.
Artist impression - subject to change
26 April 2012
Singapore - Ngee Ann City Property
Committed occupancy rates (by NLA)
Lease expiry schedule (by gross rent) as at 31 March 2012 Committed occupancy : 99.0%
– Retail : 100.0% – Office : 97.0%
23
Active lease management– Retail: Achieved full occupancy.
Level 5 is successfully established as a health and beauty cluster
– Office: Negative rental reversions were partially offset by higher occupancy
Note: 1. Includes a master tenancy lease with an option to renew.
(1)
0.7%
89.6%
5.2% 2.7% 1.8%4.4%
41.4% 36.9%
17.3%
0.0%0%
20%
40%
60%
80%
100%
2012 2013 2014 2015 Beyond 2015
Retail Office
100.0% 99.7% 99.7% 100.0% 100.0%95.4% 96.6%
91.8%94.9% 97.0%
50%
60%
70%
80%
90%
100%
31 Mar 11 30 Jun 11 30 Sep 11 31 Dec 11 31 Mar 12
Retail Office
26 April 2012
Ngee Ann City Property - Diversified tenant base
NAC retail trade mix – by % gross rent(as at 31 Mar 2012)
NAC office trade mix – by % gross rent(as at 31 Mar 2012)
24
Toshin85.8%
Beauty & Wellness10.5%
Services3.1%
General Trade0.6%
Fashion Retail24.0%
Petroleum Related21.6%
Beauty/ Health16.4%
Consultancy / Services10.8%
Real Estate & Property Services
7.7%
Others7.3%
Aerospace3.6%
Banking and Financial Services
8.6%
26 April 2012
Both properties are located within the heart of KL’s popular shopping precinct Bukit Bintang
Master leases with a fixed term of 3+3 years with a put and call option by the landlord and master tenant respectively to extend tenancies for further 3 years upon expiry. Payment obligations guaranteed by YTL Corporation Berhad
Diverse tenant mix of international brands including Louis Vuitton, Jaeger LeCoultre, Shiatzy Chen, Zara, Apple & Timberland
Starhill Gallery held its inaugural Starhill Fashion Week from 29 Mar to 1 Apr 2012, a four-day event showcasing the latest offerings from various luxury fashion tenants in Starhill Gallery
A link-bridge to Bukit Bintang Monorail Station is being constructed at Lot 10 and is expected to boost shopper traffic
Malaysia - Starhill Gallery and Lot 10Quality Assets in prime Kuala Lumpur location
25
Two lifestyle destinations targeting trendy and affluent tourists & chic urbanites in Kuala Lumpur
26 April 2012
Malaysia propertiesMacro environment updates
Improved connectivity. Government
recently launched a pedestrian
walkway bridge linking Bukit Bintang
and Kuala Lumpur City Centre (KLCC)
Luxury merchandise duty lifted. High-end retail in KL boosted as the local government lifted duty on luxury merchandise in 2011
FY11 tourism arrivals hit a record of 24.7 million. Increase for the 6th
straight year. FY11 tourism receipts rose 3.2% yoy to RM58.3bn
New MRT Station. Government announced new Sungai Buloh –Kajang Line (SBK) with ~ 51km length which will serve a population catchment of 1.2m. One of the stations is slated to be opposite Lot 10
26Monorail station
Fahreinheit88Retail Mall
KL Pavilion Retail Mall
Sungei Wang Retail Mall
JW Marriot Hotel
Announced “Bukit Bintang West & East” MRT station
Target completion 2016
Likely site for future MRT Station
26 April 2012
As China enters a moderate economic growth phase, the retail market has also softened. Sales growth of 50 major retail operators in 1Q 2012 was 14% lower compared to 1Q 2011*
1Q 2012 NPI decreased 9.2% yoy due to tenants’ remix and renovation as well as competition from newly opened malls
Plans are underway on tenancy works to enhance the tenant mix and retail offerings, and increase advertising and promotional activities. Armani Collezioni is expected to open in 2Q 2012
Quality asset in Chengdu, China
Renhe Spring Zongbei Property -Luxury Mall in Chengdu
Zongbei Monthly Sales Performance
27
Renhe Anniversary Sales
010203040506070
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
RMB Million
Zongbei Monthly Sales Performance
2010 sales turnover 2011 sales turnover 2012 sales turnover
* Source: China Finances Net. 12 April 2012
26 April 2012
David Jones Building –Located in Perth CBD
Freehold prime property in Perth’s CBD with total retail lettable area of 259,154 sq ft
Property is fully occupied and is anchored by David Jones Department Store and six specialty tenants
Long term lease with David Jones expires in 2032 and incorporates an upward only rent review every 3 years with the last review in August 2011
28
Prime stable asset in Perth, Australia
Retail trade mix – by % GLA(as at 31 Mar 2012)
David Jones95.1%
Specialty Tenants
4.9%
26 April 2012
Japan Properties –Located around prime Tokyo districts
Occupancy rates as at 31 Mar 2012
Japan’s economic activity level remains relatively flat due to effects of slowdown in overseas economies and yen appreciation*
Occupancy increased to 96.3% yoy as at 31 Mar 2012 through active lease management. NPI increased
5.7% yoy to S$1.5m
Japan portfolio contributed 4.3% to the Group’s revenue in 1Q 2012
29
Holon L Harajuku Secondo Roppongi Terzo Daikanyama Ebisu Fort Roppongi Primo Nakameguro
* Source: Bank of Japan Monthly Report of Recent Economic and Financial Developments, March 2012
26 April 2012
Agenda
Financial Highlights
Portfolio Performance Update– Singapore– Kuala Lumpur– Chengdu– Perth– Tokyo
Outlook
30
26 April 2012
8,943 9,751
10,285 10,116 9,683
11,642
13,200
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2005 2006 2007 2008 2009 2010 2011
ION Orchard
International Visitor Arrivals
Singapore: Increasing tourist arrivals
Source: Singapore Tourism Board
Visitor arrivals : up 13% yoyTourism receipts: up 17% yoy
Thousands
The Singapore Tourism Board targets 17m visitors and tourism receipts of S$30bn by 2015
Origin of Tourists Arrivals
International Visitor Arrivals:1.Indonesia2.PR China3.Malaysia
31
26 April 2012 32
Singapore: Limited retail supply pipeline in Orchard Road
0
0.2
0.4
0.6
0.8
1
1.2
Orchard Downtown Core Rest of Central Area Fringe Area Outside CentralRegion
2012
2013
2014
2015
Source: URA, CBRE (4Q2011)
Million sqft (Net)
Retail Space Supply to 2015
Orchard Rd retail space supply accounts for only 12.4% of total supply to
2015
New Island-wide retail supply to 2015 of 4.37m sqft New Orchard Road retail supply to 2015 of 0.54m sqft
26 April 2012
Malaysia - Tourism market
Source: UNWTO1 excluding extra-muros visitors 2 excluding Mainland Chinese visitors
Rank Country International tourist arrivals(millions)
1 France 76.82 United States 59.8
3 China 55.7
4 Spain 52.7
5 Italy 43.66 United Kingdom 28.1
7 Turkey 27.0
8 Germany 26.99 Malaysia 24.610 Mexico 22.4
City Country International visitors (millions)
Paris France 15.11
London United Kingdom 14.6New York City United States 9.7Antalya Turkey 9.2
Singapore Singapore 9.2
Kuala Lumpur Malaysia 8.9Hong Kong Hong Kong 8.42
Dubai United Arab Emirates 8.3Bangkok Thailand 7.2
Istanbul Turkey 6.9
33
Malaysia: Top 9 international tourist destination in the world in 2010
Kuala Lumpur: Top 6 most visited cities in the world in 2010
International tourist arrivals by country of destination 2010 Most visited cities by international tourist arrivals 2010
(million) (million)
26 April 2012 34
Growth drivers
Steady organic growth from active asset management, rental reversion and asset enhancementStrong balance sheet with debt headroom
Wisma Atria – Revenue increase from Asset Redevelopment
1Q 2012 2013
Completion
Wisma Atria and Ngee Ann City – Active asset management and ongoing rent reversions
Ngee Ann City – Toshin rental review from Jun 2011
David Jones Building – DJ department store rent review every 3 yrs to 2032 (2011 review completed in August)
2014 and beyond
David Jones Building – Leases with specialty tenants allow for annual upwards rent review
Starhill Gallery and Lot 10 step-up only master tenancy revision
Rental reversion
Asset enhancements
Acquisitions
Toshin’s renewal of master lease
26 April 2012
Summary:Well positioned for the growth
Quality Assets:
Prime Locations
13 mid to high-end retail properties across five countries
- Singapore and Malaysia makes up 85.6% of total assets. China, Australia and Japan account for the balance of the portfolio
Quality assets with strong fundamentals strategically located with high shopper traffic
Strong Financials: Financial Flexibility
Gearing at 30.4% with no major debt refinancing until 2013
S$2 billion unsecured MTN programme
Rated ‘BBB’ by Standard & Poor’s
Developer Sponsor:
Strong Synergies
Strong synergies with the YTL Group, one of the largest companies listed on the Bursa Malaysia with total assets of about US$16 billion
Global presence with track record of success in real estate development and property management
Management Team: Proven Track Record
Demonstrated strong sourcing ability and execution by acquiring 3 quality malls in 2010
- DJ Building (Perth, Australia), Starhill Gallery and Lot 10 (Kuala Lumpur, Malaysia)
Asset redevelopment of Wisma Atria and Starhill Gallery demonstrates the depth of the manager’s asset management expertise
International and local retail and real estate experience
35
26 April 2012 36
References used in this presentation
1Q, 2Q, 3Q, 4Q means the periods between 1 January to 31 March; 1 April to 30 June; 1 July to 30 September; and 1 October to 31 December respectively
CPU means convertible preferred units in Starhill Global REIT
DPU means distribution per unit
FY means financial year for the period from 1 January to 31 December
GTO means gross turnover
IPO means initial public offering (Starhill Global REIT was listed on the SGX-ST on 20 September 2005)
NLA means net lettable area
NPI means net property income
pm means per month
psf means per square foot
WA and NAC mean the Wisma Atria Property (74.23% of the total share value of Wisma Atria) and the Ngee Ann City Property (27.23% of the total share value of Ngee Ann City) respectively
All values are expressed in Singapore currency unless otherwise stated
26 April 2012
Disclaimer
This presentation has been prepared by YTL Starhill Global REIT Management Limited (the “Manager”), solely in its capacity as Manager of Starhill Global Real Estate Investment Trust (“Starhill Global REIT”). A press release, together with Starhill Global REIT’s unaudited financial statements, have been posted on SGXNET on 26 April 2012 (the “Announcements”). This presentation is qualified in its entirety by, and should be read in conjunction with the Announcements posted on SGXNET. Terms not defined in this document adopt the same meanings in the Announcements.
The information contained in this presentation has been compiled from sources believed to be reliable. Whilst every effort has been made to ensure the accuracy of this presentation, no warranty is given or implied. This presentation has been prepared without taking into account the personal objectives, financial situation or needs of any particular party. It is for information only and does not contain investment advice or constitute an invitation or offer to acquire, purchase or subscribe for Starhill Global REIT units (“Units”). Potential investors should consult their own financial and/or other professional advisers.
This document may contain forward-looking statements that involve 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 similar developments, shifts in expected levels of property rental income, changes in operating expenses (including employee wages, benefits and training costs), property expenses and governmental and public policy changes. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager’s view of future events.
The past performance of Starhill Global REIT is not necessarily indicative of the future performance of Starhill Global REIT. The value of Units and the income derived from them may fall as well as rise. The 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 have no right to request that the Manager redeem their Units while the Units are listed. It is intended that unitholders of Starhill Global REIT 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.
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26 April 2012
YTL Starhill Global REIT Management LimitedCRN 200502123C
Manager of Starhill Global REIT
391B Orchard Road, #21-08
Ngee Ann City Tower B
Singapore 238874
Tel: +65 6835 8633
Fax: +65 6835 8644
www.starhillglobalreit.com
