CAPITALAND CHINA TRUST CapitaLand China Trust
1Q 2024 Business Updates
24 April 2024
CapitaMall Xizhimen, Beijing, China
Disclaimer
This presentation may contain forward-looking statements. 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, availability of real estate properties, competition from other developments or companies, shifts in customer demands, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses (including employee wages, benefits and training, property operating expenses), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business.
You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management regarding future events. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither CapitaLand China Trust Management Limited ("Manager") nor any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use of, reliance on or distribution of this presentation or its contents or otherwise arising in connection with this presentation.
The past performance of CapitaLand China Trust ("CLCT") is not indicative of future performance. The listing of the units in the CLCT ("Units") on the Singapore Exchange Securities Trading Limited (SGX-ST) does not guarantee a liquid market for the Units. The value of the Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in the 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 or purchase their Units while the Units are listed on the SGX-ST. It is intended that holders of Units may only deal in their Units through trading on the SGX-ST.
This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Units.
Capi t aLand Chi na Tr ust | 1Q 2024 Business Updates | 2 |
Table of Contents
01
Key Highlights
02
Capital Management
03
Portfolio Overview
04
Retail Portfolio
Kunshan Bacheng Logistics Park, Kunshan, China
05
New Economy Portfolio
06
Looking Forward
07
Appendix
Key Highlights
Ascendas Xinsu Portfolio, Suzhou, China
1Q 2024 Key Highlights
RMB (mil) | 1.6% |
9 Retail Malls1 Continue to Lead Recovery
17.4% | 12.6%2 | 3.47% | 40.8% |
Shopper Traffic | Tenant Sales | Stable Cost | Gearing |
(1Q YoY) | (1Q YoY) | of Debt |
475.5 468.1
143.1133.6
332.4334.5
1Q 2023 | 1Q 2024 |
Retail New Economy
Gross Revenue
-
1Q 2024 gross revenue contribution from 9 malls > 1Q
2023's contribution from 11 malls - Excluding CapitaMall Shuangjing and CapitaMall Qibao's contribution in 1Q 2023, Retail Gross Revenue would have increased 5.7% YoY
RMB (mil) | 7.7% |
Asset Class Diversification and Occupancy
Retail | Business Park | Logistics Park |
75.9% by AUM3 | 17.0% by AUM3 | 7.1% by AUM3 |
Occupancy: 97.7% | Occupancy: 90.2% | Occupancy: 67.6%4 |
339.1 313.1
119.393.0
219.8220.1
1Q 2023 | 1Q 2024 |
Retail New Economy
Net Property Income
- NPI for top 5 malls5 increased 9.5% YoY
- Lower contributions from logistics parks and the absence of one-off property tax refund from business parks
Notes:
- Compared to 11 retail malls in 1Q 2023.
- For comparison purposes, normalised operations have been assumed for Carrefour in CapitaMall Grand Canyon for the comparison period.
- Based on effective stake as at 31 December 2023, post completion of CapitaMall Shuangjing's divestment.
- Excluding Shanghai Fengxian Logistics Park, Logistics Park portfolio occupancy would be 88.9%.
- Referring to CapitaMall Xizhimen, Rock Square, CapitaMall Wangjing, CapitaMall Xuefu and CapitaMall Grand Canyon.
NPI in SGD terms declined 11.8% YoY partially due to 4.7% YoY depreciation of RMB to SGD
Capi t aLand Chi na Tr ust | 1Q 2024 Business Updates | 5 |
1Q 2024 Operational Updates
Retail
Retail performance boosted by AEI completed in 2023 at Rock Square, CapitaMall Yuhuating and CapitaMall Grand Canyon and better performance of dominant malls
Steady Occupancy: 97.7%, above market level of 91.1%1 ; Most retail assets ≥ 95.0%
Increased shopper traffic: +17.4% YoY in 1Q 2024, almost
all malls reported YoY double digit increase in shopper traffic. Shopper traffic at Beijing malls has almost reached pre- COVID levels
Improved tenant sales2: Continued to surpass pre-COVID levels in 1Q 2024 (+3.2% vs 1Q 2019; +12.6% vs 1Q 2023)
Business Park
Stable occupancy: 90.2%, above market level of 67.9%1 despite weaker business sentiments and influx of business parks supply entering the market
Leasing: Tailored strategies for each asset, leveraging the unique strengths of each property to attract the most suitable tenants
Logistics Park
Successfully secured leases with key tenants for Kunshan Bacheng Logistics Park (occupancy: 89.7%) and Wuhan Yangluo Logistics Park (occupancy: 99.7%)
Aligned rental rates with current market conditions to maintain competitiveness
Completed Divestment of CapitaMall Shuangjing in 1Q 2024 with Proceeds Used to Pare Down Borrowings and Improve Gearing
Notes:
- Independent Market Research report by Colliers International Consultancy & Valuation (Singapore) Pte Ltd from CLCT Annual Report 2023.
- For comparison purposes, normalised operations have been assumed for Carrefour in CapitaMall Grand Canyon in their respective comparison periods
Capi t aLand Chi na Tr ust | 1Q 2024 Business Updates | 6 |
Capital
Management
Shanghai Fengxian Logistics Park, Shanghai, China
Healthy Financial Position1
31 Mar 2024 | 31 Dec 2023 | |
Total Debt (S$ million) | 1,864.9 | 1,956.4 |
Gearing2 | 40.8% | 41.5% |
Average Cost of Debt3 | 3.47% | 3.57% |
Interest Coverage Ratio (ICR)4 | 3.2x | 3.3x |
Impact to Distribution from Floating Loan Interest Rates Movement
Change in Interest Rates | Distribution Impact | DPU Impact | DPU Impact | |
(p.a) (S$ million)5 | (S cents)6 | (%)7 | ||
SGD loans | + 50 bps | - 1.0 | - 0.06 | - 0.9 |
RMB loans | - 50 bps | + 1.2 | + 0.07 | + 1.0 |
Impact of Cost of Debt Movement on ICR
Change in Cost of Debt | ICR (x) |
+50 bps | 2.8 |
Adjusted ICR4 | 3.0x | 3.1x |
Average Term to Maturity (years) | 3.4 | 3.5 |
Impact of Exchange Rate Movement on Gearing
Movement in SGD/RMB | Gearing (%) |
+/-1% | +/- 0.36 |
Notes:
- All key financial indicators exclude the effect of FRS 116 Leases.
- In accordance with the Property Funds Appendix, the aggregate leverage is calculated based on the proportionate share of total borrowings over deposited properties.
- Ratio of the consolidated interest expense for the respective financial period reflected over weighted average borrowings on balance sheet for that financial period.
- Ratio is calculated by dividing the trailing 12 months EBITDA over the trailing 12 months interest expense (exclude finance lease interest expenses under FRS 116) in accordance with MAS guidelines. Adjusted interest coverage includes the trailing 12 months perpetual securities distributions.
- Impact on the interest expense is based on outstanding SGD floating rate loans (excludes MML) and outstanding RMB loans, respectively.
- Based on 1,704 million units.
- Based on FY 2023 DPU of 6.74 S cents.
Capi t aLand Chi na Tr ust | 1Q 2024 Business Updates | 8 |
Well-Staggered Maturity Profile
No Refinancing Requirements Until 2025
S$ million | Proactively term out RMB loans at lower | |||||||||
500.0 | interest rate to FY 2029 | |||||||||
450.0 | 35.1 | |||||||||
MaturityDebtProfile | March(312024) | 400.0 | 7.5 | 200.0 | ||||||
100.0 | ||||||||||
350.0 | 32.4 | 111.9 | 5.2 | |||||||
300.0 | 150.0 | |||||||||
250.0 | ||||||||||
200.0 | 394.5 | 5.7 | ||||||||
150.0 | 300.0 | 300.0 | ||||||||
50.0 | 18.8 | 150.0 | 9.6 | 119.1 | ||||||
0.0 25.1
2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | Beyond | Total | ||
Total Debt (S$ million) | 43.9 | 332.4 | 419.4 | 429.6 | 355.2 | 155.7 | 9.6 | 119.1 | 1,864.9 | |
% of Total Debt maturing | 2.4% | 17.8% | 22.5% | 23.0% | 19.0% | 8.3% | 0.5% | 6.5% | 100.0% | |
by end of the year | ||||||||||
Unsecured Offshore SGD Loan | Secured Onshore RMB Loan | Unsecured Offshore | RMB Denominated | Notes under MTN | ||||||
Money Market Line | FTZ bonds | Programme |
Note:
1. Excluding RMB onshore loan and MML, the fixed rate ratio would be 88%, increased from 82% in December 2023.
Increased RMB denominated facilities from 20% in Dec 2023 to 23% in Mar 2024
FTZ Bond | |
6% | CCIRS |
Onshore | 4% |
RMB Loan | |
13% | |
SGD MML | Funding |
1% | |
Sources | |
SGD Loans | |
(Floating) | |
11% | SGD |
SGD Bond | Fixed |
Rate Loan | |
8% | 57% |
RMB denominated debt (23%)
SGD denominated debt (77%)
Fixed rate1 (75%)
Floating rate (25%)
Increase Sustainability-Linked Loans from 31% in Dec 2023 to 36% in Mar 2024
Sustainability-
Linked Loans,
Total36%
Debt | Other Loans, |
64% |
Capi t aLand Chi na Tr ust | 1Q 2024 Business Updates | 9 |
Portfolio
Overview
Kunshan Bacheng Logistics Park, Kunshan, China
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Disclaimer
CapitaLand China Trust published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 03:03:05 UTC.
