1q13 investor newsletter en
DESCRIPTION
Investor NewsletterTRANSCRIPT
Request for additional information should be directed to: Customer Relations – Fund Manager www.scbam.com (66) 2949-1500 CPNCG Investor Relations www.cpncg.com (66) 2667-5555
CPN Commercial Growth Leasehold Property Fund (“CPNCG”) was registered on 13 September 2012 and initially invested in parts of The Offices at CentralWorld, comprising of a sublease on part of land and office building which excluded underground areas (B1-B3), parts of G floor, 3rd floor and 6th floor, and the entire 7th floor, 25th floor and 44th floor (“Part 1”) with a total value of Baht 4,390.57 million including fee for registration of sub-leasehold rights of Baht 19.96 million paid on 14 September 2012. Afterwards, on 21 December 2012, CPNCG subleased parts of the office building which consisted of parts of 6th floor, and the entire 7th floor, 25th floor and 44th floor (“Part 2”) with a total value of Baht 369.63 million including fee for registration of sub-leasehold rights of Baht 3.66 million paid on 21 December 2012.
Total income
CPNCG reported total income for 1Q13 of Baht 128.2 million which resulted from rental and service income of Baht 126.9 million and interest income of Baht 1.3 million. The occupancy rate as of 31 March 2013 was 98.8%.
Total expense
Total expense for 1Q13 was Baht 38.7 million which included Baht 23.5 million of cost of rental and service, Baht 1.4 million of selling and administrative expenses as well as other expenses, Baht 7.9 million of property management fee, Baht 4.6 million of interest expenses, and Baht 1.3 million of other management fees and expenses.
SHARE INFO: As of 15 May 2013
Unit Price (Bt) 13.70 Shares Outstanding (mln) 426.6 Market Capital (Bt mln) 5,802.3
NAV (Bt mln) /1 4,771.8 NAV per Unit (Bt) /1 11.1845 Premium/ (Discount) /1 22.49%
Note: /1 NAV as of 31 March 2013
1Q13 Investor Newsletter CPN Commercial Growth Leasehold Property Fund
16 May 2013 Prepared by Central Pattana Public Company Limited, CPNCG Property Manager
CONTENTS MD&A 1 Financial Summary 3 Operation summary 4 Fund Information 5
CPN Commercial Growth Leasehold Property Fund 1Q13 Investor Newsletter
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Net investment income and distribution
Net investment income for 1Q13 totaled up to Baht 89.5 million. CPNCG announced distribution of Baht 82.8 million or Baht 0.1941 per unit. This results in an approximated annualised yield of 5.7% at the unit price of Baht 13.70 as at 15 May 2013. The XD Date was 3 May 2013, followed by the Book Closure Date on 9 May 2013 and distribution payments will be made on 22 May 2013.
Profitability
Net property income margin for 1Q13 was 74.1% and net investment income margin was 70.5%.
Statement of financial position
As of 31 March 2013, CPNCG reported total investment in properties of Baht 5,041.0 million. Net Asset Value (“NAV”) was recorded at Baht 4,771.8 million or Baht 11.1845 per unit as at 31 March 2013.
CPN Commercial Growth Leasehold Property Fund 1Q13 Investor Newsletter
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FINANCIAL SUMMARY
Income Statement
Property income 126.9 140.3 Rental and service income 126.9 140.3 Other income 0.0 0.0
Interest income 1.3 1.6 Total income 128.2 141.9 Property expenses 32.8 31.8
Cost of rental and service 23.5 20.7 Selling and administrative expenses 1.4 1.8 Property management fee 7.9 9.2 Other expenses 0.0 0.0
Interest expense 4.6 0.6 Other management fees and expenses 1.3 1.6 Total expense 38.7 33.9 Net investment income 89.5 108.0 Net realised gain (loss) from changes in investment value 0.2 0.0 Net unrealised gain (loss) from changes in investment value 280.7 (0.0) Net increase in net assets from operations 370.4 108.0 Income available for distribution 89.5 108.0 Distribution 82.8 100.9 Distribution per unit (in Baht) 0.1941 0.2366 Net property income margin 74.1% 77.4%Net investment income margin 70.5% 77.0%
13 Sep 12 -31 Dec121Q13Unit: Baht Million
Source: CPNCG. Based on interim financial statements and review reports of Certified Public Accountant for 1Q13 and annual financial statements and audit report of Certified Public Accountant for the period of 13 September 2012 to 31 December 2012
Statement of Financial Position
Investment at fair value 4,999.6 5,268.2 The offices@CentralWorld 4,760.2 5,041.0 Investment in securities 239.4 227.2
Cash on hand and at banks 29.2 30.1 Other assets 13.3 18.8 Total assets 5,042.2 5,317.1 Deposits received from customers 159.5 161.0 Borrowing 370.0 370.0 Other liabilities 10.4 14.4 Total liabilities 539.9 545.3 Net Asset 4,502.3 4,771.8 Capital received from unitholders 4,394.4 4,394.4 Retained earnings 107.9 377.4 NAV per unit (in Baht) 10.5529 11.1845
1Q13Unit: Baht Million 13 Sep 12 -31 Dec12
Source: CPNCG. Based on interim financial statements and review reports of Certified Public Accountant for 1Q13 and annual financial statements and audit report of Certified Public Accountant for the period of 13 September 2012 to 31 December 2012
CPN Commercial Growth Leasehold Property Fund 1Q13 Investor Newsletter
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OPERATIONS SUMMARY
I. Leasable Area and Occupancy Area (sqm) Occupancy Rate
Gross Area Leasable Area 31 Dec 12 31 Mar 13 The Offices @ CentralWorld 121,989 80,646 98.5% 98.8% CPNCG 121,989 80,646 98.5% 98.8%
Source: CPN
II. Renewals and New Leases
From 1 January to 31 March 2013 /1
Renewals and New Leases Increase / (Decrease) in Rental Rates (p.a.) /3 No. of Leases Area (sqm) % of Total /2
The Offices @ CentralWorld 6 1,671.28 2.1% 27.1 % CPNCG 6 1,671.28 2.1% 27.1%
Note: /1 Exclude rental agreements < 1 year /2 Percentage of leasable area as at 31 March 2013 /3 Exclude rental agreements with revenue sharing clause Source: CPN
III. Lease Expiry Profile
1%
12%
43%
43%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
The Offices @ CentralWorld
Apr - Dec 2013
2014
2015
2016
Note: 1. Percentage of total occupied area as at 31 March 2013 2. Exclude rental agreements < 1 year Source: CPN
CPN Commercial Growth Leasehold Property Fund 1Q13 Investor Newsletter
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ABOUT CPNCG
I. Fund Information
II. Fund Structure
Name CPN Commercial Growth Leasehold Property Fund (“CPNCG”)
Property Manager Central Pattana Public Company Limited (“CPN”)
Fund Manager SCB Asset Management Company Limited
Trustee Kasikorn Bank Public Company Limited
Registrar Siam Commercial Bank Public Company Limited
Assets The Offices at CentralWorld Type Property Fund Type I (Indefinite Life)
Total Fund Size Baht 4,394 million
Fund Registered Date 13 September 2012
Fund Investing Date
(Initial Investment)
14 September 2012 for The Offices at CentralWorld Part 1
21 December 2012 for The Offices at CentralWorld Part 2
Fund Listed Date 21 September 2012
Secondary Market The Stock Exchange of Thailand (“SET”)
CPN Commercial Growth Leasehold Property Fund 1Q13 Investor Newsletter
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DISCLAIMERS
• The information contained in this document is for information purposes only and does not constitute an offer or invitation to sell or the solicitation of an offer or invitation to purchase or subscribe for units in CPN Commercial Growth Leasehold Property Fund (“CPNCG” and units in CPNCG, “Units”) in any jurisdiction nor should it or any part of it form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.
• This document may include information which is forward-looking in nature. Forward-looking information involves known and unknown risks, uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which CPNCG operates and general achievement of CPNCG business forecasts, which will cause the actual results, performance or achievements of CPNCG to differ, perhaps materially, from the results, performance or achievements expressed or implied in this document.
• This document has been prepared by the CPNCG Property Manager. The information in this document has not been independently verified. No representation, warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this document. None of the CPNCG Property Manager or CPNCG Fund Manager or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.
• This document is made, furnished and distributed for information purposes only. No part of this document shall be relied upon directly or indirectly for any investment decision-making or for any other purposes.
• This document and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws.