capitamalls malaysia trust...basement 1 – additional area ground floor - additional area increased...
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CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
CapitaMalls Malaysia Trust
Malaysia’s only “pure-play” shopping mall REIT with
an income - and geographically - diversified portfolio
Annual General Meeting
4 April 2013
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Disclaimer
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These materials may contain forward-looking statements that involve assumptions, 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 other
developments, shifts in expected levels of property rental income, changes in operating expenses, including reimbursable staff
costs, benefits and training, property expenses and governmental and public policy changes. 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.
The information contained in these materials has not been independently verified. No representation or warranty expressed 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 these materials. Neither CapitaMalls Malaysia REIT Management Sdn. Bhd. (the “Manager”)
or any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss
howsoever arising, whether directly, from any use, reliance or distribution of these materials or its contents or otherwise arising in
connection with these materials.
The past performance of CMMT is not indicative of the future performance of CMMT. Similarly, the past performance of the
Manager is not indicative of the future performance of the Manager.
The value of units in CMMT (“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 Units is subject to investment risks, including
the possible loss of the principal amount invested. Investors have no right to request the Manager to redeem their Units while the
Units are listed. It is intended that holders of Units may only deal in their Units through trading on Bursa Securities. Listing of the
Units on Bursa Securities does not guarantee a liquid market for the Units.
These materials are for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for Units.
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 3
• Year in Review
• Financial Highlights
• Portfolio Update
• Asset Enhancements
• Customer Engagement & Community
• Looking Forward
Contents
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
4 Year in Review Gurney Plaza, Penang
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 5
Delivering Performance, Scaling New Heights
FY2011: Financial Year ended 31 December 2011
FY2012: Financial Year ended 31 December 2012
162.4
196.0
FY2011 FY2012
Net Property Income (RM million)
7.87 8.44
FY2011 FY2012
Distribution Per Unit (DPU)
2.78 2.94
31-Dec-2011 31-Dec-2012
Portfolio Valuation (RM billion)
7.2% 20.7% 5.6%
118.3
149.1
FY2011 FY2012
Distributable Income (RM million)
26.1%
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Delivering Performance, Scaling New Heights
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Total Return of +30.9%1 During FY2012
Capital Appreciation of 25.0%2 During FY2012
1. Equal to the DPU of 8.44 sen plus capital appreciation of 36 sen during the year divided by the opening unit price at
the beginning of the year of RM1.44.
2. Based on the opening price of RM1.44 on 3 Jan 2012 and the closing price of RM1.80 on 31 Dec 2012.
16-Jul-10, RM0.98 Listed on BMKL
31-Dec-10, RM1.12
30-Dec-11, RM1.44
31-Dec-12, RM1.80
0.90
1.10
1.30
1.50
1.70
1.90
Jul-10 Oct-10 Feb-11 May-11 Aug-11 Nov-11 Mar-12 Jun-12 Sep-12 Jan-13
Unit
Price
(RM)
FP2010 14.3%
FY2011 28.6%
FY2012 25.0%
Capital Appreciation
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
• Occupancy remained high at 98.5%
• 6.4% increase in renewal/new lease rental rate for 2012 lease expiries1
• Gurney Plaza: AEI generated incremental NPI of ~RM1.0 million per annum
• Sungei Wang Plaza: contributed RM17.6 million to fund major upgrading
works to the 35-year old mall2
• Approval obtained for the establishment of a 20-year medium term note
(MTN) programme of up to RM3.0 billion in nominal value
• First issuance3 of 4-year unrated and secured MTNs of RM300.0 million on
20 December 2012
Delivering Performance, Scaling New Heights
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1. Based on the rental of the first year of the renewed/new lease term compared to the preceding rate (last year’s rental of the preceding term).
2. An Extraordinary General Meeting called by SWP Management Corporation to raise a one-off contribution to fund major upgrading works.
RM28.0 million was raised, of which CMMT’s contribution was RM17.6 million.
3. Issued by CMMT MTN Berhad, a wholly-owned subsidiary of CMMT.
Strong Operational Performance
Asset Enhancement Initiatives (AEI)
Optimal Capital Management
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 8 Financial Highlights Sungei Wang Plaza, Kuala Lumpur
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Distribution Statement - 2012 vs 2011
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1. FY 2012 includes the full year financial results of East Coast Mall and Gurney Plaza Extension.
2. Gurney Plaza Extension was acquired in 1Q 2011 (28 March 2011) and East Coast Mall was acquired in 4Q 2011
(14 November 2011).
3. The difference between distributable income and income available for distribution is due to rollover adjustment
for rounding effect of DPU.
N.M. Not meaningful
FY 2012 FY 2011
Actual1
Actual2
Variance
(RM'000) (RM'000) %
Gross revenue 289,216 230,887 25.3
Less: Property operating expenses (93,232) (68,492) 36.1
Net property income 195,984 162,395 20.7
Interest income 3,972 3,063 29.7
Other non-operating income 96 2,305 (95.8)
Fair value gain of investment properties 113,380 68,910 64.5
Net investment income 313,432 236,673 32.4
Manager’s management fee (19,224) (16,286) 18.0
Trust and other expenses (1,472) (1,866) (21.1)
Finance costs (42,271) (38,707) 9.2
Profit before taxation 250,465 179,814 39.3
Taxation - - -
Profit for the period / year 250,465 179,814 39.3
Distribution adjustments (101,186) (61,531) N.M.
Income available for distribution 149,279 118,283 26.2
Distributable income3 149,115 118,258 26.1
DPU (sen) 8.44 7.87 7.2
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
60%
6%
34%
2012
99%
1%
0% 2011
Term Loan Facilities
Unrated Medium Term Notes
Revolving Credit Facilities
Diversified Sources of Funding
2011
RM828.7 million RM873.7 million
Unencumbered Assets as a % of Total Assets
Average Cost of Debt
42.5% 42.0%
2012
Total Borrowings
4.70% 4.69%
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CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
520 450
70
300
300
54
54
Total Borrowings
2013 2016 2017 2018
Term Loan facilities
Unrated Medium Term Notes
Revolving credit facilities
Debt Maturity Profile
Debt Profile as at 31 December 2012
RM million
Fixed 76%
Floating1 24%
Interest Rate Profile
1. Includes short term revolving credit facilities of RM54.0 million
No Near-term Re-financing Risk
874
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CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Firm Balance Sheet
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As at 31 December 2012 RM'mil
Non-current Assets 2,939 NAV (RM'mil)
Current Assets 183 - before income distribution 2,117
Total Assets 3,122 - after income distribution 2,042
Current Liabilities 139
Non-current Liabilities 866 NAV per unit (RM)
Total Liabilities 1,005 - before income distribution 1.20
Net Assets 2,117 - after income distribution 1.15
Total Unitholders' Funds 2,117
Number of Units in Circulation
(in million units) 1,768
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Valuation of Portfolio
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1. The valuations of Gurney Plaza include Gurney Plaza Extension (which was acquired on 28 March 2011).
Previous
Valuation
Current
Valuation
Current
Valuation
(31 Dec 2011) (31 Dec 2012) Variance (per sf of NLA)
RM 'mil RM 'mil (%) (%) RM
Gurney Plaza 1 1,100 1,174 6.7% 6.6% 1,330
Sungei Wang Plaza 792 819 3.4% 6.7% 1,827
The Mines 559 594 6.3% 6.6% 826
East Coast Mall 330 349 5.8% 6.9% 787
Total 2,781 2,936 5.6% 6.7% 1,178
Property
yield
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 14 Portfolio Update
The Mines, Selangor
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 15
FY2012 Operating Metrics Remain Strong
As at 31 December 2010 2011 2012
Gurney Plaza1 98.2% 98.5% 98.1%
Sungei Wang Plaza 98.3% 98.2% 97.7%
The Mines 98.6% 98.8% 98.8%
East Coast Mall 98.9% 99.7%
CMMT Portfolio 98.3% 98.6% 98.5%
1. Includes Gurney Plaza Extension from 2011 onwards.
Positive Rental Reversions of 6.4%
High Occupancy Maintained
Stable Shopper Traffic of 59.9 Million
Occupancy History
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Pan-Mall Events: Super-Dancers 2012
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Grand Finale Winners at Gurney Plaza Super-Dance Contestants at The Mines
Promotional Material Super-Dance Contestants at Sungei Wang Plaza & East Coast Mall
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Pan-Mall Events: My Lovely Mom 2012
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Awards Ceremony at The Mines
Mother and Daughter at Gurney Plaza
Winners at Gurney Plaza Promotional Material Promotional Material
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Pan-Mall Events: Eco-Lantern Making Festival
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Eco-Lanterns
at Gurney Plaza
Eco-Lanterns at The Mines
Promotional Material
Eco-Lanterns
at East Coast Mall
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 19 East Coast Mall, Kuantan Asset Enhancements
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Conversion of car park lots into new shops resulting in:
• Continuous retail activities from 4th floor to 7th floor
• Additional net lettable area of 20,161 sq ft
• Creation of 28 more shops with new rental income
Sectional plan
Images
Gurney Plaza, 2011
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Before AEI
After AEI
Conversion of Car Park Lots at 5th and 6th Floors
Incremental NPI: RM2.4 mil pa Project Cost: RM21.9 mil Return on Investment: 11%
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Gurney Plaza, 2011
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New shops at ground floor’s main entrance Conversion of carpark to new shops at 5th floor and 6th floor
Reconfiguration on Ground, 5th and 6th Floors
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 22
Food
Court
Karaoke
Before AEI
Reconfiguration of the former mini anchor space at
Basement 1 resulting in:
• Better line of sight and accessibility
• Additional net lettable area
• Creation of more shops with higher rental income
After AEI
Access to
GF Main
Entrance
1
Installation of new escalator 1
New shops at Basement 1
Gurney Plaza, 2011 Reconfiguration of Basement 1
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Gurney Plaza, 2012
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Basement 1 – Additional Area
Ground Floor - Additional Area
Increased NLA through removal of Travelator from B1 to Ground Floor &
Construction of a Floor Slab in the Ground Floor Void Area
Incremental NPI: RM1.0 mil pa Project Cost1: RM3.4 mil Return on Investment: 29%
1. The cost of renovation works (general AEI) in 2012 was RM15.8 million
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
After Before
Repositioning Through Refurbishment and Tenant Re-mixing
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Gurney Plaza, 2012
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
• Contributed RM17.6 million1 to fund upgrading works, namely:
- Re-tiling of the common area
- Replacement of the plaster ceiling and lighting fixtures.
• CMMT is also upgrading the floors and ceilings to the atrium and surrounding
corridors, which it owns.
• Timeline: October 2012 to late 2013
Sungei Wang Plaza, 2012
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1. An Extraordinary General Meeting called by SWP Management Corporation to raise a one-off contribution to
fund major upgrading works. RM28.0 million was raised, of which CMMT’s contribution was RM17.6 million.
Before In - Progress
Overall Refurbishment Works
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 26
Before After
Third Floor Reconfiguration Works – New Food Court
Sungei Wang Plaza, 2012
Refurbishment of Restrooms
After Before
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
The Mines, 2012
Storm Water Diversion
In - Progress Before
11kV Cabling Upgrading
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Before In - Progress
Water Utilities Efficiency:
Direct Water Supply From
Syabas
Additional cabling
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 28
East Coast Mall, 2012
Refurbishment of Restrooms Installation of Shopper
Traffic Counters
Replacement of Auto Pay Stations and Car
Park System with Touch N Go
After Before
Installation of New
Chiller, Cooling Tower
Customer Engagement & Community 2012 Biz+ Seminar
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Restaurant
Restaurant
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Corporate Social Responsibility
1. Building and Construction Authority, Singapore (BCA) Green Mark is a green building rating system to evaluate a building
for its environmental design and performance.
Wear Less Day – 30 Mar 2012
• Encouraged shoppers, tenants and staff to dress in
light clothing and turned up the indoor air-
conditioning temperature in CMMT’s malls to save
energy.
Earth Hour 2012 – 31 Mar 2012
• Turned off the facade and non-essential lights in
CMMT’s malls for 10 hours
Green Initiatives
BCA Green Mark1 Gold Certification Achieved
• East Coast Mall: 28 Dec 2012.
• Gurney Plaza: 23 Dec 2011 - first mall in Malaysia
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013* 31
Corporate Social Responsibility
Green Initiatives
Vegetation Wall (1st in Malaysia)
Design is based on LOW CARBON &
ENERGY SAVING SYSTEM
Energy Saving Lights at Car Parks
Rain Water Harvesting
The Mines
The Mines
& Gurney Plaza Gurney Plaza
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
• Second consecutive year
in Malaysia
• School bags containing
school and daily
necessities are given to
underprivileged children.
• Programme was held at
CMMT’s malls with lunch
and entertainment for the
children.
• Funded by CapitaLand
Hope Foundation -
RM120,000 donated to
600 children from 22
charity homes within
Malaysia
Corporate Social Responsibility
Philanthropy – My Schoolbag 2012
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Customer Engagement: 2012 Biz+ Seminar “Staying Connected with Your Customers Digitally”
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Presentations
1. Retail in a Connected World
2. ZMOT (Zero Moment of Truth)
3. Leveraging Social Media Insights for the Retail
Industry
4. Integrated Marketing – Finding the Right Balance
between Traditional and Digital Media Channels
Attended by 230 tenants and 55 staff members
34 Looking Forward
Gurney Plaza, Penang
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
• Positive Retail Outlook Despite Global Economic Uncertainties
– GDP growth 2013(F): 5.0% to 6.0%1
– Retail sales growth 2013(F): 6.0%2
Looking Forward
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CMMT’s Necessity-Focused Malls Should Continue to Prove
Resilient Through Economic Cycles
1. Source: Bank Negara Malaysia, Annual Report 2012
2. Source: Retail Group Malaysia
3. Subject to obtaining regulatory approvals
• Asset Enhancement Initiatives3
East Coast Mall Gurney Plaza
Objective Improve trade mix and add additional
retail space through conversion of some
car park bays on the 3rd floor and
reconfiguration of existing areas
Reconfigure the 4th floor furniture
zone and improve trade mix
Cost (est) Approximately RM60 million Approximately RM8 million
Timeline Mar 2013 to end 2014 Jun 2013 to early 2014
CapitaMalls Malaysia Trust Annual General Meeting *4 April 2013*
Thank You
For enquiries, please contact:
Kimberley Huston
(Investor Relations)
Tel: +60 3 2279 9809
Fax: +60 3 2799 9889
Email: [email protected]
www.capitamallsmalaysia.com
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