CapitaLand China Trust : Presentation Slides (7882 KB)

CapitaLand China Trust

SGX-TWSE Singapore REITs Investment Conference

CapitaMall Xizhimen, Beijing, China

16 May 2024

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.

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SGX-TWSE Singapore REITs Investment Conference 2

Table of Contents

01	05
Overview of CLCT	Looking Forward

02

1Q 2024 Business

Updates

03

Capital Management

04

Portfolio Overview

Kunshan Bacheng Logistics Park, Kunshan, China

Overview of CLCT

Ascendas Xinsu Portfolio, Suzhou, China

Diversified and Resilient Portfolio

First and Largest China-FocusedS-REIT

Total Assets1	No. of Properties
S$5.0 billion	18
Located in	Retail Contribution to AUM2
12 cities	75.9%
Market Cap3	Distribution Yield4
S$1.2 billion	9.8%

Notes:

* Number of properties indicated for cities with more than one property in the same asset class.

1. As at 31 December 2023.
2. Based on effective stake as at 31 December 2023, post completion of CapitaMall Shuangjing's divestment
3. As at 10 May 2024.
4. Based on FY 2023 DPU of 6.74 S cents and unit price of S$0.685 as at 10 May 2024.

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Building a Strong Foundation While Embracing New Opportunities

Aligned with China's Long-Term Focus on Domestic Consumption and Innovation-Driven Growth:

• Expanded investment mandate in 2020
• Disciplined portfolio reconstitution and rejuvenation to increase resilience & diversification
• Total Acquisition and Divestment Value from 2017 - 2023: S$3.1 billion1

2019	Retail Pureplay
2020	+Business Parks
2021	+Logistics Parks
2022 -	Portfolio Optimisation
2023	Conducted strategically timed AEIs, and ceased operations at CapitaMall Qibao which resulted in
	operational cost savings
2024	Divested CapitaMall Shuangjing
	Unlocked value of mature mall, improving financial flexibility to pursue more portfolio reconstitution
	initiatives

Note:

1. Based on effective stake as at 31 December, which includes any acquisitions and divestments that were announced during the respective year.

Divested 7 non-core and matured assets

since listing, including

6 out of 7 IPO assets

and pursued new growth

with capital recycled

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Disciplined Value Creation through Market Cycles

Delivering Steady and Sustainable Unitholder Returns

Net Property Income											Distributable Income											DPU
(S$ million)													(S$ million)													(Cents)
300															160														12
												250.4	254.2	246.7	140												135.5
250																											10
																											125.6
															120										106.6				113.9
200																								99.7				8
														100
										165.4										89.2	86.7	91.1
								149.2												80.9
150						141.1	139.7	147.4		135.2				80										79.7			6
				132.4									66.8	70.1
			99.7	103.0											60	52.2	57.2
100		85.8																								4
77.2
															40
50															20														2
0															0															0
FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY
		FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY
2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023		2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023

2024

Focus:

Note:

1. Time period for CAGR Calculation is from 2010 to 2023.

Driving asset	Reconstitution	Enhancing financial
performance	of portfolio	management

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Attractive Yield Spread and Improved Trading

Liquidity

Comparative Yields (as at 30 April 2024)

Average

CLCT1

FSTREI Yield 2

FSTRE Yield 3

STI Yield 4

China 10-year Govt Bond Yield 5

Singapore 10-year Govt Bond Yield 5

5.6%

5.4%

4.9%

2.3%

3.5%

10.1%

4.5%

4.7 %

5.2%

7.8%

6.6%

1 year6

10 year7

IPO8

Trading Volume (Units per Day)

~3.1 million

~2.4 million

~2.0 million

Sources: Bloomberg, CLCTML, Monetary Authority of Singapore.

1. Based on FY 2023 DPU of 6.74 S cents and unit price of S$0.665 as at 30 April 2024.
2. Trailing 12-months dividend yield of Straits Times REIT Index as at 30 April 2024 closing price.
3. Trailing 12-months dividend yield of Straits Times Real Estate Index as at 30 April 2024 closing price.
4. Trailing 12-months dividend yield of Straits Times Index stocks as at 30 April 2024 closing price.
5. Singapore Government 10-year and China Government 10-year bond yields as at 30 April 2024.

Source: Bloomberg

1. 1 year refers to 2 May 2023 to 30 April 2024.
2. 10 year refers to 2 May 2013 to 30 April 2024.
3. Since IPO to 30 April 2024.

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1Q 2024 Business Updates

Singapore-Hangzhou Science & Technology Park Phase I, Hangzhou, 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:

1. Compared to 11 retail malls in 1Q 2023.
2. For comparison purposes, normalised operations have been assumed for Carrefour in CapitaMall Grand Canyon for the comparison period.
3. Based on effective stake as at 31 December 2023, post completion of CapitaMall Shuangjing's divestment.
4. Excluding Shanghai Fengxian Logistics Park, Logistics Park portfolio occupancy would be 88.9%.
5. 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

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