Starhill Global Real Estate Investment Trust : REIT 1Q FY2023/24 Business Updates

1Q FY 2023/24 Business Updates

27 October 2023

 Singapore  Australia  Malaysia  Japan  China

Contents

• Overview and Key Highlights
• Portfolio Updates
• Market Outlook

2

Overview and Key Highlights

Ngee Ann City Singapore

Overview of Starhill Global REIT

Prime retail portfolio in key Asia Pacific cities

Quality Assets

• Portfolio of ~S$2.8 billion
• 9 mid- to high-endpredominantly retail properties in six Asia Pacific cities

Strategic Locations

• Landmark assets at prime locations
• Excellent connectivity to transportation hubs
• Appeals to both local and international brands

Diversified Portfolio

• Core markets: Singapore, Australia, Malaysia
• Contribution to 1Q FY23/24 revenue:
  Retail (~85%) & Office (~15%)

Strong Sponsor

• YTL Group owns ~37.8% of SGREIT
• Has a combined market capitalisation of US$8.5 billion(1)

Income Visibility

• Master/anchor leases with periodic rental reviews make up ~52.5% of gross rent(2)
• Committed portfolio occupancy of 98.4%(2)

Healthy Financials

➔ "BBB" credit rating by

Fitch Ratings(3)

➔ Gearing of 37.4%(2) and

weighted average debt

maturity of 3.1 years(2)

➔ Component stock of

FTSE EPRA NAREIT

Notes:

1. Market capitalisation of YTL Corporation Berhad and its listed entities in Malaysia, as at 30 September 2023.
2. As at 30 September 2023.
3. Placed on rating watch negative following the Myer arbitration announcement in March 2023.

Global Developed Index

4

Key Highlights for 1Q FY23/24

Financial

Performance

Gross Revenue

S$47.1 million

-1.0%y-o-y

Net Property Income

S$37.4 million

0.4% y-o-y

Note:

1. Based on committed leases as at reporting date.

Resilient

Operational Performance

Committed

Portfolio Occupancy

98.4%(1)

as at 30 Sep 2023

Long WALE

6.3 years(1)

by NLA

Expiring leases by gross rent in FY23/24

10.8%(1)

as at 30 Sep 2023

Prudent

Capital Management

Gearing

37.4%

as at 30 Sep 2023

Staggered Debt Maturity Profile averaging

3.1 years

Sufficient undrawn long- term committed revolving credit facility (RCF) lines to cover the

remaining debts

maturing in the next two years

5

Key Highlights for 1Q FY23/24

Financial Highlights

• Revenue was lower by 1.0% y-o-y, resulting mainly from foreign exchange weakness and the loss of income from Japan divestment
• Net property income for 1Q FY23/24 rose 0.4% y-o-y, mainly due to higher contributions from Singapore Properties and Myer Centre Adelaide Retail

Portfolio Performance

• Next phase of Wisma Atria asset enhancement works in the basement has commenced and is expected to complete in March 2024. Mall remains operational without any major disruptions to retail business and operations
• Tenant sales and shopper traffic at the Wisma Atria Property improved by 14.5% and 6.5% y-o-y respectively, despite the commencement of renovation works in the basement in August 2023
• Higher committed portfolio occupancy of 98.4% as at 30 September 2023

Capital Management

• In September 2023, SGREIT extended its existing unsecured JPY2 billion term loan for another 3 years from September 2024
• Gearing stands at 37.4%; Weighted average debt maturity of 3.1 years; 77% of borrowings are fixed/hedged as at 30 September 2023
• No term debt refinancing requirements until September 2024. SGREIT has sufficient undrawn long-term committed RCF lines to cover remaining debts maturing in the next two years

6

1Q FY23/24 Financial Performance

$ million

Gross Revenue

-1.0%y-o-y

		47.6(1)	47.1(1)
50		1.0	0.7
		7.4	6.9
40		10.5	10.2
30		12.7	12.9	million
20					$
10		15.9	16.3
0
	1Q FY22/23	1Q FY23/24
Ngee Ann City Property		Wisma Atria Property
Malaysia Properties		Others

Net Property Income (NPI)

0.4% y-o-y

50

	37.2(1)	37.4(1)
40			0.6
0.8
	7.2	6.7
30			6.8
6.6
20			9.9
9.7
10			13.3
13.0
0
	1Q FY22/23		1Q FY23/24

Australia Properties

Variance in NPI y-o-y in 1Q FY23/24:

• Mainly due to higher contributions from Singapore Properties and Myer Centre Adelaide Retail
• Partially offset by depreciation of foreign currency and loss of income from Japan divestment

Note:

1. Total does not add up due to rounding.

7

Staggered Debt Maturity Profile Averaging 3.1 years

$ million			Debt maturity profile
	As at 30 September 2023
300
			*		* Peak maturity 24%
			5
				of total debt and 9%
250
				of total assets
200
					18(2)
				88
150		96
					56	125
			250
100
				70	50
50		100
					60	75
				50
23(1)
0			FY25/26(7)
FY23/24	FY24/25	FY26/27	FY27/28	FY28/29
S$250m term loan	S$60m term loan	S$50m term loan	S$50m term loan
S$75m term loan	S$70m MTN	S$100m MTN	S$125m MTN
A$100m term loan	A$63m term loan	RM330m MTN	JPY2b term loan
JPY0.5b bond		S$23m RCF

Financial Ratios	30 Sep 2023
Total debt	$1,066 million
Gearing	37.4%
Interest cover (3)	3.3x
Adjusted interest cover (4)	3.0x
Average interest rate p.a.(5)	3.81%
Unencumbered assets ratio	86%
Fixed/hedged debt ratio (6)	77%
Weighted average debt maturity	3.1 years

Notes:

1. Comprises of short-term RCF drawn down as at 30 September 2023, for working capital purposes.
2. In September 2023, the Group extended the existing unsecured JPY2 billion term loan for another 3 years from September 2024, thereby extending the new maturity date to September 2027.
3. Interest cover ratio computed based on trailing 12 months interest expenses as at 30 September 2023.
4. The adjusted interest cover ratio takes into account the distribution on perpetual securities as at 30 September 2023.
5. Includes interest rate derivatives and benchmark rates but excludes upfront costs.
6. Includes interest rate swaps.
7. Excludes $100 million perpetual securities (classified as equity instruments) issued in December 2020 with the first distribution rate reset falling on 15 December 2025 and subsequent resets occurring every five years thereafter.

8

Portfolio Updates

Wisma Atria Singapore

Balance of Master / Anchor Leases and Actively-Managed Leases

• Master leases and anchor leases, incorporating periodic rental reviews, represent approximately 52.5% of gross rent as at 30 September 2023
• Provide income and occupancy stability for the portfolio

Master leases / anchor leases, with periodic rent reviews,

Actively-	52.5%(2)
managed
leases,
47.5%

Notes:

1. Assuming that the option to renew for the third three-year term for Lot 10 Property is exercised.
2. Excludes tenants' option to renew or pre-terminate.

Key tenants include:

Ngee Ann City Property Retail (Singapore)

The Toshin master lease expires in June 2025.

The Starhill & Lot 10 Property (KL, Malaysia) New master tenancy agreements expiring in December 2038 and June 2028(1) for The Starhill and Lot 10 Property respectively, with periodic rental step-ups.

Myer Centre (Adelaide, Australia)

Anchor lease expires in 2032 and provides for an annual rent review.

David Jones Building (Perth, Australia)

Anchor lease expires in 2032 and provides for upward- only rent review every three years. A rental uplift was secured in August 2023.

10