4Q 2014 Financial Results - listed company · 4 CapitaMalls Malaysia Trust 4Q 2014 Financial Results 20 January 2015 4Q 2014 Highlights Distribution Per Unit ―4Q 2014: 2.26 sen

0 CapitaMalls Malaysia Trust 4Q 2014 Financial Results *20 January 2015*

CapitaMalls Malaysia Trust 4Q 2014 Financial Results

20 January 2015

1 CapitaMalls Malaysia Trust 4Q 2014 Financial Results *20 January 2015* CapitaMalls Malaysia Trust 4Q 2014 Financial Results *20 January 2015*

Disclaimer 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.


Contents

● Key Highlights

● Financial Results

● Portfolio Update

● Improvement Works & New Initiatives


Key Highlights

Gurney Plaza, Penang, Malaysia


4Q 2014 Highlights

● Distribution Per Unit

―4Q 2014: 2.26 sen (4Q 2013: 2.24 sen), up 0.9% y-o-y

―FY 2014: 8.91 sen (FY 2013: 8.85 sen), up 0.7% y-o-y

● Net Property Income (“NPI”)

―4Q 2014: RM54.6 mil (4Q 2013: RM54.8 mil), down 0.4% y-o-y

―FY 2014: RM208.9 mil (FY 2013: RM208.6 mil), up 0.1% y-o-y

● Asset Enhancement Initiatives

―Steady performance of the portfolio was mainly due to

contribution from East Coast Mall, which had completed a

two-phase asset enhancement programme.


4Q 2014 Highlights (Cont’d)

● Sungei Wang Plaza’s NPI continued to be affected by

ongoing Mass Rapid Transit (“MRT”) works nearby in the short

term. The new MRT station is expected to become operational

in 2017.

● Revaluation of Portfolio from RM3.18 billion to RM3.23 billion

―Net asset value1 per unit increased by 3.7% from RM1.1974

to RM1.2420.

● Final Income Distribution of 4.38 sen per unit for the period 1

July 2014 to 31 December 2014

1 After income distribution


4Q 2014 DPU at 2.26 sen

4Q 2014 4Q 2013 FY 2014 FY 2013

Actual Actual Variance Actual Actual Variance

(Unaudited) (Unaudited) % (Unaudited) (Audited) %

Distributable Income (RM'000) 40,205 39,766 1.1 158,375 156,789 1.0

DPU (sen) 2.26 2.24 0.9 8.91 8.85 0.7

DPU (sen) - annualised 8.97 8.89 0.9 8.91 8.85 0.7

Distribution yield (%) 6.27 6.35 (1.3) 6.23 6.32 (1.4)

(Based on market price of RM1.43 on 31

December 2014 and RM1.40 on 31 December

2013)

Distribution yield (%) 6.27 6.54 (4.1) 6.23 6.51 (4.3)

(Based on market price of RM1.43 on 19 January

2015 and RM1.36 on 22 January 2014)


Final Income Distribution for 2014

1. 4.24 sen per unit is taxable and 0.14 sen per unit is non-taxable in the hands of unitholders.

Distribution period

Distribution per unit (sen)

Distribution timetable

Notice of book closure date

Last day of trading on cum basis

Ex-date

Book closure date

Distribution payment date

1 July to 31 December 2014

4.38 1

20 January 2015 (Tue)

29 January 2015 (Thu)

30 January 2015 (Fri)

5 February 2015 (Thu)

27 February 2015 (Fri)


Financial Results

Sungei Wang Plaza, Kuala Lumpur, Malaysia


Distribution Statement – 2014 vs 2013

1. The difference between distributable income and income available for distribution is due to rollover adjustment for

rounding effect of DPU.

N.M. Not meaningful

4Q 2014 4Q 2013 FY 2014 FY 2013

Actual Actual Variance Actual Actual Variance

RM'000 (Unaudited) (Unaudited) % (Unaudited) (Audited) %

Gross revenue 80,292 78,802 1.9 315,395 305,104 3.4

Less: Property operating expenses (25,738) (24,006) 7.2 (106,493) (96,497) 10.4

Net property income 54,554 54,796 (0.4) 208,902 208,607 0.1

Interest income 1,148 1,076 6.7 4,624 4,309 7.3

Fair value gain of investment

properties18,405 3,299 >100 86,611 81,203 6.7

Net investment income 74,107 59,171 25.2 300,137 294,119 2.0

Manager’s management fee (5,386) (5,275) 2.1 (20,741) (20,294) 2.2

Trust and other expenses (429) (2,124) (79.8) (1,742) (3,274) (46.8)

Finance costs (10,717) (9,922) 8.0 (41,299) (40,891) 1.0

Profit before taxation 57,575 41,850 37.6 236,355 229,660 2.9

Taxation - - - - - -

Profit for the period 57,575 41,850 37.6 236,355 229,660 2.9

Distribution adjustments (17,302) (2,140) N.M. (77,890) (72,858) N.M.

Income available for distribution 40,273 39,710 1.4 158,465 156,802 1.1

Distributable income1 40,205 39,766 1.1 158,375 156,789 1.0

DPU (sen) 2.26 2.24 0.9 8.91 8.85 0.7


72,175

42,435

71,725

118,769

305,104

67,227

45,846

79,736

122,586

315,395

0 100,000 200,000 300,000 400,000

Sungei Wang

Plaza

East Coast Mall

The Mines

Gurney Plaza

CMMT Portfolio

RM'000

FY 2014 Actual

FY 2013 Actual

FY 2014 Gross Revenue

- Increased by 3.4% vs 2013

Mainly due to:-

• contribution from East Coast Mall ,

which had completed a two-phase

asset enhancement programme

• onselling of electricity to tenants

(TM)

• higher gross rental rates achieved

from new and renewed leases

(except SWP)


16,338

16,613

27,370

36,176

96,497

18,052

17,954

31,178

39,309

106,493

0 50,000 100,000 150,000

Sungei Wang

Plaza

East Coast Mall

The Mines

Gurney Plaza

CMMT Portfolio

RM'000

FY 2014 Actual

FY 2013 Actual

FY 2014 Property Operating Expenses


Mainly due to:-

• increase in property assessment fees

(except TM)

• hikes in electricity tariff and

renewable energy surcharge

• higher electricity consumption

• higher administrative and

reimbursable staff costs


FY 2014 Net Property Income


55,837

25,822

44,355

82,593

208,607

49,175

27,892

48,558

83,277

208,902

0 100,000 200,000 300,000

Sungei Wang

Plaza

East Coast Mall

The Mines

Gurney Plaza

CMMT Portfolio

RM'000

FY 2014 Actual

FY 2013 Actual


Floating

31%

Fixed

69%520 450

70

300

300

145

145 0

200

400

600

800

1,000

1,200

Total Borrowings

2014 2016 2017 2018

RM'mil Term Loan facilities

Unrated Medium Term Notes

Revolving Credit facilities

Debt Profile (As at 31 December 2014)

Debt Maturity Profile Interest Rate Profile

1. Includes short term revolving

credit facilities of RM145.4 million

1

965


Key Financial Indicators

4Q 2014 3Q 2014

Unencumbered assets as % of total assets 40.4% 40.4%

Gearing ratio 29.0% 28.9%

Net debt / EBITDA (times) 5.0 5.3

Interest coverage (times) 4.7 4.4

Average term of maturity (years) 2.0 2.3

Average cost of debt 4.35% 4.34%


Firm Balance Sheet

1

As at 31 December 2014 RM'mil

Non-current Assets 3,235 NAV (RM'mil)

Current Assets 170 - before income distribution 2,287

Total Assets 3,405 - after income distribution 2,209

Current Liabilities 249

Non-current Liabilities 869 NAV per unit (RM)

Total Liabilities 1,118 - before income distribution 1.29

Net Assets 2,287 - after income distribution 1.24

Total Unitholders' Funds 2,287

Number of Units in Circulation (in

million units)1,779


Valuation of Portfolio

1

Previous

Valuation

Current

Valuation Property Current

Valuation

(30 Jun 2014) (31 Dec 2014) Variance yield (per sf of NLA)

RM 'mil RM 'mil (%) (%) RM

Gurney Plaza 1,275 1,295 1.6 6.4 1,459

Sungei Wang Plaza 839 824 (1.8) 6.0 1,838

The Mines 670 680 1.5 7.1 946

East Coast Mall 392 434 10.7 6.4 894

Total 3,176 3,233 1.8 6.5 1,273


Portfolio Update

The Mines, Selangor, Malaysia


Positive Rental Reversion

From 1 January 2014 to 31 December 2014 1

No. of new leases/renewals

Var. over preceding rental2, 3, 4

(%)

Gurney Plaza 135 +5.3

The Mines 139 +10.4

East Coast Mall 36 +12.0

Sungei Wang Plaza 83 -9.3

CMMT Portfolio 393 +2.9

1. Excluding newly created and reconfigured units.

2. Excluding gross turnover rent component.

3. Majority of leases have rental escalation clause.

4. The % is computed based on the increase in the 1st year rental of the renewed term over last year rental of the preceding term.


Portfolio Lease Expiry (By Year)

1. Based on all committed leases as at 31 December 2014.

2. As percentage of total gross rental income for the month of December 2014.

As at 31 December 2014

CMMT Portfolio

No of Leases1 Gross Rental Income

RM’000 % of Total (Dec’14)2

2015 513 6,164 29.5%

2016 375 6,198 29.7%

2017 382 7,910 37.8%

Beyond 2017 21 634 3.0%


Portfolio Lease Expiry Profile for 2015

1. Based on total committed leases as at 31 December 2014.

2. Based on total committed NLA as at 31 December 2014. 3. Based on total committed monthly gross rental income as at 31 December 2014.

As at 31 December 2014

No. of Leases1

Net Lettable Area Gross Rental Income

Sq ft % of total2 RM’000 % of total 3

Gurney Plaza 111 121,999 4.9% 1,527 7.3%

The Mines 187 357,334 14.4% 2,559 12.2%

East Coast Mall 46 68,556 2.8% 494 2.4%

Sungei Wang Plaza 169 147,628 5.9% 1,584 7.6%

CMMT Portfolio 513 695,517 28.0% 6,164 29.5%


Occupancy Rate Remains Stable

1Q 2014 2Q 2014 3Q 2014 4Q 2014

31 March 141 30 June 141 30 September 141 31 December 141

Gurney Plaza 97.5% 98.0% 96.9% 97.3%

The Mines 99.4% 99.7% 99.4% 98.5%

East Coast Mall 100.0% 98.5% 99.3% 99.5%

Sungei Wang Plaza

97.3% 97.4% 95.9% 95.4%

CMMT Portfolio 98.5% 98.4% 97.9% 97.7%

1. Based on committed leases.


Note:

Shopper traffic and vehicular traffic statistics include East Coast Mall.

Shopper Traffic Remains Stable

Shopper Traffic

3.7% higher than FY 2013 0.6% lower than FY 2012

59,875

57,388

59,526

50,000

52,000

54,000

56,000

58,000

60,000

62,000

FY'12 FY'13 FY'14

Shopper Traffic ('000)

Shopper Traffic

1.6% higher than 4Q 2013 1.1% lower than 4Q 2012

15,299 14,882

15,126

10,000

11,000

12,000

13,000

14,000

15,000

16,000

4Q'12 4Q'13 4Q'14

Shopper Traffic ('000)


Note:

Shopper traffic and vehicular traffic statistics include East Coast Mall.

Vehicular Traffic Remains Stable

Vehicular Traffic

4.0% lower than FY 2013 4.7% lower than FY 2012

Vehicular Traffic

3.8% lower than 4Q 2013 6.9% lower than 4Q 2012

1,937 1,876

1,804

500

800

1,100

1,400

1,700

2,000

4Q'12 4Q'13 4Q'14

Vehicular Traffic ('000)

7,464 7,414

7,115

5,000

5,500

6,000

6,500

7,000

7,500

FY'12 FY'13 FY'14

Vehicular Traffic ('000)


Improvement Works & New Initiatives

East Coast Mall, Kuantan, Malaysia


Gurney Plaza Ground Floor – Asset Enhancement Initiatives

• Reconfigured and increased retail space for existing tenants • Introduced Marks & Spencer as mini anchor tenant for the new wing

AFTER

BEFORE


Gurney Plaza

Ground Floor – Asset Enhancement Initiatives

Newly renovated units New brands in Penang


Gurney Plaza

Installation of Secondary Chilled Water Pumps

Variable Speed Drives (VSD)

Digital Directories

• Installation of digital directories

for shoppers’ convenience and

better shopping experience • Installation of secondary

chilled water pumps VSD for

energy saving


Gurney Plaza

Replacement of

AHU Cooling Coils

Upgrading of

AHU Motorised Valves

BEFORE

AFTER

AFTER

BEFORE

Replacement of PA System

Upgrading of

Digital Video Recording

BEFORE

AFTER

BEFORE

AFTER


• New standardised car park signages

Sungei Wang Plaza

New Car Park Signages

BEFORE AFTER


• Replacement of new chiller

for better operational

efficiency

The Mines

Replacement of New Chiller

• Replacement of AHU cooling

coils for better distribution of air

flow

Replacement of

AHU Cooling Coils

AFTER

BEFORE


East Coast Mall

B

E

F

O

R

E

Asset Enhancement Initiatives (“AEI”) - External Facade

• Upgrading of external facade – new logo and facade cladding

A

F

T

E

R

Day view Night view


• Upgrading of main entrance of the mall

East Coast Mall

B

E

F

O

R

E

AEI - Ground Floor Reconfiguration

A

F

T

E

R


East Coast Mall AEI - Ground Floor Reconfiguration

• Reconfiguration of existing alfresco dining area and open car park

Alfresco Dining Area

Open Car Park – Maximised usage of space by realigning the

car park bays


East Coast Mall AEI - Reconfiguration of Internal Units

• New brands in Kuantan


Achievement and Recognition

• Gurney Plaza was awarded the “Best Shopping Experience:

Excellence Award” on 29 October 2014

Gurney Plaza – Best Shopping Experience

Excellence Award Winner


• The Mines received the

Green Mark’s Gold

certification from

Singapore’s Building and

Construction Authority (BCA)

on 11 December 2014

• BCA Green Mark is a green

building rating system to

evaluate a building for its

environmental design and

performance

The Mines – BCA Green Mark Award (GOLD)

Achievement and Recognition


My Schoolbag 2014

• A key CSR programme of CapitaLand

• Held between 27 November and 12 December 2014 and

benefited 600 underprivileged children from 30 homes in Kuala

Lumpur, Selangor, Kuantan, Penang and Kedah

• 130 volunteers from the malls and the Manager

Corporate Social Responsibility (“CSR”) - My Schoolbag 2014

38 CapitaMalls Malaysia Trust 4Q 2014 Financial Results *20 January 2015*

Thank You

For enquiries, please contact:

Jasmine Loo

(Investor Relations)

Tel: +60 3 2279 9873

Fax: +60 3 2279 9889

Email: [email protected]

www.capitamallsmalaysia.com

Documents

4Q 2014 Financial Results - listed company · 4 CapitaMalls Malaysia Trust 4Q 2014 Financial Results *20 January 2015* 4Q 2014 Highlights Distribution Per Unit ―4Q 2014: 2.26 sen

4Q 2014 Financial Results - listed company · 4 CapitaMalls Malaysia Trust 4Q 2014 Financial Results 20 January 2015 4Q 2014 Highlights Distribution Per Unit ―4Q 2014: 2.26 sen