2. Agenda
Financial Highlights
Portfolio P f
P tf li Performance Update
Udt
– Singapore
– Tokyo
– Chengdu
Growth Strategies
– Asset Enhancements
– Business Strategy
27 April 2009 Starhill Global REIT 2
3. Key highlights
1Q 2009: Income to be distributed up 7.4%
2009 4%
1Q 2009 DPU of 1.87 cents achieved, 6.3% higher than 1Q 2008
Resilient retail master lease structure at Ngee Ann City to be bolstered by expected
surge in shopper traffic when Wisma Atria basement linkway to MRT station reopens
Weighted average effective interest rate remains low at 2.95% per annum after
refinancing of S$35 million of Revolving Credit Facility now due March 2010
27 April 2009 Starhill Global REIT 3
4. 1Q 2009 financial highlights
DPU of 1 8 cents exceeded 1Q 2008 by 6 3%
f 1.87 6.3%
Period: 1 Jan – 31 Mar 2009 1Q 2009 1Q 2008 % Change
Gross Revenue $34.3 mil $30.4 mil 12.8%
Net Property Income $27.1 mil $23.1 mil 17.2%
Income Available for Distribution $19.1 mil $17.0 mil 12.2%
$18.0 mil (1)
Income to be Distributed $16.8 mil 7.4%
1.87 cents (2)
DPU 1.76 cents 6.3%
Note:
1. The income to be distributed is based on 100% of taxable income for the current period. Approximately S$1.1 million of income available for distribution
for the first quarter ended 31 March 2009, comprising mainly overseas income, has been retained to satisfy certain legal reserve requirements and for
prudency.
2. The computation of DPU is based on number of units entitled to distributions comprising: (a) number of units in issue as at 31 Mar 2009 of 960,803,854
units and (b) units issuable to the Manager as partial satisfaction of management fee (base fee) earned for 1Q 2009 of 2,972,852 units.
27 April 2009 Starhill Global REIT 4
5. DPU performance
DPU growth
Actual DPU % increase over previous quarter
1.87 cents 1.1%
1Q 2009 (1 Jan – 31 Mar 2009)
7.17 cents
FY 2008 (1 Jan – 31 Dec 2008)
1.85 cents 3.9%
4Q 2008 (1 Oct – 31 Dec 2008)
1.78 cents 0.0%
3Q 2008 (1 Jul – 30 Sep 2008)
1.78 cents 1.1%
2Q 2008 (1 Apr – 30 Jun 2008)
1.76 cents 4.8%
1Q 2008 (1 Jan – 31 Mar 2008)
FY2007 (1 Jan – 31 Dec 2007) 6.19
6 19 cents
t
4Q 2007 (1 Oct – 31 Dec 2007) 1.68 cents 9.1%
3Q 2007 (1 Jul – 30 Sep 2007) 1.54 cents 2.7%
2Q 2007 (1 Apr – 30 Jun 2007) 2.0%
2 0%
1.50
1 50 cents
1Q 2007 (1 Jan – 31 Mar 2007) n.m.
1.47 cents
27 April 2009 Starhill Global REIT 5
6. 1Q 2009 financial results
1Q09 1Q08 % Change
$’000
1Q 2009 gross revenue exceeded
1Q 2008 by 12.8% due primarily to
Gross Revenue 34,325 30,418 12.8%
higher rates achieved from
Less: Property Expenses (7,217) (6,901) 4.6%
renewals and new leases in
Depreciation (55) (428) (87.1%) Singapore, the rent review of the
gp
master lease in Ngee Ann City, as
Net Property Income 27,053 23,089 17.2%
well as higher revenue from the
Less: Fair Value Adjustment (1) (179) (46) 289.1% Chengdu property
Borrowing Costs (5,893) (4,705) 25.2%
Management Fees (2,671) (2,822) (5.4%)
Other Trust Expenses ( 834) (1,020) (18.2%)
Net Income Before Tax 17,476 14,496 20.6%
Add Non-Tax Ded ctibles (2)
Add: Non Ta Deductibles 1,603
1 603 2,515
2 515 (36.3%)
(36 3%)
Notes:
1. Being accretion of tenancy deposit stated at amortised
Income Available for Distribution 19,079 17,011 12.2% cost in accordance with Financial Reporting Standard
39. This financial adjustment has no impact on the
DPU
Income to be Distributed 18,023 16,788 7.4% 2. Includes adding back of management fees payable in
units, finance costs, depreciation, sinking fund
provisions and t t f
ii d trustee fees
DPU 1.87 cents 1.76 cents 6.3%
6
Macquarie Global REIT REIT
Starhill MEAG Prime
27 April 2009
7. 1Q 2009 financial results
Revenue Net Property Income
1Q 2009 1Q 2008 % Change 1Q 2009 1Q 2008 % Change
$’000 $’000
Wisma Atria Wisma Atria
Retail (1) 11,455 11,552 (0.8%) Retail 9,277 8,564 8.3%
Office (1) (2) 2,575 2,107 22.2% Office 2,004 1,536 30.5%
Ngee Ann City Ngee Ann City
Retail (1) (2) 9,940 8,362 18.9% Retail 8,399 6,580 27.6%
Office (1) (2) 3,553 2,772 28.2% Office 2,575 2,018 27.6%
Japan portfolio (3) Japan portfolio (3)
2,646 2,253 17.4% 2,221 2,012 10.4%
Chengdu (4) Chengdu (4)
4,156 3,372 23.3% 2,577 2,379 8.3%
Total 34,325 30,418 12.8% Total 27,053 23,089 17.2%
Notes:
1. Net of government property tax rebates to be passed on to tenants
2.
2 Renewal of leases at higher market rates and rent reviews
3. Mainly due to strengthening of Yen
4. Higher sales at Chengdu property and strengthening of RMB
Starhill Global REIT
27 April 2009 Macquarie MEAG Prime REIT 7
8. Trading yield
Attractive trading yield compared to other investment instruments
16.66%
18
16.53
16
14
12.16%
12.16
12
16.11%
14.16%
10
8
6
2.50%
4
2.03%
2.50
1.42%
2.03
1.42
0.55%
2
0.55
0 55
-
Starhill Global Average S-Reit CPF Ordinary 10-Year Spore 5-Year Spore (4) Bank Fixed
(4)
(3)
yield (2)
REIT FY2009 Acount Govt Bond Govt Bond Deposit Rate (12
Month) (5)
yield (1)
Notes:
1. Based on St hill Global REIT’ closing price of $0 455 per unit as at 31 M 2009 and actual annualised di t ib ti f 1Q 2009
1B d Starhill Gl b l REIT’s l i i f $0.455 it t Mar dtl li d distribution for
2. As at 31 Mar 2009 (Source: Bloomberg)
3. Based on interest paid on Central Provident Fund (CPF) ordinary account in Mar 2009 (Source: CPF website)
4. As at Mar 2009 (Source: Singapore Government Securities website)
5. As at 9 Apr 2009 (Source: DBS website)
27 April 2009 8
9. Unit price performance
1.40 70,000
Liquidity statistics
1.20 60,000
Last 3 months average 1.2 mil
daily trading volume (units)
1.00 50,000
Trading Volume ('0
Unit Price (SGD)
Estimated free float 74.0%
0.80 40,000
1
Market cap (31 Mar 09) $437 mil
0.60 30,000
000s)
0.40 20,000
0.20 10,000
0.00
0 00 0
Jan-06
May-06
Jan-07
May-07
Jan-08
May-08
Jan-09
Mar-06
Mar-07
Mar-08
Mar-09
Jul-06
Jul-07
Jul-08
Nov-05
Sep-06
Nov-06
Sep-07
Nov-07
Sep-08
Nov-08
Volume ('000s) Unit Price 200-day mvng avg
Source: Bloomberg
Note:
1. By reference to Starhill Global REIT’s closing price of $0.455 as at 31 Mar 2009
27 April 2009 Starhill Global REIT 9
10. Distribution timetable
Distribution Period 1 January to 31 March 2009
Distribution Amount 1.87 cents per unit
Distribution Timetable
Notice of Books Closure Date 27 April 2009
Last Day of Trading on “Cum” Basis 30 April 2009, 5.00 pm
Ex-Date 4 May 2009, 9.00 am
Books Closure Date 6 May 2009, 5.00 pm
Distribution Payment Date 29 May 2009
27 April 2009 Starhill Global REIT 10
11. Debt profile
As at 31 Mar 2009 $’000
Term loan (CMBS equivalent) 380,000
Term loan (Secured) 190,000
Revolving Credit Facilities 46,000
Japan Bond 47,920
Chinese Loan 6,219
Total Debt 670,139
Fixed Rate Debt (up to Sept 2010) 1 89.4%
Gearing Ratio 2 31.1%
Interest Cover 4.9x
Weighted Average Effective Interest Rate 1 2.95% p.a.
Starhill Global REIT corporate rating3 Baa2
Notes:
1. Includes interest rate derivatives and Japanese loan
2. Based on deposited property as defined in the Trust Deed
3. Reaffirmed by Moody’s Investors Service in Oct 2008
27 April 2009 Starhill Global REIT 11
12. Debt profile
No significant debt maturing until September 2010
f S
Debt maturity profile
S$ million
Weighted Average Effective Interest
700
Rate is 2.95% p.a.
%
617
600
89.4% of borrowings is fixed
500
(including derivatives) until
400 September 2010
300
S$35m of RCF refinanced. Final
200 maturity extended to March 2010
100
49
1
1 1
1
‐ ‐ ‐ ‐ ‐
-
2009 2010 2011 2012 2013 2014
Term loan (CMBS equivalent) RCF (secured)
Term loan (secured) RCF (unsecured)
Japan bond Chinese loan
27 April 2009 Starhill Global REIT 12
13. Balance sheet
As at 31 Mar 2009 NAV statistics
$’000
Non Current Assets 2,114,367 NAV Per Unit (as at 31 Mar 2009) (1) $1.43
Current Assets 40,840
$1.41
$1 41
Adjusted NAV Per Unit (1)
Total Assets 2,155,207
(net of distribution)
Current Liabilities (109,602)
Last traded price as at 31 Mar 09 $0.455
Non Current Liabilities (665,877)
Unit Price Premium/(Discount) To:
Total Liabilities (775,479)
(68.2%)
NAV Per Unit
Net Assets 1,379,728
Adjusted NAV Per Unit (67.7%)
Unitholders’ Funds 1,379,728
Units (’000) 963,777
Notes:
1. The number of units used for computation of NAV p unit is 963,776,706. This comprises: ( ) number of units in issue as at 31 Mar 2009 of 960,803,854 units;
p per , , p (a) , , ;
and (b) units to be issued to the Manager as partial satisfaction of management fee (base fee) earned for 1Q 2009 of 2,972,852 units.
27 April 2009 Starhill Global REIT 13
14. Agenda
Financial Highlights
Portfolio Performance Update
– Singapore
– Tokyo
– Chengdu
Growth Strategies
– Asset Enhancements
– Business Strategy
14
Starhill Global REIT
27 April 2009
15. Portfolio
Portfolio summary
Diversified portfolio comprising S
f f Singapore, Japanese and C
Chinese assets
Gross Revenue by Property Gross Revenue by Country
Gross Revenue by Retail and Office
(1Q 09) (1Q 09)
(1Q 09)
Renhe Spring Zong
Bei Property
Office 12% China
NAC
18% 12%
39%
Japan
8%
WA
41%
Singapore
Retail
80%
82%
Japanese
Properties
8%
27 April 2009 Starhill Global REIT 15
16. Portfolio
Portfolio lease expiry
Weighted average lease term of 2 64 and 2 3 years ( NLA and gross rent respectively)
f 2.64 2.53 (by )
Portfolio Lease Expiry (as at 31 March 2009)1
50%
Office Retail
By NLA By Gross Rent 42.5%
sq ft WA NAC WA NAC Japan Total
40% 37.5%
39,902 28,761 24,585 7,804 2,614 103,667
2009
30%
21,797 62,054 37,494 2,928 4,010 128,284
24.0%
23.6% 2010
22.1%
19.6%
20%
16,254 48,597 59,563 17,201 2,782 144,397
15.8% 14.9% 2011
2,680 - 2,583 225,969 47,185 278,417
10% Beyond 2011
80,633 139,413 124,225 253,901 56,591 654,764
Total
0%
FY2009 FY2010 FY2011 Beyond 2011
2Beyond 2011
Notes:
1. Portfolio lease expiry profile does not include Chengdu Property which
operates as a department store with many short-term concessionaire
leases running 3 12 months
l i 3-12 th
2. Toshin contributes to 34.5% and 29.9% of portfolio lease expiry by
NLA and Gross Rent respectively
27 April 2009 Starhill Global REIT 16
17. Portfolio
Portfolio lease expiry profile by year
1 6 out of 1891 leases expire by 2011 accounting f 62 % of gross rental income
176 f 2011, for 62.5% f
1
Year Gross Rental Income per month
Office Leases Retail Leases
2
No. of Weighted No. of Weighted Office Retail % of Total
leases average rent psf leases average rent psf S$’000 S$’000
2009 24 7.90 29 27.40 540 959 14.9%
2010 24 9.60 45 35.40 806 1,573 23.6%
2011 16 10.50 38 21.80 681 1,736 24.0%
Total 64 9.30 112 26.80 2,077 4,268 62.5%
1. Excludes leases in Chengdu property as it operates as a department store comprising many concessionaries with short leases
running 3-12 months
2. As a percentage of total gross rental income for the month of March 2009
27 April 2009 Starhill Global REIT 17
18. Portfolio
Portfolio top 10 tenants
Top
T 10 t
tenants contributed 44.1% of th portfolio gross rent
t t ib t d 44 1% f the tf li t
Leased Area % of Portfolio % of Portfolio
Tenant Name Property Lease Expiry
Gross Rent 1
(sq ft) NLA
Toshin Development Co Ltd NAC 225,969 Jun 2013 26.3% 29.9%
Ebisu Fort
Ebi F t Sep 2012,
S 2012
Nakameguro Dec 2015,
2
Future Revolution K.K. 39,505 5.1% 5.2%
Harajyuku Secondo Dec 2015
Roppongi Terzo Jan 2016
Sep 09, Oct 09,
Bread Talk Group WA 27,104 2.4% 3.6%
Sep 2011
Nike Singapore Pte Ltd WA 8,288 Nov 2011 2.2% 1.1%
Zegna Trading (Shanghai) Co. Ltd3 Renhe Spring Zongbei 1,550 Mar 2009 1.5% 0.2%
May 09, Aug 2010,
Aspial-Lee Hwa (S) Pte Ltd WA 3,778 1.4% 0.5%
Sep 2011, Oct 2011
Mar 2010, Jun 2010
2010 2010,
RSH (Singapore) Pte Ltd WA 4,061 1.4% 0.5%
Oct 2010
May 2010, Jun 2010,
Wing Tai Retail Pte Ltd WA 4,908 1.3% 0.7%
Oct 2010, Nov 2010
FJ Benjamin Lifestyle Pte Ltd WA 7,847 Nov 2011 1.2% 1.0%
Fashion Retail Pte Ltd WA 3,832 Sep 2009 1.2% 0.5%
Notes: 1. For the month of March 2009
2. Future Revolution KK is the fixed rent master tenant for these four properties
3. Zegna Trading (Shanghai) Co. Ltd operates as a concessionaire at the Renhe Spring Zongbei Property and pays a percentage of GTO.
Renewal negotiations are in progress
27 April 2009 Starhill Global REIT 18
19. Portfolio
Rental reversions:
Office rent contribution expected to be steady in 2009
Incremental contributions expected from renewal of office units in 2009
Portfolio Office Lease Expiry and Average Gross Passing Rents
S$ psf pm
The average passing rent of leases
Sq ft
100,000 12
11.00
11 00
expiring in 2009 accounting for 68 664 sq ft
68,664
10.50
90,000 9.60
of office NLA is still below market rents
10
80,000
7.90
70,000
8
Positive rental reversion of 111.5% for
60,000
50,000
50 000 6
office lease renewal in 1Q 2009 despite
40,000
challenging market conditions
4
30,000
20,000
2
10,000
68,664
68 664 83,852
83 852 64,851
64 851 2,680
2 680
- -
2009 2010 2011 Beyond 2011
Expiring Office Leases (by NLA)
Gross passing rents of expiring leases (S$ psf pm)
Note: Average monthly gross rent rounded to nearest ten cents
27 April 2009 Starhill Global REIT 19
20. Portfolio
Retail Passing Rents
Wisma Atria’s average passing rents are above market average
Average Passing Rents of Wisma Atria and Ngee Ann City
Vs. Prime Orchard Road Rents
S$ psf pm
Ngee Ann City’s average retail rents are lower given
40
36.53 36.53 the master lease with Toshin that accounts for 89%
36.40
34.50
33.00
35
of retail NLA at Ngee Ann City
30.63
29.24
30 28.11
28.16 27.91
25
20
Footnotes:
13.51 1. 2005 average rents computed from September - December 2005
15 12.24
2. CBRE’s quoted figures are for prime Orchard Road space which is
10.96
10.86
10.85
10 85 defined
d fi d as ““specialty” shop units of 500 1 000 sq ft on level with
i lt ” h it f 500-1,000 l l ith
10
heaviest traffic
5
-
2006 2007 2008 2009
2005₁
Wisma Atria Retail Ngee Ann City Retail CBRE
27 April 2009 Starhill Global REIT 20
21. Portfolio
Occupancy costs
Average retail occupancy costs
Average retail occupancy costs The higher occupancy cost at Wisma Atria is
attributed to the higher proportion of fashion
30%
30%
tenants given the centre s positioning as a female
centre’s female-
25%
centric mall
20%
17%
16%
Renhe Spring Zongbei Property operates as a
high-end department store with i t
hi h d d t tt ith international l
ti l luxury
10%
labels such as Prada, Hugo Boss, Chopard,
Montblanc and Vertu which typically enjoy lower
0%
occupancy costs
2008 Year-to-Date 2009
Wisma Atria Renhe Spring Zongbei
Notes:
1. Year-to-date 2009 occupancy costs for Wisma Atria and Renhe Spring Zongbei is
for the period Jan-Mar 2009
2. Year-to-date 2009 occupancy costs for Wisma Atria has increased primarily due to
lower tenants’ sales
3. Average retail occupancy costs for Ngee Ann City and the Japanese properties are
not available due to master lessee arrangements
27 April 2009 Starhill Global REIT 21
22. Wisma Atria
Wisma Atria Property - Overview
Weighted average lease term of 1.5 y
g g years ( y NLA)
(by )
Rent Structure of Retail Leases (by NLA)
– Retail: 1.76 years; Office: 1.05 years
Dec 2005 Mar 09
High committed occupancy (95.1% by NLA) 100%
– Retail: 98.6%; Office: 90.5% 81%
80%
Increasing proportion of retail leases structured as base 66%
rent plus % GTO
p 60%
– Base rent plus % GTO from 33% (Dec 05) to 81% 33%
40%
(Mar 09) 19%
20%
– Higher of base rent or % GTO from 66% (Dec 05) to
19% (Mar 09) 0%
Higher of Base Rent or % GTO Base Rent plus % GTO
Committed Occupancy Rates
Lease Expiry Schedule (by NLA) as at 31 Mar 2009
Retail Office
60% Retail Office
98.6%
100% 90.5%
49.5% 95.6%
95.3%
47.9% 95% 86.0% 84.7%
84 7%
50% 95%
83.2%
90%
40% 85%
30.2% 80%
27.0%
30%
75%
20.2%
19.8%
70%
20%
65%
60%
10%
2.1% 3.3% 55%
0% 50%
FY2009 FY2010 FY2011 Beyond 2011 30 Jun 08 30 Sep 08 31‐Dec‐08 31‐Mar‐09
27 April 2009 Starhill Global REIT 22
23. Wisma Atria
Wisma Atria Property - Overview
Wisma Atria Retail Expiring Leases
Wi At i R t il E i i L Wisma Atria Office Expiring Leases
and their Average Passing Rents and their Average Passing Rents
WA Retail Lease Expiry & Average Gross Rent WA Office Lease Expiry and Average Gross Passing Rents
Sq ft
S$ psf pm S$ psf pm
Sq
S ft 50,000
45 14
50,000 12.80
45,000
45,000 39.10 12.00
40,000
40 12
11.00
40,000
35,000
35
35,000
10
30,000
33.30
30,000
30
25,000
25,000 8
8.70
24.30
23.70
25 20,000
20,000
6
15,000
15,000 20
10,000
10 000
10,000
4
15 2,680
5,000 5,000
2,583
24,585 59,563
37,494 39,902 21,797 16,254
10
0 - 2
2009 2010 2011 Beyond 2011 2009 2010 2011 Beyond 2011
Expiring Office Leases (by NLA)
Expiring retail leases (by NLA)
Gross passing rents of expiring leases (S$ psf pm)
Gross passing rents of expiring leases (S$ psf pm)
27 April 2009 Starhill Global REIT 23
24. Wisma Atria
Wisma Atria Property – Traffic and centre sales
Quality of shopper traffic and sales to improve with reopening of basement MRT linkway
expected in 2Q 2009
Wisma Atria Traffic Count at Primary Entrances
Wisma Atria Property Retail Sales Turnover
Million S$
Year 2007 Year 2008 Year 2009
2.5
25
26Million
24
2.0
22 2007 Sales
Turnover
20
1.5
18
2008 Sales
1.0 Turnover
16
14
0.5
2009 Sales
12
Turnover
10
0.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007 Sales TurnOver 2008 Sales TurnOver 2009 Sales TurnOver
Overall footfall to Wisma Atria is expected to increase from 15.8 million p (
p p.a. (2008 full y
year traffic) to close to p
) pre-MRT linkway
y
closure levels of about 25 million p.a. when the new basement and level 2 linkways to Orchard MRT open in June 2009
A knock-on effect on centre sales is expected
27 April 2009 Starhill Global REIT 24
25. Wisma Atria
Wisma Atria Property - Diversified tenant base
WA Retail Trade Mix – by % NLA WA Office Trade Mix – by % NLA
(as at 31 Mar 2009) (as at 31 Mar 2009)
Shoes &
Services Accessories Travel/Leisure
Aerospace
3.7% 8.4% 1.0%
Trading 10.3%
8.9%
Jewellery &
Watches
Consultancy /
6.6% Real Estate &
Services
Property
13.2%
Services
General
Government
8.2%
Trade
Fashion related
2.1%
48.7% 3.0%
Investments
3.0%
Jewellery &
F&B Petroleum Watches
28.7% Related 4.9%
27.9%
Others
Health &
Medical
10.0%
Beauty
9.5%
1.7%
27 April 2009 25
26. Ngee Ann City
Ngee Ann City Property - Overview
Lease Expiry Schedule (by NLA) as at 31 Mar 2009 Weighted average lease term of 3.0 years (by NLA)
– Retail: 3.89 years; Office 1.32 years
100% Retail Office 89.0%
90%
Close to full committed occupancy (99.3% by NLA)
80%
70% – Retail: 99.6%; Office 98.8%
60%
44.5%
44 5%
50%
Increasing proportion of Level 5 retail leases structured
34.9%
40%
as base rent plus % GTO from 0% (Dec 05) to 83% (Mar
30% 20.6%
09) and step-up rents from 0% (Dec 05) to 72% (Mar 09)
20%
6.8%
3.1%
10% 1.2% 0.0%
0%
FY2009 FY2010 FY2011 Beyond 2011
Committed Occupancy Rates
Retail Office
99.6% 98.8% 99.6% 98.8%
99.6% 98.2% 99.6% 98.2%
100%
90%
80%
70%
60%
50%
30 Jun 08 30 Sep 08 31-Dec-08 31-Mar-09
27 April 2009 Starhill Global REIT 26
27. Ngee Ann City
Ngee Ann City Property - Overview
Ngee A
N Ann Cit R t il E i i
City Retail Expiring Leases
L Ngee Ann City Office Expiring Leases
and their Passing Average Rents and their Passing Average Rents
Sq
S$ psf
Sq
S ft ft
f
S$ psf 60,000
16.60
16.60
250,000 17 14
50,000
16
12
200,000
40,000
,
15
10
150,000 9.70
14
14.30 30,000
13.10 8
8.80
13
100,000 20,000
6
6.70
12
10,000
50,000 4
11
28,761 62,054 48,597
7,804 2,928 17,201 225,969 - 2
0 10
2009 2010 2011
2009 2010 2011 Beyond 2011
Expiring Office Leases (by NLA)
Gross passing rents of expiring leases (S$ psf pm)
Expiring retail leases (by NLA)
Gross passing rents of expiring leases (S$ psf pm)
27 April 2009 Starhill Global REIT 27
28. Ngee Ann City
Ngee Ann City - Diversified tenant base
NAC Trade mix – by % NLA NAC Office Trade Mix – by % NLA
(as at 31 Mar 2009) (as at 31 Mar 2009)
Aerospace
Travel/Leisure Banking and
3.6%
General 5.4%
Services Real Estate Financial
Trade
1.9% & Property Services
0.4%
Beauty & Services 7.4%
Wellness 6.9%
6 9% Beauty/
Bea t /
8.8% Health
Petroleum
4.5%
Related
2.2%
Others
16.6%
Consultancy /
Services
28.2%
Toshin
89.0% Jewellery &
Watches
Fashion
11.0%
Retail
14.2%
27 April 2009 Starhill Global REIT 28
29. Japan
Properties
Japan Properties - Overview
Weighted average lease term by NLA is 4.5 years
Full occupancy except for the Daikanyama property
Four of the seven properties (69% by NLA) have fixed rent master leases expiring between 2012 and 2015 –
provides stability of cashflow over an extended period
Lease Structure (by NLA) Occupancy rates
Committed occupancy rates as at 31 March 2009
100% 100% 100% 100% 100% 100%
100%
Pass-through
Pass through
Medium Term
Leases 95%
Master Lease 88%
31%
90%
34%
85%
80%
75%
70%
65%
60%
Long Term
Master Lease 55%
35%
50%
an-yama
Holon L
Roppongi
Roppongi
bisu Fort
arajyuku
-meguro
Secondo
Primo
Terzo
Long term master leases expire late 2015
Ha
Daika
Eb
Naka-
Medium t
M di term master l
t lease expires i S 2012
i in Sep
R
R
Pass-through leases typically have 3 year terms
27 April 2009 Starhill Global REIT 29
30. Japan
Properties
Japan Properties - Overview
Pro-active
Pro active management of Japanese assets
The issue of Future Revolution’s former parent
Area occupied by Future Revolution and
3rd party end tenants undergoing civil rehabilitation has been lifted as
100% of the company has been divested to a non-
Future
related party, Hexagon Capital Partners
Revolution
29%
Efforts are ongoing to reduce the amount of lettable
area occupied directly by Future Revolution
3rd party
end‐tenants
71%
Savills Japan K.K. has been appointed as the asset
manager of Ebisu Fort, replacing Future Revolution.
Savills will also assume the role of asset manager
for the rest of the Japan portfolio on 1 June 2009
Future Revolution is the master tenant and property manager
of Starhill Global REIT’s seven Japanese properties
The Manager is also working to replace the
property manager for the Japan portfolio with the
portfolio,
aim to further drive performance at these assets
27 April 2009 Starhill Global REIT 30
31. Renhe Spring
Zongbei
Renhe Spring Zongbei - Overview
Quality high-growth asset in C
Q Chengdu, C
China
Full occupancy as at end March 2009
Renhe Spring Zongbei property is still showing resilience to weak global economic conditions
1Q 2009 sales was 14 6% higher than 1Q 2008
14.6%
Chinese government announced a RMB 4 trillion economic stimulus package to be spent over 2009 and 2010
Sales (RMB'000)
Renhe Spring Zongbei Weekly Sales Performance
including VAT
25,000
20,000
15,000
10,000
5,000
0
Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk
Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51
2007 2008 2009
Starhill Global REIT 31
27 April 2009
32. Agenda
Financial Highlights
Portfolio Performance Update
– Singapore
– Tokyo
Growth Strategies
– Asset Enhancements
– Business Strategy
27 April 2009 Starhill Global REIT 32
33. Ngee Ann City:
Positioning strengthened by new tenants and upgraded stores
Louis Vuitton expanding into a duplex unit by 2Q 2009 adding to the list of new and
upgraded stores by Toshin
27 April 2009 Starhill Global REIT 33
34. Ngee Ann City:
Successful reconfiguration and branding of Level 5
The Fifth - a level above shopping
The National Library
space on Level 5 has
been reconfigured
and rebranded to
complement the Ngee
Ann City shopping
experience
27 April 2009 Starhill Global REIT 34
36. Wisma Atria:
Integration with ION Orchard on track
Seamless connectivity with Orchard MRT station and ION Orchard from June 2009
New level 2 connection
New escalators
from Orchard
MRT
WISMA ATRIA
ION ORCHARD
New escalators will lead directly from
Orchard
O h d MRT station in th b
t ti i the basement t t to
ground level directly opposite the new
entrance at Wisma Atria’s west side
Wisma Atria’s level 2 traffic expected
to increase significantly
ORCHARD ROAD
27 April 2009 Starhill Global REIT 36
37. Wisma Atria:
Re-opening
Re opening of basement MRT linkway access in progress
in-progress
Seamless connectivity with Orchard MRT station and ION Orchard from June 2009
Re-opening of basement connection
MRT
MRT
Commuter
traffic flow
The re-opening of Wisma Atria’s basement linkway to
Orchard
O h d MRT station will result i a resurgence of
t ti ill lt in f
shopper traffic, making the basement floor once again
one of the busiest shopping corridors in Orchard Road
27 April 2009 Starhill Global REIT 37
38. Wisma Atria:
Creating lettable retail area at Basement and Level 1
Removal of N
R l f New E
Escalators to unlock valuable lettable area when basement MRT linkway re-opens
lt t l k l bl l tt bl hb t li k
Basement floor
Removal of escalators
between basement and
Level 1 near GAP after re
re-
To Orchard MRT Station
opening of the MRT
linkway
Escalators will be
redundant after re-
opening of MRT li k
i f linkway
allowing creation of
additional lettable area
Financial Impact of Asset Enhancement
Works to commence after (Estimates only)
the Great Singapore Sale Annual Rental Income 566
Annual Expenses (assume 20% expense
and complete by October 113
margin)
2009
Incremental Annual NPI 453
Capital value of initiative
8,800
(assume 5.15% cap rate)
Less Capital Expenditure (740)
Increase in capital value
8,060
(net of investment cost)
Return on investment pa (%) 61%
27 April 2009 Starhill Global REIT
39. Growth contributors
Growth contributors for these two years
Rental Reversions
Ngee Ann City – Toshin rent increased by 19.75% from 8 Jun 2008 for 3 yrs
Wisma Atria – Re-opening of MRT linkway – expected in June 2009
Asset Enhancements
Ngee Ann City – Level 5 reconfiguration – from Jun 2008
Wisma Atria – Rent increase from new Nike lease – from Dec 2008
Wisma Atria – New lettable area at B1 and L1 – from Oct 2009
Wisma Atria – Ground level integration with ION Orchard
2009 2010
27 April 2009 Starhill Global REIT 39
40. Resilient in current economic climate
Starhill Global REIT is well positioned to ride challenging economic conditions
Premium assets / resilient leases
– Toshin master lease rent in Ngee Ann City (29.9% of portfolio NLA) increased 19.75% in June 2008; lease does not allow
downward revision; next rent review in 2011; lease expiry in 2013, with option to renew for a further 12 y
py p years
– Occupancy levels for office and retail space remain healthy
– Even distribution of lease expiry of Singapore portfolio mitigates any potential downward revision in rents:
• Remaining Singapore office leases expiring in 2009 (68,664 sq ft) represent 28.6 % of total office NLA
• Remaining Singapore retail leases expiring in 2009 (32,389 sq ft) represent only 8.5% of total Singapore retail
NLA
– Seamless connectivity between Ngee Ann City, Wisma Atria, the upcoming neighbouring mall and Orchard MRT station
will boost shopper traffic and form most compelling retail block on Orchard Road
– Robust sales performance from department store in Chengdu, China (NPI up 8.3% over 1Q 2008)
Healthy debt profile
– Low gearing of 31.1%
– No significant refinancing due until September 2010
– Average weighted average interest rate of 2.95% p.a.
– 89.4% of borrowings fixed (including derivatives) until September 2010
27 April 2009 Starhill Global REIT 40
41. Synergies with YTL Corp
YTL Corp as sponsor offers synergies
Extensive track record and expertise in developing and managing retail real
estate in Asia
Source of potential pipeline acquisition opportunities
Potential synergy with Starhill REIT in Malaysia
Established relationships with international luxury retail principals including
the watch, fashion and jewellery industries
watch
Wide network and relationships with banks
27 April 2009 Starhill Global REIT 41
42. Business strategy
Defensive strategies to see Starhill Global REIT through global economic downturn
Maintain strong financial position and low gearing
Manage tenancies to ensure sustainability of distributions
Strategies to build a global REIT platform through Starhill brand
Attractive a d acc e e acqu s o oppo u es a s g from cu e eco o c do
ac e and accretive acquisition opportunities arising o current economic downturn
u
Focus for acquisitions continues to be retail and commercial properties
Build on the Starhill brand by sourcing for potential retail management and commercial property fund
management contracts
27 April 2009 Starhill Global REIT 42
43. References used in this presentation
1Q, 2Q, 3Q, 4Q means the periods between 1 January to 31 March; 1 April to 30 June; 1 July to 30 September; and 1 October to 31 December
respectively
CMBS means Commercial Mortgage Backed Securities
DPU means distribution per unit
FY means financial year for the period from 1 January to 31 December
GTO means gross turnover
IPO means initial public offering (Starhill Global REIT was listed on the SGX-ST on 20 September 2005)
NLA means net lettable area
NPI means net property income
pm means per month
psf means per square foot
WA and NAC mean the Wisma Atria Property (74.23% of the total share value of Wisma Atria) and the Ngee Ann City Property (27.23% of the total
share value of Ngee Ann City respectively).
All values are expressed in Singapore currency unless otherwise stated
27 April 2009 Starhill Global REIT 43
44. Disclaimer
Di l i
This presentation has been prepared by YTL Pacific Star REIT Management Limited (the “Manager”), solely in its capacity as Manager of Starhill Global Real
Estate Investment Trust (“Starhill Global REIT”). A press release has been made by the Manager and posted on SGXNET on 27 April 2009 (the
“Announcements”). This presentation is qualified in its entirety by, and should be read in conjunction with the Announcement posted on SGXNET. Terms not
defined in this document adopt the same meanings in the Announcements.
The information contained in this presentation has been compiled from sources believed to be reliable. Whilst every effort has been made to ensure the accuracy
of this presentation, no warranty is given or implied. This presentation has been prepared without taking into account the personal objectives, financial situation or
needs of any particular party. It is for information only and does not contain investment advice or constitute an invitation or offer to acquire, purchase or subscribe
for Starhill Global REIT units (“Units”). Potential investors should consult their own financial and/or other professional advisers.
This document may contain forward-looking statements that involve 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 similar developments, shifts in expected levels of property rental income, changes in operating expenses (including employee wages,
benefits and training costs), property expenses and governmental and public policy changes. Investors are cautioned not to place undue reliance on these
forward-looking statements, which are based on the Manager’s view of future events.
The past performance of Starhill Global REIT is not necessarily indicative of the future performance of Starhill Global REIT. The value of Units and the income
derived from them may fall as well as rise. The 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 that the Manager redeem their
Units while the Units are listed. It is intended that unitholders of Starhill Global REIT may only deal in their Units through trading on the SGX-ST. Listing of the
Units on the SGX-ST does not guarantee a liquid market for the Units.
27 April 2009 Starhill Global REIT 44
45. Investor, Analyst and Media Contact: Ms Mok Lai Siong Tel : +65 6835 8633 Email : info@starhillglobalreit.com
27 April 2009
