fourth quarter 2010 financial resultsstarhillglobalreit.listedcompany.com/newsroom/... · 1/26/2011...

Fourth Quarter 2010 Financial Results 26 J 201126 January 2011

Agenda

Financial Highlights

P tf li P f U d tPortfolio Performance Update– Singapore– Kuala Lumpur– Chengdu– Perth– Tokyo– Tokyo

Growth Drivers

26 January 2011 2

4Q 2010 financial highlights

G f $4 6 4Q 2009 33 0%

Period: 1 Oct – 31 Dec 2010 4Q 2010 4Q 2009 % Change

Gross revenue of $45.6 million, higher than 4Q 2009 by 33.0%

Gross Revenue $45.6 mil $34.3 mil 33.0%

Net Property Income $36.7 mil $26.8 mil 37.0%

Income Available for Distribution $23.3 mil $19.1 mil 22.1%

Income to be Distributed to Unitholders $20.2 mil (1) $18.8 mil 7.6%

Income to be Distributed to CPU holders $2.4 mil (2) - n/m

DPU 1.04 cents (3) 0.97 cents 7.2%

Note: 1. Approximately $0.6 million of income available for distribution for the fourth quarter ended 31 December 2010 has been retained to satisfy certain legal

reserve requirements in China and working capital requirements.

2. CPU distribution for the fourth quarter ended 31 December 2010 is based on S$ coupon of up to RM0.1322 per CPU, equivalent to a distribution rate of5 65% per annum Total number of CPU units in issue as at 31 December 2010 is 173 062 575 units

26 January 2011 3

5.65% per annum. Total number of CPU units in issue as at 31 December 2010 is 173,062,575 units.

3. The computation of DPU for 4Q 2010 is based on number of units entitled to distributions comprising number of units in issue as at 31 December 2010 of1,943,023,078 units.

FY 2010 financial highlights

G f $16 2009 23 1%

Period: 1 Jan – 31 Dec 2010 FY 2010 FY 2009 % Change

Gross revenue of $165.7 million, higher than FY 2009 by 23.1%

Gross Revenue $165.7 mil $134.6 mil 23.1%

Net Property Income $130.5 mil $106.9 mil 22.0%

Income Available for Distribution $82.5 mil $75.5 mil 9.3%

Income to be Distributed to Unitholders $75.7 mil (1) $73.5 mil 3.0%

Income to be Distributed to CPU holders $5.0 mil (2) - n/m

DPU 3.90 cents 3.80 cents 2.6%

Note: 1. Approximately $1.7 million of income available for distribution for the year ended 31 December 2010 has been retained to satisfy certain legal reserve

requirements in China and working capital requirements.

2. CPU distribution for the period ended 31 December 2010 is based on S$ coupon of up to RM0.1322 per CPU, equivalent to a distribution rate of 5.65%per annum Total number of CPU units in issue as at 31 December 2010 is 173 062 575 units

26 January 2011 4

per annum. Total number of CPU units in issue as at 31 December 2010 is 173,062,575 units.

DPU performance

R d t l DPU f 1 04 t i th hi h t i IPORecord quarterly DPU of 1.04 cents is the highest since IPO4Q 2010 annualized DPU represents yield of 6.61%(2)

0 95 0 950.97

0 95

1.00

1.04

1.00

1.05

1.10

0 77

0.84

0.88 0.89 0.890.92 0.93

0.95 0.95 0.95

0.91

0.80

0.85

0.90

0.95

0.74 0.750.77

0.65

0.70

0.75

1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10

26 January 2011 5

Notes: 1.DPU from 1Q 2007 to 2Q 2009 have been restated to include the 963,724,106 rights units issued in August 2009.2.Annualized yield is based on 31 December 2010 closing price of $0.625 per unit and 4Q 2010 annualized DPU.

1Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10

4Q 2010 financial results

$’000 4Q 2010 4Q 2009 % Change$ Q Q % g

Gross Revenue 45,640 34,328 33.0%

Less: Property Expenses (8,924) (7,524) 18.6%

Net Property Income 36,716 26,804 37.0%

Less: Fair Value Adjustment (1)

Borrowing Costs

Finance Income

Management Fees

(112)

(8,563)

183

(3 452)

(93)

(5,895)

302

(2 904)

20.4%

45.3%

(39.4%)

18 9% Notes: Management Fees

Other Trust Expenses

Tax Expenses (2)

(3,452)

(1,199)

(1,180)

(2,904)

(2,496)

(681)

18.9%

(52.0%)

73.3%

Net Income After Tax (3) 22,393 15,037 48.9%

1. Being accretion of tenancy deposit stated at amortised cost in accordance with Financial Reporting Standard 39. This financial adjustment has no impact on the DPU.

2. Excludes deferred income tax.

Add: Non-Tax Deductibles (4) 896 4,037 (77.8%)

Income Available for Distribution 23,289 19,074 22.1%

Income to be Distributed to Unitholders 20,207 18,773 7.6%

3. Excludes changes in fair value of unrealised derivative instruments and investment properties.

4. Includes management fees payable in units (for 4Q 2009), certain finance costs, depreciation, sinking fund provisions, straight-line rent and fair value adjustment and trustee fees.

26 January 2011

Income to be Distributed to CPU holders 2,412 - n/m

DPU (cents) 1.04 0.97 7.2%

6

FY 2010 financial results

$’000 FY 2010 FY 2009 % Change$ % g

Gross Revenue 165,667 134,621 23.1%

Less: Property Expenses (35,209) (27,672) 27.2%

Net Property Income 130,458 106,949 22.0%

Less: Fair Value Adjustment (1)

Borrowing Costs

Finance and Other Income

Management Fees

1,283

(32,258)

1,310

(12 973)

(666)

(23,690)

431

(10 961)

n/m

36.2%

203.9%

18 4% Notes: Management Fees

Other Trust Expenses

Tax Expenses (2)

(12,973)

(3,459)

(3,065)

(10,961)

(4,907)

(2,297)

18.4%

(29.5%)

33.4%

Net Income After Tax (3) 81,296 64,859 25.3%

1. Being accretion of tenancy deposit stated at amortised cost in accordance with Financial Reporting Standard 39. This financial adjustment has no impact on the DPU.

2. Excludes deferred income tax.

Add: Non-Tax Deductibles (4) 1,169 10,623 (89.0%)

Income Available for Distribution 82,465 75,482 9.3%

Income to be Distributed to Unitholders 75,703 73,505 3.0%

3. Excludes changes in fair value of unrealised derivative instruments and investment properties.

4. Includes management fees payable in units (for FY 2009), certain finance costs, depreciation, sinking fund provisions, straight-line rent and fair value adjustment and trustee fees.

26 January 2011

Income to be Distributed to CPU holders 4,971 - n/m

DPU (cents) 3.90 3.80 2.6%

7

4Q 2010 financial results

Revenue Net Property Income

$’000 4Q 2010 4Q 2009 % Change

Wisma Atria

Retail (1) 11,480 11,465 0.1%

$’000 4Q 2010 4Q 2009 % Change

Wisma Atria

Retail (1) 8,378 8,523 (1.7%)


Retail

Office (1) (2)

11,480

2,184

11,465

2,329

0.1%

(6.2%)

Ngee Ann City

Retail (1)

Offi (1) (2)

10,312

3 424

9,956

3 489

3.6%

(1 9%)

Office (1) (2)

,

1,707

,

1,860

( )

(8.2%)

Ngee Ann City

Retail (1)

Office (1) (2)

8,457

2 741

8,385

2 914

0.9%

(5 9%)Office (1) (2) 3,424 3,489 (1.9%)

Japan portfolio (3)

Chengdu (4)

Australia (5)

2,091

4,831

3,522

2,246

4,843

-

(6.9%)

(0.2%)

n/m

Office (1) (2) 2,741 2,914 (5.9%)

Japan portfolio (3)

Chengdu (4)

Australia (5)

1,610

3,377

2,865

2,178

2,944

-

(26.1%)

14.7%

n/m

Malaysia (5) 7,796 - n/m

Total 45,640 34,328 33.0%


Total 36,716 26,804 37.0%Notes: 1. 4Q 2009 comparative revenue and expenses are net of government

property tax rebates on Singapore properties.2 New and renewed office leases were transacted below peak levels

26 January 2011 Macquarie MEAG Prime REIT 8

2. New and renewed office leases were transacted below peak levelsachieved in 2007.

3. Mainly due to lower occupancy and rent achieved for Japan properties.4. Mainly due to lower expenses for Chengdu property5. Addition of David Jones Building in Australia, and Starhill Gallery and Lot 10

in Malaysia in 1H 2010.

FY 2010 financial results


$’000 FY 2010 FY 2009 % Change

Wisma Atria

Retail (1) 46,743 45,389 3.0%

$’000 FY 2010 FY 2009 % Change

Wisma Atria

Retail (1) 35,516 35,515 0.0%


Retail

Office (1) (2)

46,743

9,076

45,389

10,151

3.0%

(10.6%)

Ngee Ann City

Retail (1)

Offi (1) (2)

41,228

14 174

39,722

13 951

3.8%

1 6%

Office (1) (2)

,

6,817

,

8,085 (15.7%)

Ngee Ann City

Retail (1)

Office (1) (2)

33,595

11 205

33,990

11 331

(1.2%)

(1 1%)Office (1) (2) 14,174 13,951 1.6%

Japan portfolio (3)

Chengdu (4)

Australia (5)

9,165

16,275

12,946

9,761

15,647

-

(6.1%)

4.0%

n/m

Office (1) (2) 11,205 11,331 (1.1%)

Japan portfolio (3)

Chengdu (4)

Australia (5)

7,155

9,766

10,796

8,479

9,549

-

(15.6%)

2.3%

n/m


Total 165,667 134,621 23.1%


Total 130,458 106,949 22.0%Notes: 1. FY 2009 comparative revenue and expenses are net of government

property tax rebates on Singapore properties.2 New and renewed office leases were transacted below peak levels achieved

26 January 2011 Macquarie MEAG Prime REIT 9

2. New and renewed office leases were transacted below peak levels achievedin 2007.

3. Mainly due to lower occupancy and rent achieved for Japan properties.4. Mainly due to higher gross sales for Chengdu property5. Addition of David Jones Building in Australia, and Starhill Gallery and Lot 10

in Malaysia in 1H 2010.

Trading yield

Attractive trading yield compared to other investment instruments

6.61%

5.48%

Attractive trading yield compared to other investment instruments

2.69% 2 50%

6.26%3.92%

2.50%

1.36%

0.35%

Starhill Global REIT 4Q10 Annualized Yield

Average Retail S‐REIT Yield

10‐Year Singapore Govt Bond

CPF Ordinary Account 5‐Year Singapore Govt Bond

12‐month Bank Fixed Deposit Rate

Notes: 1. Based on Starhill Global REIT’s closing price of $0.625 per unit as at 31 December 2010 and annualized 4Q 2010 DPU.

(4)(3)(2)(1) (5)(3)

26 January 2011 10

g p p2. As at 31 December 2010, Weighted Average Retail S-REIT Yield (Source: Bloomberg).3. As at 4 January 2011 (Source: Singapore Government Securities website).4. Based on interest paid on Central Provident Fund (CPF) ordinary account in from October to December 2010 (Source: CPF website).5. As at 4 January 2011 (Source: DBS website).

Unit price performance

Starhill Global REIT’s Unit Price Movement and

Liquidity statistics

Average daily traded 2 16 mil

Daily Traded Volume(20 Sep 2005 to 31 Dec 2010)

Average daily traded volume (units)

2.16 mil

Estimated free float 70.6%

Market cap (SGD) $1,214 mil

2

1

3

Source: Bloomberg

Notes:

26 January 2011 11

1. For the year ended 31 December 20102. Free float as at 31 December 2010. Excludes the 29.38% stake held by YTL Corporation Berhad, Starhill Global REIT’s sponsor.3. By reference to Starhill Global REIT’s closing price of $0.625 per unit as at 31 December 2010.

Distribution timetable

Distribution Period 1 October to 31 December 2010

Distribution Amount 1.04 cents per unit

Notice of Books Closure Date 26 January 2011

Distribution Timetable

Last Day of Trading on “Cum” Basis 31 January 2011, 5.00 pm

Ex-Date 1 February 2011, 9.00 am

Books Closure Date 7 February 2011, 5.00 pm

Distribution Payment Date 28 February 2011

26 January 2011 12

Debt profile

As at 31 Dec 2010 $’000

Term Loan (Secured) 446,000

Singapore MTN 124,000

Malaysia MTN (Secured) 137,627

Australia Loan (Secured) 82,382

Japan Bond 48,915

China Loan 3,826

Total Debt 842,750

Fixed Rate Debt1 100.0%

Gearing Ratio2 30.2%

Interest Cover3 4.3x

Weighted Average Effective Interest Rate1 3.51% p.a.

Starhill Global REIT Corporate Rating4 BBB (S&P)

Notes:

26 January 2011 13

1. Includes interest rate derivatives but excludes upfront costs.2. Based on deposited property as defined in the Trust Deed.3. For the year ended 31 December 20104. Reaffirmed by S&P in May 2010.

Debt profile

Weighted average debt maturity of 3.1 years

DEBT MATURITY PROFILE AS AT 31 DEC 2010 No refinancing in 2011

Through a proactive capital management strategy, $570 million of secured debt was refinanced in September 2010 at attractive rates as follows:

(a) Issuance of $124 million 3.405% unsecured Series001 Notes due 2015

(b) Drawdown of $446 million on a 3-year securedfacilities of $496 million (including $50 million RCF)

142

26 January 2011 14

Balance sheet

As at 31 December 2010 $’000 NAV statisticsAs at 31 December 2010 $ 000

Non Current Assets 2,668,871

Current Assets (2) 117,743

Total Assets 2 786 614

NAV statistics

NAV Per Unit (as at 31 Dec 2010) (1) $0.94

Adjusted NAV Per Unit $0.93Total Assets 2,786,614

Current Liabilities 60,218

Non Current Liabilities 896,240

Total Liabilities 956 458

(net of distribution)$0 93

Closing price as at 31 Dec 2010 $0.625

Unit Price Premium/(Discount) To:Total Liabilities 956,458

Net Assets 1,830,156

Unitholders’ Funds 1,656,711

Convertible Preferred Units 173 445

( )NAV Per Unit

Adjusted NAV Per Unit

(33.5%)

(32.8%)

Convertible Preferred Units 173,445Notes:1. The computation of NAV per unit for 4Q 2010 is based on number of units entitled to distributions comprising number of units in issue as at 31 December 2010 of

1,943,023,078 units. For illustrative purpose, the NAV per unit assuming the full conversion of the CPU into ordinary units will be $0.84. For avoidance of doubt, theCPU is only convertible after three years from the date of its issuance.

2 Includes balance of net proceeds from rights issue of approximately $65 6 million after repaying $50 9 million of RCF in August 2009 payment of $79 4 million

26 January 2011 15

2. Includes balance of net proceeds from rights issue of approximately $65.6 million after repaying $50.9 million of RCF in August 2009, payment of $79.4 million(excluding debt) for the acquisition of David Jones Building in Perth, Australia in January 2010 and approximately $132.0 million (cash portion) for the acquisition ofStarhill Gallery and Lot 10 in Kuala Lumpur, Malaysia (including transaction costs) in June 2010.

Valuation of investment properties

$Revaluation gain of S$76.4 mil in Starhill Global REIT’s investment properties

Description 31 Dec 09 Purchase Price(5) Capex Revaluation FX 31 Dec 10 Change ChangeS$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 %

Wisma Atria Property 811,830 - 605 35,065 - 847,500 35,670 4.4%

Ngee Ann City Property 902,400 - - 62,700 - 965,100 62,700 6.9%

Japan Properties(1) 183,015 - - (14,674) 7,058 175,399 (7,616) (4.2%)

R h S i Z b i P t (2) 84 541 390 (4 391) 80 540 (4 001) (4 7%)Renhe Spring Zongbei Property(2) 84,541 - - 390 (4,391) 80,540 (4,001) (4.7%)

1,981,786 - 605 83,481 2,667 2,068,539 86,753 4.4%

Malaysian Properties(3) - 448,728 - 709 (14,871) 434,566 434,566 n/m

David Jones Building Property(4) - 154,811 - (7,758) 4,307 151,360 151,360 n/m

Notes:1. Japan Properties in Tokyo translated at 31 Dec 2010 at JPY63.38:S$1.00 (31 Dec 2009: JPY65.82:S$1.00)2. Renhe Spring Zongbei Property in Chengdu, China translated at 31 Dec 2010 at RMB5.13:S$1.00 (31 Dec 2009: RMB4.86:S$1.00)3. Malaysian Properties (comprise Starhill Gallery and Lot 10) in Kuala Lumpur translated at 31 Dec 2010 at RM2.40:S$1.00 (Purchase price based on

g p y , ( , ) , , ,

1,981,786 603,539 605 76,432 (7,897) 2,654,465 672,679 33.9%

26 January 2011 16

RM2.32:S$1.00 at acquisition)4. David Jones Building Property in Perth, Australia translated at 31 Dec 2010 at A$0.76:S$1.00 (Purchase price based on A$0.79:S$1.00 at acquisition)5. Purchase price includes acquisition costs capitalised in relation to the acquisition of properties in Australia and Malaysia in 2010.

Starhill Global REIT

Agenda



Growth Drivers

26 January 2011 17

Portfolio summaryy

Di ifi d tf li i i i t i fi t i

ASSET VALUE BY COUNTRY AS AT 31 DEC 2010

4Q 2010 GROSS REVENUE BY COUNTRY

4Q 2010 GROSS REVENUE BY RETAIL/OFFICE

Diversified portfolio comprising prime assets in five countries

Japan

Australia7.7%

China10.6%

Japan6.6%

Australia5.7%

China3.0%

Office12.3%

Malaysia17.1%

Japan4.6%Malaysia

16.4%

Singapore60.0%

Singapore68.3% Retail

87.7%

26 January 2011 18

Portfolio lease expiry

f 6 68 3 92 ( )Weighted average lease term of 6.68 and 3.92 years (by NLA and gross rent respectively)

Portfolio Lease Expiry (as at 31 Dec 2010) (1) (2)

70%By NLA By Gross Rent

55.6%

38 6%

50%

60%

By NLA By Gross Rent

25.9%

18.2%

38.6%

26.6%

20%

30%

40%

Notes:

8.6% 7.2%2.7%

11.4%

5.2%

0%

10%

2011 2012 2013 2014 Beyond 2014

26 January 2011 19

Notes:1.Portfolio lease expiry schedule includes Starhill Global REIT’s properties in Singapore, Japan, Malaysia and Australia but excludes Renhe Spring Zongbei Property,

China which operates as a department store with many short-term concessionaire leases running 3-12 months.2.Lease expiry schedule based on committed leases as at 31 Dec 2010.

Portfolio lease expiry profile

Lease expiry schedule for retail and office portfolioLease expiry schedule for retail and office portfolio

50%

Retail Lease Expiry Profile (1)

36.9%40%

Office Lease Expiry Profile (2)

17 5%

38.9%

31.2%30%

40%

22.1%

27.7%

20%

30%

17.5%

8.6%

3.8%

0%

10%

20%

2011 2012 2013 2014 B d 2014

13.3%

0.0%0%

10%

2011 2012 2013 2014 B d 2014

N t

2011 2012 2013 2014 Beyond 2014

Expiring retail leases (By Gross Rent)

2011 2012 2013 2014 Beyond 2014

Expiring office leases (By Gross Rent)

26 January 2011 20

Notes:1. Includes Starhill Global REIT’s properties in Singapore, Japan, Malaysia and Australia but excludes Renhe Spring Zongbei Property, China which operates as a

department store with many short-term concessionaire leases running 3-12 months.2.Comprises Wisma Atria and Ngee Ann City office properties only.

Portfolio top 10 tenants

Top 10 tenants contributed 53.8% of portfolio gross rentTop 10 tenants contributed 53.8% of portfolio gross rent

Tenant Property % of Portfolio Gross Rent (1) (2)

Toshin Development Singapore Pte Ltd Ngee Ann City, Singapore 20.0%

(3) Ngee Ann City & Wisma Atria SingaporeYTL Group (3) Ngee Ann City & Wisma Atria, SingaporeStarhill Gallery & Lot 10, Malaysia 18.6%

David Jones Limited David Jones Building, Australia 5.6%

BreadTalk Group Wisma Atria, Singapore 1.9%

Nike Singapore Pte Ltd Wisma Atria, Singapore 1.7%

FJ Benjamin Group Wisma Atria, Singapore 1.3%

Feria Tokyo Terzo, Japan 1.3%

Notes:

Charles & Keith Group Wisma Atria, Singapore 1.3%

RSH (Singapore) Pte Ltd Wisma Atria, Singapore 1.1%

Fashion Retail Pte Ltd (Forever 21) Wisma Atria, Singapore 1.0%

26 January 2011 21

Notes: 1. For the month of December 2010.2. The total portfolio gross rent is based on the gross rent of all the properties including the Renhe Spring Zongbei Property.3. Consists of Katagreen Development Sdn Bhd, YTL Singapore Pte Ltd, YTL Starhill Global REIT Management Limited, YTL Starhill Property Management

Pte Ltd,YTL Hotels (S) Pte Ltd and Lakefront Pte Ltd.

Wisma Atria Property - Overview

Lease expiry schedule (by gross rent) as at 31 Dec 2010

Committed occupancy : 92.8% – Retail : 97.7%– Office : 86.5%

42.0%

28.0%

42.3%

34.7%

30%

40%

50%

60% Retail Office

21.0%

28.0%

9.0%8.3%

14.7%

0%

10%

20%

30%

Committed occupancy rates2011 2012 2013 2014

97.5% 98.4% 100.0% 99.3% 98.5% 98.2% 97.7%

92 0%95%100%

Retail Office

92.0%

81.8%77.5%

82.0% 81.4%85.7% 86.5%

65%70%75%80%85%90%95%

26 January 2011 22

50%55%60%

30 Jun 09 30 Sep 09 31 Dec 09 31 Mar 10 30 Jun 10 30 Sep 10 31 Dec 10

Wisma Atria Property - Diversified tenant base

WA office trade mix – by % gross rentWA retail trade mix – by % gross rent WA office trade mix – by % gross rent(as at 31 Dec 2010)

WA retail trade mix – by % gross rent(as at 31 Dec 2010)

Consultancy / Services

15.5%

Jewellery & Watches

6.3%

Government related5.0%

Investments1.5%

Fashion47.5%General Trade

Health & Beauty4.1%

Services1.1%

Others16.9%

Aerospace10.7%

Trading7.2%

Jewellery & Watches10.9%

4.9%

Real Estate & Property Services14.4%

Medical13.3%

Petroleum Related

9.2%Shoes &

Accessories17.0%F&B

14.5%

26 January 2011 23

Wisma Atria Property – Traffic and centre sales

Rising shopper traffic and sales

3.5

Wisma Atria Traffic Count at Primary Entrances

Year 2006 Year 2009 Year 2010

Millions

24S$ Millions

Wisma Atria Property Retail Sales Turnover

Year 2006 Year 2008

2.0

2.5

3.0

18

20

22

24 ea 006 ea 008

Year 2009 Year 2010

0.5

1.0

1.5

12

14

16

For full year 2010, overall annual footfall to Wisma Atria increased 22% to 27 million compared to full year 2009

0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

26 January 2011 24

Centre sales for YTD Dec 2010 increased 7% from YTD Dec 2009 as retail consumption grew on due to the festive season.

Ngee Ann City Property - Overview

Lease expiry schedule (by gross rent) as at 31 Dec 2010

Committed occupancy : 98.7%– Retail : 99.8% – Office : 96.7%

87.7%

60%

80%

100%Retail Office

9.2%3.1% 0.0%

30.7%18.7%

38.2%

12.4%

0%

20%

40%

2011 2012 2013 2014

Committed occupancy rates

2011 2012 2013 2014

100 0% 100 0% 100 0% 100 0% 99 8% 99 8%

Retail Office

98.8% 100.0% 100.0% 100.0% 100.0% 99.8% 99.8%94.9% 93.6% 94.0% 95.6% 95.6% 94.9% 96.7%

70%

80%

90%

100%

26 January 2011 25

50%

60%

30 Jun 09 30 Sep 09 31 Dec 09 31 Mar 10 30 Jun 10 30 Sep 10 31 Dec 10

Ngee Ann City - Diversified tenant base

NAC retail trade mix by % gross rent NAC office trade mix by % gross rentNAC retail trade mix – by % gross rent(as at 31 Dec 2010)

NAC office trade mix – by % gross rent(as at 31 Dec 2010)

Beauty & Wellness

9.8%

Services3.0% General Trade

0.5% Petroleum Related18.4%

Fashion Retail8.4%

Aerospace3.3%

Beauty/ Health5.4%

Others17.0%Jewellery &

Watches

Real Estate & Property Services10.0%

Toshin86.7%

Consultancy / Services13.2%

Banking & Financial Services12.3%

12.0%

26 January 2011 26

Starhill Gallery - OverviewStarhill Gallery Overview

A lifestyle destination targeting affluent tourists and high-end shoppers in KL Malaysia

Freehold prime property located within the heart of KL’s popular shopping precinct Bukit Bintang

A seven level luxury mall with total retail lettable area of 298,013 sq ft

Master lease with a fixed term of 3+3+3 years incorporates step-up features and provides stability in rental income

A lifestyle destination targeting affluent tourists and high-end shoppers in KL, Malaysia

y p p p p y

Features the first standalone watch boutiques in Asia for brands such as Hublot, Bedat & Co and Richard Mille

Hosts the annual “A Journey Through Time” watch exhibition

26 January 2011 27

Lot 10 Property - OverviewLot 10 Property Overview

A chic and trendy mall in Kuala Lumpur, Malaysia

A commercial property located within the heart of KL’s popular shopping precinct Bukit Bintang

Recently refurbished and repositioned for young urbanites with net lettable area of 256,811 sq ft

Master lease with a fixed term of 3+3+3 years incorporates step-up features and provides stability in rental income

Rooftop repositioned as a “Forest in the Cit ” conceptRooftop repositioned as a “Forest in the City” concept

Basement revamped into a heritage gourmet village “Lot 10 Hutong”

26 January 2011 28

Renhe Spring Zongbei Property - Overview

Quality high-growth asset in Chengdu, China

Renhe Spring Zongbei Property Overview

Full occupancy as at 31 Dec 2010

4Q 2010 net revenue was 4% higher than 4Q 2009 in RMB terms

NPI was approximately 19% higher than in 4Q 2009 in RMB terms mainly due to lower advertising and promotion expenses

Renhe A i

Zongbei Weekly Sales PerformanceSales (RMB'000)including VAT

National Day Sales12 May 2008

Sichuan Earthquake

Anniversary Sales

15,000

20,000

25,000

0

5,000

10,000

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

26 January 2011 29

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 532007 2008 2009 2010

David Jones Building - OverviewDavid Jones Building Overview

Prime stable asset in Perth, Australia

Freehold prime property in Perth’s CBD with total retail lettable area of 259,154 sq ft

Dual frontage to two main shopping streets and enjoys excellent local and visitor shopper catchment

Stable long term weighted average lease term of 20.9 years by NLA

Propert is f ll occ pied and is anchored b Da id Jones Department Store and si specialt tenantsProperty is fully occupied and is anchored by David Jones Department Store and six specialty tenants

Long term lease with David Jones expires in 2032 and incorporates an upwards only rent review every 3 years

Specialty tenant leases are between 5 to 10 years and have built-in annual upwards only rent reviews

Lease expiry in 2011 is less than 1% of total NLA

Specialty Tenants

4.9%

Retail trade mix – by % NLA(as at 31 Dec 2010)

26 January 2011 30David Jones

95.1%

Japan Properties - Overview

As at 31 December 2010 5 properties were fully occupied and portfolio occupancy was 86 7%

Committed occupancy rates as at 31 Dec 2010

As at 31 December 2010, 5 properties were fully occupied and portfolio occupancy was 86.7%

100.0% 100.0% 100.0% 100.0% 100.0%100%

64.1% 62.1%60%

70%

80%

90%

10%

20%

30%

40%

50%

Holon L Roppongi Terzo Roppongi Primo Nakameguro Daikanyama Ebisu Fort Harajuku Secondo0%

10%

26 January 2011 31

Agenda



Growth Drivers

26 January 2011 32

Growth driversGrowth drivers

Steady growth expected over next few years

AcquisitionsContribution from David Jones Property (Acquired in 2010)

Completion

Contribution from David Jones Property (Acquired in 2010)

Contribution from Lot 10 and Starhill Gallery (Acquired in 2010)

Rental Reversions

Wisma Atria and Ngee Ann City – Ongoing rent reversions

Ngee Ann City – Toshin rental review (upwards only provision) from Jun 2011

David Jones Building – David Jones department store rent review expected every 3 years till 2032

D id J B ildi L ith i lt t t ll f l d t i

Asset Enhancements

David Jones Building – Leases with specialty tenants allow for annual upwards rent review

Starhill Gallery and Lot 10 Master Tenancy revision

26 January 2011 33

Wisma Atria – Revenue increase from reconfiguration and rejuvenation

2011 2012 2013 2014 and beyond

Well positioned for the next growth cycle

Quality Assets:

Prime Locations

13 mid to high-end retail properties across five countries

- Singapore, Malaysia, China, Australia and Japan

Quality assets with strong fundamentals; strategically located with high shopper traffic

Proactive Capital Management: Financial Flexibility

Gearing at 30.2% with a weighted average debt maturity of 3.1 years

S$2 billion unsecured MTN programme

Rated ‘BBB’ by Standard & Poor’s

Remaining cash from Rights Issue of approximately S$65 million

Developer Sponsor:

Strong Synergies

Strong synergies with the YTL Group, one of the largest companies listed on the Bursa Malaysia with total assets of US$13.6 billion

Global presence with track record of success in real estate development and property St o g Sy e g es p p p p ymanagement

Management Team: Proven Track Record

Demonstrated strong sourcing ability and execution by acquiring 3 quality malls in 2010

- DJ Building (Perth, Australia), Starhill Gallery and Lot 10 (Kuala Lumpur, Malaysia)

26 January 2011

Proven Track RecordInternational and local retail and real estate experience

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 Q, Q, Q, Q p y ; p ; y p ;respectively

CPU means convertible preferred units in Starhill Global REIT

DPU means distribution per unit

FY means financial year for the period from 1 January to 31 December

GTO tGTO 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 monthpm 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

26 January 2011 35

Disclaimer

This presentation has been prepared by YTL Starhill Global REIT Management Limited (the “Manager”), solely in its capacity as Manager of Starhill Global Real Estate Investment Trust (“Starhill Global REIT”). A press release, together with Starhill Global REIT’s unaudited financial statements, have been posted on SGXNET on 26 January 2011 (the “Announcements”). This presentation is qualified in its entirety by, and should be read in conjunction with the Announcements 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.

26 January 2011 36

YTL Starhill Global REIT Management LimitedCRN 200502123C

Manager of Starhill Global REITManager of Starhill Global REIT

391B Orchard Road, #21-08

Ngee Ann City Tower B

Singapore 238874

Tel: +65 6835 8633

Fax: +65 6835 8644

www.starhillglobalreit.com

26 January 2011

fourth quarter 2010 financial resultsstarhillglobalreit.listedcompany.com/newsroom/... · 1/26/2011...

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