• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Q1 2009 Earning Report of Starhill Global Real
 

Q1 2009 Earning Report of Starhill Global Real

on

  • 1,459 views

 

Statistics

Views

Total Views
1,459
Views on SlideShare
1,458
Embed Views
1

Actions

Likes
0
Downloads
23
Comments
0

1 Embed 1

http://www.slideshare.net 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Q1 2009 Earning Report of Starhill Global Real Q1 2009 Earning Report of Starhill Global Real Presentation Transcript

    • First Quarter 2009 Financial Results 27 A il 2009 April
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • Debt profile As at 31 Mar 2009 $’000 Term loan (CMBS equivalent) 380,000 Term loan (Secured) 190,000 Revolving Credit Facilities 46,000 Japan Bond 47,920 Chinese Loan 6,219 Total Debt 670,139 Fixed Rate Debt (up to Sept 2010) 1 89.4% Gearing Ratio 2 31.1% Interest Cover 4.9x Weighted Average Effective Interest Rate 1 2.95% p.a. Starhill Global REIT corporate rating3 Baa2 Notes: 1. Includes interest rate derivatives and Japanese loan 2. Based on deposited property as defined in the Trust Deed 3. Reaffirmed by Moody’s Investors Service in Oct 2008 27 April 2009 Starhill Global REIT 11
    • Debt profile No significant debt maturing until September 2010 f S Debt maturity profile S$ 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
    • 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
    • Agenda Financial Highlights Portfolio Performance Update – Singapore – Tokyo – Chengdu Growth Strategies – Asset Enhancements – Business Strategy 14 Starhill Global REIT 27 April 2009
    • 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
    • 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
    • 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$’000 2009 24 7.90 29 27.40 540 959 14.9% 2010 24 9.60 45 35.40 806 1,573 23.6% 2011 16 10.50 38 21.80 681 1,736 24.0% Total 64 9.30 112 26.80 2,077 4,268 62.5% 1. Excludes leases in Chengdu property as it operates as a department store comprising many concessionaries with short leases running 3-12 months 2. As a percentage of total gross rental income for the month of March 2009 27 April 2009 Starhill Global REIT 17
    • Portfolio Portfolio top 10 tenants Top T 10 t tenants contributed 44.1% of th portfolio gross rent t t ib t d 44 1% f the tf li t Leased Area % of Portfolio % of Portfolio Tenant Name Property Lease Expiry Gross Rent 1 (sq ft) NLA Toshin Development Co Ltd NAC 225,969 Jun 2013 26.3% 29.9% Ebisu Fort Ebi F t Sep 2012, S 2012 Nakameguro Dec 2015, 2 Future Revolution K.K. 39,505 5.1% 5.2% Harajyuku Secondo Dec 2015 Roppongi Terzo Jan 2016 Sep 09, Oct 09, Bread Talk Group WA 27,104 2.4% 3.6% Sep 2011 Nike Singapore Pte Ltd WA 8,288 Nov 2011 2.2% 1.1% Zegna Trading (Shanghai) Co. Ltd3 Renhe Spring Zongbei 1,550 Mar 2009 1.5% 0.2% May 09, Aug 2010, Aspial-Lee Hwa (S) Pte Ltd WA 3,778 1.4% 0.5% Sep 2011, Oct 2011 Mar 2010, Jun 2010 2010 2010, RSH (Singapore) Pte Ltd WA 4,061 1.4% 0.5% Oct 2010 May 2010, Jun 2010, Wing Tai Retail Pte Ltd WA 4,908 1.3% 0.7% Oct 2010, Nov 2010 FJ Benjamin Lifestyle Pte Ltd WA 7,847 Nov 2011 1.2% 1.0% Fashion Retail Pte Ltd WA 3,832 Sep 2009 1.2% 0.5% Notes: 1. For the month of March 2009 2. Future Revolution KK is the fixed rent master tenant for these four properties 3. Zegna Trading (Shanghai) Co. Ltd operates as a concessionaire at the Renhe Spring Zongbei Property and pays a percentage of GTO. Renewal negotiations are in progress 27 April 2009 Starhill Global REIT 18
    • Portfolio Rental reversions: Office rent contribution expected to be steady in 2009 Incremental contributions expected from renewal of office units in 2009 Portfolio Office Lease Expiry and Average Gross Passing Rents S$ 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • Agenda Financial Highlights Portfolio Performance Update – Singapore – Tokyo Growth Strategies – Asset Enhancements – Business Strategy 27 April 2009 Starhill Global REIT 32
    • 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
    • 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
    • Wisma Atria: Continuing tenant remix to enhance positioning New stores in 2008 27 April 2009 Starhill Global REIT 35
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • Investor, Analyst and Media Contact: Ms Mok Lai Siong Tel : +65 6835 8633 Email : info@starhillglobalreit.com 27 April 2009