Second Quarter 2009 Financial Resultsstarhillglobalreit.listedcompany.com/newsroom/... · 7/29/2009...

Second Quarter 2009 Financial Results 29 J l 200929 July 2009

AgendaAgenda

Financial Highlights

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

Growth StrategiesGrowth Strategies– Asset Enhancements– Business Strategy

29 July 2009 Starhill Global REIT 2

Key highlightsKey highlights

2Q 2009 9%

2Q 2009 DPU of 1.90 cents achieved, a 6.7% increase over 2Q 2008 and highest ever i IPO

2Q 2009: Income to be distributed up 7.9%

since IPO

Retail portfolio bolstered by resilient retail master lease structure at Ngee Ann City and doubling of shopper traffic to Wisma Atria basement following reopening of MRT linkway

Rights Issue will strengthen Starhill Global REIT’s balance sheet and enable it to seize growth opportunities including Wisma Atria enhancement programme


2Q 2009 financial highlights2Q 2009 financial highlights

f 1 90 2Q 2008 6 %

Period: 1 Apr – 30 Jun 2009 2Q 2009 2Q 2008 % Change

DPU of 1.90 cents exceeded 2Q 2008 by 6.7%

Gross Revenue $33.4 mil $30.2 mil 10.5%

Net Property Income $27.0 mil $23.2 mil 16.4%

Income Available for Distribution $18.8 mil (1) $17.2 mil 9.5%

Income to be Distributed $18.4 mil (1) $17.0 mil 7.9%

DPU 1.90 cents (2) 1.78 cents 6.7%

Note: 1. Approximately S$0.4 million of income available for distribution for the second quarter ended 30 June 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 30 June 2009 of 963,724,106 units and (b) units issuable to the Manager as partial satisfaction of management fee (base fee) earned for 2Q 2009 of 2,101,953 units.

DPU performanceDPU performance

Compounding average growth rate of 12.1% since 1Q 2007

1.901 90

1.761.78 1.78

1.851.87

1.80

1.90

1.68

1.60

1.70

1.47

1.50

1.54

1.50


1.40

1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009

Starhill Global REIT

2Q 2009 financial results2Q 2009 financial results

2Q 2009 gross revenue exceeded$’000 2Q09 2Q08 % Change

2Q 2009 gross revenue exceeded 2Q 2008 by 10.5% due primarily to higher rates achieved from office renewals and new leases, the rent review of the master lease in Ngee

Gross Revenue 33,378 30,201 10.5%

Less: Property Expenses

Depreciation

(6,336)

(55)

(6,599)

(427)

(4.0%)

(87.1%) gAnn City, as well as higher revenue from the Chengdu property

Net Property Income 26,987 23,175 16.4%

Less: Fair Value Adjustment (1)

Borrowing Costs

Management Fees

(183)

(5,887)

(2 619)

(24)

(5,308)

(2 838)

662.5%

10.9%

(7 7%)Management Fees

Other Trust Expenses

Tax Expenses (2)

(2,619)

(864)

(555)

(2,838)

(836)

(412)

(7.7%)

3.3%

34.7%

Net Income After Tax (3) 16,879 13,757 22.7%

Add: Non-Tax Deductibles (4) 1,911 3,401 (43.8%)

Income Available for Distribution 18,790 17,158 9.5%

Income to be Distributed 18,351 17,002 7.9%

Notes: 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 tax3. Excludes changes in fair value of unrealised derivative

i t t d i t t ti

29 July 2009 6

DPU 1.90 cents 1.78 cents 6.7%instruments and investment properties

4. Includes management fees payable in units, certain finance costs, depreciation, sinking fund provisions, straight-line rent adjustment and trustee fees


2Q 2009 financial results2Q 2009 financial results

$’000 2Q 2009 2Q 2008 % Change

Wisma Atria

$’000 2Q 2009 2Q 2008 % Change

Wisma Atria

Revenue Net Property Income

Retail (1)

Office (1) (2)

11,310

2,702

11,428

2,103

(1.0%)

28.5%

Ngee Ann City

Retail (1) (2) 9,871 8,874 11.2%

Retail(1)

Office(1)

9,120

2,207

8,604

1,470

6.0%

50.1%

Ngee Ann City

Retail (1) 8,333 7,020 18.7%

Office (1) (2) 3,441 3,134 9.8%

Japan portfolio (3)

Chengdu (4)

2,451

3,603

2,136

2,526

14.7%

42.6%

Office (1) 2,954 2,449 20.6%

Japan portfolio (3)

Chengdu (4)

2,083

2,290

1,946

1,686

7.0%

35.8%

Total 33,378 30,201 10.5% Total 26,987 23,175 16.4%

Notes: 1. Revenue and expenses are net of government property tax rebates on

Singapore properties to be passed on to tenants

29 July 2009 Macquarie MEAG Prime REIT 7

Singapore properties to be passed on to tenants2. Renewal of leases at higher market rates and rent reviews3. Mainly due to strengthening of Yen4. Higher sales at Chengdu property and strengthening of RMB


Trading yieldTrading yield

Attractive trading yield compared to other investment instruments

12.00 12

14

Attractive trading yield compared to other investment instruments

9 81%

12.00%

9.81

6

8

10 9.81%

11.55%9.41%

2.59 2.50

1.45

0 45

2

4

6

1.45%2.59%

0.45%

2.50%

0.45

-Starhill Global REIT FY2009

yield

Average S-Reit yield

10-Year Spore Govt Bond

CPF Ordinary Acount

5-Year Spore Govt Bond

Bank Fixed Deposit Rate (12

Month)Notes: 1. Based on Starhill Global REIT’s closing price of $0.635 per unit as at 30 Jun 2009 and actual annualised distribution for 2Q 2009

(4) (3)(2)

(1) (5)

(4)

29 July 2009 8

g p p2. As at 30 Jun 2009 (Source: Bloomberg)3. Based on interest paid on Central Provident Fund (CPF) ordinary account in Jun 2009 (Source: CPF website)4. As at Jun 2009 (Source: Singapore Government Securities website)5. As at 14 Jul 2009 (Source: DBS website)


Unit price performanceUnit price performance

1.00

1.20

1.40

50,000

60,000

70,000

Tra

Liquidity statistics

Last 3 months average 2.8 mil

0.40

0.60

0.80

Uni

t Pric

e (S

GD

)

20,000

30,000

40,000

ading Volume ('000s)

daily trading volume (units)

Estimated free float 74.0%

Market cap (30 Jun 09) $612 mil1

0.00

0.20

Sep-

05

Dec

-05

Mar

-06

Jun-

06

Sep-

06

Dec

-06

Mar

-07

Jun-

07

Sep-

07

Dec

-07

Mar

-08

Jun-

08

Sep-

08

Dec

-08

Mar

-09

Jun-

09

U

0

10,000

Volume ('000s) Unit Price 200-day mvng avg

Source: Bloomberg


Note: 1. By reference to Starhill Global REIT’s closing price of $0.635 as at 30 Jun 2009

Distribution timetableDistribution timetable

Distribution Period 1 April to 30 June 2009

Distribution Amount 1.90 cents per unit

Notice of Books Closure Date 29 July 2009

Distribution Timetable

Last Day of Trading on “Cum” Basis 3 August 2009, 5.00 pm

Ex-Date 4 August 2009, 9.00 am

Books Closure Date 6 August 2009, 5.00 pm

Distribution Payment Date 28 August 2009


Debt profileDebt profile

As at 30 Jun 2009 $’000

Term loan (CMBS equivalent) 380,000

Term loan (Secured) 190,000

Revolving Credit Facilities 45,800

Japan Bond 46,946

Chinese Loan 6,025

Total Debt 668,771

Fixed Rate Debt (up to Sept 2010) 1 89.4%

Gearing Ratio 2 33.2%

Interest Cover 4.9x

Weighted Average Effective Interest Rate 1 2.93% p.a.

Starhill Global REIT corporate rating3 Baa2

Notes:


1. Includes interest rate derivatives 2. Based on deposited property as defined in the Trust Deed3. Reaffirmed by Moody’s Investors Service in Jun 2009

Debt profileDebt profile

f S 2010No significant debt maturing until September 2010

Weighted Average Effective Interest Rate is 2.93% p.a.700

S$ millionDebt maturity profile

89.4% of borrowings is fixed (including derivatives) until September 2010500

600 617

S$35m of RCF refinanced. Final maturity extended to March 2010

Potential reduction in gearing following rights200

300

400

Potential reduction in gearing following rights issue will reduce refinancing pressure and improve credit profile resulting in favorable debt terms to execute strategic acquisitions and/or asset enhancement works

‐ ‐ ‐ ‐ ‐-

100

2009 2010 2011 2012 2013 2014

481 1 11


and/or asset enhancement worksTerm loan (CMBS equivalent) RCF (secured)

Term loan (secured) RCF (unsecured)

Japan bond Chinese loan

Balance sheetBalance sheet

As at 30 Jun 2009 $’000

Non Current Assets 1,972,717

Current Assets 38,850

NAV statistics

NAV Per Unit (as at 30 Jun 2009) (1) $1.28

Adjusted NAV Per Unit (1) $1 27Total Assets 2,011,567

Current Liabilities (2) (65,022)

Non Current Liabilities (705,911)

Adjusted NAV Per Unit (1)

(net of distribution)

$1.27

Closing price as at 30 Jun 2009 $0.635

Total Liabilities (770,933)

Net Assets 1,240,634

Unitholders’ Funds 1,240,634

Unit Price Premium/(Discount) To:NAV Per Unit

Adjusted NAV Per Unit

(50.4%)

(50.0%)

Units (’000) 965,826

Notes:1. The number of units used for computation of NAV per unit is 965,826,059. This comprises: (a) number of units in issue as at 30 June 2009 of 963,724,106


p p , , p ( ) , ,units; and (b) units to be issued to the Manager as partial satisfaction of management fee (base fee) earned for 2Q 2009 of 2,101,953 units.

2. Includes derivative liabilities of $19.4 million and unsecured borrowings of $16.9 million.

Valuation of investment propertiesValuation of investment properties

6.9% drop in the valuation of Starhill Global REIT’s investment properties as at 30 Jun 2009

Description 31-Dec-08 Capex 15-Jun-09 Revaluation (1) FX 30-Jun-09 Change Change

S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 %S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 %

Wisma Atria Property 849,800 8 (52,298) - 797,510 (52,290) (6.2%)

Ngee Ann City Property 946,900 244 (61,259) - 885,885 (61,015) (6.4%)

Japan Portfolio (2) 226,412 - (25,148) (11,721) 189,543 (36,869) (16.3%)

Chengdu Property (3) 80,166 - 4,686 295 85,147 4,981 6.2%

Notes:1. Revaluation of Japan Portfolio at JPY12.5 billion and Chengdu Property at RMB402 million as at 15 Jun 2009, translated at JPY67.44:S$1.00 and RMB4.69:S$1.00 respectively

2,103,278 252 (134,019) (11,426) 1,958,085 (145,193) (6.9%)

29 July 2009 14

2. Japan Portfolio valued at JPY12.5 billion as at 30 Jun 2009, translated at JPY66.03:S$1.00 (31 Dec 2008: JPY14.2 billion, translated at JPY62.77:S$1.00)

3. Chengdu Property valued at RMB402 million as at 30 Jun 2009, translated at RMB4.72:S$1.00 (31 Dec 2008: RMB380 million, translated at RMB4.74:S$1.00)


AgendaAgenda

Financial HighlightsFinancial Highlights

Portfolio Performance UpdatePortfolio Performance Update– Singapore– Tokyo– Chengdu

Growth StrategiesGrowth Strategies– Asset Enhancements– Business Strategy

29 July 2009

15


Portfolio summary

Portfolio

Portfolio summary

Di ifi d tf li i i Si J d Chi tDiversified portfolio comprising Singapore, Japan and China assets

Gross Revenue by Property(2Q 09)

Gross Revenue by Country(2Q 09)

Gross Revenue by Retail and Office(2Q 09)

NAC40%

Renhe Spring Zong Bei Property

11%

Japan7%

China11%

Office18%

Japanese Properties7%

WA42% Singapore

82%

Retail82%

7%

29 July 2009 16Starhill Global REIT

Portfolio lease expiry

Portfolio

Portfolio lease expiry

f 2 2 2 3 ( )Weighted average lease term of 2.52 and 2.35 years (by NLA and gross rent respectively)

Portfolio Lease Expiry (as at 30 June 2009)Office Retail

Japan Totalsq ft WA NAC WA NAC

Remaining 2009 35,963 11,517 20,764 2,465 2,614 73,323

2010

45.8%

39.4%

%

40%

50%

By NLA By Gross Rent

2010 23,078 62,054 38,441 2,928 4,010 130,512

2011 17,470 48,597 58,050 17,201 2,782 144,100

Beyond 2011 13,681 - 5,102 229,241 47,391 295,415

Total

11.6%

20.2%22.3%

12.4%

23.9% 24.2%

10%

20%

30%

Notes:1.Portfolio lease expiry profile does not include Chengdu Property which

operates as a department store with many short-term concessionaire l i 3 12 th

Total 90,192 122,169 122,358 251,835 56,798 643,351

0%

10%

Remaining 2009 FY2010 FY2011 Beyond 2011

29 July 2009 17

leases running 3-12 months2.Lease expiry profile based on actual running lease as at 30 Jun 093.Toshin contributes to 34.5% and 29.9% of portfolio lease expiry by

NLA and Gross Rent respectively


Portfolio lease expiry profile by year

Portfolio

Portfolio lease expiry profile by year

1 2 f 1931 2011 f 60% f172 out of 1931 leases expire by 2011, accounting for 60% of gross rental income

YearOffice Leases Retail Leases Gross Rental Income per month1

Year

No. of Weighted average rent psf

No. of Weighted average rent psf

Office Retail S$’000

% of Total 2

leases leases S$’000Remaining

2009 20 9.10 27 29.60 433 813 12.45%20092010 25 9.70 45 34.70 822 1,575 23.60%

2011 17 10.60 38 22.10 698 1,721 24.00%Total 62 9.83 110 27.23 1,952 4,110 60.05%

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 June 2009


Portfolio top 10 tenants

Portfolio

Portfolio top 10 tenants

T 10 t t t ib t d 44% f th tf li tTop 10 tenants contributed 44% of the portfolio gross rent

Tenant Name Property Leased Area (sq ft) Lease Expiry % of Portfolio

Gross Rent 1% of Portfolio

NLA

Toshin Development Co Ltd NAC 225,969 Jun 2013 26.6% 30.3%

Future Revolution K.K. 2Ebisu Fort

NakameguroHarajyuku Secondo

Roppongi Terzo

39,361

Sep 2012,Dec 2015,Dec 2015Jan 2016

5.2% 5.3%

Bread Talk Group WA 27,104 Sep 09, Oct 09, Sep 2011 2.4% 3.6%p

Nike Singapore Pte Ltd WA 8,288 Nov 2011 2.3% 1.1%

Aspial-Lee Hwa (S) Pte Ltd WA 3,778 May 09, Aug 2010, Sep 2011, Oct 2011 1.4% 0.5%

RSH (Singapore) Pte Ltd WA 4,061 Mar 2010, Jun 2010, Oct 2010 1.4% 0.5%

Wing Tai Retail Pte Ltd WA 4,908 May 2010, Jun 2010, Oct 2010, Nov 2010 1.3% 0.7%

FJ Benjamin Lifestyle Pte Ltd WA 7,847 Nov 2011 1.2% 1.1%Fashion Retail Pte Ltd WA 3,832 Sep 2009 1.2% 0.5%

Perfect Aim Pte Ltd (Charles & Keith) WA 2,174 Jul 2010 1.0% 0.3%

29 July 2009 19

Notes: 1. For the month of June 20092. Future Revolution KK is the fixed rent master tenant for these four properties


Office portfolio lease e pir profile and passing rents

Portfolio

Office portfolio lease expiry profile and passing rents

11 100,000

Portfolio Office Lease Expiry and Average Gross Passing RentsS$ psf pmSq ft In 2Q 2009, asking office rent was S$10.00 psf

pm while leases committed averaged S$9 80 psf

10.60

9.70

10

10

11

50 000

60,000

70,000

80,000

90,000 pm while leases committed averaged S$9.80 psf pm

The average passing rent of S$9.10 psf pm for remaining 47 480 sq ft of leases expiring in 2009

47 480 85 132 66 067 13 681

9.10

9.70

9

9

10

10,000

20,000

30,000

40,000

50,000 remaining 47,480 sq ft of leases expiring in 2009 is currently at about the rents committed in 2Q 2009

Offi t t d t i ft f th47,480 85,132 66,067 13,681 8 -

Remaining 2009 2010 2011 Beyond 2011

Expiring Office Leases (by NLA) Gross passing rents of expiring leases (S$ psf pm)

Office rents expected to remain soft for the remainder of 2009

29 July 2009 20

Note: Average monthly gross rent rounded to nearest ten cents


Retail passing rents

Portfolio

Retail passing rents

Wisma Atria’s average passing rents are above market average

Average Passing Rents for Wisma Atria & Ngee Ann City Retail

Ngee Ann City’s average retail rents are lower given the master lease with Toshin that accounts for 89% of retail NLA at Ngee Ann City

28.16 27.91 28.11 29.24 30.49

33.00 34.5036.40 36.53

34.40

30

35

40

S$ psf pm

Footnotes:1. 2005 average rents computed from September - December 20052. CBRE’s quoted figures are for prime Orchard Road space which is

d fi d “ i lt ” h it f 500 1 000 ft l l ith

28.16 27.91

10.85 10.86 10.96 12.24 13.48

10

15

20

25

defined as “specialty” shop units of 500-1,000 sq ft on level with heaviest traffic

-

5

2005₁ 2006 2007 2008 Year-to-date 2009

Wisma Atria Retail Ngee Ann City Retail CBRE


Wisma Atria Retail Ngee Ann City Retail CBRE

Occupancy costs

Portfolio

Occupancy costs

Average retail occupancy costsAverage retail occupancy costs

The higher occupancy cost at Wisma Atria is attributed to the higher proportion of fashion tenants given the centre’s positioning as a female

Average retail occupancy costs

29% tenants given the centre s positioning as a female-centric mall

Renhe Spring Zongbei Property operates as a hi h d d t t t ith i t ti l l

25%

29%

16% 17%20%

30%

high-end department store with international luxury labels such as Prada, Zegna, Hugo Boss, Chopard, Montblanc and Vertu which typically enjoy lower occupancy costs

0%

10%

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-Jun 2009

2. Year-to-date 2009 occupancy costs for Wisma Atria has increased primarily due to

Wisma Atria Renhe Spring Zongbei


lower tenants’ sales between Jan-May 2009

3. Average retail occupancy costs for Ngee Ann City and the Japanese properties are not available due to master lessee arrangements

Wisma Atria Property Overview

Wisma Atria

Wisma Atria Property - Overview

Lease Expiry Schedule (by NLA) as at 30 June 2009Weighted average lease term of 1.4years (by NLA)– Retail: 1.55 years; Office: 1.11 yearsHigh committed occupancy (95.1% by NLA) – Retail: 97.5%; Office: 92.0% Increasing proportion of retail leases structured as base 31.0%

46.8%

39.9%40%

50%

60%Retail Office

g p prent plus % GTO– Base rent plus % GTO from 33% (Dec 05) to 82%

(Jun 09)– Higher of base rent or % GTO from 66% (Dec 05) to

17% (Jun 09)

18.1%

4.1%

25.6%19.4%

15.2%

0%

10%

20%

30%

R i i 2009 FY2010 FY2011 B d 2011

Committed Occupancy Rates


95% 95.3% 95.6%98.6% 97.5%

86.0% 84 7% 83 2%90.5% 92.0%

90%

100%

Retail Office

86.0% 84.7% 83.2%

30%

40%

50%

60%

70%

80%

90%


0%

10%

20%

30 Jun 08 30 Sep 08 31‐Dec‐08 31‐Mar‐09 30‐Jun‐09

Wisma Atria Property Overview

Wisma Atria

Wisma Atria Property - Overview

Wi At i R t il E i i LWisma Atria Retail Expiring Leases and their Average Passing Rents

Wisma Atria Office Expiring Leases and their Average Passing Rents

50,000 S$ psf pm

Sq ftWA Retail Lease Expiry & Average Gross Rent

S$ psf pm

Sq ft

11.90

12.80

9.7010

12

14

30,000

35,000

40,000

45,000

33.40

38.30

30

35

40

35,000

40,000

45,000

50,000

p

9.40

6

8

10 000

15,000

20,000

25,000

30,000

23.90

20.50

20

25

10 000

15,000

20,000

25,000

30,000

35,963 23,078 17,470 13,681 2

4

-

5,000

10,000

Remaining 2009 2010 2011 Beyond 2011

Expiring Office Leases (by NLA)

22,443 38,441 58,050

5,102

10

15

0

5,000

10,000

Remaining 2009

2010 2011 Beyond 2011

E i i t il l (b NLA)



Gross passing rents of expiring leases (S$ psf pm)Expiring retail leases (by NLA)Gross passing rents of expiring leases (S$ psf pm)

Wisma Atria Property Diversified tenant base

Wisma Atria

WA R t il T d Mi B % NLA

Wisma Atria Property - Diversified tenant base

WA Office Trade Mix by % NLAWA Retail Trade Mix by % NLA

Jewellery & Watches

Services3.7%

Shoes & Accessories

8.4%

WA Retail Trade Mix - By % NLA

Aerospace9.2%

Consultancy / Services13.2%

Trading8.0%

Travel/Leisure0.9%

WA Office Trade Mix – by % NLA(as at 30 Jun 2009)

WA Retail Trade Mix – by % NLA(as at 30 Jun 2009)

Fashion48.0%

General Trade2.1%

Watches6.6%

Government Related

4.4%

Investments2 7%

Real Estate & Property Services15.8%

Health & Beauty1.7%

F&B29.4%

2.7%

Jewelry & Watches

4.4%

Medical8.5%

Others9.0%

Petroleum Related23.9%

29 July 2009 25

Wisma Atria Property Traffic and centre sales

Wisma Atria

Wisma Atria Property – Traffic and centre sales

Shopper traffic and sales improved significantly following re opening of

26

Wisma Atria Property Retail Sales TurnoverS$ Million

Shopper traffic and sales improved significantly following re-opening of the basement MRT linkway

2 5

Wisma Atria Traffic Count at Primary Entrances

Year 2007 Year 2008 Year 2009

Million

20

22

24

26

2007 Sales Turnover

Million

1.5

2.0

2.5 Year 2007 Year 2008 Year 2009

12

14

16

182008 Sales Turnover

2009 Sales Turnover

0.5

1.0

10

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 increased 48% in the month of June 2009 vs June 2008 with the re-opening of the basement linkwayon 3 June 2009

0.0


Wide media coverage was garnered on increased Wisma Atria shopper traffic following the re-opening of the basement MRT linkway

Centre sales have also picked up, matching June 2008 levels and reversing declines experienced in the first 5 months of the year

Wisma Atria Property Basement traffic count

Wisma Atria

Wisma Atria Property – Basement traffic count

B t t ffi h i d i th MRT li k d 3 J 2009

80 000

Basement EntrancesTraffic Count from 1 Jun - 28 July 2009

Linkway reopened on 3 Jun 2009

ION opened on 21 July 2009

Basement traffic has experienced a resurgence since the MRT linkway opened on 3 June 2009

50,000

60,000

70,000

80,000

c C

ount

2006

20,000

30,000

40,000

Traf

fic

2008

20062009

0

10,000

Mon Tue

Wed

Thur

s Fri

Sat

Sun

Mon Tue

Wed

Thur

s Fri

Sat

S

unM

on Tue

Wed

Thur

s Fri

Sat

S

unM

on Tue

Wed

Thur

s Fri

Sat

Sun

Mon Tue

Wed

Thur

s Fri

Sat

Sun

Mon Tue

Wed

Thur

s Fri

Sat

Sun

Mon Tue

Wed

Thur

s Fri

Sat

Sun

Mon Tue

Wed

Thur

s Fri

Sat

Sun

Mon Tue


Basement traffic in June 2009 was 86% of pre-linkway closure traffic in June 2006Basement traffic jumped 116% in the month of June 2009 vs June 2008 and remained strong even after IONopened on 21 July 2009

Wisma Atria Property Basement traffic count

Wisma Atria

Wisma Atria Property – Basement traffic count

Overall centre traffic has also increased significantly since the MRT linkway

All EntrancesTraffic Count from 1 June - 28 July 2009

Linkway reopened on 3 J 2009

ION opened on 21

g y yopened on 3 June 2009.

80,000

100,000

120,000

nt

3 Jun 2009 July 2009

40,000

60,000

80,000

Traf

fic C

oun

2008

2006

2009

0

20,000

Mon Tue

Wed

Thur

s Fri

Sat

Sun

Mon Tue

Wed Thu Fri

Sat

Sun

Mon Tue

Wed

Thur

s Fri

Sat

S

unM

on Tue

Wed

Thur

s Fri

Sat

Sun

Mon Tue

Wed

Thur

s Fri

Sat

Sun

Mon Tue

Wed

Thur

s Fri

Sat

Sun

Mon Tue

Wed

Thur

s Fri

Sat

Sun

Mon Tue

Wed

Thur

s Fri

Sat

Sun

Mon Tue

2008


Centre traffic jumped 48% in the month of June 2009 vs June 2008Centre traffic for June 2009 was 93% of pre-linkway closure traffic in June 2006. July 2009 numbers haveexceeded July 2006 numbers

Wisma Atria Property Integration with ION Orchard

Wisma Atria

Wisma Atria Property – Integration with ION Orchard

Side entrance created on Wisma Atria Level 2 to complement commissioning of MRT escalatorsSide entrance created on Wisma Atria Level 2 to complement commissioning of MRT escalators

New level 2 connection

New escalators from Orchard MRT

ION ORCHARDWISMA ATRIA

MRT

New escalators leading directly fromNew escalators leading directly from Orchard MRT station in the basement to street level directly opposite the new entrance at Wisma Atria’s west side


ORCHARD ROAD

Wisma Atria Property –

Wisma Atria

p yNew lettable area at Basement and Level 1

Removal of new escalators to unlock valuable lettable areaRemoval of new escalators to unlock valuable lettable area following reopening of basement MRT linkway

Removal of escalators between basement and Level 1 near GAP after re-

Basement floor

Level 1 near GAP after reopening of the MRT linkway

Escalators will be redundant after re-

i f MRT li k

To Orchard MRT Station

opening of MRT linkway allowing creation of additional lettable area

Works have commenced and expected to be

Financial Impact of Asset Enhancement (Estimates only) S$’000

Annual Rental Income 566

completed by October 2009

Annual Expenses (assume 20% expense margin) 113

Incremental Annual NPI 453Capital value of initiative (assume 5.15% cap rate) 8,800

Less Capital Expenditure (740)


Increase in capital value (net of investment cost) 8,060

Return on investment pa (%) 61%

Ngee Ann City Property Overview

Ngee Ann City

Ngee Ann City Property - Overview

Lease Expiry Schedule (by NLA) as at 30 June 2009

Weighted average lease term of 2.9 years (by NLA)– Retail: 3.71 years; Office 1.26 years

Close to full committed occupancy (97 4% by NLA)

91.0%

50.8%50%60%70%80%90%

100% Retail Office

Close to full committed occupancy (97.4% by NLA) – Retail: 98.8%; Office 94.9%

Increasing proportion of Level 5 retail leases structured as base rent plus % GTO from 0% (Dec 05) to 82% (Jun 09) and step-up rents from 0% (Dec 05) to 57% (Jun 09)

1.0% 1.2%6.8%9.4%

39.8%

0.0%0%

10%20%30%40%50%

Committed Occupancy Rates

) p p ( ) ( )

99.6% 99.6% 99.6% 99.6% 98.8%98.2% 98.2% 98.8% 98.8%94 9%100%

Retail Office


94.9%

60%

70%

80%

90%


50%

60%

30 Jun 08 30 Sep 08 31-Dec-08 31-Mar-09 30-Jun-09

Ngee Ann City Property Overview

Ngee Ann City

Ngee Ann City Property - Overview

Ngee Ann City Retail Expiring Leases Ngee Ann City Office Expiring LeasesNgee Ann City Retail Expiring Leases and their Passing Average Rents

Ngee Ann City Office Expiring Leases and their Passing Average Rents

S$ psfSq ft Sq ftS$ psf

16.6017.00

15

16

17

18

150 000

200,000

250,000

10

12

14

40,000

50,000

60,000 p

15.00

13.10

12

13

14

5

50,000

100,000

150,000

8.208.80

9.80

6

8

10

20,000

30,000

2,465 2,928 17,201 229,24110

11

0Remaining 2009 2010 2011 Beyond 2011

Expiring retail leases (by NLA)

11,517 62,054 48,597 2

4

-

10,000

Remaining 2009 2010 2011



Gross passing rents of expiring leases (S$ psf pm) Gross passing rents of expiring leases (S$ psf pm)

Ngee Ann City Diversified tenant base

Ngee Ann City

Ngee Ann City - Diversified tenant base

NAC Retail Trade mix by % NLA NAC Office Trade Mix by % NLANAC Retail Trade mix – by % NLA(as at 30 Jun 2009)

NAC Office Trade Mix – by % NLA(as at 30 Jun 2009)

Beauty & Wellness

Services1.9% General Trade

0.4%

Aerospace 4.1%

Banking and Financial Services

8.4%

Real Estate & Property Services

7 9%

Travel/Leisure 6.2%

Wellness8.0%

Beauty/ Health 3.7%

Consultancy / Services 32.2%Others

19 0%

Petroleum Related

2.5%

7.9%

Toshin89.7% Fashion Retail

3.5%

Jewellery & Watches 12.6%

19.0%


Japan Properties Overview

Japan Properties

Japan Properties - Overview

Weighted average lease term by NLA is 4.3 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

Savills Japan K.K. is the local asset manager for all the Japan properties from 1 June 2009

Occupancy ratesLease Structure (by NLA)

100% 100% 100% 100% 100% 100%

Committed occupancy rates as at 30 June 2009

Medium Term Master Lease

34%

Pass-through Leases

31%

100% 100% 100% 100% 100%

88%

100%

75%80%85%90%95%

100%

Long term master leases expire late 2015

Long Term Master Leases

35% 50%55%60%65%70%

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rt

29 July 2009

Medium term master lease expires in Sep 2012

Pass-through leases typically have 3 year terms

34Starhill Global REIT

Ho

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Rop

pTe

Rop

pP

ri

Nak

a-m

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Dai

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Ebi

su

Renhe Spring Zongbei Property Overview

Renhe Spring Zongbei

Q C C

Renhe Spring Zongbei Property - Overview

Full occupancy as at end June 2009

Strong sales growth at Renhe Spring Zongbei Property amidst current weak global economic conditions

2Q 2009 sales were 41 3% higher than 2Q 2008

Quality high-growth asset in Chengdu, China

2Q 2009 sales were 41.3% higher than 2Q 2008

25 000

Sales (RMB'000)including VAT

Zong Bei Weekly Sales Performance

15,000

20,000

25,000

0

5,000

10,000


Wk 1

Wk 3

Wk 5

Wk 7

Wk 9

Wk 11

Wk 13

Wk 15

Wk 17

Wk 19

Wk 21

Wk 23

Wk 25

Wk 27

Wk 29

Wk 31

Wk 33

Wk 35

Wk 37

Wk 39

Wk 41

Wk 43

Wk 45

Wk 47

Wk 49

Wk 51

2007 2008 2009

AgendaAgenda

Financial Highlights

Portfolio Performance Update– Singapore– Tokyo

Growth StrategiesAsset Enhancements– Asset Enhancements

– Business Strategy


Growth contributorsGrowth contributors

Rental Reversions

Growth contributors for 2009 and 2010

Ngee Ann City – Toshin rent increased by 19.75% from 8 Jun 2008 for 3 yrs

Wisma Atria – post re-opening of MRT linkway on 3 June 2009

Asset Enhancements

Ngee Ann City – Level 5 reconfiguration – from Jun 2008

Wisma Atria – New lettable area at B1 and L1 – from Oct 2009

Wisma Atria – Ground level integration with ION Orchard

Wisma Atria – Rent increase from new Nike lease – from Dec 2008

29 July 2009

2009 2010

37Starhill Global REIT

The Rights IssueThe Rights Issue

Offer Structure • Fully underwritten and renounceable Rights Issue• Gross proceeds of approximately S$337.3 million• 1 for 1 rights ratio• “Nil-paid” rights trading period : 24 July – 3 August 2009; Close of rights issue : 7 August 2009

Rights Issue Price • S$0.35 per Rights Unit, representing approximately:- 45 3% discount to Closing Price of S$0 64 per Unit145.3% discount to Closing Price of S$0.64 per Unit- 46.8% discount to the 30-day Volume Weighted Average Price (“VWAP”) of S$0.658 per Unit2

- 29.3% discount to the Theoretical Ex-Rights Price (“TERP”)3 of S$0.495 per Unit- 56.4% discount to the pro forma net asset value (“NAV”) of S$0.802 per Unit4

Proactive Capital Management Strategy

Rationale for the Ri ht I

Proactive Capital Management StrategyStronger balance sheetImproved financial flexibility

Best Interests of UnitholdersRights Issue The renounceable Rights Issue is fair to all Unitholders

Opportunity to subscribe at an attractive discountAttractive yield post rightsCommitment from YTL


Notes:1. Closing price as at 19 June 20092. 30-day VWAP immediately preceding 22 June 20093. TERP = (Market Capitalisation of Starhill Global REIT as at 19 June 2009 + Gross Proceeds from the Rights Issue) / Units in issue after the Rights Issue4. Pro-forma post rights NAV

Ri ht I I d fi i l fl ibilitRights Issue - Improved financial flexibility

T it li ti h d f i i l h ll i t il t l O h d R d

• Enhancement of Wisma Atria’s Orchard Road frontage to retain competitive advantage over incumbent retail tisi

ble

Ass

et

hanc

emen

t

• To revitalise properties ahead of an increasingly challenging retail sector along Orchard Road1

3

• Wisma Atria’s plot ratio has not been fully utilised; potential to create additional GFA2

properties

Poss

Enh

• In view of volatile markets and the entry of a strong sponsor in YTL management believes that there may be

tion

nitie

s

• In view of volatile markets and the entry of a strong sponsor in YTL, management believes that there may be attractive acquisition opportunities open to the REIT

• Property cycle at a low point resulting in relatively attractive cap rates

• Potential for distressed sellers disposing assets at attractive valuations

1

Acq

uisi

Opp

ortu

n

• Key markets being explored include:

• Singapore, China and Japan being existing markets for the REIT

• Malaysia: Acquisition of established retail space as well as malls with significant asset enhancement potential

• Australia: Acquisition of established retail / office buildings

2

29 July 2009 39

• Developed markets as and where high value opportunities may arise


References used in this presentationReferences 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


Di l iDisclaimer

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 29 July 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.


29 July 2009Investor, Analyst and Media Contact: Ms Mok Lai Siong Tel : +65 6835 8633 Email : [email protected]

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