CapitaLand China Trust : Presentation Slides (7047 KB)

CapitaLand China Trust

DBS Vickers Pulse of Asia Conference 2024

26 March 2024

CapitaMall Xizhimen, Beijing, China

Disclaimer

This presentation may contain forward-looking statements. 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, availability of real estate properties, competition from other developments or companies, shifts in customer demands, shifts in expected levels of occupancy rate, property rental income, charge out collections, changes in operating expenses (including employee wages, benefits and training, property operating expenses), governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business.

You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management regarding future events. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Neither CapitaLand China Trust Management Limited ("Manager") nor any of its affiliates, advisers or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising, whether directly or indirectly, from any use of, reliance on or distribution of this presentation or its contents or otherwise arising in connection with this presentation.

The past performance of CapitaLand China Trust ("CLCT") is not indicative of future performance. The listing of the units in the CLCT ("Units") on the Singapore Exchange Securities Trading Limited (SGX-ST) does not guarantee a liquid market for the Units. The value of the Units and the income derived from them may fall as well as rise. Units are not obligations of, deposits in, or guaranteed by, the Manager or any of its affiliates. An investment in the 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 or purchase their Units while the Units are listed on the SGX-ST. It is intended that holders of Units may only deal in their Units through trading on the SGX-ST.

This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Units.

Overviewof CLCT

Future-Ready and Resilient Portfolio

First and Largest China-Focused S-REIT

Located in

Total Assets1

12 cities

S$5.0 billion

Gross Floor Area

Portfolio Occupancy1

~1.9 mil sq m

91.4%

Market Cap2

Distribution Yield3

S$1.2 billion

9.1%

Notes:

* Number of properties indicated for cities with more than one property in the same asset class.

• 1. As at 31 December 2023.

• 2. As at 29 February 2024.

• 3. Based on FY 2023 DPU of 6.74 S cents and unit price of S$0.74 as at 29 February 2024.

• 4. CLCT has on the 6 December 2023 announced the divestment of the SPV holding CapitaMall Shuangjing at the agreed property price of RMB842.0 million. Consequently, CLCT has recognised a fair value uplift for CapitaMall Shuangjing to RMB842.0 million. The completion of CapitaMall Shuangjing's divestment was announced on 23 January 2024.

Transformed and Diversified Portfolio

Expanded Investment Strategy to Capture Real Estate Trends that Focus on Domestic Consumption and Innovation-Driven Growth

Backed by Policies and Measures to Support the Economy

• ✓ Active Reconstitution and Acquisition Growth Track Record - from Sponsor and Third-Party Vendors

  Retail Pureplay

  2019

  Well-located assets with captive catchments that target the Middle-

  Income Group

  + Business

  Parks

  Expanded Mandate

  + Logistics

  Parks

  2020

  Increased CLCT's exposure to China's technological innovation drive

  2021

  Captured a larger pie of China's domestic consumption flows

  AEI & Reconfigurations

  2022 - 2023

  Conducted strategically timed AEIs to optimise portfolio in preparation for

  China's reopening

  Divested CapitaMall

  Shuangjing

  2024

  Unlocked value of mature mall, improving financial flexibility to pursue more portfolio reconstitution initiatives

• ✓ Strong Management Track Record leveraging on Sponsor's Domain Knowledge and Comprehensive Real Estate Platform in China

Positioning for Growth and Resilience

Total Assets Under Management (AUM)1 (S$ billion)

Organic Growth Organic + Acquisitive Growth Organic + Acquisitive + Reconstitution Growth 4.5 4.9 4.6 4.4 1.3 0.7 0.7 1.2 1.2 1.4 2.1 1.5 2.3 2.4 2.6 2.4 3.5 2.8
IPOFY 2007 FY 2008 FY 2009 FY 2010	FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Capture China's Future Economy Across Multiple Sectors and through Market Cycles

IPO - FY 2010:

• • IPO with 7 Retail Assets

• • Acquired CapitaMall Xizhimen in Beijing

• • 8 retail malls with presence in 5 cities by FY 2010

Total Acquisition Value:

S$336 million

FY 2011 - FY 2016:

• • Acquired CapitaMall Minzhongleyuan in Wuhan, CapitaMall Grand Canyon in Beijing and CapitaMall Xinnan in Chengdu

• • 11 retail malls with presence in 7 cities by FY 2016

Total Acquisition Value:

S$737.5 million

Note:

1. Based on effective stake as at 31 December, which includes any acquisitions and divestments that were announced during the respective year.

FY 2017 - FY 2023:

• • Active recycling & expansion of investment mandate

• • Portfolio rejuvenation towards resilience & diversification (addition of new economy assets)

• • Divested 7 retail malls

• • Acquired 5 retail malls, 5 business parks and 4 logistics park properties

• • 18 Assets with presence in 12 cities by FY 2023

  Total Acquisition and Divestment Value:

S$3.1 billion

Disciplined Growth and Value Creation

Delivering Steady and Sustainable Unitholder Returns

FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Note:

1. Time period for CAGR Calculation is from 2010 to 2023.

FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Attractive Yield Spread and Improved Trading Liquidity

Comparative Yields (as at 29 February 2024)

Average Trading Volume (Units per Day)	Average Trading Value (S$ per Day)
1 year6	~3.1 million	~2.9 million
10 year7	~2.4 million	~3.2 million
IPO	~2.0 million	~2.8 million

Sources: Bloomberg, CLCTML, Monetary Authority of Singapore.

• 1. Based on FY 2023 DPU of 6.74 S cents and unit price of S$0.74 as at 29 February 2024.

• 2. Trailing 12-months dividend yield of Straits Times REIT Index as at 29 February 2024 closing price.

• 3. Trailing 12-months dividend yield of Straits Times Real Estate Index as at 29 February 2024 closing price.

• 4. Trailing 12-months dividend yield of Straits Times Index stocks as at 29 February 2024 closing price.

• 5. Singapore Government 10-year and China Government 10-year bond yields as 29 February 2024.

Source: Bloomberg

• 6. 1 year refers to 1 March 2023 to 29 February 2024.

• 7. 10 year refers to 1 March 2013 to 29 February 2024.

• 8. Since IPO to 29 February 2024.

FY 2023Financial

Results

10