Starhill Global Real Estate Investment Trust : 3Q FY 2023/24 Business Updates

3Q FY 2023/24 Business Updates

29 April 2024

 Singapore  Australia  Malaysia  Japan  China

Contents

• Overview and Key Highlights
• Portfolio Updates
• Market Outlook

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Overview and Key Highlights

Ngee Ann City Singapore

Overview of Starhill Global REIT

Prime retail portfolio in Asia Pacific cities

Quality Assets

• Portfolio of ~S$2.8 billion
• 9 mid- to high-endpredominantly retail properties in six Asia Pacific cities

Strong Sponsor

• YTL Group owns ~37.9% of SGREIT
• Has a combined market capitalisation of US$14.5 billion(1)

Strategic Locations

• Landmark assets at prime locations
• Excellent connectivity to transportation hubs
• Appeal to both local and international brands

Income Visibility

• Master/anchor leases with periodic rental reviews make up ~52.2% of gross rents(2)
• Committed portfolio occupancy of 98.0%(2)

Diversified Portfolio

• Core markets: Singapore, Australia, Malaysia
• Contribution to 3Q FY23/24 revenue:
  Retail (~85%) & Office (~15%)

Healthy Financials

➔ "BBB" credit rating

with stable outlook by

Fitch Ratings, affirmed in

February 2024

➔ Gearing of 37.2%(2) and

weighted average debt

maturity of 2.7 years(2)

➔ Component stock of

FTSE EPRA NAREIT

Notes:

1. Market capitalisation of YTL Corporation Berhad and its listed entities in Malaysia, as at 31 March 2024.
2. As at 31 March 2024.

Global Developed Index

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Key Highlights for 3Q FY23/24

Financial

Performance

Gross Revenue

S$47.6 million

0.7% y-o-y

Net Property Income

S$37.7 million

-0.9%y-o-y

Resilient

Operational Performance

Committed

Portfolio Occupancy

98.0%(1)

as at 31 Mar 2024

Long WALE

7.8 years(1)

by NLA

Expiring leases by gross rents in FY23/24

3.3%(1)

as at 31 Mar 2024

Prudent

Capital Management

Gearing

37.2%

as at 31 Mar 2024

Affirmation of

"BBB"

credit rating by Fitch Ratings with stable outlook in Feb 2024

Sufficient undrawn long- term committed revolving credit facility (RCF) lines to cover the remaining debts maturing till Jun 2025

Note:

1. Based on committed leases as at 31 March 2024.

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Key Highlights for 3Q FY23/24

Financial Highlights

• Revenue for 3Q FY23/24 rose 0.7% y-o-y, mainly attributed to higher contributions from Singapore Properties, partially offset by weaker foreign currencies and loss of income from Japan divestment
• Net property income was lower by 0.9% y-o-y, mainly due to weaker foreign currencies and higher operating expenses, partially offset by higher revenue

Portfolio Performance

• Stable portfolio occupancy of 98.0%(1) as at 31 March 2024, with the Singapore Properties maintaining full occupancy on committed basis
• Tenant sales and shopper traffic at the Wisma Atria Property in 3Q FY23/24 improved y-o-y by 6.5% and 12.7% respectively, despite ongoing interior enhancement works in the basement, which was completed in February 2024
• Phase Two works on South façade at Myer Centre Adelaide was completed in March 2024

Capital Management

• Gearing stood at 37.2%; Weighted average debt maturity of 2.7 years
• About 77% of SGREIT's borrowings were fixed/hedged as at 31 March 2024
• SGREIT has sufficient undrawn long-term committed RCF lines to cover remaining debts maturing till June 2025
• Fitch Ratings affirmed SGREIT's corporate rating at "BBB" with stable outlook in February 2024

Note:

1. Based on committed leases as at 31 March 2024.

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3Q FY23/24 Financial Performance

$ million

Gross Revenue

0.7% y-o-y

		47.3	47.6(1)		40
50		0.9	0.9
		7.2	6.7
40						30
		10.0	9.8
30		13.0	13.6	million	20
20					$	10
10		16.2	16.5
0						0
	3Q FY22/23		3Q FY23/24
Ngee Ann City Property		Wisma Atria Property
Malaysia Properties		Others

Net Property Income (NPI)

-0.9%y-o-y

38.0 (1)	37.7(1)
0.6	0.7
7.0	6.5
6.6	6.3
10.4	10.5

13.313.6

3Q FY22/23

3Q FY23/24

Australia Properties

Variance in gross revenue and NPI y-o-y in 3Q FY23/24:

• Mainly due to higher contributions from Singapore Properties
• Partially offset by weaker foreign currencies, loss of income from divestment of Daikanyama and higher operating expenses mainly for Wisma Atria and Myer Centre Adelaide Retail

Note:

1. Total does not add up due to rounding differences.

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Staggered Debt Maturity Profile Averaging 2.7 years as at 31 March 2024

$ million	Debt maturity profile
300			As at 31 March 2024	* Peak maturity 24%
			*
250			4		of total debt and 9%
					of total assets

200
				88		18
150	94
					55	125
			250
100
				70		50
50	100
						60	75
				50
17 (1)
0
FY23/24	FY24/25	FY25/26(6)	FY26/27	FY27/28	FY28/29
S$250m term loan	S$60m term loan	S$50m term loan	S$50m term loan	S$75m term loan
S$70m MTN	S$100m MTN		S$125m MTN	A$100m term loan	A$63m term loan
RM330m MTN	JPY2b term loan	JPY0.5b bond	S$17m RCF

Financial Ratios	31 Mar 2024
Total debt	$1,056 million
Gearing	37.2%
Interest cover (2)	3.1x
Adjusted interest cover (3)	2.9x
Average interest rate p.a.(4)	3.86%
Unencumbered assets ratio	86%
Fixed/hedged debt ratio (5)	77%
Weighted average debt maturity	2.7 years

Notes:

1. Comprises of short-term RCF outstanding as at 31 March 2024, which were drawn down mainly for working capital purposes.
2. Interest cover ratio computed based on trailing 12 months interest expenses as at 31 March 2024.
3. The adjusted interest cover ratio takes into account the distribution on perpetual securities as at 31 March 2024.
4. Includes interest rate derivatives and benchmark rates but excludes upfront costs.
5. Includes interest rate swaps.
6. Excludes $100 million perpetual securities (classified as equity instruments) issued in December 2020 with the first distribution rate reset falling on 15 December 2025 and subsequent resets occurring every five years thereafter.

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Portfolio Updates

The Starhill Kuala Lumpur, Malaysia

Balance of Master / Anchor Leases and Actively-managed Leases

• Master leases and anchor leases, incorporating periodic rental reviews, represent approximately 52.2% of gross rent as at 31 March 2024
• Provide income and occupancy stability for the portfolio

Master leases /

anchor leases, with

periodic rent

reviews, 52.2%(1)

Actively- managed leases, 47.8%

Notes:

1. Excludes tenants' option to renew or pre-terminate.
2. Assuming the first option to renew for the six-year term is exercised.
3. Assuming the option to renew for the third three-year term is exercised.
4. Assuming the option to renew for the fifth five-year term is exercised.

Includes the following:

Ngee Ann City Property (Singapore)

The Toshin master lease has been renewed and will expire in June 2043(2).

The Starhill & Lot 10 Property (KL, Malaysia)

New master tenancy agreements expiring in December 2038 and June 2028(3) for The Starhill and Lot 10 Property respectively, with periodic rental step-ups.

Myer Centre (Adelaide, Australia)

Anchor lease expires in 2032 and provides for an annual rent review.

David Jones Building (Perth, Australia)

The anchor lease expires in 2032(4) and provides for upward-only rent review every three years. A rental uplift was secured in August 2023.

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