Agenda
Financial Highlights
P tf li P f U d tPortfolio Performance Update– Singapore– Tokyo– Chengdu
Growth DriversGrowth Drivers
28 Jan 2010 Starhill Global REIT 2
Key highlights
4Q 2009 6%
4Q 2009 income to be distributed of $18.8 million represents a 5.6% increase 4Q 2008
4Q 2009: Income to be distributed up 5.6%
over 4Q 2008
Acquisition of David Jones Building in Perth completed in January 2010
28 Jan 2010 Starhill Global REIT 3
4Q 2009 financial highlights
f 0 9 4Q 2008 ( ) 4%
Period: 1 Oct – 31 Dec 2009 4Q 2009 4Q 2008 % Change
DPU of 0.97 cents exceeded 4Q 2008 (post-rights) by 5.4%
Gross Revenue $34.3 mil $33.8 mil 1.5%
Net Property Income $26.8 mil $26.0 mil 3.2%
Income Available for Distribution $19.1 mil (1) $18.1 mil 5.5%
Income to be Distributed $18.8 mil (1) $17.8 mil 5.6%
DPU (pre-rights) N/A 1.85 cents N/A
DPU (post-rights) 0.97 cents (2) 0.92 cents (3) 5.4%
Note: 1. Approximately $0.3 million of income available for distribution for the fourth quarter ended 31 December 2009 has been retained to satisfy certain legal
reserve requirements in China.
2. The computation of DPU for 4Q 2009 is based on number of units entitled to distributions comprising: (a) number of units in issue as at 31 December2009 of 1,932,418,044 units and (b) estimated units issuable to the Manager as partial satisfaction of management fee (base fee) earned for 4Q 2009 of
28 Jan 2010 Starhill Global REIT 4
2,916,940 units.
3. DPU for 4Q 2008 has been restated to include the 963,724,106 right units.
FY 2009 financial summary
FY 2009 DPU 6 1% higher than FY 2008 (post-rights)
Period: 1 Jan – 31 Dec 2009 FY 2009 FY 2008 % Change
Gross Revenue $134.6 mil $127.0 mil 6.0%
FY 2009 DPU 6.1% higher than FY 2008 (post-rights)
Net Property Income $106.9 mil $95.9 mil 11.5%
Income Available for Distribution $75.5 mil (1) $69.4 mil 8.7%
Income to be Distributed $73.5 mil (1) $68.6 mil 7.2%
DPU (pre-rights) N/A 7.17 cents N/A
DPU (post-rights) 3.80 cents 3.58 cents (2) 6.1%
Property revaluation losses $108.8 mil $160.9 mil N/AProperty revaluation losses $108.8 mil $160.9 mil N/A
Note: 1. Approximately $2.0 million of income available for distribution for the year ended 31 December 2009 has been retained to satisfy certain legal reserve
requirements in China, working capital and capital expenditure purposes.
2. DPU for FY 2008 has been restated to include the 963,724,106 right units.
28 Jan 2010 Starhill Global REIT 5
DPU performance
Compounding average growth rate of 10 3% since 1Q 2007
C t
Compounding average growth rate of 10.3% since 1Q 2007
0.92 0.930.95 0.95
0.97
0.95
1.00
Cents
0 77
0.84
0.88 0.89 0.89
0.80
0.85
0.90
0.74 0.750.77
0 65
0.70
0.75
28 Jan 2010
0.651Q 07 2Q 07 3Q 07 4Q 07 1Q 08 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09
Starhill Global REIT 6
4Q 2009 financial results
$’000 4Q 2009 4Q 2008 % Change$ Q Q % g
Gross Revenue 34,328 33,835 1.5%
Less: Property Expenses (7,524) (7,863) (4.3%)
Net Property Income 26,804 25,972 3.2%
Less: Fair Value Adjustment (1)
Borrowing Costs
Finance income
Management Fees
(93)
(5,895)
302
(2 904)
(106)
(6,278)
5
(2 867)
(12.3%)
(6.1%)
n/m
1 3% Notes: Management Fees
Other Trust Expenses
Tax Expenses (2)
(2,904)
(2,496)
(681)
(2,867)
(812)
(743)
1.3%
207.4%
(8.3%)
Net Income After Tax (3) 15,037 15,171 (0.9%)
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) 4,037 2,904 39.0%
Income Available for Distribution 19,074 18,075 5.5%
Income to be Distributed 18,773 17,773 5.6%
DPU ( i ht ) N/A 1 85 t N/A
3. Excludes changes in fair value of unrealised derivative instruments and investment properties
4. Includes management fees payable in units, certain finance costs, depreciation, sinking fund provisions, straight-line rent adjustment, trustee fees and due diligence project costs
28 Jan 2010
DPU (pre-rights) N/A 1.85 cents N/A
DPU (post-rights) 0.97 cents 0.92 cents (5) 5.4%5. DPU for 4Q 2008 has been restated to include the
963,724,106 right units.
Starhill Global REIT 7
FY 2009 financial results
$’000 FY 2009 FY 2008 % Change
Gross Revenue 134,621 127,042 6.0%
Less: Property Expenses (27,672) (31,158) (11.2%)
Net Property Income 106,949 95,884 11.5%
Less: Fair Value Adjustment (1)
Borrowing Costs
Finance income
Management Fees
(666)
(23,690)
431
(10,961)
(28)
(22,146)
87
(11,404)
n/m
7.0%
395.4%
(3.9%)Notes: 1. Being accretion of tenancy deposit stated at
amortised cost in accordance with FinancialOther Trust Expenses
Tax Expenses (2)
(4,907)
(2,297)
(3,421)
(2,196)
43.4%
4.6%
Net Income After Tax (3) 64,859 56,776 14.2%
Add N T D d tibl (4) 10 623 12 651 (16 0%)
amortised cost in accordance with Financial Reporting Standard 39. This financial adjustment has no impact on the DPU
2. Excludes deferred income tax
3. Excludes changes in fair value of unrealised derivative instruments and investment propertiesAdd: Non-Tax Deductibles (4) 10,623 12,651 (16.0%)
Income Available for Distribution 75,482 69,427 8.7%
Income to be Distributed 73,505 68,599 7.2%
derivative instruments and investment properties
4. Includes management fees payable in units, certain finance costs, depreciation, sinking fund provisions, straight-line rent adjustment, trustee fees and due diligence project costs
5. DPU for FY 2008 has been restated to include the
28 Jan 2010
5. DPU for FY 2008 has been restated to include the 963,724,106 right units.
8
DPU (pre-rights) N/A 7.17 cents N/A
DPU (post-rights) 3.80 cents 3.58 cents (5) 6.1%
4Q 2009 financial results
$’000 4Q 2009 4Q 2008 % Change
Wisma Atria
$’000 4Q 2009 4Q 2008 % Change
Wisma Atria
Revenue Net Property Income
Retail (1) (2)
Office (1)
11,465
2,329
10,281
2,498
11.5%
(6.8%)
Ngee Ann City
Retail (1) 9,956 10,288 (3.2%)
Retail
Office
8,523
1,860
7,239
2,209
17.7%
(15.8%)
Ngee Ann City
Retail 8,385 8,391 (0.1%)
Office (1) 3,489 3,569 (2.2%)
Japan portfolio (3)
Chengdu (4)
2,246
4,843
2,590
4,609
(13.3%)
5.1%
Office 2,914 2,883 1.1%
Japan portfolio
Chengdu
2,178
2,944
1,987
3,263
9.6%
(9.8%)
Total 34,328 33,835 1.5% Total 26,804 25,972 3.2%
Notes: 1. Net of government property tax rebates passed on to tenants2 Mainly attributed to revenue from new leases
28 Jan 2010 Macquarie MEAG Prime REIT 9
2. Mainly attributed to revenue from new leases 3. Mainly due to higher vacancy at the Japan Properties 4. Higher sales at Chengdu property
Starhill Global REIT
FY 2009 financial results
$’000 FY 2009 FY 2008 % Change
Wisma Atria
$’000 FY 2009 FY 2008 % Change
Wisma Atria
Revenue Net Property Income
Retail (1) (2)
Office (1) (2)
45,389
10,151
44,238
9,078
2.6%
11.8%
Ngee Ann City
Retail (1) (2) 39,722 37,793 5.1%
Retail
Office
35,515
8,085
31,534
6,957
12.6%
16.2%
Ngee Ann City
Retail 33,990 30,289 12.2%
Office (1) (2) 13,951 12,943 7.8%
Japan portfolio (3)
Chengdu (4)
9,761
15,647
9,157
13,833
6.6%
13.1%
Office 11,331 10,147 11.7%
Japan portfolio
Chengdu
8,479
9,549
7,719
9,238
9.8%
3.4%
Total 134,621 127,042 6.0% Total 106,949 95,884 11.5%
Notes: 1 Net of government property tax rebates passed on to tenants
28 Jan 2010 Macquarie MEAG Prime REIT 10
1. Net of government property tax rebates passed on to tenants2. Renewal of leases at higher market rates and rent reviews3. Mainly due to strengthening of Yen on average4. Higher sales at Chengdu property
Starhill Global REIT
Trading yield
Attractive trading yield compared to other investment instruments
7.33
7
8
Attractive trading yield compared to other investment instruments
5 74%
7.33%
5.74
4
5
6 5.74%
6.88%4.67%
2.66 2.50
1.28
0 451
2
3
1.28%
2.66%
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 $0.525 per unit as at 31 Dec 2009 and actual annualised distribution for 4Q 2009
(4)(3)(2)(1) (5)
(3)
28 Jan 2010 11
g p p2. As at 31 Dec 2009 (Source: Bloomberg)3. As at Dec 2009 (Source: Singapore Government Securities website)4. Based on interest paid on Central Provident Fund (CPF) ordinary account in Dec 2009 (Source: CPF website)5. As at 15 Jan 2010 (Source: DBS website)
Starhill Global REIT
Unit price performance
Liquidity statistics
Last 3 months average 3.5 mildaily trading volume (units)
Estimated free float 71.1%
Market cap (31 Dec 09) $1,015 mil1
Source: Bloomberg
28 Jan 2010 Starhill Global REIT 12
Note: 1. By reference to Starhill Global REIT’s closing price of $0.525 as at 31 Dec 2009
Distribution timetable
Distribution Period 1 October to 31 December 2009
Distribution Amount 0.97 cents per unit
Notice of Books Closure Date 28 January 2010
Distribution Timetable
Last Day of Trading on “Cum” Basis 1 February 2010, 5.00 pm
Ex-Date 2 February 2010, 9.00 am
Books Closure Date 4 February 2010, 5.00 pm
Distribution Payment Date 26 February 2010
28 Jan 2010 Starhill Global REIT 13
Debt profile
As at 31 Dec 2009 $’000
Term loan (CMBS equivalent) 380,000
Term loan (Secured) 190,000
Revolving Credit Facilities -
Japan Bond 47,098
Chinese Loan 4,874
Total Debt 621,972
Fixed Rate Debt (up to Sept 2010)1 96.0%
Gearing Ratio2 26.9%
Interest Cover 4.5x
Weighted Average Effective Interest Rate1 2.98% p.a.
Starhill Global REIT corporate rating3 Baa2 (Moody’s) / BBB (S&P)
Notes:
28 Jan 2010 Starhill Global REIT 14
Notes:1. Includes interest rate derivatives 2. Based on deposited property as defined in the Trust Deed3. Reaffirmed by Moody’s Investors Service in Oct 2009; Assigned by S&P in Oct 2009
Debt profile
f S 2010Active discussion with relationship banks to refinance debt maturing in September 2010
Weighted average effective interest rate is 2.98% p.a.700
S$ millionDebt maturity profile
96.0% of borrowings is fixed (including derivatives) until September 2010
400
500
600 1
190
$30.0 million secured RCF and $20.9 million unsecured RCF were repaid using the rights issue proceeds in August 2009380
100
200
300
1
‐ ‐ ‐-
100
2010 2011 2012 2013 2014Term loan (CMBS equivalent) RCF (secured)Term loan (secured) RCF (unsecured)J b d Chi l
471
111
28 Jan 2010 Starhill Global REIT 15
Japan bond Chinese loan
Balance sheet
As at 31 Dec 2009 $’000 NAV statisticsAs at 31 Dec 2009 $ 000
Non Current Assets 2,011,038
Current Assets (2) 301,307
T t l A t 2 312 345
NAV statistics
NAV Per Unit (as at 31 Dec 2009) (1) $0.82
Adjusted NAV Per Unit (1)
$0 81Total Assets 2,312,345
Current Liabilities (3) (599,148)
Non Current Liabilities (126,669)
T t l Li biliti (725 817)
j(net of distribution)
$0.81
Closing price as at 31 Dec 2009 $0.525
U it P i P i /(Di t) TTotal Liabilities (725,817)
Net Assets 1,586,528
Unitholders’ Funds 1,586,528
U it (’000) 1 935 335
Unit Price Premium/(Discount) To:NAV Per Unit
Adjusted NAV Per Unit
(36.0%)
(35.2%)
Units (’000) 1,935,335
Notes:1. The number of units used for computation of NAV per unit is 1,935,334,984. This comprises: (a) number of units in issue as at 31 December 2009 of 1,932,418,044
units; and (b) estimated units to be issued to the Manager as partial satisfaction of management fee (base fee) earned for 4Q 2009 of 2,916,940 units.
2 I l d b l f t d f i ht i f i t l $262 2 illi ft i $50 9 illi f RCF i A t 2009 d t f $14 8
28 Jan 2010 Starhill Global REIT 16
2. Includes balance of net proceeds from rights issue of approximately $262.2 million after repaying $50.9 million of RCF in August 2009 and payment of $14.8million representing 10% deposit of the purchase price of David Jones Building in Perth, Australia.
3. Includes borrowings of $571 million, of which $570 million of secured borrowings is expected to be refinanced within the next 12 months.
Valuation of Investment Properties
1.4% increase in valuation of Starhill Global REIT’s investment properties from June 2009
Description 15-Jun-09 Capex Revaluation FX 31-Dec-09 Change Change
S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 %
Wisma Atria Property 797,510 264 14,056 - 811,830 14,320 1.8%
Ngee Ann City Property 885,885 - 16,515 - 902,400 16,515 1.9%
Renhe Spring Zongbei Property (1) 85,626 - 1,850 (2,935) 84,541 (1,085) -1.3%
Japan Portfolio (2) 185,588 - (7,140) 4,567 183,015 (2,573) -1.4%
Notes:1. Renhe Spring Zongbei Property translated at 31 Dec 2009 at RMB4.86:S$1.00 (15 Jun 2009: RMB4.69: S$1.00)
1,954,609 264 25,281 1,632 1,981,786 27,177 1.4%
28 Jan 2010 17
1. Renhe Spring Zongbei Property translated at 31 Dec 2009 at RMB4.86:S$1.00 (15 Jun 2009: RMB4.69: S$1.00)
2. Japan Portfolio translated at 31 Dec 2009 at JPY65.82:S$1.00 (15 Jun 2009: JPY67.44: S$1.00)
Starhill Global REIT
Agenda
Financial HighlightsFinancial Highlights
Portfolio Performance UpdatePortfolio Performance Update– Singapore– Tokyo– Chengdu
Growth DriversGrowth Drivers
28 Jan 2010 Starhill Global REIT 18
Portfolio summary
Portfolio
y
Di ifi d tf li i i Si J d Chi tDiversified portfolio comprising Singapore, Japan and China assets
Gross Revenue by Property Gross Revenue by CountryGross Revenue by Retail and Office
WA
Renhe Spring
Zongbei Property
14%
Japanese Properties
7%
Gross Revenue by Property(4Q 09)
China14%
Japan7%
Gross Revenue by Country(4Q 09)
Office17%
Gross Revenue by Retail and Office(4Q 09)
40%
NAC39%
14%
S'pore79%
Retail83%
28 Jan 2010 19Starhill Global REIT
Portfolio lease expiry
Portfolio
f 2 16 2 01 ( )Weighted average lease term of 2.16 and 2.01 years (by NLA and gross rent respectively)
Portfolio Lease Expiry (as at 31 Dec 2009)
52.8%
47.0%
40%
50%
60%By NLA By Gross Rent
Office RetailJapan Total
sq ft WA NAC WA NAC
21.5%25.7%25.5%
27.6%
20%
30%2010 23,928 62,054 41,068 2,928 7,501 137,480
2011 19,924 53,387 63,895 17,201 10,084 164,491
Beyond 2011 31 054 14 908 22 931 234 892 34 279 338 064
Notes:1.Portfolio lease expiry profile does not include Renhe Spring Zongbei Property
which operates as a department store with many short term concessionaire
0%
10%
FY2010 FY2011 Beyond 2011
Beyond 2011 31,054 14,908 22,931 234,892 34,279 338,064
Total 74,907 130,350 127,894 255,021 51,864 640,035
28 Jan 2010 20
which operates as a department store with many short-term concessionaire leases running 3-12 months
2.Lease expiry profile based on actual running lease as at 31 Dec 093.Toshin contributes to 35.3% and 29.9% of portfolio lease expiry by NLA and
Gross Rent respectivelyStarhill Global REIT
Portfolio lease expiry profile by year
Portfolio
141 f 1921 2011 f 3% f141 out of 1921 leases expire by 2011, accounting for 53% of gross rental income
Year Office Leases Retail Leases Gross Rental Income per month1
No. of leasesWeighted
average rent psf
No. of leasesWeighted
average rent psf
Office S$'000 Retail S$’000 % of Total 2
2010 27 9.70 50 32.90 837 1,696 25.5%
1 Excludes leases in Renhe Spring Zongbei Property as it operates as a department store comprising many concessionaries with short leases running
2011 16 10.10 48 21.90 737 2,001 27.6%
Beyond 2011 10 9.60 41 14.50 442 4,226 47.0%Total 53 9.83 98 18.22 2,017 7,923 100.0%
1. Excludes leases in Renhe Spring Zongbei 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 December 2009
28 Jan 2010 21Starhill Global REIT
Portfolio top 10 tenants
Portfolio
T 10 t t t ib t d 47% f th tf li t
Tenant Name Property Leased Area (sq ft) Lease Expiry % of Portfolio
Gross Rent 1% of Portfolio Leased Area
Toshin Development Co Ltd NAC 225,969 Jun 2013 29.8% 35.4%
Top 10 tenants contributed 47% of the portfolio gross rent
Wing Tai Retail Pte Ltd WA 7,707
May 2010, May 2010, Jun 2010, Jul 2010, Oct 2010, Nov
2010
2.7% 1.2%
Bread Talk Group WA 58,216 Sep 2011, Sep 2012, Oct 2012 2.4% 9.1%
Nike WA 7,341 Nov 2011 2.2% 1.1%
Feria Tokyo Terzo 14,451 Aug 2013 1.9% 2.3%
FJ Benjamin Lifestyle Pte Ltd WA 9,009 Nov 2011, Sep 2012 1.8% 1.4%
A 2010 S 2011Aspial-Lee Hwa (S) Pte Ltd WA 4,019 Aug 2010, Sep 2011, Oct 2011, Nov 2012 1.7% 0.6%
RSH (Singapore) Pte Ltd WA 4,061 March 2010, Jun 2010, Oct 2010 1.6% 0.6%
Charles & Keith Group WA 2,702 Jun 2010, Jul 2010 1.5% 0.4%
28 Jan 2010
Fashion Retail Pte Ltd WA 3,832 Sep 2011 1.4% 0.6%
22
Note: 1. For the month of December 2009
Starhill Global REIT
Office portfolio lease expiry profile and passing rents
Portfolio
In 4Q 2009, asking office rent was S$10.00 psf pm while leases were committed at between
10.10 10
10
90,000
100,000
Portfolio Office Lease Expiry and Average Gross Passing Rents
S$ psf pmSq ft
pm while leases were committed at between S$7.00 psf pm and S$9.00 psf pm.
9.70
9.60 10
10
10
10
10
40,000
50,000
60,000
70,000
80,000
85,983 73,311 45,962 9
9
10
10
-
10,000
20,000
30,000
2010 2011 Beyond 2011
Expiring office leases (by NLA)Gross passing rents of expiring leases (S$ psf pm)
28 Jan 2010 23
Note: Average monthly gross rent rounded to nearest ten cents
Starhill Global REIT
Retail passing rents
Portfolio
Wisma Atria’s average passing rents are below market average
Average Passing Rents for Wisma Atria & Ngee Ann City Retail
S$ psf pmNgee Ann City’s average retail rents are lower given the master lease with Toshin that accounts for 89% of retail NLA at Ngee Ann City28.16 27.91 28.11 29.36
25.32
33.00 34.5036.40 36.53
33.53
25
30
35
40
S$ psf pm
10.85 10.86 10.96 12.45
11.22
5
10
15
20
Footnotes:1. 2005 average rents computed from September - December 20052. CBRE’s quoted figures are for prime Orchard Road space which is
defined as “specialty” shop units of 500-1,000 sq ft on level with heaviest traffic
2
-2005₁ 2006 2007 2008 Year-to-date
2009
Wisma Atria Retail Ngee Ann City Retail CBRE
28 Jan 2010 24Starhill Global REIT
Occupancy costs
Portfolio
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
Average Occupancy Costs for Wisma Atria & RenheSpring Zongbei
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%27%
16%14%
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
14%
0%
10%
2008 Year-to-Date 2009
Notes:
1. Year-to-date 2009 occupancy costs for Wisma Atria and Renhe Spring Zongbei Property are for the period of Jan-Dec 2009
Wisma Atria Renhe Spring Zongbei
28 Jan 2010 25Starhill Global REIT
2. Average retail occupancy costs for Ngee Ann City is not available due to master lessee arrangements
Wisma Atria Property - Overview
Wisma Atria
Lease Expiry Schedule (by NLA) as at 31 Dec 2009 Weighted average lease term of 1.40 years (by NLA)– Retail: 1.52 years; Office: 1.19 years
Committed occupancy (90.2% by NLA) – Retail: 100.0%; Office: 77.5% 32.1%
50.0%
31.9%26 6%
41.5%40%
50%
60%Retail Office
Increasing proportion of retail leases structured as base rent plus % GTO– Base rent plus % GTO from 33% (Dec 05) to
78.1% (Dec 09)
17.9%
26.6%
0%
10%
20%
30%
Committed Occupancy Rates
– Higher of base rent or % GTO from 66% (Dec 05) to 20.7% (Dec 09)
95% 95 3% 95.6% 98.6% 97.5% 98.4% 100.0%100%
Retail Office
FY2010 FY2011 Beyond 2011
95% 95.3% 95.6%
86.0% 84.7% 83.2%
90.5% 92.0%
81.8%77.5%
60%65%70%75%80%85%90%95%
100%
28 Jan 2010 26Starhill Global REIT
50%55%60%
30 Jun 08 30 Sep 08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-09
Wisma Atria Property - Overview
Wisma Atria
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 ftS$ psf pm
Sq ft
12.0011.30
9.7010
12
14
30,000
35,000
40,000
45,000 37.50
25 0027.30 30
35
40
40 000
50,000
60,000
70,000
4
6
8
10,000
15,000
20,000
25,000 25.00
15
20
25
10,000
20,000
30,000
40,000
23,928 19,924 31,054 2 -
5,000
2010 2011 Beyond 2011
Expiring office leases (by NLA)Gross passing rents of expiring leases (S$ psf pm)
41,068 63,895 22,93110 0
2010 2011 Beyond 2011
Expiring retail leases (by NLA)
Gross passing rents of expiring leases (S$ psf pm)
28 Jan 2010 27Starhill Global REIT
Note: Average passing rent of expiring retail leases is dependent on size and location of space; this chart does not show rental trends
Wisma Atria Property - Diversified tenant base
Wisma Atria
WA Office Trade Mix – by % NLAWA Retail Trade Mix – by % NLA WA Office Trade Mix – by % NLA(as at 31 Dec 2009)
WA Retail Trade Mix – by % NLA(as at 31 Dec 2009)
General Trade
Health & Beauty1.7%
Services1.1%
WA Retail Trade Mix - By % NLA
Real Estate &Government
Jewellery & Watches
5.3%
Investments1.6% Travel/Leisure
0.0%
WA Office Trade Mix - By % NLA
Fashion48.5%
Sh &
Jewellery & Watches
7.1%
General Trade3.4%
Real Estate & Property Services15.1%
Consultancy / Services15.9%
Medical10.2%
Trading7.9%
Government related5.3%
F&B28.7%
Shoes & Accessories
9.6%
Petroleum Related14.4%
Others13.1%
Aerospace11.1%
28 Jan 2010 28
Wisma Atria Property – Traffic and centre sales
Wisma Atria
Shopper traffic surpasses pre-linkway closure levels
3.5
Wisma Atria Traffic Count at Primary Entrances
Million Wisma Atria Property Retail Sales TurnoverS$ Million
2.0
2.5
3.0 Year 2006 Year 2008 Year 2009
18
20
22
24 2007 Sales TurnOver 2008 Sales TurnOver2009 Sales TurnOver
2006 Sales Turnover
2008 S l
0.0
0.5
1.0
1.5
10
12
14
162008 Sales Turnover
2009 Sales Turnover
Overall footfall to Wisma Atria in 4Q 2009 increased 80% compared to the same period in 2008 following the re-opening of the basement linkway to the Orchard MRT station in June 2009 and the opening of ION Orchard on 21 July 2009
10
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
28 Jan 2010 29Starhill Global REIT
of the basement linkway to the Orchard MRT station in June 2009 and the opening of ION Orchard on 21 July 2009
Centre sales in 4Q 2009 declined slightly by 0.8% from 4Q 2008 as Singapore retail sales were slowly picking up as the economy recovered
Wisma Atria Property – Basement traffic count
Wisma Atria
O ll t t ffi i b k t 2006 l l b f l f th b t MRT li kOverall centre traffic is now back to 2006 levels before closure of the basement MRT linkway
600 000
Basement EntrancesWeekly Traffic Count from 1 Jun 2009 - 3 Jan 2010
Week 1: Linkway Week 8: ION opened Week 20: ION Official
300 000
400,000
500,000
600,000
c C
ount
20092006
reopened on 3 Jun 09 on 21 Jul 09 Opening on 23 Oct 09
100,000
200,000
300,000
Traf
fic
2008
C d t th i d i 2008 b t h t ffi t Wi At i j d 126% b t 3 J
0
Wee
k 1
Wee
k 2
Wee
k 3
Wee
k 4
Wee
k 5
Wee
k 6
Wee
k 7
Wee
k 8
Wee
k 9
Wee
k 10
Wee
k 11
Wee
k 12
Wee
k 13
Wee
k 14
Wee
k 15
Wee
k 16
Wee
k 17
Wee
k 18
Wee
k 19
Wee
k 20
Wee
k 21
Wee
k 22
Wee
k 23
Wee
k 24
Wee
k 25
Wee
k 26
Wee
k 27
Wee
k 28
Wee
k 29
Wee
k 30
Wee
k 31
28 Jan 2010 30Starhill Global REIT
Compared to the same period in 2008, basement shopper traffic to Wisma Atria jumped 126% between 3 June2009 (when the basement linkway to the Orchard MRT station re-opened) and 21 July 2009 (when ION Orchardopened). Post 21 July 2009 to-date, total shopper traffic has increased by another 27%.
Wisma Atria Property –
Wisma Atria
p yNew lettable area at Basement and Level 1
New lettable retail space arising from removal of escalators in operation since October 2009
Before After
Orchard Rd street level Basement level
More than 1,000 sq ft of net lettable retail space was created arising from the removal of escalators, achieving areturn on investment of more than 60%
28 Jan 2010 31Starhill Global REIT
Ngee Ann City Property - Overview
Ngee Ann City
Lease Expiry Schedule (by NLA) as at 31 Dec 2009
Weighted average lease term of 2.5 years (by NLA)– Retail: 3.23 years; Office 1.13 years
92.1%
47.6%50%60%70%80%90%
100% Retail Office
Close to full committed occupancy (97.9% by NLA) – Retail: 100.0%; Office 94.0%
Increasing proportion of Level 5 retail leases 1.1%
6.7%
41.0%
11.4%
0%10%20%30%40%50%
Committed Occupancy Rates
structured as base rent plus % GTO from 0% (Dec 05) to 73% (Dec 09) and step-up rents from 0% (Dec 05) to 51% (Dec 09)
FY2010 FY2011 Beyond 2011
99.6% 99.6% 99.6% 99.6% 98.8% 100.0% 100.0%98.2% 98.2% 98.8% 98.8%94.9% 93.6% 93.7%100%
Retail Office
60%
70%
80%
90%
28 Jan 2010 32Starhill Global REIT
50%
60%
30 Jun 08 30 Sep 08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09 31-Dec-09
Ngee Ann City Property - Overview
Ngee Ann City
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
234 89217 60S$ psfSq ft Sq ft
S$ psf234,892
16.90
17.60
15
16
17
18
150,000
200,000
250,00062,054
8.909.60 9.60
10
12
14
40 000
50,000
60,000
70,000
17,201
13.10
11
12
13
14
50,000
100,000
4
6
8
10,000
20,000
30,000
40,000
2,928
17,201
10
11
0
2010 2011 Beyond 2011
Expiring retail leases (by NLA)
Gross passing rents of expiring leases (S$ psf pm)
53,387 14,908 2 -
,
2010 2011 Beyond 2011
Expiring office leases (by NLA)Gross passing rents of expiring leases (S$ psf pm)
28 Jan 2010 33Starhill Global REIT
Note: Average passing rent of expiring retail leases is dependent on size and location of space; this chart does not show rental trends
p g p g ( p p )
Ngee Ann City - Diversified tenant base
Ngee Ann City
NAC Retail Trade mix by % NLA NAC Office Trade Mix by % NLANAC Retail Trade mix – by % NLA(as at 31 Dec 2009)
NAC Office Trade Mix – by % NLA(as at 31 Dec 2009)
Beauty & Wellness
9 2%
Services1.9% General Trade
0.4%
C lt /Aerospace
Beauty/ Health3.5%
Travel/Leisure2.6% Fashion Retail
2.6%
NAC Office Trade Mix - By % NLA
9.2% Consultancy / Services30.1%
Banking and Financial Services
Real Estate & Property Services
7.4%
Aerospace3.8%
Toshin88.6%
Others19.6%
Jewellery & Watches11.8%
Petroleum Related10.6%
7.9%
28 Jan 2010 34Starhill Global REIT
Japan Properties - Overview
Japan Properties
Weighted average lease term by NLA is 2.47 years
Total Japan portfolio occupancy is 90.4%
1 vacant unit (1,331 sq ft) at Ebisu Fort, 1 vacant unit (934 sq ft ) at Daikanyama and 1 vacant unit (3,254 sq ft) at Holon L
Savills Japan actively sourcing suitable tenants for Ebisu Fort, Holon L and Daikanyama
Committed occupancy rates as at 31 December 09
As at 1 December 2009, Starhill Global ML K.K. and Savills Japan K.K. replaced Future Revolution as master tenant and property manager respectively.
100% 100% 100% 100%88% 93%
70%80%90%
100%
33%
10%20%30%40%50%60%
28 Jan 2010 35Starhill Global REIT
0%
Holon L Harajyuku Secondo
Roppongi Terzo
Roppongi Primo
Naka-meguro Daikan-yama Ebisu Fort
Renhe Spring Zongbei Property Overview
Renhe Spring Zongbei
Quality high-growth asset in Chengdu, China
Renhe Spring Zongbei Property - Overview
Full occupancy as at end Dec 2009
4Q 2009 gross sales were 18.6% higher than 4Q 2008
Construction of new subway station outside Renhe Spring Zongbei Property to complete by end 2010
NPI was 9.8% lower than in 4Q 2008, due mainly to the weakening of RMB and higher advertising and promotion expenses
Sales (RMB'000)including VAT
Renhe Spring Zongbei Property Weekly Sales Performance
15,000
20,000
25,000
including VATSep 09 Renhe Anniversary Sales 2009
12 May 2008Sichuan Earthquake
Sep 08 Renhe Anniversary Sales
‐
5,000
10,000
,
28 Jan 2010 Starhill Global REIT
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 200936
Agenda
Financial Highlights
Portfolio Performance Update– Singapore– Tokyo
Growth Drivers & Contributors
28 Jan 2010 37Starhill Global REIT
Drivers of visitorship to S’pore downtown malls
Integrated resorts will up the ante on S’pore MICE, retail and entertainment scene:• Marina Bay Sands will attract the business crowd; Resorts
World poised for family visitors
Macro drivers Micro drivers
Signs of improving global economy:• Improvement in credit environment
Signs of improving Singapore economy: World poised for family visitors
• Gaming, theme parks and theatres - new offerings in region
Renewal of Orchard area: • Orchard Road is most visited tourist destination, attracting
70% of all tourists; tourist arrivals recovering since July 2009
• Strong investor participation in recent fund raising exercises by S’pore companies
• Continued buoyant residential property market
• S’pore economy grew 3.5% (advanced estimates) yoy in 4Q2009; 2010 GDP growth forecast upgraded to 3% to 5%
• STB S$40 million Orchard Road infrastructural refurbishment completed in 2009; sets up steering committee for Tourism Compass 2020 roadmap
• New and refurbished malls enjoy high take-up rate; new brands and concepts add vibrancy
; g pgfrom -2.5% to -2.0%
• Population hits 5m (Jun 2009), driving consumption growth
• Retail spending back on upward trend
World class events: • Formula 1 Singapore Grand Prix;
• 19,000* new high-end residence units coming up in core central region (Orchard Rd catchment area) between 2009 and 2013
• About 70% of tourists to
• Orchard Road attracts more than 7m tourists annually*
28 Jan 2010 Starhill Global REIT
g p
• Inaugural Youth Olympics Games (2010)
• Great Singapore Sale
tourists to Singapore will visit Orchard Road
* URA website
38
Acquisition of David Jones Building completed
Perth property to contribute to FY 2010 revenue and Net Property Income (NPI)
Location Perth CBD, Western Australia
Description David Jones Building – anchored by a 4-storey DJ (up-market Australian departmental store) & 2 specialty tenants
Murray Street view
p p y p y ( )
Heritage-listed building (formerly known as Savoy Hotel) –a 5-storey hotel including a basement which has ceased operations since the 1980s. The ground floor has been used for retail since the 1930s and currently consists of four tenantstenants
WA government extended weeknight trading hours from 5pm to 9pm wef January 2010, to enhance Perth’s status as a tourist precinct
Major tenant David Jones (DJ) (95% of GLA; 75% of income)
Land tenure Freehold
GLA/ Occupancy 24,076 sqm / 100%
Valuation/ cap rate A$115.7m / 7.8% (Oct 09)
28 Jan 2010
Purchase price / cap A$ 114.5m / 7.9%
Date of completion of acquisition
20 January 2010
39Starhill Global REIT
Hay Street view
Proposed acquisition of Malaysia properties
• Landmark properties in Kuala LumpurStarhill Gallery - NLA: 297,354 sqft
Stable Cashflow with Growth
• Master Tenancy to YTL for 3+3+3 years provides rental income stability• Incorporates step-up feature every three years (7.0%, 7.5%, 8.0%)
• Strategically located in Jalan Bukit Bintang, one of KL’s main tourist hubs• High occupancy levels at 96.4% and 86.5% for Starhill Gallery and Lot 10
respectively
Prime Retail Assets in Strategic Location
Positive Retail Outlook
• Retail industry is one of most active sub-sectors in Malaysia• Contributes approximately 14.7% of GDP in 2008 and 15.2% in 2009• Retail outlook in Malaysia remains positive driven by higher consumer
spending, stable employment and strong tourism industry• Malaysia is ranked in the Top 10 retail emerging markets
LOT 10 - NLA: 256,811 sqft
Portfolio Diversification• In line with SGR’s growth strategy• Will reduce concentration risk• S’pore property dependency down from 86.0% to 70.3% in terms of asset value
Malaysia is ranked in the Top 10 retail emerging markets
• Rare opportunity to acquire prime retail assets in prime locations in Kuala
• Space at the Properties is highly sought after
Unique opportunity at attractive valuations with inherent synergistic benefits
Lumpur• Inherent benefits can be derived with Wisma Atria and Ngee Ann City in terms
of retail management and tenant mix given similarity in positioning and branding• Average value psf of RM 1,859 psf is attractive
Subject to unitholder
28 Jan 2010
• Space at the Properties is highly sought after• Notable tenants in Starhill Gallery include Louis Vuitton, Audemar Piguet,
Bottega Venetta, Boucheron, Chopard and Van Cleef & Arpels• Notable tenants in Lot 10 include The Actors’ Studio, Guess, Apple, Isetan and
Debenhams
Strong Tenant Base with Excellent Brand Recognition
40Starhill Global REIT
approval at EGM
40
Estimated geographical revenue contribution post transactions
C t t ti i k ill b d d t i itiCountry concentration risks will be reduced post acquisitions
Gross Revenue by Country(4Q 09)
Estimated Gross Revenue by Country(post Australian acquisition)
China14%
Japan7% Australia
9%
Japan6%
China13%
Singapore79%
Singapore72%
28 Jan 2010 41Starhill Global REIT 41
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
28 Jan 2010 42Starhill Global REIT
Disclaimer
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 28 October 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.
28 Jan 2010 43Starhill Global REIT
28 Jan 2010Investor, Analyst and Media Contact: Ms Mok Lai Siong Tel : +65 6835 8633 Email : [email protected]