Corporate Presentation 2 nd Quarter 2018 Financial Results 8 August - - PowerPoint PPT Presentation

▶
corporate presentation
SMART_READER_LITE
LIVE PREVIEW

Corporate Presentation 2 nd Quarter 2018 Financial Results 8 August - - PowerPoint PPT Presentation

Jul 08, 2023 311 likes •492 views

Corporate Presentation 2 nd Quarter 2018 Financial Results 8 August 2018 Important Notice This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in MRCB-Quill REIT

slide-1
SLIDE 1

Corporate Presentation 2nd Quarter 2018 Financial Results

8 August 2018

slide-2
SLIDE 2

Important Notice

This presentation is for information only and does not constitute an invitation or offer to acquire, purchase or subscribe for units in MRCB-Quill REIT (formerly know as Quill Capita Trust) (“MQReit”). The past performance of MQReit is not necessarily indicative of the future performance of MQReit. This presentation 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 limitations) 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 and

  • ccupancy, changes in operating expenses including employee wages, benefits and

training, property expenses and governmental and public policy changes. You are cautioned not to place undue reliance on these forward-looking statements which are based on the manager’s current view of future events. The value of units in MQReit (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 Units is subject to investment risks, including the possible loss of the

principal amount invested. Investors have no right to request the manager to redeem their Units while the Units are listed. It is intended that unitholders may only deal in their Units through trading on the Main Board of Bursa Malaysia Securities Berhad. Listing of the Units on the Bursa Securities does not guarantee a liquid market for the Units. The information in this Announcement must not be published outside Malaysia.

MRCB-Quill REIT Presentation *August 2018* 2

slide-3
SLIDE 3

Contents

MRCB-Quill REIT Presentation *August 2018*

  • Financial Results
  • Portfolio Update
  • Conclusion

Slide No. 4 9 15

3

slide-4
SLIDE 4

MRCB-Quill REIT Presentation *August 2018*

Quill Building 5 - IBM

Financial Results

slide-5
SLIDE 5

Delivers Stable DPU of 4.23 sen for 1H 2018

(RM’000)

(Unaudited) 2Q 2017 1H 2017 Net Income 1 EPU 2 Net Property Income Gross Revenue

1 Net Income refers to realised income after taxation (exclude gain from re-measurement of derivatives and revaluation surplus) 2 EPU refers to Realised Earnings Per Unit 3 Distributable Income refers to realised income after taxation adjusted for Manager's management fee payable in units and income previously not distributed. 4 DPU refers to Distribution Per Unit

Variance 0.2% 6.5% 6.2%

MRCB-Quill REIT Presentation *August 2018*

(Unaudited) 2Q 2018 1H 2018 43,691 33,647 23,486 2.19 sen 43,609 33,444 22,043 2.06 sen 0.6% 0.9% 2.28 sen 2.26 sen Distributable Income Per Unit 1.3% 24,486 24,179 Distributable Income 3 4.23 sen

5

4.23 sen

  • DPU 4
slide-6
SLIDE 6

(Unaudited) (Audited) (Unaudited) (Unaudited) as at as at as at as at 30 Sept 2017 (RM’000) 31 Dec 2017 (RM’000) 31 Mar 2018 (RM’000) 30 Jun 2018 (RM’000) Non Current Assets 2,224,395 2,181,387 2,181,654 2,183,285 Non Current Asset held for sale

  • 25,000

25,000

  • Current Assets

56,715 82,005 63,229 107,752 Total Assets 2,281,110 2,288,392 2,269,883 2,291,037 Current Liabilities 136,935 142,586 152,979 148,458 Non Current Liabilities 763,605 761,082 755,242 753,515 Net Assets 1,380,570 1,384,724 1,361,662 1,389,064 No of Units 1,068,000 1,068,000 1,068,000 1,071,783 NAV per Unit (RM) 1.2927 1.2966 1.2750 1.2537

Total Assets – RM2.29 billion NAV per unit – RM1.2537

MRCB-Quill REIT Presentation *August 2018* 6

slide-7
SLIDE 7

Gearing Ratio Below SC limit of 50%

Maintained (1Q 2018 : 38%) 37%

0% 10% 20% 30% 40% 50% 60% 30-Jun

Gearing Ratio

Prudent Capital Management

MRCB-Quill REIT Presentation *August 2018*

CPs RM118m

RM118m CPs

 Next refinancing due in September 2018  Stable financial indicators Average Cost of Debt

4.4%pa

Maintained (1Q 2018: 4.4% pa)

Majority Fixed Rate Borrowings

Total Debt: RM853.42 mil

(1Q 2018: RM854.18 mil )

SC Limit

7

Floating rate, 24% Fixed rate, 76%

Interest Coverage

3.38x

(1Q 2018: 3.27x)

Average Debt to Maturity

2.30years

Maintained (1Q 2018: 2.55 years)

slide-8
SLIDE 8

50 100 150 200 250 300 350 400 450

2017 2018 2019 2020 2021 2022

 Next Refinancing Due in September 2018

Debt Maturity Profile

MRCB-Quill REIT Presentation *August 2018*

CPs RM118m

RM118m CPs

RM(mil) 22%

Average debt to maturity : 2.30 years

14%

Note;

  • 1. MTN - Medium Term Notes
  • 2. CP – Commercial Papers
  • 3. TL – Term Loan

45%

CP RM130mil MTN RM60 mil TL RM117m CP RM279mil TL RM110mil

19%

TL RM117m MTN RM130mil CP RM61 mil CP RM279mil TL RM110mil CP RM144mil MTN RM20mil

8

slide-9
SLIDE 9

MRCB-Quill REIT Presentation *August 2018*

Quill Building 3 - BMW

Portfolio Update @ 30 June 2018

slide-10
SLIDE 10

Portfolio of Quality Assets @ 30 June 2018

a) The Properties were valued by Nawawi Tie Leung Property Consultants Sdn. Bhd, an independent firm of professional valuer registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. b) The Properties were valued by CH Williams Talhar & Wong Sdn. Bhd, an independent firm of professional valuer, registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. c) All properties were based on valuation as at 31 December 2017.

Quill Building 4

  • DHL 2(a)

Quill Building 2

  • HSBC (a)

Quill Building 3

  • BMW(a)

Quill Building 5

  • IBM(a)

Part of Plaza Mon’t Kiara(b) Quill Building 1

  • DHL 1(a)

TESCO Building Penang(a)

Market Value

  • f

10 Properties: RM2.18 bil(c)

MRCB-Quill REIT Presentation *August 2018*

Wisma Technip (b)

Total NLA: 2.19 mil sq ft

*Excluding car park area

Portfolio Occupancy Rate: 96.0%

Menara Shell (b)

Weighted Average Term to Expiry: 4.9 years

10

Platinum Sentral

  • KL Sentral (b)
slide-11
SLIDE 11

Geographical Diversification

By Valuation

¹

Notes: (1) Other Klang Valley Area refers to Klang Valley generally excluding KL city centre, KL Sentral and Mont’ Kiara. Klang Valley refers to Kuala Lumpur and Selangor State excluding Kuala Selangor, Sepang and Sabak Bernam. (2) The Properties were valued by Nawawi Tie Leung Property Consultants Sdn Bhd and CH Williams Talhar & Wong Sdn Bhd, independent firm of professional valuers registered with the Board of Valuers, Appraisers & Estate Agents Malaysia.

Klang Valley 77% Cyberjaya 17% Penang 6%

MRCB-Quill REIT Presentation *August 2018* 11

Cyberjaya 17% Kuala Lumpur City Centre 8% KL Sentral 63% Penang 6% Mont' Kiara 6%

slide-12
SLIDE 12

Diversified Segmental Contributions

Notes: (1) Office comprises Quill Buildings (excluding Quill Building 8-DHL (XPJ) at Glenmarie, Shah Alam), Platinum Sentral, Wisma Technip and Menara Shell (2) Retail refers to retail portion of Plaza Mont’ Kiara & TESCO Building Penang (3) Car Park refers to car parking bays in Plaza Mont’ Kiara (4) The Properties were valued by Nawawi Tie Leung Property Consultants Sdn Bhd and CH Williams Talhar & Wong Sdn Bhd, independent firm of professional valuers registered with the Board of Valuers, Appraisers & Estate Agents Malaysia.

By Valuation

MRCB-Quill REIT Presentation *August 2018* 12

Office 89% Retail Assets 9% Car Park 2%

slide-13
SLIDE 13

Tenant Mix

By Net Lettable Area

MRCB-Quill REIT Presentation *August 2018*

Well Balanced Tenancy Mix

13

Government Linked Office 14.6% Retail 19.4% Education 0.8% Banking 8.8% Automotive 2.5% Logistics 9.2% Oil & Gas, 31.3% IT/ Electronics 5.5% Services 0.7% Insurance 6.7% FMCG, 0.3% Manufacturing, 0.2%

slide-14
SLIDE 14

Lease Expiry Profile

  • 28% of Total NLA due in 2018

% of net lettable area that are due for renewal

sq ft

MRCB-Quill REIT Presentation *August 2018*

1% 24% 3% 12% 17% 1% 39% 3%

  • 100,000

200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 2018 2019 2020 2021 2022 - 2032

Lease Up for Renewal by NLA - 30 June 2018

Lease Expiring Renewed Not Renewed Disposed

slide-15
SLIDE 15

MRCB-Quill REIT Presentation *August 2018*

Conclusion

Quill Building 1 – DHL 1

slide-16
SLIDE 16

In Summary

MRCB-Quill REIT Presentation *August 2018*

  • Proactive asset management strategies to focus on tenant relations and

continuous building improvements

  • Prudent capital management strategies
  • Continue to explore yield accretive acquisition opportunities

1H 2018 : Stable DPU of 4.23 sen

  • Achieved Distributable Income Per Unit of 2.28 sen in 2Q 2018, which is 1.0%

higher compared to 2Q 2017

  • Declares DPU of 4.23 sen in 1H 2018 (being 96.7% of the distributable income

for 1H 2018). 1H 2018 of 4.23 sen is similar to the distribution in 1H 2017

  • Successfully renewed approximately 70% of the leases due in 1H 2018

Year 2018 Prospects – Ongoing Strategies

16

slide-17
SLIDE 17

Thank you

For enquires, please contact: Ms Joyce Loh (General Line: 603-2786 8080) (Fax : 603-2780 0098)