Corporate Presentation 1 st Quarter 2016 Financial Results 29 April 2016
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 occupancy, 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 The information in this Announcement must not be published outside Malaysia. 2 MRCB-Quill REIT Presentation *April 2016*
Contents Slide No. 4 • Financial Results 10 • Portfolio Update 16 • Conclusion 3 MRCB-Quill REIT Presentation *April 2016*
Financial Results Quill Building 5 - IBM MRCB-Quill REIT Presentation *April 2016*
1Q 2016 EPU increased by 10.2% (Unaudited) (Unaudited) Variance (RM’000) 1Q 2015 1Q 2016 Gross Revenue 18,609 32,656 +75.5% Net Property Income 13,680 25,448 +86.0% Net Income 1 8,279 15,238 +84.1% EPU 2 2.09 sen 2.30 sen +10.2% 4 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 5 MRCB-Quill REIT Presentation *April 2016*
Total Assets – RM1.60 billion NAV per unit – RM1.3400 (Unaudited) (Unaudited) (Audited) (Unaudited) as at as at as at as at 30 Jun15 30 Sept 15 31 Dec 2015 31 Mar 2016 (RM’000) (RM’000) (RM’000) (RM’000) Non Current Assets 1,590,200 1,569,724 1,573,632 1,571,915 Current Assets 41,999 37,956 51,608 33,238 Total Assets 1,632,199 1,607,680 1,625,240 1,605,153 Current Liabilities 19,445 20,133 205,001 199,420 Non Current Liabilities 733,212 703,150 516,384 519,506 Net Assets 879,541 884,397 903,855 886,227 No of Units 661,381 661,381 661,381 661,381 NAV per Unit (RM) 1.3299 1.3372 1.3666 1.3400 6 MRCB-Quill REIT Presentation *April 2016*
Stable Financial Indicators Unaudited Unaudited Audited Unaudited as at as at as at as at 30 Jun 15 30 Sept 15 31 Dec 15 31 Mar 16 Total Debts (RM’000) 718,462 688,170 689,722 688,607 Gearing Ratio ¹ 0.44x 0.43x 0.42x 0.43x Interest Coverage 2 3.03x 2.96x 3.02x 3.05x Average Term to Maturity (year) 3 3.57 3.35 3.09 2.84 Average Cost of Debt (p.a.) 4 4.4% 4.4% 4.4% 4.4% Notes: 1.Gearing ratio refers to Gross Debt over Total Assets. 2.Interest coverage refers to year to date (YTD) EBITDA / YTD Interest Expense 3.Average Term to Maturity means weighted average time lapse to maturity 4.Average Cost of Debt is calculated based on YTD Interest Expense / Average Weighted Borrowing 7 MRCB-Quill REIT Presentation *April 2016*
Capital Management Prudent Capital Management 100%* of borrowings on Average cost of debt Gearing Ratio fixed rate 60.0% SC Limit 4.4% 50.0% Fixed 42.9% 40.0% rate Gearing level CPs 100% MTN 30.0% RM118m RM118m RM117m 43% CPs 20.0% 10.0% Below SC limit of 50% Total average borrowings : 0.0% RM696 mil 31-Mar 8 MRCB-Quill REIT Presentation *April 2016*
Debt Maturity Profile Next Refinancing Due in September 2016 Average debt to maturity : 2.84 years RM(mil) 450 56% 400 CP RM279mil 350 TL RM110mil 300 CPs 250 RM118m RM118m 27% CPs 200 CP RM130mil 150 17% MTN MTN RM60 mil TL RM60m TL 100 RM72.2m RM117m 50 0 2015 2016 2017 2018 2019 2020 The Manager has commenced the refinancing exercise for the borrowings due in September 2016. Note; 1. MTN - Medium Term Notes 2. CP – Commercial Papers 9 MRCB-Quill REIT Presentation *April 2016* 3. TL – Term Loan
Portfolio Update Quill Building 3 - BMW MRCB-Quill REIT Presentation *April 2016*
Portfolio of Quality Assets Quill Building 1 Quill Building 4 Quill Building 2 Platinum Sentral - DHL 1 (a) - DHL 2 (a) - HSBC (a) - KL Sentral (b) 10 Properties valued at RM1.57 bil Quill Building 3 Quill Building 5 Quill Building 8 Total NLA of - BMW (a) - IBM (a) - DHL (XPJ) (a) 1.70 mil sq ft *Excluding car park area Portfolio Occupancy Rate Part of Plaza Wisma Technip (b) TESCO Building 97.1% Mon’t Kiara (b) Penang (a) a) The Properties were valued by DTZ 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. 11 MRCB-Quill REIT Presentation *April 2016*
Geographical Diversification Other Klang Valley Area Mont' Kiara 2% By Valuation 7% Cyberjaya Penang 23% 9% ¹ Kuala Lumpur City Centre 11% Klang 68% Valley Cyberjaya 23% Penang 9% KL Sentral 48% Notes: (1) Other Klang Valley Area refers to Klang Valley generally excluding KL city centre 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 DTZ Nawawi Tie Leung Property Consultants Sdn Bhd, an independent firm of professional valuer registered with the Board of Valuers, Appraisers & Estate Agents Malaysia. (3) 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. 12 MRCB-Quill REIT Presentation *April 2016*
Diversified Segmental Contributions Car Park Retail Assets 3% By Valuation 13% Other Commercial Building 2% Office 82% Notes: (1) Office comprises Quill Buildings (excluding Quill Building 8-DHL (XPJ) at Glenmarie, Shah Alam), Platinum Sentral and Wisma Technip (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) Other commercial building refers to Quill- Building 8- DHL (XPJ) at Glenmarie, Shah Alam (5) The Properties were valued by DTZ 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. 13 MRCB-Quill REIT Presentation *April 2016*
Tenant Mix Well Balanced Tenancy Mix By Net Lettable Area IT/ Electronics 7% Government Linked Office 18% Oil & Gas 21% Retail 24% Logistics 15% Education Automotive 1% Banking 2% 11% 14 MRCB-Quill REIT Presentation *April 2016*
Lease Expiry Profile Lease Up for Renewal by NLA as at 31 March 2016 sq ft 800,000 Lease Expiring 700,000 Renewed Not Renewed 600,000 500,000 400,000 43% 300,000 26% 200,000 13% 100,000 11% 6.7% 0.3% 0.4% - 2016 2017 2018 2019 2020 - 2032 % of net lettable area that are due for renewal 15 MRCB-Quill REIT Presentation *April 2016*
Conclusion Quill Building 1 – DHL 1 MRCB-Quill REIT Presentation *April 2016*
In Summary 1Q 2016 : Realised EPU increases to 2.30 sen Achieved Realised EPU of 2.30 sen in 1Q 2016, 10.2% higher than 2.09 sen achieved on 1Q 2015 Extended the cut-off date for the execution of the sales and purchase agreement for the acquisition of Menara Shell to 30 May 2016 (“New Extended Cut-Off Date”) with an automatic extension of a further period of thirty (30) Business Days from the New Extended Cut-Off. This is to facilitate vendor’s submission of the application for the approval of the Director of Lands and Mines for the subdivision of building and land under subsection 6(1A) Strata Titles Act 1985 Year 2016 Prospects – Ongoing Strategies Proactive asset management strategies to focus on tenant relations and continuous building improvements Prudent capital management strategies Continue to explore yield accretive acquisition opportunities 17 MRCB-Quill REIT Presentation *April 2016*
Thank you For enquires, please contact: Ms Yong Su Lin Ms Joyce Loh Mr Victor Wong (General Line: 603-2786 8080) (Fax : 603-2780 0098)
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