Future Park Leasehold Property Fund “FUTUREPF”

Future Park Leasehold
Property Fund
“FUTUREPF”
4Q2012 and Full Year 2012 Financial Results
Opportunity Day at SET on 28th March 2013
Investment in mutual funds contains certain risk.
Before investing, please carefully study the prospectus of the funds.
1
Important Notice
• This is not Fund’s Prospectus. Investment in mutual funds contains certain risk. Before
investing, please carefully study the prospectus of the funds. An investment in
investment units shall not be deemed as deposit of money. The unitholders may
receive an amount of any return that is more or less than the initial amount invested.
Furthermore, the property fund is the fund with intention to invest in immovable
properties which is a long-term investment; as a consequence, the investors ought to be
aware of its risks from and returns on investment in investment units.
• This Fund invests in the leasehold right over immovable property. Their values may
decrease along with elapse of the lease term, thus decreasing the value of the
investment units accordingly. The unitholders will receive return of initial investment in
the form of dividend. Once the lease term expires according to the leasehold right that
the Fund has invested in, the value of the investment units may decrease to Baht zero.
• This document has been prepared solely for the information purpose. The information
contained herein is general and does not constitute advice or opinion, and should not
be regarded as a substitute for detailed advice in individual cases. None of this
information in this document constitutes an offer to treat, buy or sell any security or to
participate in any trading strategy. Third parties cannot derive any rights from this
document. While particular attention has been paid to the contents of this document, no
guarantee, warranty or representation, express or implied, is given to the accuracy,
correctness or completeness thereof. Any information given in this document may be
subject to change or update without notice. No liability (such as, but not limited to,
direct, consequential, special, punitive or indirect damages) will be accepted for any
loss sustained by readers as a result of using this document or basing decisions on it.
Please note that the investment is not a deposit of money and may be subject to certain
risks. The value of your investment may rise or fall and also past performance is not
insisting of future performance and shall in no event be deemed as such.
2
Agenda
1. Overview of FUTUREPF
2. Financial Highlights
3. Property Management
4. Q & A
3
1.Overview of FUTUREPF
4
Fund Information
Name
Future Park Leasehold Property Fund (“FUTUREPF”)
Type
Property Fund Type I
Life
Indefinite Life
Fund Size
Total Baht 6,233.161 million
- Initial Baht 4,733.161 million
- 1st Capital Increase Baht 1,500.000 million (26 December 2012)
No.of Investment Units
Total 529.5661 million Units
- Initial 473.3161 million Units
- 1St Capital Increase 56.2500 million Units
Assets
- 20-year leasehold right and right to use and seek the benefit on partial
areas of Future Park Rangsit (Lease ended 31 December 2026)
- Extended 15-year leasehold (Lease ended 31 December 2041) and
additional area 4,832 sq.m.
Property Manager
Rangsit Plaza Company Limited
Fund Manager
BBL Asset Management Company Limited
Trustee
The Hongkong and Shanghai Banking Corporation Limited (HSBC)
Registrar
Thailand Securities Depository Company Limited
Fund Registered Date
23 November 2006
Fund Investing Date
24 November 2006
Fund Listed Date
7 December 2006
5
Fund Raising for
Lease Extension & Additional Area
As of the Capital Increase
2012
Rights Extension
2027
Existing properties: 100,764 sq.m.
(Leasable Space 61,343 sq.m.)
Proposed additional areas: 4,832 sq.m.
Lease ended
2041
Extend the rights to lease for 15 years :
105,596 sq.m.
(Leasable Space: 65,183 sq.m.)
(Leasable Space 3,840 sq.m.)
Loan up to
THB 600 mm/1
THB 1,500 mm
Rights Offering with Oversubscription Mechanism
up to THB 900 mm
Objectives
Rationale and Benefit
• Extend the leasehold rights for another 15 years,
the leasehold rights will be expired by 2041
• Longer lease-term provides better IRR
• Acquire additional leasable area of 3,840 sq.m.
• Total area will be 105,596 sq.m. after fund raising
(leasable 65,183 sq.m.)
• Longer lease-term will diversify the investment risk
• FUTUREPF will earn more rental revenue from the
newly acquired areas
• Increase liquidity to investment units
Fund Structure
Trustee (HSBC)
Registrar (Thailand Securities
Depository)
Auditor (Pricewaterhouse Cooper
ABAS)
Fund Manager
(BBLAM)
Manage Fund
Service
Investors
Property Manager
(Rangsit Plaza)
Property
Management
Agreement
Future Park Leasehold
Property Fund
Invest
Rangsit Plaza
Institutional investors
Retail investors
Lease
Manage
Properties
Partial area of Future Park Rangsit
7
Unitholders
Fund’s Capital (as of 28 February 2013)
•
•
Paid-Up Capital
Number of Investment Units
Details of Unitholders
Baht 5,633.161 Million
529,566,100 Units
Major Unitholders (as of 28 February 2013)
Name
% holding
1
Rangsit Plaza Company Limited
33.33
2
Bangkok Bank Public Co., Ltd.
5.28
3
Thai Tapioca Development Institute
3.78
4
Tananondzee Co.,Ltd
3.03
5
Thongpoon Wanglee Foundation
2.98
6
Bangkok Life Assurance Public Co., Ltd.
2.62
7
Rangsit IT Co., Ltd.
2.04
8
Government of Singapore Investment Corporation
1.98
9
KK Property Sector Fund
1.75
10
One Property Plus Fund
1.43
Total
Thai
Institutions
39.9%
Rangsit Plaza
33.3%
Foreign
Investors
3.3%
Thai
Individuals
23.5%
58.22
8
2.Financial Highlights
9
Performance Summary
A gradually growing and strong operating performance has resulted in high consistent payouts.
1,000
(Bt MN)
869
900
800
700
734
659
450459
481483
479483
696
627
585
528
600
500
680
665
664
546
490
400
241*
300
209
165
200
91
100
63 76
212
162
53*
0
4Q 11
Total Income
Net investment income
3Q 12
4Q 12
Distribution income
Remark *3Q2012 Dividend payment for 5 month performance between 1 Jul – 30 Nov 2012
4Q 2012 Dividend payment for 1 month performance between 1 Dec– 31 Dec2012
10
Income Statement
Rental Income
FY 2012
% Change
YoY
FY 2011
4Q 12
% Change
YoY
4Q 11
% Change
QoQ
3Q 12
805.3
668.1
21
206.3
88.2
134
202.9
63.6
11.6
451
5.2
2.9
82
5.9
868.9
679.7
28
211.5
91.1
132
208.8
1
Property Expenses
80.8
50.1
58
25.7
12.2
110
20.5
26
Property Management Fee
78.3
67.4
16
20.1
12.5
60
20.1
0
Fund Management Fee and Expenses
13.4
15.1
(11)
3.9
3.8
4
3.1
24
0.4
-
100
0.2
-
100
0.2
(29)
Total Expenses
172.9
133.6
29
49.9
28.5
75
43.9
14
Net Investment Income
Net Unrealized gain (loss) from changes in
investment value
696.0
546.1
27
161.6
62.6
158
164.9
(2)
39.9
26.2
53
(47.0)
0.0
NA
Net Increase in net assets from operations
735.9
572.3
29
114.7
67.5
70
164.9
(30)
Distributable Income*
649.3
546.1
19
114.7
62.6
83
164.9
(30)
Distribution Income
627.1*
490.4
28
145.2*
75.7
92
149.1*
(3)
Distribution Income per unit (THB)
1.313*
1.036
27
0.295*
0.160
84
0.315*
(6)
Interest Income & Other income
Total Income
Amortization of Deferred Expenses
4.9 (1,057)
2
(12)
* Distributable Income calculates from net increase in net assets from operation, excluding net unrealized gain from changes in investment value.
* FY2012 Distribution Income for performance 11 month between 1 Jan – 30 Nov 2012 calculated at 473,316,100 unit and 1 month between 1 -31
Dec 2012 calculated at 529,566,100 unit.
* 4Q2012 Dividend payment for performance 1 month between 1 – 31 Dec 2012 equaled to Baht 0.1 per unit.
Profitability Ratios
FY2012
FY2011
4Q 12
4Q 11
3Q 12
Net Investment Income Margin
80%
80%
76%
69%
79%
Distribution Income Margin
72%
72%
69%
83%
71%
12
Balance Sheet
Actual (Bt mn)
31 Dec 11
31 Dec 12
5,088.1
6,628.0
305.1
41.2
421.2
61.1
Total Assets
5,434.5
7,110.3
Deposits Received from Customers
Other Liabilities
Total Liabilities
Net Assets
263.3
70.2
333.6
5,100.9
286.1
737.2
1,023.3
6,087.0
Capital Received from Unitholders
4,733.2
5,633.2
Retained Earning
367.8
453.8
NAV per Unit (Bt)
10.7770
11.4943
Investment in Properties
Investment in Securities and Cash
Other Assets
13
Dividend Period
Historical Dividend Payouts
Dividend payout
% per year *
% per year**
0.103
9.89%***
11.24%***
1 Jan – 31 Mar 07
0.240
9.60%
1 Apr – 30 Jun 07
0.248
9.92%
1 Jul – 30 Sep 07
0.240
9.60%
1 Oct - 31 Dec 07
0.241
9.64%
1 Jan – 31 Mar 08
0.243
9.72%
1 Apr – 30 Jun 08
0.258
10.32%
1 Jul – 30 Sep 08
0.280
11.20%
1 Oct – 31 Dec 08
0.240
9.60%
1 Jan – 31 Mar 09
0.251
10.04%
1 Apr – 30 Jun 09
0.250
10.00%
1 Jul – 30 Sep 09
0.260
10.40%
1 Oct – 31 Dec 09
0.260
10.40%
1 Jan – 31 Mar 10
0.271
10.84%
1 Apr – 30 Jun 10
0.272
10.88%
1 Jul – 30 Sep 10
0.292
11.68%
1 Oct – 31 Dec 10
0.280
11.20%
1 Jan – 31 Mar 11
0.296
11.84%
1 Apr – 30 Jun 11
0.300
12.00%
1 Jul – 30 Sep 11
0.280
11.20%
1 Oct – 31 Dec 11
0.160
6.40%
1 Jan – 31 Mar 12
0.391
15.64%
1 Apr – 30 Jun 12
0.312
12.48%
1 Jul – 30 Nov 12
0.510
12.24%
1 Dec – 31 Dec 12
0.100
11.28%
Quarterly
Baht per Unit
23 Nov – Dec 06
* Calculated based on par value and multiply by 4
** Calculated based on par value
*** Calculated based on par value and number of actual days
Year 2007 :
Baht 0.969
(9.69%)
Year 2008 :
Baht 1.021
(10.21%)
Year 2009 :
Baht 1.021
(10.21%)
Year 2010 :
Baht 1.115
(11.15%)
Year 2011 :
Baht 1.036
(10.36%)
Year 2012 :
Baht 1.313
(12.43%)
Past performance of the Fund does not guarantee future performance.
14
Attractive Yield
The fund has a good track record for steady quarterly dividend payouts since inception.
FUTUREPF’s yield is 278 bps over that of 10-year Government Bond’s, it is a far better choice.
% Yield
7%
6.45% *
*
**
6%
5%
278 bps spread
4%
3.67%
3.25%
2.81%
3%
2.00%
2%
0.75%
1%
0%
FUTUREPF
10 yr Govt Bond
5 yr Govt Bond
SET Dividend Yield
3 mth Fixed Deposit
Saving Deposit
Remark :* Annualized 4Q 12 yield based on Market Price of baht 18.60 as of 31 Jan 2013
Source :Thai BMA,SET and BOT (as of 31 Jan 2013)
Past performance of the Fund does not guarantee future performance.
15
3.Property Management
16
Assets Overview
Leasable area1
Future Park2
(sq.m.)
Anchor
Retail Shop
109,715
71,034
Total
Promotion Area
Grand Total
Occupancy Rate3
Number of Tenants (unit)3
Lease Ended
180,749
8,277
189,026
99%
949
Note: 1 Leasable area as of December 2012
2 Including in FUTUREPF
3 Excluding Promotion area
FUTUREPF (sq.m)
After 1st Capital
Initial
Increase
8,105
8,105
44,961
48,801
7%
69%
53,066
8,277
61,343
31%
100%
34%
2026
56,906
8,277
65,183
97%
518
2041
%
17
Merchandise Mix
Anchor Tenant1
Type
Department store
Robinson
Department store
Central
Superstore
Big C
Furniture
SB Design Square
Cinema
Major2
Fitness center
Fitness First2
Specialty store
IT City2
Total Area of Anchor Tenants
Note: 1 Anchor tenant as of December 2012
2 Included in FUTUREPF
Area (sq.m.)
% of Total Leasable Area
41,611
33,851
19,693
6,454
4,541
2,740
825
109,715
22 %
18 %
10 %
3%
2%
1%
0.4 %
58 %
18
Occupancy
Anchor & Retail Shop
Occupancy rate (%)
Average
1Q
2Q
3Q
4Q
2007
91
92
90
91
91
2008
93
92
92
94
95
2009
94
95
93
94
95
2010
96
97
96
96
97
2011
98
98
98
98
97
2012
97
97
97
98
98
19
Traffic Performance
In 2012 the number of customer visiting Future Park Rangsit was at an average of 155,000 customers per
day or an increasing of 13% YoY, In the fourth quarter of 2012 the number of customers visiting was at an
average of 166,000 customers per day, 73% increasing from 2011 fourth quarter number. Please note that the
2011 customer number was affected by the flood crisis
Renewals and New Leases
Renewals and New Leases 1
Increase
/(Decrease) in
Rental Rates
No. of Leases
Area (sq.m.)
% of Total area 2
Actual
2007
360
24,357.50
46.10%
9.39%
2008
241
18,845.50
35.62%
9.13%
2009
405
24,473.61
46.29%
7.38%
2010
370
24,575.46
46.46%
6.67%
2011
338
20,301.12
38.38%
10.59%
2012
353
22,764.19
42.84%
11.18%
FUTUREPF Portfolio
Note : 1. Exclude common area agreements
2. Percentage of total rental space.
21
Lease Profile
Type of Rental
Lease Term
12%
10%
24%
64%
90%
Fixed Rental
Revenue Sharing Rental
1Y
3Y
>3Y
Note: 1. Exclude common area agreements.
2. Percentage of total rental space as of 31 December 2012
22
Lease Expiry Profile
Well balanced lease expiry profile
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
43%
26%
22%
9%
2016 - onwards
Note: 1. Exclude common area agreements
2. Percentage of leasable area as of 31 December 2012
23
4.Questions & Answers
24