Future Park Leasehold Property Fund “FUTUREPF”

Future Park Leasehold
Property Fund
“FUTUREPF”
4Q2014 and Full Year 2014 Financial Results
Opportunity Day at SET on 26th March 2015
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
1.Leasehold right of certain part of Future Park Rangsit building ~56,906 square meters,
expiring 31 December 2041
2.Leasehold right of common area of Future Park Rangsit building ~ 48,690 square meters
and right on outside wall of the building to seek benefit in term of lease and service,
expiring 31 December 2041
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 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
6
Unitholders
Top 10 UH
27 Feb 2015
Top 10 UH
28 Feb 2014
1
Rangsit Plaza Co., Ltd.
33.33%
1
Rangsit Plaza Co., Ltd.
33.33%
2
Thai Tapioca Development Institute
5.69%
2
Thai Tapioca Development Institute
5.67%
3
Bangkok Bank Plc.
5.28%
3
Bangkok Bank Plc.
5.28%
4
Bangkok Life Assurance Plc.
3.40%
4
Thongpoon Wanglee Foundation
3.32%
5
Thongpoon Wanglee Foundation
3.37%
5
Bangkok Life Assurance Plc.
2.77%
6
Tananondzee Co.,Ltd..
2.58%
6
Tananondzee Co.,Ltd..
2.67%
7
Rangsit IT Co., Ltd.
1.61%
7
GIC Private Limited
2.03%
8
The Navakij Insurance Plc.
1.47%
8
Phatra Property Sector Fund
1.78%
9
Phatra Property Sector Fund
1.45%
9
Rangsit IT Co., Ltd.
1.66%
10
Muang Thai Insurance Plc.
1.38%
10
One Property Plus Fund
1.30%
Total
% Holding
59.56%
Total
Thai Individuals 23.19%
Rangsit Plaza 33.33%
59.81%
Thai Individuals 23.18%
Rangsit Plaza 33.33%
Foreign Investors 3.10%
Foreign Investors 2.21%
Thai Institutions 41.27%
Thai Institutions 40.39%
7
Price Performance
1 Year Price Performance as of 13 Mar 2015
8
2.Financial Highlights
9
Performance Summary
A gradually growing and strong operating performance has resulted in high consistent payouts.
(Bt MN)
1,000
869
900
800
700
734
659
664
665
600
500
450 459
481 483
479 483
696
680
585
528
945
913
627
694
627
733
661
546
490
400
300
232
170
200
153
240
191
173
241
182
164
100
0
1
Total Income
11
1
Net investment income
1
1
4Q 13
3Q 14
4Q 14
Distribution income
10
Income Statement
Rental Income
FY 2014
FY 2013
% Change
YoY
4Q 2014
%
Change
YoY
4Q 2013
%
Change
QoQ
3Q 2014
923.7
891.7
4
235.7
226.5
4
233.5
20.9
21.2
(1)
5.0
5.4
(8)
6.8
(27)
944.6
912.9
3
240.7
231.9
4
240.3
0.2
Property Expenses
87.2
90.4
(3)
27.5
30.4
(10)
18.9
45
Property Management Fees
84.6
85.4
(1)
21.4
20.8
3
20.2
6
Fund Management Fees and Expenses
40.0
43.4
(8)
9.8
10.3
(5)
9.9
(1)
-
0.03
(100)
-
-
-
-
-
Total Expenses
211.8
219.2
(3)
58.7
61.5
(5)
49.0
20
Net Investment Income
Net Unrealized Gain (Loss) from Changes in
Investment Value
732.8
693.7
6
182.0
170.4
7
191.3
(5)
64.4
117.4
(45)
2.4
32.4
(93)
30.0
(92)
Net Increase in Net Assets from Operations
797.2
811.1
(2)
184.4
202.8
(9)
221.3
(17)
Distributable Income*
732.8
682.8
7
182.0
169.6
7
191.3
(5)
Distribution Income
660.9
626.5
5
164.2
153.0
7
172.6
(5)
Distribution Income per unit (THB)
1.248
1.183
5
0.310
0.289
7
0.326
(5)
Interest Income & Other Income
Total Income
Amortization of Deferred Expenses
1
* Distributable Income calculates from net increase in net assets from operation, excluding net unrealized gain from changes in investment value.
11
Profitability Ratios
FY2014
FY2013
4Q 2014
4Q 2013
3Q 2014
Net Investment Income Margin
78%
76%
76%
73%
80%
Distribution Income Margin
70%
69%
68%
66%
72%
12
Balance Sheet
Actual (Bt mn)
31 Dec 2013
31 Dec 2014
Investment in Properties
Investment in Securities and Cash
Other Assets
Total Assets
Deposits Received from Customers
Other Liabilities
Total Liabilities
Net Assets
Capital Received from Unitholders
Retained Earning
NAV per Unit (Bt)
6,754.0
530.0
39.9
7,323.9
305.1
647.1
952.2
6,371.7
5,633.2
738.5
12.0318
6,820.0
527.6
48.5
7,396.1
319.1
557.9
877.0
6,519.1
5,633.2
885.9
12.3103
13
Historical Dividend Payouts
Dividend Period
Dividend payout
Quarterly
Baht per Unit
23 Nov – Dec 06
0.103
11.24%**
2007
0.969
9.69%
2008
1.021
10.21%
2009
1.021
10.21%
2010
1.115
11.15%
2011
1.036
10.36%
2012
1.313
12.43%***
2013
1.183
11.12%***
2014
1.248
11.73%***
% per year *
* Calculated based on par value
** Calculated based on par value and number of actual days
*** Calculated based on par value (10.64 after the first capital increase)
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 452 bps over that of 10-year Government Bond’s, it is a far better choice.
8%
% Yield
* 7.13%
7%
*
6%
452 bps spread
**
5%
4%
2.61%
3%
2.30%
2.72%
2%
1.45%
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 14 yield based on Market Price of baht 17.40 as of 30 Jan 2015
Source :Thai BMA,SET and BOT (as of 30 Jan 2015)
Past performance of the Fund does not guarantee future performance.
15
3.Property Management
16
Overview of Future Park Rangsit:
Accessibility
Paholyothin Road
Located on Paholyothin road, a 10-lane highway links from
Bangkok to Ayudthaya, Pathumthani, Nakornnayok, and
Saraburi. The road is gateway to northern part and
northeastern part of Thailand, which are approximately 56
provinces in the northern and northeastern parts of
Thailand
Express way
(Udonrattaya)
Rangsit-Pathumthani road connects to Udonrattaya express
way which has an exit on Bangpoon where it is only 3
kilometers away from Future Park Rangsit
Outer Ring Road
East outer ring exits at Rangsit-Nakornnayok road and it is
approximately 10 kilometers away from Future Park Rangsit
Tollway
(Utrapimook)
Rangsit Interchange
Bridge
SRT (Red Line)
Sky Train
Tollway (Utrapimook) Exit is next to Future Park Rangsit.
• Connect Paholyothin road with Rangsit-Nakornnayok
road to east outer ring
• Rangsit-Patumthani road passes through SRT to connect
with Udonrattaya express way
• Upon completion, SRT (Red Line) sky train will lie
adjacent to Future Park Rangsit building approximately 2
kilometers from the building. Future Park Rangsit may
also be used as Park and Ride
• The project is expected to be completed in 2018
Assets Overview
Leasable
area1
Anchor
Retail Shop
Total
Common Area
Grand Total
Occupancy Rate3
Number of Tenants (unit)3
Future Park2
(sq.m.)
FUTUREPF
(sq.m.)
%
109,715
8,105
7%
71,111
48,882
69%
180,826
56,987
32%
8,514
8,514
100%
189,340
65,501
35%
99%
97%
617
507
Note: 1 Leasable area as of December 2014
2 Including FUTUREPF
3 Full Year, Excluding Promotion area
18
Merchandise Mix
Anchor Tenant1
Type
Robinson
Department store
Central
Department store
Big C
Superstore
SB Design Square
Furniture
Major2
Cinema
Fitness First2
Fitness center
IT City2
Specialty store
Total Area of Anchor Tenants
Note: 1 Anchor tenant as of December 2014
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 %
19
Occupancy Rate
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
2013
98
98
98
98
97
2014
97
97
97
97
97
20
Traffic Performance 4Q 2014
In 2014 the number of customer visiting Future Park was at an average of 164,000 customers per day or an
increasing of 7% YoY, In the fourth quarter of 2014 the number of customers visiting was at an average of
171,000 customers per day, increasing 16% QoQ .
Renewals and New Leases
Increase /(Decrease)
in Rental Rates
Renewals and New Leases 1
FUTUREPF
Alignment Portfolio
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%
2013
385
27,917.83
48.99%
9.68%
2014
342
22,161.34
38.89%
10.67%
Note: 1 Retail & Anchor agreements (exclude common area agreements)
2 Percentage of total rental space.
22
Lease Profile
Type of Rental
Lease Term
9%
9%
21%
70%
91%
Fixed Rental
Revenue Sharing Rental
<1 Y
1Y-3Y
>3Y
Note: 1 Retail & Anchor agreements (exclude common area agreements)
2 Percentage of total rental space as of 31 Dec 2014
23
Lease Expiry Profile
Well balanced lease expiry profile
60%
50%
49%
40%
26%
30%
17%
20%
8%
10%
0%
2015
2016
2017
2018 - onwards
Note: 1 Retail & Anchor agreements (exclude common area agreements)
2 Percentage of total rental space as of 31 Dec 2014
24
4.Questions & Answers
25