Frasers Property Ltd. · SGX:TQ5
Frasers Property — Frasers Commercial Trust — Non-Deal Roadshow (April 2013)
41 slides from Frasers Property's roadshow presentation, Apr 11, 2013
Slide 1: Frasers Commercial Trust Investor meetings in Europe
Frasers Commercial Trust Investor meetings in Europe 8-11 April 2013
Slide 2: Important notice
Important notice Certain statements in this Presentation constitute “forward-looking statements”, including forward-looking financial information. Such forward-looking statement and financial information involve known and unknown risks, uncertainties and other factors which may cause the actual resu
Slide 3: Contents
Contents 3 FCOT overview FCOT’s reshaping strategy FCOT’s investment proposition Supplementary materials
Slide 4: FCOT overview
FCOT overview FRASERS COMMERCIAL 2 FT
Slide 5: Where we are – geographic and asset
Where we are – geographic and asset 55 FCOT offers balanced exposure to 5 quality properties in Singapore and Australia 1QFY13 Portfolio Net Property Properties Portfolio Value 1 Income 2 2 office assets SINGAPORE 1 business space asset S$1,076.0 million, (61%) S$10.3 million, (45%) AUSTRALIA 2 offi
Slide 6: Portfolio review – Valuation
Portfolio review – Valuation 6 Balanced portfolio consisting of Singapore and Australian properties No one property consist of more than 32% of property value Caroline Chisholm Centre, 14% China Square Central, 32% Central Park, 25% Singapore 55 Market Street, 7% Alexandra Technopark, 22% Perth Canb
Slide 7: Portfolio review – Location of properties in Singapore
Portfolio review – Location of properties in Singapore 7 Singapore office assets are centrally located in the CBD area 55 Market Street Singapore CBD China Square Central
Slide 8: Portfolio review – Location of properties in Singapore
Portfolio review - Location of properties in Singapore 8 Alexandra Technopark is located within the prominent Alexandra business corridor, a dynamic business hub at the fringe of the Central area Alexandra Technopark Alexandra business corridor
Slide 9: Portfolio review – Location of properties in Australia
Portfolio review - Location of properties in Australia 9 Australian assets are strategically located Perth Canberra Central Park, Perth Perth CBD Tuggeranong Town Caroline Chisholm Centre, Centre, Canberrra Canberra
Slide 10: Results – Financial highlights
Results – Financial highlights 10 Continuous growth in DPU since recapitalisation exercise in 2009 9.3% DPU CAGR from FY10 to FY12 DPU (Cents) Based on analysts consensus DPU of 7.50^ cents for FY13E FY ^ Source: Bloomberg analysts’ consensus DPU for FY13E as at 19 March 2013 • Adjusted for Unit con
Slide 11: Performance – total return
Performance – total return 11 FCOT outperformed indices in the last 12 months 180% Announced the Announced the redemption of 170% redemption of 163 157mil CPPUs Completed mil CPPUs and conversion of 7.4 mil FCOT, the Announced divestment of CPPUs into 6.3 mil 165.9% 160% Completed the Japanese units
Slide 12: FCOT's reshaping strategy
FCOT’s reshaping strategy Z FRASERS “Li COMMERCIAL TRUST
Slide 13: Portfolio reshaping – track record
Portfolio reshaping – track record 13 Portfolio reshaping strategy has yielded positive results Cosmo Plaza • ↓ Gearing by 1.8% January 2011 Australian Wholesale Property Fund • ↑ DPU by 4.6% May 2011 Remaining 50% interest in Caroline • ↑ Positive increase to NPI Chisholm Centre April 2012 Keypoint
Slide 14: Portfolio reshaping – Utilisation of proceeds from the divestment of KeyPoint
14 Portfolio reshaping – Utilisation of proceeds from the divestment of KeyPoint 14 S$160 million or 45% of the divestment proceeds from KeyPoint utilised for part prepayment of SGD and AUD loans S$163 million or 46% of the divestment proceeds from KeyPoint utilised for redemption of CPPUs 1 1 Parti
Slide 15: Portfolio reshaping – effects of CPPU net redemption/conversion on DPU
15 Portfolio reshaping– effects of CPPU net redemption/conversion on DPU 15 Redemption of CPPUs will be accretive to Unitholders 162.6 mil CPPUs S$8.9 mil savings in redeemed1 CPPU distribution2 Completed: 2 January 2013 7.4 mil CPPUs S$18.0 mil S$0.4 mil savings in savings in converted into 6.3 CPP
Slide 16: FCOT's investment proposition
FCOT’s investment proposition
Slide 17: Contents – Stability of income
Contents FCOT’s investment proposition 17 17 1. Stability of income Healthy lease expiry profile Healthy occupancy and long WALE Quality tenants and master lease Organic growth 2. Solid fundamentals 3. Growth strategy
Slide 18: Portfolio review – Lease expiry profile
Portfolio review – Lease expiry profile 18 18 More than 46% of lease expiry in FY2017 and beyond provides income stability Portfolio lease expiry by gross rental income Number of leases expiring 51 42 36 11 19 NLA (sq ft) expiring 174,821 1,133,311 82,518 58,615 708,867 Expiries as % total NLA 8.1%
Slide 19: Portfolio review – Lease expiry profile
Portfolio review – Lease expiry profile 19 Low passing rents presents potential for higher income Property Lease Expiry as a proportion of total Portfolio Gross Rental Income Ave passing rent for expiring leases Number of leases expiring 42 7 2 Average passing rent $6.2 $5.5 AUD $638 As at 31 Decemb
Slide 20: Portfolio review – Occupancy Rates & WALE
Portfolio review – Occupancy Rates & WALE 20 Healthy average occupancy rate of 94.6% Healthy WALE of 4.9 years Geographical occupancy and % of NPI contribution As at Key portfolio statistics 31 December 2012 Ave Occupancy 94.6% WALE by gross rental income 4.9 years As at 31 December 2012. Excludes r
Slide 21: Stability of Income – quality tenants and master lease
3. Stability of Income – quality tenants and master lease 21
Slide 22: Portfolio review – Stability of income
Portfolio review – Stability of income 22 Master lessees/ blue chip tenants with long leases contribute 68% of total gross rental income Master Leases % (Gross Rental Tenant Lease Expiry Income) Alexandra Technopark – Orrick Investments Pte Ltd Aug 2014 22.2% Blue Chip Tenants with Long Leases % (Gr
Slide 23: Portfolio review – Mid-term rent reviews
Portfolio review – Mid-term rent reviews 23 23 More than 35% of leases have built-in step-up rents FY13 - Fixed % and other fixed lease rent reviews FY13 – 16 - Portfolio fixed % reviews GROSS RENTAL INCOME Average Total Property Leases step-up rent Property Portfolio China Square 4 8.4% 3.5% 0.7% C
Slide 24: Contents – Solid fundamentals
Contents FCOT’s investment proposition 24 24 1. Stability of income 2. Solid fundamentals Natural hedge in place Enhanced debt maturity profile and improved gearing Positive market outlook Growing demand Asset enhancement initiatives Pipeline assets 3. Growth strategy
Slide 25: Capital Management – Debt statistics
25 Capital Management – Debt statistics 25 Healthy gearing level Statistics Borrowings and assets by currency As at 1,200 31 December 1,076 2012 1,000 Total Assets (S$’000) 2,017,976 800 Gross Borrowings (S$’000) 589,002 679 S$ million Units on Issue and Issuable 1 648,627,553 600 415 NAV per Unit (
Slide 26: Capital Management – Debt statistics
26 Capital Management – Debt statistics 26 Healthy debt maturity profile Debt maturity as at 31 December 2012 450 400 350 174 and Post debt prepayment 300 divestment of Japanese properties S$ million 250 200 150 230 100 185 50 0 FY2013 FY2014 FY2015 FY2016 FY2017 & beyond SGD AUD Total facilities S$
Slide 27: Singapore office rents trend – Grade B rents more resilient
2. Solid fundamentals – positive market outlook 27 Singapore office rents trend – Grade B rents more resilient Singapore Grade A and Grade B office rents 1 $20 18.65 18.80 18.80 Rent (S$ psf / 2012 Q4 12 months ago Change % month) $18 17.15 Grade A Rent 9.58 11.00 (2011 Q4) -12.9% $16 14.90 15.00 Gr
Slide 28: Premium Grade office rents forecast to remain static
2. Solid fundamentals – positive market outlook 28 Premium Grade office rents forecast to remain static for the forseeable short term Perth CBD supply 1 Perth CBD average net face rents 1 Market conditions 1 – Prime vacancy increased by 1.4% points q-o-q to 4.4% in 4Q2012 mainly due to sub-lease ava
Slide 29: China Square Central – Healthy tenancy activities
Portfolio review – Asset updates 29 China Square Central – Healthy tenancy activities Healthy tenancy activities: – Approx. 36,000 sq ft of new leases, renewals and committed leases secured during the quarter. Diverse mix of tenants including consultancy/business services, legal, IT products & servi
Slide 30: Precinct Master Plan initiatives on schedule
Portfolio review – Asset updates 30 Precinct Master Plan initiatives on schedule Installation of columns and trusses are in progress PMP scheduled to be completed in the first quarter of 2013 Retail offering being upgraded Covered linkway Artist impression
Slide 31: China Square Central – Asset Enhancement Initiatives on schedule
Portfolio review – Asset updates 31 China Square Central – Asset Enhancement Initiatives (“AEI”) on schedule China Square Central, Singapore Artist impression Artist impression AEI commenced in November 2012, scheduled to be completed in the second quarter of 2013 Upgrading of main lobby, drop-off p
Slide 32: Asset updates – Market Street and Alexandra Technopark
Portfolio review – Asset updates 32 55 Market Street – healthy occupancy rate Alexandra Technopark – Robust tenancy activities Healthy occupancy: Robust tenancy activities: – 96.7% committed occupancy as at 31 December – 99.5% occupancy as at 31 December – New tenants Mr Teh Tarik and Best World Lif
Slide 33: Asset updates – Central Park and Caroline Chisholm Centre
Portfolio review – Asset updates 33 Central Park – Long WALE of 4.2 years Caroline Chisholm Centre –full occupancy coupled with long WALE of 12.5 years Robust occupancy: Robust tenancy activities: – 96.4% occupancy as at 31 December – 100% occupancy as at 31 December – Long WALE by gross rental inco
Slide 34: Solid fundamentals – pipeline assets
2. Solid fundamentals – pipeline assets 34 FCOT’s developer–sponsor, providing quality assets for sustainable growth pipeline Property Alexandra Point Valley Point 20-storey office tower with a two-storey Description 24-storey office building retail podium 222,246 sq ft (20,647 sq m) Net Lettable Ar
Slide 35: Contents – Growth strategy
Contents FCOT’s investment proposition 35 35 1. Stability of income 2. Solid fundamentals 3. Growth strategy Strategic initiatives
Slide 36: Delivering growth
Delivering growth 36 36 Strategic initiatives to deliver growth to Unitholders Portfolio reshaping Grow portfolio in Singapore and Australia On-going strategy Precinct Master Plan at China Square Central Enhance asset, create value and capitalise on Proactive Asset Enhancement Initiatives at China f
Slide 37: Portfolio details and financial highlights
Portfolio details and financial highlights
Slide 38: Portfolio review – Properties in Singapore
Portfolio review – Properties in Singapore 38 55 Market Street, Singapore China Square Central, Singapore Alexandra Technopark, Singapore Description • 16-storey commercial property with 2 • 15-storey commercial office tower and • High-tech business space development floors (incl. basement) of retai
Slide 39: Portfolio review – Properties in Australia
Portfolio review – Properties in Australia 39 Central Park, Perth Caroline Chisholm Centre, Canberra Description • 47-storey premium grade, tallest building in Perth • 5-storey Grade A contemporary office building • Equipped with state of the art facilities • Located in the core of Tuggeranong Town
Slide 40: Results – Financial highlights
Results – Financial highlights 40 Higher NPI from Caroline Chisholm Centre offset by divestments in 1QFY13 Net Property Income (S$m) TOTAL: S$22.9 million 1QFY13 Singapore: S$10.3 million (45%) Australia: S$12.3 million (54%) Japan: S$0.3 million (1%) * * Includes KeyPoint which was divested on 28 S
Slide 41: Thank you
Thank you Frasers Centrepoint Asset Management (Commercial) Limited Level 21 | 438 Alexandra Road | Alexandra Point | Singapore 119958 Tel: +65 6276 4882| Fax: +65 6276 8942| Email: fcot@fraserscentrepoint.com www. fraserscommercialtrust.com
Frasers Commercial Trust — Non-Deal Roadshow (April 2013) on 6ix