Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q3 FY2012 Earnings Presentation
35 slides from Frasers Centrepoint Trust's earnings presentation, Jul 19, 2012
Slide 1: Frasers Centrepoint Trust 3rd Quarter FY12 results
Frasers Centrepoint Trust 3rd Quarter FY12 results 19 July 2012
Slide 2: Important notice
Important notice 2 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 re
Slide 3: Agenda
Agenda 3 Results Forecast versus Actual Results Balance sheet Operational performance Causeway Point AEI (Asset Enhancement Initiative) update Summary Outlook
Slide 4: Results
Results
Slide 5: 3Q12 DPU up 33% to another record high
Results 5 3Q12 DPU up 33% to another record high 3 months ended 30 June $’000 3Q12 3Q11 Variance Gross Revenue 35,549 27,300 ▲ 30.2% Property Expenses (10,902) (8,645) ▲ 26.1% Net Property Income 24,647 18,655 ▲ 32.1% Income available for distribution 20,231 14,757 ▲ 37.1% Distribution to Unithold
Slide 6: 9 months YTD performance continues on strong momentum
Results 6 9 months YTD performance continues on strong momentum 9 months ended 30 June $’000 9M12 9M11 Variance Gross Revenue 108,158 83,739 ▲ 29.2% Property Expenses (32,441) (26,379) ▲ 23.0% Net Property Income 75,717 57,360 ▲ 32.0% Income available for distribution 61,199 46,048 ▲ 32.9% Distrib
Slide 7: 3Q12 DPU of 2.60 cents is a new-high
Results 7 3Q12 DPU of 2.60 cents is a new-high FY2011 DPU: 8.32 cents 9MFY2012 DPU: 7.30 cents 2.60 2.50 (new-high) 2.35 2.20 1.95 2.07 1.95 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12
Slide 8: Consistent DPU growth momentum, 7.30 cents achieved in 9M12
Results 8 Consistent DPU growth momentum, 7.30 cents achieved in 9M12 is 88% of FY2011 DPU Distribution per unit (DPU) 8.20₵ 8.32₵ 7.29₵ 7.51₵ 7.30₵ 6.55₵ FY07 FY08 FY09 FY10 FY11 9M12
Slide 9: Well-balanced growth across portfolio, led by Causeway Point
Results 9 Well-balanced growth across portfolio, led by Causeway Point Gross Revenue (S$ m) 3Q12 3Q11 • Higher revenue after completion of substantial ▲ 30.2% portion of AEI • Higher car park revenue 35.55 27.30 • Full quarter contribution from Bedok Point which ▲ 45.4% was absent in ▲ 2.6% previo
Slide 10: NPI grew faster than gross revenue in 3Q12
Results 10 NPI grew faster than gross revenue in 3Q12 Net Property Income (NPI) (S$ m) 3Q12 3Q11 ▲ 32.1% Lower NPI due to higher expenses: • Higher repair and maintenance 24.65 due to ad-hoc repairs and replacement works. • Increase in electricity tariff rate 18.66 ▲ 60.9% ▼ 2.7% 10.94 8.27 8.50 ▲
Slide 11: Forecast versus Actual Results
Forecast versus Actual Results
Slide 12: 9M12 actual results are better than forecast
Forecast versus Actual Results 12 9M12 actual results are better than forecast* FCT 9M12 Performance Actual Forecast S$ m (except DPU) Assuming 100% of income currently available for distribution is paid out 108.16 (+2.6%) 105.39 75.72 7.43 (+7.1%) 61.20 (+16.1%) 70.68 (+16.2%) 52.68 6.40 Gross Re
Slide 13: Bedok Point continues to perform better than forecast
Forecast versus Actual Results 13 Bedok Point continues to perform better than forecast* Bedok Point 9M12 Performance S$ m Actual Forecast 8.97 (+1.7%) 8.82 5.74 (+9.4%) 5.25 Gross Revenue Net Property Income * As set out in the Profit Forecast in Appendix B of the Circular dated 24 August 2011 is
Slide 14: Balance sheet
Balance sheet
Slide 15: Financial position stays robust
Balance sheet 15 Financial position stays robust As at 30 Jun 2012 30 Sep 2011 Total assets $1,809m $1,787m Total liabilities $648m $635m Net assets $1,161m $1,152m Total units in issue 822,889,2961 819,816,5842 NAV per unit $1.413 $1.404 1. Excludes 310,593 units to be issued in July in partial p
Slide 16: Lower average cost of borrowings, healthy gearing level
Balance sheet 16 Lower average cost of borrowings, healthy gearing level • FCT issued on 12 June 2012 (i) S$70m 2.30% MTN due 2015 and (ii) S$30m 2.85% MTN due 2017 under its S$500m MTN program • Proceeds from the MTN issues to be used for refinancing of existing short-term borrowings, to finance
Slide 17: Completed refinancing needs for FY2012, stretched out average debt maturity
Balance sheet 17 Completed refinancing needs for FY2012, stretched out average debt maturity FCT’s Debt Maturity Profile as at 30 June 2012 Weight average debt maturity: 3.35 years (2Q12: 3.07 years) $264m Medium Term Note (MTN) Secured Term Loan Retired the $95m $100m $75m 4.8% MTN which $55m $60
Slide 18: Operational performance
Operational performance
Slide 19: Portfolio occupancy edges up
Operational performance 19 Portfolio occupancy edges up Food court (7% NLA) re-opened in May 2012 after 6 weeks fitting out period Occupancy by Mall as at 30 Jun 11 30 Sep 11 31 Dec 11 31 Mar 12 30 Jun 12 Causeway Point 78.3% 92.0% 95.5% 91.3%* 87.7%* Northpoint 98.4% 98.3% 99.7% 92.5% 99.7% YewTe
Slide 20: Strong rental reversions achieved in 3Q12
Operational performance 20 Strong rental reversions achieved in 3Q12 NLA (sq ft) Change compared to 3Q12 No. of renewals As % Mall’s NLA preceding rental rates1 renewed Causeway Point 3 1,641 0.4% ▲ 10.7% Northpoint 4 20,490 8.7% ▲ 42.9%2 Bedok Point Nil Nil - - YewTee Point 10 6,296 8.6% 0.5% A
Slide 21: Rental reversions for 9 months in FY2012 stay healthy at 12.5%
Operational performance 21 Rental reversions for 9 months in FY2012 stay healthy at 12.5% % Increase in average rental rates over preceding rates for lease renewals 15.0% 14.0% 12.8% 12.5% 8.6% 7.2% FY2007 FY2008 FY2009 FY2010 FY2011 9M12 9 months ending June 2012
Slide 22: Majority of lease renewals for FY2012 concluded in first 3Q
Operational performance 22 Majority of the lease renewals for FY2012 were concluded in the first 3Q of FY2012, only 5% (by NLA) remaining for 4Q12 Expiry profile as % of total gross rental income Weighted Average Lease Expiry (WALE) 32.6% 32.9% By NLA 2.03 years (2Q12: 2.03 years) 22.6% By Gross R
Slide 23: Causeway Point AEI (Asset Enhancement Initiative) update
Causeway Point AEI (Asset Enhancement Initiative) update
Slide 24: AEI in final phase, on-track for full completion in Dec 2012
Causeway Point AEI update 24 AEI in final phase, on-track for full completion in Dec 2012 • Final AEI phase focuses on level 5 and 7 where rental impact is less significant • Occupancy expected to improve to 100% upon AEI completion Average Occupancy at Causeway Point 110% @ 30 Jun 2012: 88% 100%
Slide 25: New food court at 4th floor Causeway Point opened in end-May 2012
Causeway Point AEI update 25 New food court at 4th floor Causeway Point which opened in end-May 2012
Slide 26: AEI to add 22% NPI growth to Causeway Point's NPI
Causeway Point AEI update 26 AEI to add 22% NPI growth to Causeway Point’s NPI Projected Financial Projections Before AEI Change after AEI Through reconfiguring big boxes & Average rent per sq ft $10.2 $12.2 20% improving tenant mix NPI $42.2m $51.5m 22% Incremental NPI of $9.3m Capex - $71.8m - R
Slide 27: Summary
Summary
Slide 28: Another strong quarter of performance
Summary 28 Another strong quarter of performance • 3Q12 DPU up 33% to 2.60 cents, another new high • Growth momentum expected to be sustained through 4QFY12 • FCT continues to actively pursue growth opportunities via Sponsor’s pipeline assets* and 3rd party assets opportunities * Refers to The Cen
Slide 29: Outlook
Outlook
Slide 30: Positive factors for suburban retail sector
Outlook 30 Positive factors for suburban retail sector • Singapore’s GDP expected to grow 1-3% in 2012 • Sustained low unemployment rate in Singapore • Retail sales (ex-auto) growth remains healthy, particularly for supermarket and F&B which are key trades for suburban malls • Rising wages in gene
Slide 31: Thank you
Thank you Analyst & media contact: Chen Fung-Leng Frasers Centrepoint Asset Management Ltd Tel: (65) 6277-2657 Email: fungleng.chen@fraserscentrepoint.com Website: www.fct.sg
Slide 32: 3Q12 Distribution details
Appendix 32 3Q12 Distribution details Distribution period 1 April to 30 June 2012 Distribution per unit 2.60 cents Last Day of Trading on “cum” Basis 26 July 2012, 5.00 pm Ex-date 27 July 2012, 9.00 am Books closure date 2 August 2012 at 5.00 pm Payment date 29 August 2012
Slide 33: 3Q12 year-on-year and quarter-on-quarter comparison
Appendix 33 3Q12 year-on-year and quarter-on-quarter comparison Year-on-Year Comparison Quarter-on-Quarter Comparison 3Q12 $’000 3Q11 % Change 2Q12 % Change Gross Revenue 35,549 27,300 ▲ 30.2% 36,725 3.2% Property Expenses (10,902) (8,645) ▲ 26.1% (10,521) ▲ 3.6% Net Property Income 24,647 18,65
Slide 34: Sponsor's pipeline assets
Appendix 34 Sponsor’s pipeline assets Changi City Point Singapore The Centrepoint • Retail mall’s NLA: 207,479 sq ft • Located at Changi Business Park, opposite Expo MRT station • Changi City Point started trading since end-2011 and was officially opened in April 2012. >90% leased. • The mall is p
Slide 35: 3Q12 Gross Revenue by Assets
Appendix 35 3Q12 Gross Revenue by Assets Anchorpoint YewTee Point $2.1m $3.2m 6% 9% Causeway Point Bedok Point $3.1m 9% 3Q12 gross revenue $15.5m S$35.6 million 43% Northpoint $11.7m 33%
Frasers Centrepoint Trust — Q3 FY2012 Earnings Presentation on 6ix