Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — Q2 FY2011 Earnings Presentation
32 slides from Frasers Centrepoint Trust's earnings presentation, Apr 21, 2011
Slide 1: Frasers Centrepoint Trust 2nd Quarter FY11 results
Frasers Centrepoint Trust 2nd Quarter FY11 results 21 April 2011
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 Balance sheet Operational performance Growth strategy
Slide 4: Results
Results
Slide 5: Stable 2Q11 results despite Causeway Point refurbishment
Results 5 Stable 2Q11 results despite Causeway Point refurbishment Y-o-Y Jan – Mar 11 ($ ‘000) 2Q11 Highlights Change (%) • stronger contributions from rest of portfolio more than Gross Revenue 28,830 2% offset lower Causeway Point income • due to consolidation of Northpoint 2 & YewTee Point Less Pr
Slide 6: 2Q11 gross revenue & net property income by property
Results 6 2Q11 gross revenue & net property income by property Gross revenue $m 2% 28.8 28.3 Results impacted by refurbishment 22% 15.4 28% 2Q11 12.1 11.5 9.0 79% 2Q10 3.2 1.8 2.0 2.0 FCT Portfolio CWP NP 1 YTP 2 ACP Net property $m 1% income Results impacted by refurbishment 20.1 20.4 27% 11.0 25%
Slide 7: Stable 1H11 results despite Causeway Point refurbishment
Results 7 Stable 1H11 results despite Causeway Point refurbishment Y-o-Y Oct 10 - Mar 11 ($ ‘000) 1H11 Highlights Change (%) • stronger contributions from rest of portfolio more than Gross Revenue 56,439 10% offset lower Causeway Point income • due to consolidation of Northpoint 2 & YewTee Point Les
Slide 8: 1H11 gross revenue & net property income by property
Results 8 1H11 gross revenue & net property income by property Gross revenue $m 10% 56.4 Results impacted by refurbishment 51.6 22% 30.2 44% 1H11 23.6 22.4 15.6 254% 1% 1H10 6.4 1.8 4.0 4.0 FCT Portfolio CWP NP 1 YTP 2 ACP Net property $m 7% Results impacted by refurbishment income 38.7 36.3 28% 21.
Slide 9: DPU profile
Results 9 DPU profile Quarterly DPU payout trend Year-on-year comparison DPU (¢) Y-o-Y 2.16 2Q11 2Q10 Change 0.21 (%) 2.07 DPU 2.07¢ 2.06¢ - 2.06 2.07 1.94 1.95 2Q10 3Q10 4Q10 1Q11 2Q11 Income retained from previous quarters
Slide 10: Distribution details
Results 10 Distribution details Distribution period 1 Jan to 31 Mar 2011 Distribution per unit 2.07¢ Ex-date 27 Apr 2011 Books closure date 3 May 2011 at 5 pm Payment date 30 May 2011
Slide 11: Balance sheet
Balance sheet
Slide 12: Balance sheet summary
Balance sheet 12 Balance sheet summary As at 31 Mar 2011 31 Mar 2010 Change Total assets $1,524.8m $1,464.2m 4% Net assets $987.4m $944.8m 5% Total units in issue 768,967,4631 766,380,1822 - NAV per unit $1.283 $1.234 4% 1. Excludes 1,460,567 issuable units in partial payment of 2Q11 mgmt fees. 2. E
Slide 13: Issued $60m 3-year MTN in January 2011
Balance sheet 13 Issued $60m 3-year MTN in January 2011 Debt information As at 31 March 2011 Gearing ratio 31.2% Interest cover1 3.79 x $264m loan facility (95 bps $m above 5-year SOR) in place Cost of debt (weighted) 3.88% 260 to refinance CMBS Total debt $475m 75 25 55 60 2011 2012 2013 2014 2015
Slide 14: Operational performance
Operational performance
Slide 15: 2Q11 rental reversions
Operational performance 15 2Q11 rental reversions Net Lettable Area 2Q11 No. of renewals / Increase over New leases Area preceding rents (sq ft) % Total NLA Causeway Point 4 1,886 0.5% 19.8% Northpoint1 5 2,947 1.3% 8.1% YewTee Point 9 3,843 5.3% 7.4% Anchorpoint 2 1,830 2.6% 23.1% FCT Portfolio 20
Slide 16: YTD rental reversions
Operational performance 16 YTD rental reversions Net Lettable Area 1H11 No. of renewals / Increase over New leases Area preceding rents (sq ft) % Total NLA Causeway Point 17 9,989 2.4% 13.2% Northpoint1 23 9,407 4.0% 8.2% YewTee Point 9 3,843 5.3% 8.2% Anchorpoint 17 14,436 17.6% 16.7% FCT Portfolio
Slide 17: High portfolio occupancy
Operational performance 17 High portfolio occupancy 99.4% 98.1% 92.1% 82.9% FCT portfolio occupancy Occupancy1 Jun 10 Sep 10 Dec 10 Mar 11 Causeway Point 100.0% 97.2%2 86.1%2 69.0%2 Northpoint3 99.1% 99.3% 99.1% 99.1% YewTee Point 98.3% 98.3% 98.5% 95.8% Anchorpoint 98.6% 98.8% 97.8% 97.6% 1. All oc
Slide 18: 13% of gross rental income expiring in FY2011
Operational performance 18 13% of gross rental income expiring in FY2011 Lease expiry profile1 (as at 31 Mar 2011) 51.7% Weighted avg lease term to expiry By NLA 1.36 yrs 25.6% By Gross rent 1.28 yrs 12.5% 8.3% Expiries as % of total 1.9% gross rental income FY11 FY12 FY13 FY14 FY15 Number of leases
Slide 19: Growth strategy
Growth strategy
Slide 20: Delivering growth on all fronts
Growth strategy 20 Delivering growth on all fronts Strategy Target 1 Acquisition growth Pipeline & 3rd party assets 2 Enhancement growth Refurbish Causeway Point 3 Organic growth Positive rental reversion
Slide 21: Sponsor's main retail assets
Acquisition growth 21 Sponsor’s main retail assets Changi City Point The Centrepoint Bedok Point NLA (sf) MRT station Est. completion Est. catchment population Changi City Point 207,479 Expo 2H11 600,000 Bedok Point 80,985 Bedok Completed 295,000 The Centrepoint 395,315 Somerset Completed 4,987,600
Slide 22: Bedok Point received TOP in Nov 10
Acquisition growth 22 Bedok Point received TOP in Nov 10 Bedok Point NLA 80,985 Leasing status 98% Target acquisition CY2011
Slide 23: Outstanding track record of growth from asset enhancement initiatives
Enhancement growth 23 Outstanding track record of growth from asset enhancement initiatives Financials Mall NPI before FY2010 NPI1 Change Change revamp ($ m) ($ m) ($ m) Anchorpoint 1.7 4.4 2.7 193.3% 159% Northpoint 1 13.9 20.7 6.8 41.0% 49% Total 15.6 25.1 9.5 55.8% 61% 1. Excluding the effects of
Slide 24: Causeway Point refurbishment Summary
Enhancement growth 24 Causeway Point refurbishment Summary • Downsize space occupied by anchor tenants • Expand depth of retail offerings & create F&B from 65% to 50% of total NLA precinct on L5 • Shift escalators on B1 & L1 to improve visual • Introduce pro-family features sight-lines & release pri
Slide 25: Causeway Point refurbishment timeline
Enhancement growth 25 Causeway Point refurbishment to span 30 months Timeline1 Level Sep 10 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 L1 Mar 11 progress report L2 Construction status: 33% completed L3 Leasing status: 99% of space undergoing COMPLETED refurbishment pre-committed
Slide 26: Causeway Point progress report – 24 hour walkway
Causeway Point progress report –24 hour walkway 26
Slide 27: Causeway Point progress report – Level 1 rectangular atrium & Uniqlo
Causeway Point progress report – Level 1 rectangular atrium & Uniqlo at level 2 27
Slide 28: Causeway Point progress report – Newly created floor space
Causeway Point progress report – Newly created floor space 28
Slide 29: Refurbishment expected to add $162 million to Causeway Point's capital value
Enhancement growth 29 Refurbishment expected to add $162 million to Causeway Point’s capital value Financials Projected 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
Slide 30: Summary
Summary
Slide 31: Clear growth outlook
Summary 31 Clear growth outlook Strategy 1 Acquisition growth • Target acquisition of Bedok Point in CY2011 • On the lookout for 3rd party assets 2 Enhancement growth • Causeway Point refurbishment to provide sustainable income growth 3 Organic growth • 12% rental reversions in 2Q11 • Annual rental
Slide 32: Thank you
Thank you Analyst & media contact: Wendy Sim Frasers Centrepoint Asset Management Ltd Tel: (65) 6277-2690 Email: wendy.sim@fraserscentrepoint.com Web: www.fraserscentrepointtrust.com
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