Frasers Centrepoint Trust · SGX:J69U
Frasers Centrepoint Trust — FY2023 Earnings Presentation
48 slides from Frasers Centrepoint Trust's earnings presentation, Oct 25, 2023
Slide 1: Results Presentation for the Second Half and Financial Year 2023
Results Presentation for the Second Half and Financial Year 2023 ended 30 September 2023 25 October 2023
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 re
Slide 3: Contents
Contents Sections 1. FY23 results highlights page 4 2. Macroeconomic and retail market in Singapore page 10 3. Financial highlights page 14 4. Portfolio highlights page 22 5. Tampines 1 AEI update page 32 6. Sustainability highlights page 34 7. Summary page 38 8. Appendix page 40 We are Frasers Prop
Slide 4: FY23 results highlights
FY23 results highlights FCT achieves strong FY23 results on robust operating performance and strategic portfolio re-constitution Improved financial metrics Robust operating performance • Gross Revenue ▲ 3.6% to S$369.7 million • Committed occupancy 99.7%2 (FY22: 97.5%) • NPI ▲ 2.7% to S$265.6 millio
Slide 5: Higher revenue and NPI driven by broad-based improvement
FY23 results highlights Higher revenue and NPI driven by broad-based improvement in income from portfolio properties Gross Revenue Net Property Income (S$ million) (S$ million) 369.72 ▲3.6% 356.93 258.60 265.59 ▲2.7% 2H22 180.74 2H23 184.06 2H22 2H23 129.56 128.12 1 1 1H22 176.19 1H23 185.66 1H22 13
Slide 6: 2H23 DPU of 6.020 cents brings total DPU to 12.150 cents
FY23 results highlights 2H23 DPU of 6.020 cents brings total DPU for FY23 to 12.150 cents Distribution to Unitholders Distribution per Unit (S$ million) (S cents) 12.227 12.150 ▼0.6% 208.19 207.75 ▼0.2% 2H222 6.091 2H234 6.020 2H222 103.78 2H234 103.07 1H221 104.41 1H233 104.68 1H221 6.136 1H233 6.1
Slide 7: FY23 transaction highlights
FY23 transaction highlights Acquisition of 25.50% interest Acquisition of additional 10.00% AEI of Tampines 1 in NEX interest in Waterway Point Completed 6 February 2023 Completed 8 February 2023 ECD: 4Q FY24 S$529.8 million S$131.3 million S$38.2 million Notes: 1. SPAs for the divestment of approxi
Slide 8: Stronger portfolio focused on suburban prime retail sector
Stronger portfolio focused on the suburban prime retail sector in Singapore FY18 FY19 FY20 FY21 FY23 AUM: AUM: S$2.8 billion S$6.5 billion1 2.3X Retail NLA: AUM growth Retail NLA: ~1.1 million sf ~2.9 million sf Acquisitions: Acquisition: Acquisition: Acquisitions: + Initial 17.13% interest in ARF +
Slide 9: Top prime suburban malls in Singapore by NLA
Top 10 prime suburban malls in Singapore by NLA FCT owns / jointly owns four of Singapore’s top ten largest prime suburban malls Top 10 prime suburban malls in Singapore by NLA Owned or jointly-owned by FCT NLA in sq ft 676,000 635,000 581,000 566,000 520,000 444,000 424,000 420,000 409,000 389,00
Slide 10: Macroeconomic and retail market in Singapore
Tiong Bahru Plaza, Singapore Macroeconomic and retail market in Singapore
Slide 11: Overall retail rents to end on positive note in 2023
Macroeconomic and retail market in Singapore Overall retail rents to end on positive note in 2023 – CBRE Singapore GDP1 ▪ 2023 GDP forecast for 2023: “0.5 to 1.5 per cent” Prime retail rents by submarkets5 ▪ MTI expects consumer-facing sectors such as retail trade and F&B to continue to expand, supp
Slide 12: Low retail supply risk
Macroeconomic and retail market in Singapore Low retail supply risk Retail Supply1 ▪ Retail supply below-historical-average. New supply of 1.21 mil sf through 2025 makes up 2.4% of the current private retail stock2. Year Project Micro-market Area (sf) iMall Fringe 60,000 Retail pipeline (‘million sf
Slide 13: Multiple factors to help mitigate headwinds
Macroeconomic and retail market in Singapore Multiple factors to help mitigate headwinds Positive factors ▪ Population growth: Singapore's total population grew by 5.0% in 2023, extending growth of 3.4% in 20221 ▪ Income growth: Steady rise in Singapore’s median household income2 ▪ Consumer spending
Slide 14: Financial highlights
Waterway Point, Singapore Financial highlights
Slide 15: 2H23 gross revenue and DPU results
▪ Gross revenue growth driven by higher gross rent, atrium and car park income, partially offset by lower contribution from Tampines 1 due to ongoing AEI ▪ 2H23 DPU 1.2% lower y-o-y mainly due to higher interest expense S$’000 2H23 2H22 Fav / (Unfav) Gross revenue 184,063 180,744 1.8% Property expen
Slide 16: FY23 gross revenue and NPI growth
▪ FY23 gross revenue and NPI growth supported by better performance across FCT’s portfolio properties, except for Tampines 1 which is undergoing AEI ▪ FY23 DPU 0.6% lower y-o-y mainly due to higher interest expense S$’000 FY23 FY22 Fav / (Unfav) Gross revenue 369,723 356,931 3.6% Property expenses (
Slide 17: Balance sheet at 30 September 2023
S$’000 30 September 2023 30 September 2022 Non-current assetsa 5,966,251 5,891,015 Current assetsb 408,931 50,353 Total assets 6,375,182 5,941,368 Current liabilities 504,004 507,361 Non-current liabilitiesc 1,897,943 1,469,930 Total liabilities 2,401,947 1,977,291 Net assets 3,973,235 3,964,077 NAV
Slide 18: Capital management key metrics
30 September 2023 30 June 2023 39.3% Aggregate leverage1 Pro forma 36.1%2 40.2% Adjusted ICR /ICR (times)3 3.47 3.89 Average cost of debt (all-in)4 3.8% 3.7% Average debt maturity (years) 2.33 2.53 % of debt hedged to fixed rate interest 63.0% 63.0% % of Green Loan of total borrowings5 55.6% 49.8% U
Slide 19: Debt Maturity Profile and Composition of borrowings
Composition of borrowings Debt Maturity Profile as at 30 September 2023 as at 30 September 2023 Figures in parentheses denote the debt amount of that FY as a percentage of total borrowings Unsecured bank borrowings Secured bank borrowings MTN MTN 3.2% S$553.0 million S$513.5 million (25.0%) S$474.1
Slide 20: Investment properties appraised values
30 September 2023 30 September 2022 Investment properties Appraised value Appraised value Appraised value Appraised value Cap Rate Cap Rate (S$ million) (S$ psf NLA1) (S$ million) (S$ psf NLA1) Causeway Point 1,336.0 3,183 4.75% 1,323.0 3,152 4.75% Northpoint City North Wing 782.0 3,946 4.75% 778.0
Slide 21: Distribution for April 2023 to September 2023
Distribution for 1 April 2023 to 30 September 2023 Distribution per Unit 6.020 S cents Ex date 9.00 a.m. on 2 November 2023 (Thursday) Books closure date 5.00 p.m. on 3 November 2023 (Friday) Payment date 29 November 2023 (Wednesday) We are Frasers Property 21
Slide 22: Portfolio highlights
Northpoint City, Singapore Portfolio highlights
Slide 23: Improved committed occupancy
Improved committed occupancy Retail Portfolio committed occupancy at 99.7%1 (▲2.2%-pt y-o-y and ▲1.0%-pt q-o-q) ▪ Note: Any discrepancies between the individual amount and the aggregate is due to rounding. 1. Excludes Tampines 1 due to ongoing AEI works. We are Frasers Property 23
Slide 24: Improved income performance across the portfolio
Improved income performance Broad-based improvement in revenue and NPI across the portfolio1 ▪ Note: Any discrepancies between the individual amount and the aggregate is due to rounding. 1. Excludes Tampines 1 due to ongoing AEI works and NEX which was acquired on 6 February 2023 (in FY23) and its F
Slide 25: Higher y-o-y portfolio tenants' sales
Higher y-o-y portfolio tenants’ sales ▪ Portfolio tenants’ sales1 for FY23 was 7.3% higher than FY22, and averaged approximately 17% above pre-COVID levels ▪ Portfolio shopper traffic1 for FY23 was 24.7% higher than FY22 1. Excludes Tampines 1 (due to ongoing AEI works) and NEX (September tenants’ s
Slide 26: Portfolio composition
Portfolio composition Portfolio composition and essential trade mix underpin resilience and stability FY23 – Valuation by Property1 FY23 – Retail Portfolio Trade Mix by GRI 1,4,5 Central Plaza Yishun 10 3.4% Essential services c.53% White Sands 0.5% 6.7% Causeway Point F&B Hougang Mall 6.8% 20.8% No
Slide 27: Better rental reversions with healthy leasing demand
Better rental reversions with healthy leasing demand Stronger rental reversions compared to FY22 ▪ FY23 Retail Portfolio rental reversion in FY23 at +4.7%1 versus FY22 at +4.2%2, on an average versus average basis NLA No. of Renewals / Average vs average Property As percentage of New Leases Area (sq
Slide 28: Improving Retail Portfolio occupancy cost
Improving Retail Portfolio occupancy cost Tenant mix curation and targeted marketing to improve space productivity ▪ ▪ ▪ Retail Portfolio Occupancy Cost2 19.2% 17.0% 17.5% 16.6% 16.2% 15.6%1 FY18 FY19 FY20 FY21 FY22 FY23 (Affected by Circuit Breaker) 1. Excludes Tampines 1 (due to ongoing AEI works)
Slide 29: 72 New-to-Portfolio tenancies in FY23
72 New-to-Portfolio tenancies in FY23 Underscores the robust demand for suburban prime retail space New-to-portfolio brands in various malls TONKATSU BY MA MAISON – Tiong Bahru Plaza BAE.GAL BY SWEE HENG – Century Square MIXUE – Century Square FRUIT PARADISE – Changi City Point GASHAPON BANDAI – NEX
Slide 30: Great turnout for the various events in our malls
Great turnout for the various exciting events in our malls Multiple initiatives and programs to engage the community Teochew Treasures at Hougang Mall National Day Celebration at Tiong Bahru Plaza In partnership with Teochew Poit Ip Huay Kuan, Hougang As the venue sponsor for Mall celebrated the ric
Slide 31: Great Turnout for the Various Events in Our Malls
Great Turnout for the Various Exciting Events in Our Malls Multiple initiatives and programs to engage the community Tokidoki Summer Party at Waterway Point Local Meets Global Food Fair at Bouncing good time at Tiong Bahru Plaza Tokidoki’s Fun Village, featuring a giant inflatable Tiong Bahru Plaza’
Slide 32: Tampines 1 AEI
Tampines 1, Singapore Tampines 1 AEI
Slide 33: First batch of AEI units to commence operations from December 2023
Tampines 1 AEI First batch of AEI units to commence operations from December 2023 onwards First batch of AEI units to commence operations • Mall continues to operate as works are staged; exciting line-up of events and promotions to continue drawing shoppers to the mall • First batch of AEI units to
Slide 34: Sustainability highlights
Waterway Point, Singapore Sustainability highlights
Slide 35: Leveraging innovation and technology for operating cost reduction
Leveraging innovation and technology for operating cost reduction Projected annual savings of ~S$1 million from various initiatives (excluding DDC) Distributed District Food waste SMART Lifts Water valve Cooling (DDC) valorisation (Remote Monitoring & Diagnostic) efficiency initiative Processing Bui
Slide 36: Towards Frasers net-zero carbon goal
Towards Frasers net-zero carbon goal Various initiatives to drive progress towards achieving net-zero carbon by 2050 Green Mark Green GRESB Green Green Certified Properties Financing Benchmark Mobility Energy • 10 Retail Malls & 1 Office 55.6% of FCT’s borrowings • Achieved highest 5-Star Electric V
Slide 37: Other ESG initiatives
Other ESG initiatives Fostering interactions with the community to build inclusiveness, sense of belonging and connections Inclusion Champion Inclusion Transformation Community consultation Shoppers, Tenants And Program Programme with four disability groups Employees Engagement 29 Dementia Go-To Poi
Slide 38: Summary
NEX, Singapore Summary
Slide 39: Summary
Summary Achievements Going forward ✓ Strong FY23 results on robust operating ▪ Remain positive on the outlook of Singapore suburban performance prime retail sector ✓ Healthy capital management position with ▪ Multiple factors to help mitigate impact from headwinds aggregate leverage at 36.1%1 ▪ Focu
Slide 40: Appendix
2 GH Rint TRUST Appendix
Slide 41: Definition of terms used in this presentation
Definition of terms used in this presentation ▪ %-pt: percentage-point ▪ Moody’s: Moody’s Investors Service (credit rating agency) ▪ 1H22: Six months ended 31 March 2022 ▪ MTN: Medium Term Notes under FCT’s S$1 billion multi-currency MTN programme or the ▪ 2H22: Six months ended 30 September 2022 S$
Slide 42: Top 10 tenants for Retail Portfolio
For Retail Portfolio1, excluding CSFS area No. Tenants As % of total GRI As % of total NLA 1 NTUC Fairprice2 5.8% 8.7% 3 2 Breadtalk Group 3.4% 3.0% 3 Dairy Farm Group4 1.8% 1.4% 4 Courts (Singapore) Pte. Ltd. 1.5% 2.0% 5 5 Hanbaobao Pte. Ltd. 1.5% 1.0% 6 Metro (Private) Limited6 1.4% 2.4% 7 R E & S
Slide 43: Trade Categories for Retail Portfolio
For Retail Portfolio1 Trade Categories As % of total NLA As % of total GRI (by order of decreasing % of total GRI) Food & Beverage 30.1% 37.5% Beauty & Healthcare 10.7% 14.5% Fashion & Accessories 11.3% 12.0% Sundry & Services 6.0% 8.2% Supermarket & Grocers 11.0% 6.3% Information & Technology 2.
Slide 44: Well-spread lease maturity profile
Well-spread lease maturity profile No concentration risk in FY24 Lease expiry profile of FCT Retail Portfolio as % of total GRI WALE1,2 @ 30 September 2023 • 1.96 years by NLA (3Q FY23: 1.94 years) • 1.82 years by GRI (3Q FY23: 1.86 years) 31.2% 29.3% 29.7% 27.4% 27.3% 27.4% Lease expiry as at 30 Ju
Slide 45: Lease expiry by property
Lease expiry by property 29.3% of leases (by GRI)1,2 expiring in FY24 Lease Expiries in FY24 Number of expiring Leased area of expiring As % of leased area of As % of total GRI of (As at 30 September 2023) leases leases (sq ft) property property Causeway Point 77 162,019 38.8% 36.6% Waterway Point 6
Slide 46: FCT's suburban retail malls are well-connected to transport network
FCT’s suburban retail malls are well-connected to transport network Supports shopper traffic and retailers’ demand for prime retail space FCT’s retail malls are well-connected to the MRT network and public transport hubs Northpoint City Causeway Point North Wing Connectivity to public transport Acce
Slide 47: FCT's retail malls are located in low retail space per capita areas
FCT’s retail malls are located in low retail space per capita areas Lower competition within established catchment FCT’s retail malls serve precincts with relatively low retail space density Singapore’s retail space per Outer North NLA per Capita (2026) capita at 6.4 sq ft NLA is 2.3 ▼ 2.2 Low High
Slide 48: Inspiring experiences, creating places for good.
Inspiring experiences, creating places for good.
Frasers Centrepoint Trust — FY2023 Earnings Presentation on 6ix